GLENDALE, Ky. (WDRB) — All 1,600 workers at Kentucky’s BlueOval SK electric vehicle battery plant were laid off this week, raising concerns about the $250 million in taxpayer incentives used to bring the facility to the state.
The layoffs follow several delays, including the decision not to open a second plant, “Kentucky 2,” and come just four months after production began at the original Kentucky 1 facility.
The state incentive package included a $250 million forgivable, interest-free loan to BlueOval SK, intended to support job creation. Under the agreement, the company committed to creating 2,500 jobs by the end of 2026 and 5,000 jobs by the end of 2031. The 2026 benchmark now appears unlikely to be met.
The repurposed Glendale plant is not expected to reopen until late 2027 and is projected to employ 2,100 workers—short of the original target. Lawmakers, including former state representative Kevin Bratcher, said the state should seek repayment if the company fails to meet its commitments.
Gov. Andy Beshear said discussions with Ford are ongoing regarding employee numbers and timelines. He also cited federal policy changes as a contributing factor to the temporary layoffs.
Congressman Brett Guthrie pushed back on the governor’s claims, saying Beshear was deflecting responsibility and noting that nationwide EV mandates and market demand, not state incentives, have shaped the industry.
Despite the setbacks, Guthrie expressed confidence in Ford’s long-term plans, emphasizing that the Glendale facility will support advanced manufacturing, battery storage, and economic growth in the community.
The situation leaves questions about the accountability for the $250 million in state funds and whether the job creation targets can still be achieved.
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