Ford scraps EVs at BlueOval City in TN, has new plan for site

Ford is abandoning plans to build certain larger electric trucks at its BlueOval City campus in Stanton, Tennessee, and will repurpose the Tennessee Electric Vehicle Center into the Tennessee Truck Plant to produce gas-powered "Built Ford Tough" trucks with production slated to begin in 2029, a shift the company attributes to lower-than-expected EV demand, high costs and regulatory changes. The decision reduces the site's expected employment from 3,300 to 2,300 (excluding 71 salaried hires), follows repeated project delays and coincides with a restructuring of the BlueOval SK joint venture in which SK On will take full ownership and operation of the Stanton battery plant. The moves are part of a broader Ford reallocation toward "higher-return opportunities" — including a new battery energy storage business and repurposing of U.S. battery capacity in Kentucky — while next-generation electric F-150 Lightning production remains planned for Dearborn, signaling a material shift in the company’s EV manufacturing footprint and supplier exposure.

Analysis

Ford announced it will stop producing certain larger electric trucks at BlueOval City in Stanton, Tennessee, repurposing the Tennessee Electric Vehicle Center into the Tennessee Truck Plant to manufacture gas-powered "Built Ford Tough" trucks with production slated to begin in 2029. The company cited lower-than-expected EV demand, high costs and regulatory changes as drivers of the decision and trimmed expected site employment from 3,300 to 2,300 (excluding 71 salaried hires).

The decision follows repeated project delays—originally a 2025 start, then mass production pushed to 2028 with prototypes in 2027—and a Dec. 11 restructuring of the BlueOval SK battery JV in which SK On assumes full ownership and operation of the Stanton battery plant. Ford is simultaneously reallocating battery capacity in Glendale, Kentucky and launching a battery energy storage business while keeping next‑generation F‑150 Lightning production in Dearborn.

The move signals a strategic pivot toward "higher‑return" investments and lower near‑term EV vehicle capital intensity, shifting commercial exposure from vehicle assembly to battery manufacturing partners. This creates downside pressure for suppliers tied to large EV truck builds and regional employment, while potentially improving Ford’s near‑term cash flow and margin profile if cost savings materialize; material execution and regulatory risks remain and should be monitored closely.

Key Decisions for Investors

• Reassess exposure to suppliers dependent on large EV truck volumes and consider reducing positions until Ford publishes updated supplier and production allocations
• Monitor Ford’s upcoming capex and guidance updates as they will indicate the financial impact of the pivot and the timing of any margin or free‑cash‑flow benefits
• Track SK On’s integration and commercial plans for the Tennessee battery plant and consider reallocating toward battery manufacturers or service providers likely to benefit from SK On’s full ownership
• Maintain a cautious stance on Ford equity positions until the company quantifies cost savings, the economics of the gas‑truck program and the scale of the new battery energy storage business