Ford announced plans on Monday to scrap production of a next-generation electric truck model at its Tennessee BlueOval City and instead manufacture an all-new gas-powered truck model starting in 2029.
“These new affordable gas-powered trucks will broaden Ford’s truck family and extend its market leadership, replacing the previously planned next-generation electric truck,” Ford said in a statement.
With the production shift, Ford is renaming the Tennessee Electric Vehicle Center at the BlueOval campus to the Tennessee Truck Plant.
Ford CEO Jim Farley said the production shift is “a customer-driven shift to create a stronger, more resilient and more profitable Ford.”
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities,” Farley added.
The automotive company’s announcement was cheered by U.S. Senator Marsha Blackburn (R-TN), who said it is “great news” Ford is “giving customers what they want.”
“We look forward to seeing more affordable pickup trucks built at BlueOval City,” added Blackburn, a candidate in the 2026 governor’s race.
Ford’s announcement comes days after the American automotive company and South Korean battery maker SK On announced an end to its U.S. joint venture.
As part of the company’s split agreement, SK On will take full ownership and take over all operations at BlueOval City’s battery manufacturing facility, BlueOval SK Battery Park, where it still plans to supply battery cells to Ford and other various customers and manufacture energy storage systems.
“The production start schedule for the Tennessee plant remains flexible at this time, as it is related to the ownership transition,” SK On said in a statement obtained by CNBC.
BlueOval City was announced in 2021, when Ford said it would invest a total of $5.6 billion in the Stanton area for its 3,600-acre campus.
The Tennessee General Assembly approved $884 million in incentives for Ford’s project during a special legislative session in October 2021.
Once fully operational, BlueOval City was anticipated to employ approximately 6,000 workers across the campus’ vehicle and battery manufacturing facilities; however, those estimates are unclear following Monday’s announcement.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Ford Workers” by Automotive Rhythms. CC BY-NC-ND 2.0.
