Ford Motor Company announced major changes to its Blue Oval City project in Haywood County, shifting production from all-electric pickup trucks to gas-powered vehicles. The change has prompted discussions about renegotiating the $500 million state incentives package.
Why the change?
Governor Bill Lee received word directly from Ford’s CEO Jim Farley on December 15 about the production shift. Lee attributed the change to evolving consumer preferences in the automotive market. “As the market changes, a company like Ford has a decision to make, and they decided they are going to continue to invest here,” Lee said.
State Rep. Karen Camper, the Minority Leader in the House and a Democrat from Memphis, attributed the production shift to President Trump’s plans to roll back electric vehicle tax credits implemented by the previous administration. “This President, he wants to roll back some of the things the prior President did,” Camper said.
Less jobs projected
The original 2021 announcement generated significant excitement across Tennessee. Bob Rolfe, former Tennessee Economic and Community Development Commissioner, called it “the largest project in the state of Tennessee’s history” at the time.
However, the production change appears to reduce the expected job creation. The original incentives package required Ford to create nearly 6,000 permanent jobs by 2030. That factored in both the Ford production facility and the neighboring battery production plant. That battery plant was originally a joint venture between Ford and SK On. SK On will now proceed with the plant on its own…