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Fast Company
9 hours ago
- Automotive
- Fast Company
Ford is opening a new community center in rural Tennessee. It's changing how corporations give back
In a sprawling, 6-square-mile plot of land in rural West Tennessee, the Ford Motor Co. is building a massive new electric vehicle assembly plant it's calling BlueOval City. Estimated to cost more than $5.6 billion and create more than 6,000 jobs, the industrial park is envisioned as the world's most modern automotive manufacturing facility since Ford pioneered the assembly line. It will also remake this part of Tennessee, which has seen little, if any, economic development in decades. But despite this scale and ambition, the most impactful part of the project may be tucked inside a 3,600-square-foot dilapidated schoolhouse. The schoolhouse is being transformed into the new Ford Community Center for the city of Stanton, population 415, which sits closest to the edge of BlueOval City. Located 50 miles outside of Memphis, Stanton is a predominantly Black community built on former plantation land. Once the heart of the community, the schoolhouse was decommissioned after desegregation. Now through an unusually community-centric process, the building is being converted into a resource center that provides residents with job training, financial literacy, healthcare access, legal services, and more. 'It's a front door for helping people who wish to participate in the rising tide of BlueOval City,' says Josh McManus. His consultancy, M|B|P, spearheaded this community-focused approach, which involved more than 2,500 hours of community meetings and input sessions to understand what was needed before any investment was made. 'What you find very fast is there are a lot of lifelong residents in the area who, because there's been next to no economic activity there for a long time, are in need of hard skills and soft skills,' McManus says. advertisement The final deadline for Fast Company's Next Big Things in Tech Awards is Friday, June 20, at 11:59 p.m. PT. Apply today.
Yahoo
29-05-2025
- Automotive
- Yahoo
Industry orgs: Budget bill's electric vehicle tax credit rollback could hamper Tennessee momentum
Ford BlueOval City, photographed while under construction in April 2023. (Photo: John Partipilo) Congress may be poised to roll back electric vehicle tax credits and institute new annual taxes on electric vehicle owners — moves that could spell trouble for electric vehicle manufacturers in Tennessee and across the country, according to industry organizations. The U.S. House of Representatives narrowly passed a revised version of President Donald Trump's budget reconciliation bill last week. The 'One Big Beautiful Bill Act' slashes multiple tax credits available to consumers who purchase new, used and commercial electric vehicles (EVs). It also creates a new annual tax for owners of EVs ($250) and hybrid vehicles ($100), money meant to make up for a lack of owners' lack of gas tax contributions toward infrastructure upkeep. The bill now moves to the U.S. Senate for consideration. Should it pass, the EV tax credits will expire on December 31, 2025, instead of the original December 2032 sunset date. Industry advocates and analysts warn that axing the tax credits — which can save buyers up to $7,500 on new, American-made and sourced EVs — will kill the industry's momentum in Tennessee and put investments and jobs at risk. Tennessee has incentivized its growing electric vehicle industry with hundreds of millions of dollars of state contributions and tax breaks over the last decade. The Tennessee Department of Economic and Community Development estimates more than 20,000 Tennesseans are employed by companies with EV operations, and EV projects have injected $16.2 billion in capital into the state since 2017. In West Tennessee, BlueOval City's EV assembly line for Ford's new electric truck is still under construction, and BlueOval SK is gearing up for battery production. The massive $5.6 billion campus is expected to reshape and reinvigorate rural West Tennessee. The Electrification Coalition, a nonprofit, nonpartisan group advocating for electric vehicle adoption and supportive public policy, called the move a 'sledgehammer to Tennessee's EV industry' in a statement published Tuesday. EVs in Tennessee: Uncertainty abounds as Trump targets Biden-era electric vehicle funding 'It would eliminate critical tax credits that are spurring private-sector investments, supporting critical mineral supply chain development, creating American jobs and ensuring the United States remains competitive in the global automotive market,' Electrification Coalition Executive Director Ben Prochazka stated. 