Blue Bird Corporation (Nasdaq: BLBD) has been chosen by the U.S. Department of Energy (DOE) to receive an $80 million grant aimed at expanding its electric vehicle manufacturing capabilities and supporting workforce development. The selection is pending final contract and funding negotiations, expected to conclude within 120 days.
This grant is part of the U.S. administration’s broader initiative, investing nearly $2 billion to convert traditional automotive facilities into electric vehicle manufacturing hubs, thereby enhancing domestic supply chains and creating high-quality manufacturing jobs. Administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), the $80 million award to Blue Bird constitutes half of the $160 million needed for its manufacturing conversion project. Blue Bird is among 11 recipients of grants under the Domestic Automotive Manufacturing Conversion Grants program, which includes Cummins, its partner in electric vehicle powertrains.
The funding will facilitate the transformation of Blue Bird’s former diesel-powered motorhome manufacturing site in Fort Valley, Ga., into a cutting-edge 600,000 square foot facility dedicated to electric vehicle production. This site, which previously manufactured Wanderlodge motorhomes based on Blue Bird’s Type-D school bus designs since 1963, ceased operations in 2019. The conversion project aims to meet the increasing demand for clean, Type-D electric school buses nationwide and is expected to create over 400 new manufacturing jobs.
U.S. Secretary of Energy Jennifer M. Granholm highlighted the grant’s significance in preserving and enhancing domestic manufacturing capabilities, stating, “These grants ensure that our automotive industry remains competitive while supporting communities and workforces integral to its heritage.”
Phil Horlock, CEO of Blue Bird Corporation, expressed gratitude for the DOE’s support, emphasizing the grant’s role in revitalizing middle Georgia’s economy and reaffirming Blue Bird’s commitment to expanding its workforce and community investment.
As the sole U.S.-owned school bus manufacturer, Blue Bird is renowned for its leadership in electric school buses, with nearly 2,000 zero-emission vehicles currently in operation. This shift towards clean student transportation underscores Blue Bird’s commitment to sustaining approximately 2,000 high-quality jobs nationwide.
