Ford Is Working On A New 6.8-Liter Engine For The Mustang

Its being reported that "the president of a major Canadian trade union for auto workers [Jerry Dias] said point-blank that a Ford 6.8-liter engine is coming, and that it will be used in the Ford F-150 and Mustang." The news broke at Unifor press conference held on Sept 23, 2020.

The new Mustang engine was also confirmed in a Unifor press release and commitment letter:

Unifor members ratify historic agreement with Ford Motor Company
TORONTO—Unifor members working at Ford Motor Company voted 81% in favour of new three year collective agreements that include $1.95 billion in investments to bring battery electric vehicle (BEV) production to Oakville and a new engine derivative to Windsor, along with other significant gains.

“This is the single biggest investment in the Canadian auto industry in years providing long-term job security for Unifor members,” said Jerry Dias, Unifor National President. “The vote result not only demonstrates our members’ overwhelming support for their bargaining committees and their new collective agreement, but also shows Unifor members have a clear vision of a strong and prosperous Canadian auto sector.”

Highlights of the deal include $1.8 billion to retool and build new battery electric vehicles in Oakville, including a crossover utility vehicle (CUV), and $148 million for Windsor powertrain facilities. Ford has committed to source new 6.X L engines to the Windsor Engine Plant and sole source 5.0L engine assembly and current component machining to the Essex Engine plant, along with any derivatives.

“This agreement is perfect timing and positions our members at the forefront of the electric vehicle transformation, as the Oakville plant will be a key BEV supplier to the North American and European Union markets,” said Dias.

The union also negotiated a five per cent wage increase over the life of the agreement, along with a four per cent lump sum, a productivity and quality bonus of $7,250, inflation protection bonuses and major changes to the New Hire Program, including an 8-year wage grid, and re-instatement of afternoon and midnight shift premiums.

A 20 per cent wage differential has also been re-instated for skilled trades workers and many improvements to benefits have been negotiated along with paid domestic violence leave and a racial justice advocate.

“We went into bargaining with two major priorities, to secure new product allocation and make progress on wages and working conditions for our members, and I think it’s safe to say we hit a home run on both fronts,” said John D’Agnolo, Chair of the Master Bargaining Committee. “We want to thank the bargaining team, our local leadership, and the members who showed unwavering solidarity through some very intense weeks of bargaining.”

Talks with Fiat Chrysler begin later this week. A digital media kit can be found on this website.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

For media inquiries or to arrange interviews via Facetime, Zoom, or Skype please contact Unifor Communications National Representative David Molenhuis at [email protected] or (cell) 416-575-7453.

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FORD OF CANADA PRODUCT AND INVESTMENT COMMITMENT LETTER

Mr. J. Dias
National President
Unifor
205 Placer Court
Toronto, ON
M2H 3H9

Dear Mr. Dias:

During 2020 negotiations, Unifor leadership clearly stated their desire to maintain a strong Canadian manufacturing footprint, particularly with respect to investment and product allocation at Oakville. The parties acknowledged that this is a period of significant change in the automotive industry with the rapid development and implementation of new technologies such as electrification, autonomous driving, and connected vehicles. In the context of such change, the company and union agreed that a viable and thriving automotive industry in Canada is predicated on both competitive operational practices and government support in order to build a strong business case for future investment. As a result of these discussions the company outlined its planned commitment for the Canadian operations to the union.

Windsor Operations:
In addition to the expected continued production of the 7.3L engine throughout the life of the agreement, a new 6.xL engine is planned to launch in 2022 at Windsor Engine Plant (WEP).
The company confirmed its intention that the Essex Engine Plant will remain the sole source for all 5.0L engine assembly and current component machining, and any potential derivatives from its base architecture.
The company also confirmed its intention to continue production of the Nano cylinder heads at the WEP Annex for the duration of this collective agreement.
Expenditures related to Windsor investment: $148,000,000.00 (CAD).

Oakville Assembly Complex:
Notwithstanding the previously discussed balance out of the Nautilus planned for the 2nd quarter 2023, the company confirmed the expected continued production of the existing FWD Edge through the 2nd quarter 2023 and the AWD Edge through the life of the collective agreement.
Contingent on necessary agreements made in partnership among the company, the union and federal and provincial governments - including implementation of this collective agreement and government incentives to support facility re-tooling, installations and re-arrangements - the company plans to transform OAC from traditional internal combustion engine (ICE) vehicle production into a battery electric vehicle (BEV) assembly facility for the future production of BEVs, currently planned to commence in 2024, with plans to launch the first BEV in 2026. The total impact of this plan is estimated at up to 3,000 new or secured jobs at OAC by 2027 and approximately $1,800,000,000.00 (CAD) of expenditures or investment.

Other Locations:
The company advised the union that it plans to sell the existing Bramalea Parts Distribution Centre during the life of the collective agreement and exit its warehousing operations at that facility. The Company will lease two (2) new parts depot facilities for its warehousing operations, one west of the Greater Toronto Area (GTA), and the other in the Ottawa, Ontario area.
When considered in totality, the planned investment provided by the company in its Canadian operations will be approximately $1,948,000,000.00 (CAD).
The parties recognize that for the Canadian automotive manufacturing industry to remain competitive, contributions from Industry, Unions and Government are necessary. Accordingly, the union agreed that it would partner with the company to approach provincial and federal governments to obtain financial incentives that will support the business case and contribute to the success of this vision as set out in the letter.

Yours very truly,
FORD MOTOR COMPANY OF CANADA, Limited
R.J. Kantautas
Vice President, Human Resources