'Removing these credits would pull the rug out from under the auto and aligned battery industries at a critical time, immediately putting Tennessee jobs at risk. Industry needs policy certainty and consistency to build domestic and allied supply chains.' Reached by email, the Tennessee Department of Economic and Community Development declined to comment on industry organizations' concerns. Tennessee's electric vehicle industry has grown over the last two decades to include manufacturing plants for Ford, Volkswagen and GM, in addition to multiple companies that produce EV batteries or EV battery components. Nissan also assembled its all-electric Nissan LEAF at its plant in Smyrna until recently. The 2026 LEAF will be assembled at the company's Tochigi Plant in Japan, according to a company spokesperson, meaning the company no longer assembles any EVs or hybrid vehicles in Tennessee. The state has invested hundreds of millions of dollars in the electric vehicle industry over the last decade, according to records kept by the state's Department of Economic and Community Development. This includes a $78 million grant for the recruitment of Ultium Cells LLC, an EV battery manufacturer, to locate jobs for 1,300 workers in Maury County. State lawmakers approved a $900 million incentive package for Ford's BlueOval City campus in 2021, including $500 million in reimbursements for construction work on the campus in Stanton, Tennessee. Some U.S. Republicans are pushing to keep energy tax credits. Tennessee lawmakers aren't among them. While Tennessee's growth in the industry predates tax incentives created by the Inflation Reduction Act under former President Joe Biden to support the production of batteries and battery components in the U.S., those incentives helped companies stand up more cost-competitive electric vehicle plants in the U.S., Harrison Godfrey, managing director of clean energy industry association Advanced Energy United, told Tennessee Lookout in November. An October Washington Post analysis found Tennessee received an estimated $12.6 billion in investments in clean energy projects since the IRA passed in 2022. Ford and GM did not respond to requests for comment on the potential rollback of consumer EV tax credits. But the Alliance for Automotive Innovation — an industry group with members from 42 U.S. automotive companies including GM, Ford, Nissan and Volkswagen — listed support for electric vehicle manufacturing among its 2025 policy priorities. The organization specifically stated that policymakers should maintain both production tax credits for vehicle manufacturers and 'consumer incentives for the purchase of electric vehicles.' The Nissan spokesperson stated the company's position on EV tax credits aligns with the policy priorities of Autos Drive America, a trade association representing international automakers in the U.S., including Nissan. Autos Drive America has worked to increase the number of electric vehicles that qualify for the Clean Vehicle Tax Credit since the IRA's passage in 2022. The Tennessee Chamber of Commerce did not respond to a request for comment. In April, Gov. Bill Lee celebrated the latest EV-related business expansion in Tennessee: a $54 million investment from automotive supplier Avancez in assembly operations at the BlueOval City Supplier Park. A spokesperson for Lee did not respond to a request for comment on how EV tax credit rollbacks may impact Tennessee's continued industry growth. Lee voiced his support for the budget bill in a post on X on May 21, saying it will 'secure the border, unleash American energy & deliver tax cuts — all measures that guarantee opportunity, security & freedom for the American people.' The Electrification Coalition urged U.S. Sens. Marsha Blackburn and Bill Hagerty to 'take a more balanced approach' and preserve the tax credits to ensure the U.S. does not fall 'further behind' in the global EV market. Blackburn and Hagerty did not respond to requests for comment. All of Tennessee's U.S. Representatives voted in favor of the budget reconciliation bill, except for U.S. Rep. Steve Cohen, a Democrat based in Memphis. The bill passed in the House 215-214. All Democratic representatives voted against the bill. Cohen could not be reached for comment by press time. U.S. Republican Reps. DesJarlais, Fleischmann, Green, Harshbarger, Kustoff, Ogles and Rose did not respond to requests for comment. U.S. Rep. Tim Burchett, a Republican representing East Tennessee, said in an emailed statement to Tennessee Lookout that he voted in favor of the bill due to national debt concerns. 