Owing to the rising demand for fuel efficient vehicles,
Ford Motor Co.
) announced that it is planning to invest C$700 million ($685
million) to modify the Oakville Assembly plant, located at
Ontario, Canada, according to media reports. The plant will focus
on production of Ford's Edge SUV, which is witnessing high demand
as it provides 30 miles per gallon on highway.
Other than Edge SUV, the plant also produces Ford Flex, Lincoln
MKX and Lincoln MKT vehicles. The automaker has sold 130,000
vehicles to date this year.
Ford expects higher demand for its vehicles going forward and
this modification of the plant will support the automaker in
adjusting the production of various cars according to the needs
of consumer. The plant will continue with its workforce of 2,800
employees and the upgrade is expected to be completed by the
second half of 2014. The company will export vehicles outside
North America from the Oakville plant.
Ford's EcoBoost engine is witnessing rising demand as it caught
the fancy of consumers. As a result, the company recently
announced crossing the milestone of manufacturing 2 million of
these fuel-saving engines. The automaker presently produces over
100,000 engines per month on an average, a 54% surge from 65,000
units produced in 2012.
Ford EcoBoost promises fuel efficiency, which perhaps is what
most consumers look for. EcoBoost technology offers
turbocharging, direct injection and variable valve timing. Ford
EcoBoost engines, which are comparatively smaller in size, offer
20% more fuel efficiency compared to the larger-displacement
The EcoBoost engines are now available in 1.0-liter
three-cylinder; 1.5-liter, 1.6-liter and 2.0-liter four-cylinder;
and 3.5-liter V6 versions. Greater acceptance of EcoBoost
technology will boost the demand for Ford's EcoBoost-powered
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). Volkswagen carries a Zacks Rank #1 (Strong Buy), while Nissan
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