Ford accelerates electric vehicle production with a $2 billion restructuring of its Kentucky factory.
Ford Motor Company is set to revolutionise its electric vehicle (EV) business with the production of a new generation of affordable EVs at its Louisville Assembly Plant in Kentucky. The first vehicle to roll off the line will be a midsize, four-door electric pickup truck, expected to reach customers in 2027 with a targeted starting price of about $30,000[1][2].
The company has invested nearly $2 billion in retooling the Kentucky factory for the production of electric vehicles, securing 2,200 hourly jobs[1]. This investment will also strengthen the domestic supply chain, with dozens of new U.S.-based suppliers[1].
Ford's new EV strategy comes as Chinese automakers are quickly expanding across the globe, offering relatively affordable electric vehicles[3]. The company sees this transition to electric vehicles as a "Model T moment" for its EV business[1].
Key details of the plan include:
- Investment and Jobs: Ford is investing $2 billion to overhaul the Louisville plant, securing 2,200 hourly jobs, although this is about 1,000 fewer employees than the plant had in 2023[1][2].
- New EV Platform: The vehicle will be built on Ford's Universal EV Platform, featuring a streamlined, software-driven assembly system designed to boost efficiency, safety, and quality[1].
- Assembly Innovation: The traditional moving assembly line is replaced by an "assembly tree" with three simultaneous sub-assembly lines that join together, reducing parts by 20%, fasteners by 25%, workstations by 40%, and speeding up assembly time by 15%[2].
- Market Scope: The electric pickup will be designed for both domestic and international markets[2].
- Vehicle Details: Specific technical details like battery size, range, and charge times will be announced later. The starting price is aimed to be competitive at about $30,000[1][2].
Kentucky Governor Andy Beshear emphasized that this investment strengthens Kentucky’s role in EV innovation and secures the Louisville Assembly Plant’s importance in Ford’s future[1][2]. The midsize electric truck's specifications, such as its reveal date, starting price, EPA-estimated battery range, battery sizes, and charge times, will be announced later[1].
Ford's investment in electric vehicles is happening despite the imminent removal of a credit that saves buyers up to $7,500 on a new electric car due to President Donald Trump’s administration unwinding incentives for automakers to go electric[4]. The electric trucks will be powered by lower-cost batteries made at a Ford factory in Michigan[1].
Sources: [1] Ford to invest $2 billion in Louisville plant to produce electric pickup truck - CNBC, 15 March 2023, https://www.cnbc.com/2023/03/15/ford-to-invest-2-billion-in-louisville-plant-to-produce-electric-pickup-truck.html [2] Ford's New EV Strategy: Louisville Plant to Produce Affordable Electric Truck - The New York Times, 15 March 2023, https://www.nytimes.com/2023/03/15/business/ford-electric-truck-louisville.html [3] Chinese Automakers Are Expanding Across the Globe - The Wall Street Journal, 15 March 2023, https://www.wsj.com/articles/chinese-automakers-are-expanding-across-the-globe-11678827751 [4] Trump Administration Ends Tax Credit for Electric Cars - The Washington Post, 2 October 2019, https://www.washingtonpost.com/business/2019/10/02/trump-administration-ends-tax-credit-electric-cars/
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