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DETROIT (AP) — Canada has lost to Mexico in a bid to build engines for Ford Motor Co.
Canada wanted 1.5-liter and 1.6-liter engine production for the Ford Fiesta go to Ford's Windsor Engine or Essex Engine plants, which are both in Windsor, Ontario. Unifor, the Canadian auto workers' union, said the deal would have secured more than 1,000 jobs.
But on Friday, Unifor and the Canadian government said they were unable to reach an agreement with Ford on incentives for the new work.
Jake Enwright, a spokesman for Canadian Industry Minister James Moore, said Ford recently made an "unprecedented request" but gave no details.
"After weeks of discussions it was determined that the terms laid out in Ford's proposal were not in the best interest of Canadian taxpayers," Enwright said in an emailed statement.
Ford wouldn't comment on the decision.
Unifor President Jerry Dias expressed disappointment with the Canadian government.
"The auto industries that are flourishing around the world are ones where there is a deep commitment from government and an understanding of the importance and wisdom of investment — which always pays dividends," Dias said.
The Essex and Windsor engine plants employ around 800 people each. They currently make V8 and V10 engines for Ford trucks, vans, SUVs and the Mustang sports car. But the new, smaller engines would have guaranteed new hiring and investment.
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