All 1,600 Kentucky battery plant employees laid off as Ford pivots away from EV business [View all]

[Bayard]

LOUISVILLE, Ky. (WDRB) -- All 1,600 employees of the brand new electric vehicle battery plant in Kentucky will be laid off before Ford converts it to manufacture batteries for data centers and other utilities.

Ford will turn the Glendale factory into a battery-storage business for customers such as utilities, wind- and solar-power developers, and massive data centers that train artificial intelligence, the Wall Street Journal reported Monday. And Ford announced Monday it plans to begin shipping the battery energy storage systems from its Kentucky and Michigan plants in Late 2027, a shift to "higher-return opportunities." In total, the company said it'll take a $19.5 billion hit to its profit as it transitions away from the EV business.

"Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting," Ford Chief Executive Jim Farley said in an interview with the WSJ. In a video statement sent to employees Monday, Michael Adams, CEO of BlueOval SK — the original joint venture between Ford and SK On — said this shift would lead to "the end of all BlueOval SK Positions in Kentucky." Adams didn't give a timeframe for those layoffs, though he said employees will have access to benefits and continue to receive paychecks for the next 60 days.

Ford plans to hire 2,100 employees for the new iteration of the Glendale plant, and a company spokesperson said Monday that all those laid off will have the "opportunity to apply" for those new jobs. "This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," Farley said in a news release Monday. "The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business." In an interview with WDRB News in June, Adams said they were prepared to pivot away from their original business if the demand for EVs proved to not meet their production."

Kentucky Gov. Andy Beshear said through a spokesperson Monday that the state will remain the "EV battery capital of the U.S. ... despite the President's shortsighted attacks on the industry." Beshear said he's in direct contact with Ford leadership on a restructured future project. "Right now, our primary focus is helping the affected BlueOval employees find new jobs," he said. "Team Kentucky is coordinating with company and community leaders to directly support these employees, in addition to planning job fairs and creating a website offering resources." Beshear's office said the terms of the incentive agreement are being renegotiated. "We are talking with Ford about it right now," Beshear said during an event in Louisville Monday evening.

According to the Wall Street Journal, Ford has lost $13 billion on its EV business since 2023.

https://www.wdrb.com/news/business/ford-will-lay-off-all-1-600-kentucky-battery-plant-employees-as-it-pivots-away/article_32ef2a58-eb9d-4bf4-820d-c2417b6793ea.html


Thanks again, Big Orange Turd.