President Donald Trump’s 25-percent tariffs on all goods imported to the U.S. from Canada and Mexico will kick in for cars and auto parts on April 2nd. According to a report from Automotive News, that will significantly impact the cost of the V8 engines that power the Ford Super Duty line of heavy-duty trucks.
Although the Ford Super Duty models sold in the U.S. are assembled in Kentucky, all of their engines are sourced from Canada and Mexico. The 6.8L and 7.3L “Godzilla” gas V8 engines are both produced at Ford’s Windsor Engine Plant in Ontario. Meanwhile, the turbodiesel Power Stroke 6.7L V8 is produced at the Chihuahua Engine Plant in Mexico.
“They’ve been put in a horrible position. They have no choice but to continue to build the engines because there’s nowhere else to go, which is a good thing for us. But at the end of the day, the company’s going to be punished for it,” Unifor Local 200 President John D’Agnolo said. “It’s unfortunate.” Unifor Local 200 represents about 2,000 hourly workers at Ford’s Windsor, Ontario engine plants.
Barring a massive shift in engine production out of Canada and Mexico and into the United States, every Ford Super Duty engine sold in the States will be subject to a 25-percent tariff. D’Agnolo estimates that the actual tariff cost added to the engines will be $75,000 USD per truckload, which can carry either 45 Super Duty engines or 66 5.0L V8 engines bound for the Ford Mustang or Ford F-150.
“The bigger issue [than the Mustang or F-150] is the Super Duty, which relies on V8 engines,” AutoForecast Solutions vice president of global vehicle forecasting Sam Fiorani said. “Investing in a new production line to supply these heavy trucks with engines would cost hundreds of millions of dollars and take more than a year to get up and running.”
“Ford developed its supply chain based on the USMCA and invested presuming that President Trump negotiated a solid agreement in 2018,” Fiorani continued. “Moving production lines is never cheap, easy, or quick in the automotive industry. Investments are made for and paid off in the long-term.”
GM faces a similar dilemma with its reliance on Canadian and Mexican manufacturing. The GM Oshawa plant in Canada produces about 42 percent fewer Chevy and GMC full-size trucks than the GM Fort Wayne plant in Indiana. There’s also the GM Silao plant in Mexico, which produces approximately 40 percent more units than Fort Wayne.
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“Investing in a new production line to supply these heavy trucks with engines would cost hundreds of millions of dollars and take more than a year to get up and running.”
See if International would tool up and build your motors again?
(We’ll remember the 7.3 and gloss over the 6.0)
That plant was near where I live and was bulldozed a long time ago. It had terrible union and quality problems.
If Trump tries to shut down Canadian manufacturing, you rest assured that there will be no sales in Canada of US vehicles. Canadians will source from Europe, Japan and Korea. They make heavy duty vehicles too, and they can be fast racked for import or even re occupy shut down plants. Trump loses, and so will Americans because there’s no exports.
Canada and Mexico have been stealing USA jobs . It’s time we got some jobs back in the USA
Jobs are not stolen, manufacturers simply seek skilled and reliable workers that they can’t find in the US.
…for less money…
Not less money in Canada.
The question is why the manufactures chose Canada and Mexico in the first place. Which Americans are going to take these jobs?
EPA
I really thought they manufactured those engines in the united states.
I don’t understand the hate towards Canadian auto jobs of the Big 2.5. They are our closest neighbor and ally. They have a high standard of living, pay well for their jobs, have strong environmental and safety standards, and their strength as an economy is a net benefit to the US. They are not stealing auto jobs to get paid a fraction of US auto wages unlike the southern neighbor.
Canadians steal American jobs? Oh people get with it the last trade deal was negotiated by YOUR ahole president saying and I quote ” The best deal EVER” the other reason is because back in the 70s the car manufacturers needed somewhere that could build vehicles and they Not go on strike evey 6 months hence the 70 1/2 Camaro because that year GM shut down the line because of a strike ,read up on it if you Americans can read DUH!!!! Oh by the way we don’t all live in igloos up here and Uncle Donald GFY.
