Blue Bird secures $80 million grant to boost electric vehicle manufacturing

Blue Bird has been awarded an $80 million grant from the U.S. Department of Energy (DOE) to enhance its electric vehicle (EV) manufacturing capabilities and support workforce development. 

Blue Bird is a prominent U.S.-based school bus manufacturer.  They have successfully deployed 2,000 zero-emission buses, generating approximately 2,000 jobs. 

The grant is part of a broader initiative to transform traditional automotive facilities into EV production hubs, with the goal of retaining and expanding manufacturing jobs in the U.S. The grant's finalisation is pending contract and funding negotiations, which are expected to be completed within 120 days.

The DOE’s funding will be used to convert Blue Bird’s former diesel motorhome manufacturing plant in Fort Valley, Georgia, into a modern electric vehicle production facility. 

This 600,000-square-foot plant, which originally produced Wanderlodge motorhomes until 2019, will be repurposed to meet the growing demand for electric school buses. The revamped facility will significantly increase the production of Type-D electric school buses and is expected to create over 400 new manufacturing jobs.

Phil Horlock, CEO of Blue Bird Corporation, expressed the company's gratitude for the support, stating:

 “We are delighted that the U.S. Department of Energy supports our plant conversion project above the many applications that were submitted. The grant will enable Blue Bird to reinvest in middle Georgia, building on a site that previously manufactured high-end motorhomes. 

“It will also enable Blue Bird to expand its workforce and invest in a community that is integral to Blue Bird’s history and continued success. We are looking forward to fully participating in the next phase of the negotiation process with the DOE.”

Impact on Local Community and Workforce

The conversion project aligns with the U.S. administration’s broader $2 billion investment strategy aimed at revitalising domestic automotive manufacturing and supply chains. 

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”