'Our nation is currently $36 trillion in debt,' Burchett stated. 'This bill rolls back Biden's Green New Deal tax credits that we don't have the money to pay for. I believe in an all-of-the-above energy approach, but we shouldn't plunge our country deeper in debt as a result.' Burchett also stated that the new tax for EV and hybrid owners 'makes sure all drivers contribute towards our nation's infrastructure,' as 'electric vehicle owners don't pay a gas tax which is used to fund vital highway projects.' The Electrification Coalition and Nissan both expressed support for EV and hybrid drivers paying their 'fair share' toward infrastructure, but the new tax level is more punitive than practical. 'We believe the new annual tax should be more in line with the gas tax equivalent ($150) rather than being set at a level that seems punitive,' the Nissan spokesperson stated. 'While all drivers should pay their fair share, this proposal is nearly three times what the average driver pays in federal gas taxes, which have not covered the cost of infrastructure for nearly 20 years,' Prochazka, of the Electrification Coalition, stated. 'Rather than imposing a punitive tax on a subset of Americans, Congress should identify a fuel-neutral solution to the Highway Trust Fund's structural insolvency.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
07-05-2025
- Automotive
- Yahoo
Investor letter urges Ford, Blue Oval SK to address reported union-busting, engagement concerns
Members of BlueOval Good Neighbors, a coalition of residents from Haywood, Tipton, Lauderdale, Shelby, and Fayette counties, march to BlueOval SK's Arlington, Tenn. office on May 6, 2025. (Photo: BlueOval Good Neighbors/Tennessee for All) A group of Ford Motor Company investors sent a letter to the company's board May 1, asking it to address concerns over reported union-busting activity at a Kentucky battery plant and lack of engagement with Black communities surrounding its BlueOval City project in Tennessee. The letter references three electric vehicle battery plants — two in Kentucky and one in Stanton, Tennessee — run by BlueOval SK, a 50/50 joint venture between Ford and Korea-based SK On. While BlueOval SK is a separate legal entity from Ford, the signatories note the 'significant leverage and influence Ford has over this joint venture,' and call on the company to 'expeditiously address these serious concerns.' The 14 investors who signed the letter urged board members to respond at Ford's virtual Annual Meeting of Shareholders on May 8. Combined, the investors represent more than $58 billion in total assets under management, though their individual stakes in Ford are not public. Investor Advocates for Social Justice, which coordinated the investors' effort, also signed. The letter comes after one investor, Sisters of St. Joseph of Peace, filed a shareholder proposal in March asking Ford to adopt a policy to remain neutral in unionization efforts at its plants and to negotiate with BlueOval Good Neighbors, a community coalition pushing Ford for a legally binding community benefits agreement for the Tennessee BlueOval City project. The proposal — which is solely advisory and not binding — would have gone on the company's proxy statement to be voted on by shareholders at the May 8 meeting, but Ford successfully requested the U.S. Securities and Exchange Commission block the measure from the ballot, citing its 'vague' nature and attempt to 'micromanage' the company. Members of BlueOval Good Neighbors, a coalition of residents from Haywood, Tipton, Lauderdale, Shelby, and Fayette counties, march to BlueOval SK's Arlington, Tenn. office on May 6, 2025. (Photo: BlueOval Good Neighbors/Tennessee for All) Sisters of St. Joseph of Peace has long invested in Ford and other companies to 'help us fund our mission and take care of our sisters,' Assistant Congregation Leader and Congregation Treasurer Sister Susan Francois said. 'It would be wonderful if our concerns over freedom of association and collective bargaining were addressed so that the workers were able to negotiate good working conditions, and then also that the Blue Oval Good Neighbors are able to raise their concerns and be in dialogue with Ford,' Francois, who also sits on the Investor Advocates for Social Justice board, said. 