Ford Motor Company’s announcement of a multi-billion dollar investment in new factories near Memphis represents one of the most significant economic development moves in this region in recent years. Here’s a summary of what we know.
What exactly is Ford building in Tennessee?
The Michigan-based motor vehicle company is building a big factory that will produce F-series electric trucks, and it’s working with the South Korean company SK Innovation to build a factory to produce vehicle batteries. The total investment is an estimated $5.6 billion.
The truck plant is expected to employ about 3,200 people, the battery factory about 2,500 more people, said Kumar Galhotra, Ford’s president for the Americas & International Markets Group.
Other suppliers may eventually locate near these factories.
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Where is this happening?
Both factories will be constructed at the Memphis Regional Megasite, which is in Haywood County, about 50 miles northeast of Memphis. It’s a state-owned industrial park that was designed specifically to attract a project much like this one. Ford plans to call the new factory park “Blue Oval City.”
When does all this happen?
Construction will likely start this year. The Tennessee factories are scheduled to start making products in 2025.
What else is Ford doing with electric vehicles?
The Tennessee campus is part of a larger push by Ford into electric vehicle infrastructure. Ford also announced Monday it’s working with SK Innovation to invest $5.8 billion in two new vehicle battery plants in Hardin County, Kentucky.
And the company said it’s investing a total of $525 million nationwide to train technicians on how to service electric vehicles.
FORD’S PLANS IN KENTUCKY:Ford to create 5,000 jobs with new Hardin County battery plants to power electric vehicles
Why is Ford doing this?
The company leadership says electric vehicles are the way of the future, and they’re investing heavily to make it happen.
“This is a transformative moment where Ford will lead America’s transition to electric vehicles and usher in a new era of clean, carbon-neutral manufacturing,” Ford Executive Chair Bill Ford said in a statement. “With this investment and a spirit of innovation, we can achieve goals once thought mutually exclusive — protect our planet, build great electric vehicles Americans will love and contribute to our nation’s prosperity.”
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What will the jobs in Tennessee pay?
Hiring for many of the factory jobs is years away, and it’s too early to give pay rates, said Kumar Galhotra, Ford’s president for the Americas & International Markets Group.
“They will be competitive, they will be high paying jobs and secure jobs, jobs that are leading into the future,” he said.
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How did Tennessee land the Ford factory?
The short answer is that the Tennessee government spent millions to make an industrial site in West Tennessee attractive to big companies, then competed with other states to land the Ford project.
Both Ford officials and government officials said Tennessee’s commitment to job training was an important element of the success.
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How much is Tennessee subsidizing the project?
Tennessee has proposed paying a grant of $500 million, likely to be split between Ford and the battery maker SK Innovation.
Tennessee Gov. Bill Lee said he plans to call a special legislative session in the next few weeks to approve the payment.
What happens if Ford falls short of job creation goals?
If job creation goals aren’t met, the state has legal means to recover money through a process called a clawback, said Bob Rolfe, commissioner of the Tennessee Department of Economic and Community Development.
The details of the job creation goals and the agreements among the parties were not immediately available on Monday.
Will the factories be unionized?
Ford officials said in briefings with reporters on Monday that the employees of the factories can choose whether to unionize.
However, any union drive will take place in Tennessee. The state government here is hostile to unionization and some high-profile union elections at other auto plants have failed.
Investigative reporter Daniel Connolly welcomes tips and comments from the public. Reach him at 529-5296, daniel.connolly@commercialappeal.com, or on Twitter at @danielconnolly.