For months, there have been questions about the future of the Ford plant in Oakville but a new report suggests cash from the federal government may help keep it going.
The Toronto Star reports the government has said it's willing to kick in half a billion dollars to finance electric vehicle production, with some of the money coming from the Ontario government. The exact amount from the province is still being negotiated.
The government reportedly expects the money to be part of a $2-billion investment into the plant.
There have been concerns about the plant's future since an analyst group projected that Ford would stop production of the Edge SUV in 2023, leaving the plant without work.
It employes more than 4,000 people.
The union has been pushing for electric vehicle production. Ford is in the middle of labour negotiations with Unifor.
The Federal government has had concerns about the shrinking auto manufacturing sector. Electric vehicles are also part of it's goal of net-zero emissions by 2050.
A report released in April by the Pembina Institute and the International Council on Clean Transportation found that Canada has lost market share in auto manufacturing and lags behind in EV production.
It said Canada is the world's 12th largest vehicle producer, making about 2 million per year, but only 0.4 percent of them are electric.
Countries including China, the United States and Germany are at 3 to 4 percent.