'Ultimately, Ford are the ones that are running the company. We understand that. But as shareholders, we really just want them to be good neighbors, and believe it'll be better for business.' In separate statements to Tennessee Lookout, BlueOval SK affirmed its compliance with U.S. labor laws and Ford highlighted its engagement with residents, community leaders and elected officials surrounding the new campus. Investors had not yet received a response from Ford as of 4:30 p.m. Tuesday. Union concerns Workers at a BlueOval SK Battery Park in Glendale, Kentucky filed for an election to join the United Auto Workers union in January. A date has yet to be set for a secret-ballot election. If a majority of workers vote in favor of the union, the next step is negotiating a contract. The letter expresses investors' 'alarm' at BlueOval SK's attempts to 'dissuade workers from unionizing,' including anti-union flyers and materials on the company's website. 'The ask of BlueOval SK would be to stop its anti-union campaign … investors believe that workers should truly have the freedom to unionize if they want,' Aaron Acosta, program director at Investor Advocates for Social Justice, said Monday. BlueOval SK has maintained that the January filing was premature, as the plant had not yet begun production or hired the plant's full staff. 'We celebrate and empower each team member to define their own success by speaking for themselves,' spokesperson Mallory Cooke wrote in an email to Tennessee Lookout. 'BlueOval SK team members are free to choose whether to keep a direct relationship with leaders or turn over their voice to a labor union. BlueOval SK supports the U.S. labour law requirement that a substantial and representative complement of the employees impacted by this choice have the opportunity to vote.' The National Labor Relations Board case database shows three open complaints against BlueOval SK in Kentucky, including allegations of coercive actions and statements, retaliation and interrogation. The NLRB has yet to reach decisions on these cases. Company, coalition spar over 'good neighbor' commitments The Blue Oval Good Neighbors coalition, supported by advocacy group Tennessee for All, marched to BlueOval SK's corporate office in Arlington, Tennessee Tuesday to present a petition 'signed by more than 1,000 local residents in support of a binding agreement for the company's multi-billion dollar, taxpayer-subsidized project.' The group has pushed for Ford to commit to providing legal representation and subsidies for locals affected by eviction and land loss stemming from construction and rising property values surrounding the massive campus. They have also called for Ford to contribute to a 'bank' of public land to be used for public projects, a commitment to 50% local hire in West Tennessee and the creation of a board of neighbors with oversight authority to ensure accountability. Ford unveiled its $9 million 'Good Neighbor Plan' to support areas surrounding the electric vehicle manufacturing campus in late January. The slate of investments was sourced from resident feedback and input from Ford's hand-selected Equitable Growth Advisory Council. Members of BlueOval Good Neighbors, a coalition of residents from Haywood, Tipton, Lauderdale, Shelby, and Fayette counties, are reflected in the windows of BlueOval SK's Arlington, Tenn. office on May 6, 2025. (Photo: BlueOval Good Neighbors/Tennessee for All) Plans include the restoration of a historic African American schoolhouse into a new Ford Community Center in Stanton, in addition to scholarships for local automotive manufacturing programs, a new childcare facility, a community assistance fund for families facing temporary hardship and funding for mobile healthcare services. While BlueOval Good Neighbors has said the company's plan does include some of its demands, it is not legally binding. The coalition has also criticized the makeup of Ford's Equitable Growth Advisory Council, including elected officials who were serving during a 2021 Fayette County redistricting process that is now the subject of a U.S. Department of Justice voting rights lawsuit claiming the new maps strip Black voters of equal opportunity. 'What we hear most from residents is that they want to speak for themselves,' Ford spokesperson Jessica Enoch wrote in an email to Tennessee Lookout. 'Ford has been contacted by many groups that say they speak on behalf of residents, many of which are not from the area. It would not be feasible for us to engage with every third-party group that purports to speak on behalf of residents.' Enoch said residents can share ideas with Ford at commrels@ SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
