Ford Announces Another $1B U.S. Investment 2 Days After Being 'Blindsided' by DOT

CEO Farley said the funds demonstrate "commitment to American manufacturing."

Expedition manufacturing at Ford's Kentucky Truck Plant.
Expedition manufacturing at Ford's Kentucky Truck Plant.
Ford

Yesterday, Ford Motor announced plans to build a new $1 billion state-of-the-art paint shop at its Kentucky Truck Plant in Louisville as part of a modernization effort at one of Ford’s most important manufacturing operations. Groundbreaking is scheduled for late 2026. The new shop will replace the existing paint operation at Ford's largest and highest-revenue U.S. manufacturing plant that sees a vehicle roll off the assembly line every 45 seconds.

Ford has been on a spending frenzy in the U.S., including some $2 billion earmarked to turn the Louisville Assembly Plant into a new manufacturing center for its new Universal Electric Vehicle Platform and another $2 billion at Ford Energy Systems in Glendale, which will make battery energy storage systems.

The announcement came just two days after Ford was "blindsided" by a letter from U.S. Secretary of Transportation Sean Duffy that was critical of Ford, according to the Detroit Free Press. The letter was critical of Ford's dealings with Chinese companies. Duffy also suggested that the company's Lincoln Nautilus reshoring initiative, slated for 2030, should happen faster. Ford's chief policy officer told the Free Press the letter "is not in keeping with the very positive rapport we have with the White House."

“For more than a century, Ford and Kentucky have grown together, and we’re investing to ensure that relationship remains strong for generations to come,” said Jim Farley, Ford president and CEO, in a statement. “These investments demonstrate our confidence in Kentucky’s workforce, our commitment to American manufacturing, and our belief that the future of mobility and energy will be built right here in the United States.”

Ford has more than 11,500 employees in Kentucky. The company's roots in the state run deep, tracing back to 1913, when the first Model T rolled off the production line.

“From our past to our present and our future, Ford is a central part of Kentucky’s story, which continues to show the world that American manufacturing remains strong,” said Gov. Andy Beshear in a statement.

Expedition manufacturing at Ford's Kentucky Truck Plant.Expedition manufacturing at Ford's Kentucky Truck Plant.Ford

According to a 2020 study conducted by Boston Consulting Group, Ford contributes $11.7 billion annually to Kentucky’s GDP and nearly 120,000 people in Kentucky are employed by Ford and its suppliers and dealers. Another 2023 report by University of Louisville Professor Thomas Lambert estimated Ford’s total economic impact in the state at more than $33 billion with vendors and suppliers.

The Kentucky Truck Plant is a cornerstone of Ford’s manufacturing footprint, manufacturing the F-Series Super Duty pickups and the Ford Expedition and Lincoln Navigator SUVs. The company said the new paint shop will enhance the plant’s long-term competitiveness with upgraded technology that will deliver cleaner, more efficient paint quality, improved efficiency and advanced environmental sustainability.

The Louisville Assembly Plant is undergoing "one of the most significant transformations in its history," including the installation of Ford’s new Universal EV Production System. The investment will support production of the Ford Fathom, a midsize electric pickup expected to launch in 2027. The project is anticipated to create or secure approximately 2,200 jobs while transforming the facility into one of Ford's most advanced and flexible EV manufacturing plants.

Ford's $2 billion investment in Glendale, Kentucky, will convert the former battery manufacturing site into a large-scale producer of battery energy storage systems. That investment is expected to create at least 2,100 new jobs, with production beginning in late 2027.

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