OTTAWA—Ford Motor Co. of Canada has reached a tentative deal with its 5,400 unionized employees in Canada, in a settlement that also secures a nearly $1.5 billion investment in two plants and a commitment to build electric cars in suburban Toronto.

The president of Unifor, Canada’s largest private-sector union, revealed the details at a press conference Tuesday. Ford’s Canadian unit issued a brief statement, saying a tentative three-year deal is subject to ratification by union members. Until ratification, it wouldn’t comment…


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