Ford Motor Co. will invest C$1.95 billion ($1.46 billion) in its Oakville and Windsor plants in Canada as part of a tentative deal with Canadian autoworkers, Unifor union National President Jerry Dias said on Tuesday.

The deal includes retooling the Oakville plant to build five electric vehicle (EV) models between 2025 and 2028, with the first EV rolling off the assembly line in 2025, Dias said.

Credit Suisse analyst Dan Levy said the deal is beneficial for Ford as it averts a strike at the U.S. automaker's Canada plants and addresses spare capacity.