ASHLAND CITY, Tenn. (WTVF) — 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.
According to a news release put out on December 15, they project that they would need about 1,000 fewer jobs than they initially projected in 2021. The Governor confirmed that was true, during a media availability on Tuesday in Ashland City.
Impact on State Incentives
When asked if the reduced job numbers would change the incentives package, Lee indicated negotiations would begin immediately. "We'll start talking with them right away, as it results to what that package looks like," Lee said. "I think Ford doesn’t know quite yet what the demand will be for this, how many jobs will actually be there. What they do know is they will make the commitment to complete this plant."
Camper agreed that renegotiation might be necessary. "I think we do need to keep that clawback provision, kind of as a carrot in a way, to say — hey, let's negotiate and see what we can do better for the state of Tennessee," Camper said.
Both Lee and Camper expressed hope that Ford might increase job numbers once gas-powered truck production begins in 2029. "Things change, you know, things happen," Camper told NewsChannel 5.
Hope still springs eternal
Despite the changes, both officials remain optimistic about the project's impact on Tennessee. "I think Tennessee is still all in, I think the citizens are still hopeful," Camper said.
"It’s one of the most positive economic pieces of news that’s come to that part of the state in a generation," said Governor Lee.
The new gas-powered truck line isn't expected to begin producing new trucks until the year 2029, four years behind schedule.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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