Why am I reading about Ford on a Chevrolet site?
Probably because you need to have a broader view on the tariffs affecting the NA automotive industry. And you can see from the comments section that there are enough people who might find the information useful.
There is an incredible Misunderstanding about tariffs and their impact. No, people are not going to forgo an F250 because the price goes up $1000. The Windsor engine plant is not going to shut down because of it. Nor are Americans going to stop drinking soda sold in aluminum cans because the price of the Canadian aluminum to make the can increases by half a penny. Canadians are overreacting and it is embarrassing.
Why is it ok for Canada to put tarrifs on U.S. goods but it is bad if the U.S. puts tariffs on Canadian goods?
You are barking at the wrong tree. The trade agreement between Canada, USA and Mexico has been negotiated and signed by Trump, so it cannot be bad for the US. He has described it at that time as the greatest in history. How do you dare to question Him?
Believe what the us government says , good luck on that plus canada builds better quality, go look up the Silverado in Oshawa truck, do some research plus you move those plants over in the usayour trucks are going up $15000 why because our dollar is weak and that means the us dollar get more bang for your buck, all the big 3 should build there cars in Ontario because they would see Americans $10 to $20000 per unit.
Canada has the population of California and yet all major manufacturing given to Canada. A joke of a country for a plethora of reasons. Good, i hope the tariffs bring the entire group of fools to their knees or back where they belong. The United States needs a good scrub and a long bath. When the United States gives grovelling Canada 200 billion a year and steals American products and jobs. They can lose all they have and more.
That 200 billions given to Canada is a lie and it was dismantled with facts numerous times. Your comment is showing that you have no values. You simply react to whatever you hate and yo are not smart enough to know what you hate until you are told.
The United States has been sending tens of billions at a minimum to Canada. And like the fraud of sending china billions that is in turn loaned back to the U.S. in a fraud scheme like no other this is precisely the same thing. Perhaps you should get out of bed.
The british wont be destroying the U.S. capital this time. And btw, Trump is far more knowledgeable about what exactly is going on. I dont need some dimwit fool ton contstrue what I personally already know for a fact and Trump is the icing on the cake.
Trump is a punk
Trump is more than a punk, he is a grifter and a felon.
The US does not “GIVE” Canada a cent. Trade deals such as the AutoPact and the USMCA are “NEGOTIATED”. I remember the comment Trump made when HE signed, willingly, the USMCA. “Best deal ever”. Trump is going to screw up everything that’s good for all of North America and a lot of the rest of the world. Only the middle income folks, especially here in the US, are going to suffer. Damn shame! Watch. The entire world is just going to eliminate the US as either a supplier or a customer. Look at what is happening with Tesla.
If you want your Social Security and you 401k to tank, support Trump. There is no 20yr old American that WANTS to work in a factory. They all want to get rich off Tik Tok doing absolutely nothing productive. What a world we have created and worse, allowed. Social media is the plague of the planet, far worse than global warming.
Thank God for Trump!! Canadians have always been liberal and delusional. Like the cry baby French (worse than Canadians) they will constantly protest everything. Equal percentages is fare for everyone. Simple math. Why do Canadians get to pick and choose what they want to save in Canada by over tariffs on USA imports? Liberal cry babies. Liberal means they can do whatever they want and cry and throw a fit when something doesn’t go there way. Equality means equal tariffs. If Canadians were true “friends” they would quit crying and remove or equal tariffs on USA goods.
This will teach these companies about being so damn greedy. Sure, reduce operating costs, but not at the expense of you actually being able to make things domestically. It makes no sense. Right now, the United States is in a bad position, because we hardly make anything here. Most of the factories are gone. All to save a little bit of money mostly for themselves. If there really was another world war, the USA might be screwed simply because we can’t really make anything here. These companies are living in a bubble, propped up by cheap labor in other countries. Some of that needs to come to an end.