Ford Commits $1 Billion to Upgrade Its Kentucky Truck Plant
The paint-shop project backs a major U.S. factory as Washington questions Ford’s links to Chinese battery and auto companies.
Ford plans to spend $1 billion on a new paint shop at its Kentucky Truck Plant in Louisville, replacing the existing facility. The announcement came two days after Transportation Secretary Sean Duffy criticized the automaker’s ties to Chinese companies.
The plant builds Ford’s F-Series Super Duty pickups, Expedition SUVs and Lincoln Navigator SUVs. Kentucky officials say it is Ford’s largest and most profitable U.S. manufacturing plant, with a vehicle coming off the line every 45 seconds.
Ford plans to break ground by the end of 2026. The company says the new shop will modernize the facility, but has not announced a production start date.
The investment adds to Ford’s recent Kentucky plans: about $2 billion to transform Louisville Assembly for a future electric-vehicle platform, and about $2 billion to turn a Glendale site into a battery-energy-storage operation. The state says the Glendale project is expected to begin production in late 2027.
Duffy’s criticism centers on different parts of Ford’s business. He raised concerns about licensed battery technology from China’s CATL at Ford’s Michigan facility, as well as the company’s dealings with Chinese automakers Geely and BYD. He also questioned Ford’s plan to keep producing the Lincoln Nautilus in China until 2030.
Ford called Duffy’s letter a “wrongheaded attempt to capture headlines.” The company said it owns and controls its Michigan battery plant and employs its workforce, arguing that it is building batteries in the United States.
The Kentucky announcement strengthens Ford’s case that it continues to invest in U.S. manufacturing, but it does not resolve the specific disputes over Chinese technology and business ties. Investors will also be watching whether Ford completes the upgrade on schedule without disrupting output of the trucks and SUVs made there.
Kentucky’s announcement says a performance-based tax-incentive agreement could provide Ford up to $578 million, subject to investment and job targets. The state ties that agreement to $7.55 billion in cumulative investment across Ford’s Kentucky projects.
This article was produced with the help of AI technology.
Source: Yahoo Finance
