Ford announced last week a major shift in its EV strategy, which is expected to result in a $19.5 billion impairment charge over the coming quarters.
As part of this update, the company said it will halt production of electric vehicle LFP batteries and instead redirect investment toward energy storage solutions.
Earlier this year, the Detroit automaker unveiled its $5 billion Universal EV Platform.
The company announced last August it would begin production of these batteries in a dedicated facility at Ford‘s Louisville Assembly Plant, through its joint venture with Korean manufacturer SK On — BlueOval SK.
However, just four months later, the chief executive Michael Adams informed employees that nearly 1,600 jobs (the entire workforce) in Kentucky would be cut, without specifying when the layoffs would occur.
According to Western Kentucky University’s (WKU) Public Radio on Monday, the joint facility will be halting operations by February 14.
At the same time, Ford plans to hire 2,100 employees for the new production phase, with a spokesperson stating that all those who were laid off will have “the opportunity to apply” for these jobs.
The plant is not expected to begin operations until 2027, as removing the EV battery equipment and retooling the facility for battery storage will take approximately 16 months.
Employee Complaints
However, according to employee accounts shared on WKU this week, several of these workers are reluctant to return to Ford’s payroll.
Prior reports have shown that worker concerns over pay and safety at BlueOval SK’s plant in Kentucky have led to lawsuits and union organizing.
In February, workers petitioned the National Labor Relations Board for a vote to join the United Auto Workers — which represents Ford employees across the United States.
For more than a year, workers have raised concerns about conditions at the facility, including mold, bat infestations, insufficient protective gear, fires, and exposure to hazardous chemicals.
In late September, a lawsuit was filed against the company, which alleged violations of the Fair Labor Standards Act and Kentucky wage and hour laws.
The suit claimed that BlueOval SK altered or rounded employees’ clock-in and clock-out times and failed to pay overtime for work performed outside scheduled shifts.
August—December
Ford announced in early August that the Louisville Assembly Plant will be the launch site for a new generation of electric vehicles built on the company’s Universal EV Platform.
In August, the Detroit automaker said it aimed at “creating or securing nearly 4,000 jobs” across Louisville and Michigan’s BlueOval Battery Park.
The plant expansion in August, to support production of EV batteries, was supported by an incentive offer from the Kentucky Economic Development Finance Authority.
Andy Beshear said last week he is in “direct contact” with Ford, but said that the current focus of the state is on “helping the affected BlueOval employees find new jobs.”
Additionally, his office is reviewing the terms of the incentive agreement signed earlier this year with the automaker.
The state of Kentucky had agreed to give BlueOval an interest-free loan of $250 million if the company employed 2,500 people by 2026 and 5,000 by 2030.
The batteries produced in Louisville were set to power the fully electric Ford F-150 Lightning, for which production has now been definitively halted by the company.
Manufacturing operations for the model had been suspended for two months already, disrupted by a fire at one of the aluminium suppliers.
