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Ford EV production push receives another shove

Oakville Electric Vehicle Complex will begin to retool and modernize in the second quarter of 2024 to prepare for production of next-generation EVs. This marks the first time a full-line automaker has announced plans to produce passenger EVs in Canada for the North American market.

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Ford has announced yet another investment in EV production, which will be critical if the automaker hopes to achieve its ambitious production targets.

Ford received terrible news from its first quarter sales results; its long-time rival General Motors had surpassed it in EV sales, meaning the Blue Oval was no longer the second-largest EV brand in the United States. Undeterred, Ford announced that it remains on track to deliver on its EV production goals, including an annual run rate of 600,000 EVs this year and a run rate of 2 million by 2026. As part of achieving these goals, Ford has announced a wave of production investments over the past year, and today, it announced yet another.

The American automaker’s newest investment will transform its Canadian Oakville, Ontario plant to produce EVs, with upgrades entering construction as soon as next year. Ford will be spending $1.8 billion Canadian ($1.3 billion USD), though it remains unclear what vehicle the upgraded facility will be producing. In its announcement, Ford states Oakville will focus on “next-gen EVs.”

Currently, the Oakville facility produces the Ford Edge and Lincoln Nautilus, neither of which are electric vehicles. Still, as the company looks to dramatically increase its offerings in North America, Oakville will likely play a vital role.

“Ford of Canada has been a leader in the country’s auto industry since it was founded 119 years ago, driven by hard-working, dedicated employees,” said Bev Goodman, president, and CEO of Ford Canada. “As the top-selling auto brand in Canada for 14 straight years, the successful transition to EV production in Oakville will help deliver stable Canadian employment with the opportunity to build the new skills and expertise to drive Ford and the industry forward.”

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While this plant upgrade will undoubtedly be necessary, it is just a tiny part of a far more extensive upgrade that Ford is currently undergoing worldwide. Its new flagship production location, BlueOval City, is now under construction in Tennessee and will start producing battery cells and next-generation electric vehicles in 2025. Just south of there, in Kentucky, Ford is assembling another battery production plant thanks to a joint venture with SK On. This facility will be opening alongside its flagship sibling.

Moving west, Ford has three other massive projects in North America, including an all-new LFP battery facility in Michigan, an enormous set of upgrades coming to its historic Rouge plant in Dearborn, producing the popular F-150 Lightning, and even production upgrades coming to its Mexican facility in Cuautitlan; producing the Mustang Mach-E.

Even Ford Europe is gaining massive upgrades, most notably starting in Cologne, Germany, which will produce the new Explorer EV, but also in Turkey, which will produce battery cells for the automaker on the continent.

With Ford’s massive EV production investments being realized over the next couple of years, Ford has positioned itself well to capitalize on the wave of EV demand expected soon. Hopefully, it can serve as a successful example for their competitors to transition to EVs as well.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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