LOUISVILLE, Ky. (WDRB) -- Ford Motor Co. will scale back electric vehicle production but Kentucky remains a focal point in the future of the company with the launch of multiple gas vehicles at the plant.
The company said it won't build fully electric three-row SUVs due to battery costs. It'll instead focus on making the SUVs as gas-electric hybrids while manufacturing two new electric pickup trucks and a new commercial van.
The changes will force Ford to write down $400 million of its current assets for big electric SUVs, and it also expects to have additional expenses of up to $1.5 billion.
Ford also has pushed back the launch of a new electric pickup truck until 2027.
"Right now, we are in the transitional period between early adoptor and mainstream electric vehicles," Sam Fiorani, analyst with AutoForecast Solutions, said. "The next wave of people, the mainstream buyers, just need good decent transportation, and so you have to convince them to buy an electric vehicle and this transitional period for the next 10-15-20 years it is going to take a long time to get the market transitioned over to electric vehicles."
The company is also decreasing it's yearly spending dedicated to fully EV vehicles to around 30% from its original 40%.
"Kentucky is critical to the future of Ford and our largest employee base in the U.S. outside of Michigan. Our two plants in Louisville produce some of our most iconic and successful vehicles," Ford President and CEO Jim Farley said in a written statement. "Next year, we will launch an all-new Ford Expedition and Lincoln Navigator at Kentucky Truck Plant alongside our industry-leading F-Series Super Duty. The BlueOval SK battery joint venture in Kentucky will be a critical supplier as we advance our electric vehicle strategy."
Production of the van will start at a plant west of Cleveland in 2026.
Two BlueOval SK vehicle battery plants are under construction in Hardin County as part of an investment from Ford and the South Korean company.
BlueOval SK's first battery plant is on track to open in 2025, but equipment, hiring and production are indefinitely delayed at the second factory. However, Kentucky's deal gives BlueOval SK until the end of 2030 to reach the full 5,000-job target for the battery campus.
Ford said the BlueOval SK joint venture's Kentucky 1 plant will manufacture cells for the current E-Trainsit and F-150 Lightning starting in 2025. This will deliver "significant cost improvements" coming online earlier.
Shelby County has also reportedly been looked at as a possible site for a Ford manufacturing plant.
It would be a $400 million investment, and would qualify for millions in state tax credits. The plant is expected to create up to 260 jobs, with an average hourly wage of $36, including benefits.
Related Stories:
- Kentucky governor says workers at Ford EV plants in Hardin County won't be part of union
- Gov. Andy Beshear travels to South Korea to meet with leaders at BlueOval SK
- Kentucky's EV battery manufacturing plans face uncertainty amid consumer skepticism
- Beshear, community leaders officially open employee training center for Ford EV plant in Hardin County
- Kentucky walks back new tax on many electric vehicle chargers
Copyright 2024 WDRB Media. The Associated Press contributed to this report. All Rights Reserved.
