The state of Kentucky is facing a significant setback after its $250 million investment in the BlueOval SK electric vehicle battery plant in Glendale resulted in layoffs for all 1,600 employees. This development comes as Ford shifts its strategy away from electric vehicles.
Despite the state’s substantial financial commitment, the future of the Glendale facility is now uncertain. The layoffs occurred after several postponements and the cancellation of plans for a second plant, known as “Kentucky 2.” The cutbacks were announced just four months after the start of production at the plant, which was part of a broader initiative to boost job creation through a $250 million interest-free, forgivable loan to BlueOval SK.
In 2021, Kentucky legislators approved Senate Bill 5, reallocating $350 million from the general fund to support major economic projects through forgivable loans. Kevin Bratcher, then a state representative and now a member of the Louisville Metro Council, was among those who supported the bill. Reflecting on the situation, Bratcher stated, “We wanted to help Ford. It’s starting to look like it might’ve been a mistake now.”
Under the agreement with BlueOval SK, the company pledged to create 2,500 jobs by 2026 and 5,000 by 2031. However, the Glendale plant is not projected to reopen until late 2027, employing only 2,100 workers, falling short of the initial 2026 target. Bratcher emphasized that if the company does not fulfill its commitments, the state should pursue repayment, saying, “They should give the money back—that’s what I say. Now, there’s no law that says they have to do that.”
Governor Andy Beshear indicated ongoing discussions with Ford, stating, “We are talking with Ford about it right now. Ford is taking the position of the joint venture. Now we have to look at overall numbers of employees and when they think they’ll hit them for the number of years, so those are ongoing discussions.” However, Ford has yet to respond regarding the repayment of funds.
The governor also pointed to federal policy changes and singled out Congressman Brett Guthrie, blaming them for the difficulties faced by the EV industry. Beshear remarked, “With what the President did in the big ugly bill, with what Brett Guthrie did—because this is in his district—in passing it they took a hatchet to the EV industry where we’ve become a national leader.”
Guthrie, in turn, accused Beshear of deflecting responsibility, attributing the situation to the policies of the Biden-Harris Administration. He stated, “Governor Beshear is once again trying to deflect from the fact that the policies he and the Biden-Harris Administration championed have made life more expensive and limited choice for the American people.” Guthrie expressed confidence in Ford’s long-term plans for the Glendale facility, stating, “I am confident in Ford’s commitment to growing the number of jobs at the Glendale facility over the next several years.”
More Coverage:
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Original Story at www.wdrb.com