Gov. Andy Beshear joined Ford Motor Co. CEO Jim Farley and other company executives and local officials to announce a monumental investment by one of Kentucky’s largest employers.
A nearly $2 billion commitment from Ford will introduce an innovative manufacturing process at the Louisville Assembly Plant (LAP) to serve as the platform for an all-new, yet to be unveiled, electric mid-size pickup truck.
The project is the third-largest economic development project in Kentucky’s history.
Ford’s $1.9 billion investment will include new equipment and technology to upgrade and modernize the Louisville Assembly Plant to support future product development and secure 2,200 existing full-time jobs at the facility. This includes the introduction of a new production platform that represents a major manufacturing breakthrough with an “assembly tree” approach to increase efficiency, ergonomics and affordability. The new low-cost, scalable EV platform is expected to be completed by Q2 2027.
“Today, Ford and Team Kentucky are introducing the world to the future of automotive production with nearly $2 billion being invested to transform the Louisville Assembly Plant, which will also secure 2,200 jobs for Kentuckians,” Beshear said. “This announcement not only represents one of the largest investments on record in our state, it also boosts Kentucky’s position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford’s future. Thank you to Ford’s leaders for their continued faith in Kentucky and our incredible workforce. Ford and Kentucky have been a tremendous team for more than 100 years, and that partnership has never been stronger than it is today.”
Ford’s presence in Kentucky dates back to 1913 when the Model T first rolled off the production line in Louisville. In the 112 years since, the company has grown its presence in the commonwealth to employ nearly 12,000 people in addition to close to 6,000 retirees.
Ford partners with 165 Kentucky-based suppliers, purchasing nearly $6 billion in products annually. According to an independent analysis by the Boston Consulting Group, the company supports approximately 120,000 direct and indirect jobs across Kentucky and contributes more than $11.8 billion in state GDP, including over 48,000 jobs in the Louisville region. Over the years, Ford has donated more than $6.7 million to local nonprofits, civic initiatives and educational programs.
“Ford’s latest investment builds on the best five-year period for economic growth in state history,” according to the governor’s office.
To encourage investment and job retention in the community, the Kentucky Economic Development Finance Authority approved a supplemental project to an existing Kentucky Jobs Retention Act program agreement with the company.
“The performance-based agreement can provide up to $550 million in cumulative tax incentives based on the company’s total cumulative investment of $5.55 billion-plus across the original and supplemental KJRA projects with an annual job target requirement of up to 12,000 over the term of the agreement,” the governor’s office said.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Ford can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
More information about Ford can be found here.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
