Ford Motor Canada To Cut 500 Jobs In Oakville Plant Over Weak U.S. Demand For Crossover Utility Vehicles

Oakville, Ontario (AHN) - Ford Motor Canada will reduce its Oakville workforce by 500 due to weak U.S. demand. The car manufacturer will remove the third production shift at its body and paint shops of its Oakville Assembly Complex starting Oct. 1.

The facility has been plagued by job losses and plant closures because of uncertainty of sales for crossover utility vehicles made at Oakville as gas prices in the U.S. average $3.50 a gallon.

Previously, a third shift at Ford's Oakville facility was removed in its final assembly operation.

To sweeten the job losses, Ford offered $75,000 buyouts and retirement benefits and $35,000 car allowance to workers from its Oakville and Windsor facilities and parts warehouse in Brampton.

Seizing the Ford lay-offs as a political opportunity, NDP Leader Jack Layton promised to create 40,000 manufacturing jobs at a cost of $8 billion over a four-year period in a bid to stop Canadians from seeking jobs overseas.

Prime Minister Stephen Harper admitted the government could not save the jobs of the 500 Oakville staff about to become unemployed. He told the media, "I think you have to be honest with people. The government can't go in and say 'we can guarantee your job.' We can't guarantee your job."

The prime minister vowed to focus government efforts on creating new jobs that will last longer in the coming days.