Stanton, Tennessee, December 17, 2025
Ford Motor Company is shifting its manufacturing strategy at the Tennessee Truck Plant, moving from electric vehicle production to gas-powered trucks by 2029. This decision responds to lower EV demand and high production costs, as the company aims to strengthen profitability. Additionally, the dissolution of the BlueOval SK joint venture reflects a realignment towards more lucrative ventures in trucks, vans, and energy storage initiatives, marking a significant pivot in Ford’s previously electric-focused plans.
Ford Shifts Focus at Tennessee Truck Plant, Ending EV Plans
A crucial pivot away from electric vehicles signals new priorities for Ford’s manufacturing strategy.
Stanton, Tennessee – Ford Motor Company has announced a significant shift in its BlueOval City project, transitioning from plans to produce electric vehicles (EVs) to manufacturing gas-powered trucks at its Tennessee Truck Plant, formerly known as the Tennessee Electric Vehicle Center. This change is set to commence in 2029, marking a substantial departure from the company’s initial EV-focused strategy.
The decision to pivot from electric to gas-powered trucks is driven by several factors, including lower-than-expected demand for EVs, high production costs, and evolving regulatory landscapes. Ford’s President and CEO emphasized that this move is a customer-driven shift aimed at creating a stronger, more resilient, and profitable Ford. The company is redirecting capital into higher-return growth opportunities, such as its market-leading trucks and vans, hybrids, and a new battery energy storage business.
Strategic Shift
Ford’s transition from electric vehicle production to manufacturing gas-powered trucks at the Tennessee Truck Plant underscores the company’s need to adapt to the realities of the market. Production is set to begin in 2029, allowing Ford time to realign its operations and investments with current consumer preferences.
Factors Influencing Change
Several elements have influenced Ford’s decision, including lower-than-expected demand for electric vehicles, high production costs, and a changing regulatory environment. This strategic realignment towards more profitable segments reflects a practical approach to business in an unpredictable economic landscape.
Joint Venture Dissolution
In conjunction with this shift, Ford and its partner, SK On, have agreed to dissolve their BlueOval SK joint venture. This dissolution results in Ford assuming full ownership of the Kentucky battery plants, while SK On takes control of the Tennessee facility. Despite this separation, SK On will maintain a strategic relationship with Ford, particularly concerning the Tennessee battery plant located on Ford’s campus.
Future Focus
Looking ahead, Ford is redirecting investments into growth opportunities that promise higher returns, including its popular product lines of trucks and vans, hybrids, as well as entering the battery energy storage sector. This forward-thinking approach illustrates the company’s commitment to remaining profitable while navigating the complexities of the automotive market.
Background Context
Initially, Ford’s BlueOval City project was envisioned as a state-of-the-art facility dedicated to producing electric vehicles and batteries, reflecting the company’s commitment to electrification. However, evolving market dynamics and operational challenges have prompted a reevaluation of this strategy. The dissolution of the BlueOval SK joint venture further underscores the industry’s shifting focus and the need for adaptability in manufacturing approaches.
Conclusion
Ford’s strategic shift at the Tennessee Truck Plant highlights the importance of adaptability in today’s automotive industry. By realigning its focus from electric vehicles to gas-powered trucks, Ford is not only responding to consumer demand but also positioning itself for sustainable growth. As the Memphis and Tennessee economies evolve, supporting local businesses and their innovative approaches will be crucial to fostering a robust economic environment.
FAQ
What is the Tennessee Truck Plant?
The Tennessee Truck Plant, formerly known as the Tennessee Electric Vehicle Center, is Ford’s manufacturing facility in Stanton, Tennessee, where the company plans to produce gas-powered trucks starting in 2029.
Why is Ford shifting from electric vehicles to gas-powered trucks?
Ford’s decision is based on lower-than-expected demand for electric vehicles, high production costs, and changing regulatory environments, prompting a strategic realignment towards more profitable segments.
What does the dissolution of the BlueOval SK joint venture mean?
The dissolution means that Ford now fully owns the Kentucky battery plants, while SK On takes control of the Tennessee facility. Despite this separation, SK On will maintain a strategic relationship with Ford concerning the Tennessee battery plant.
Key Features:
| Feature | Details |
|---|---|
| Strategic Shift | Transition from electric vehicle production to gas-powered trucks at the Tennessee Truck Plant, starting in 2029. |
| Factors Influencing Change | Lower-than-expected EV demand, high production costs, and changing regulatory environments. |
| Joint Venture Dissolution | Ford assumes full ownership of Kentucky battery plants; SK On takes control of the Tennessee facility. |
| Future Focus | Investments redirected into trucks, vans, hybrids, and a new battery energy storage business. |
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