The Canadian auto workers union says Canada has lost to Mexico in a bid to build engines for Ford Motor Co.
Unifor wanted 1.5-litre and 1.6-litre engine production to go to Ford's Windsor Engine or Essex Engine plants, which are both in Windsor, Ontario. The union says the deal would have secured more than 1,000 jobs.
But on Friday, the union said Canada's federal and provincial governments were unable to reach an agreement with Ford on incentives for the new work.
Ford wouldn't comment on the decision.
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.
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