Electric school bus manufacturer receives $80M DOE grant

Electric and low-emission school bus manufacturer Blue Bird Corp. announced it has been selected to receive an $80 million grant from the U.S. Department of Energy (DOE) to expand the company’s electric vehicle (EV) manufacturing capabilities and related workforce development efforts.

The conversion of the Fort Valley, Ga., site will assist the company in increasing production of its Type-D electric school buses to meet rising demand. (Photo: Blue Bird)

The DOE funding is part of the current U.S. administration’s $1.7 billion Investing in America agenda, which seeks to convert longstanding automotive facilities to manufacturing EVs and components, retain and expand manufacturing jobs and bolster domestic supply chains. The grant awarded to Blue Bird is part of the Domestic Automotive Manufacturing Conversion Grants program administered by the DOE’s Office of Manufacturing and Energy Supply Chains. It represents 50% of the total $160 million investment required to complete the conversion project. Blue Bird is one of 11 selectees, including Cummins, Blue Bird’s supply chain partner for EV powertrains.

The financial award will be used to help Blue Bird convert a prior manufacturing site for diesel-powered motor homes in Fort Valley, Ga., into an approximately 600,000-sq.-ft. EV manufacturing facility. Blue Bird started manufacturing Wanderlodge-branded motorhomes, based on its large, Type-D school bus designs, at the site in 1963; it ceased operations there in 2019. The conversion will assist the company in increasing production of its Type-D electric school buses to meet rising demand. In addition, the converted facility will add more than 400 new manufacturing jobs.

“We are delighted that the U.S. Department of Energy supports our plant conversion project above the many applications that were submitted,” said Phil Horlock, CEO of Blue Bird Corporation. “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.”

The award selection is subject to final contract and funding negotiations between the DOE and Blue Bird, which could take up to 120 days to conclude.