Ford mentioned Monday it’s going to make investments $2 billion to rework its Louisville Meeting Plant right into a manufacturing facility able to making a brand new technology of inexpensive EVs, beginning with a mid-sized pickup truck with a base value of $30,000 that’s slated to launch in 2027.
This isn’t an ordinary manufacturing facility improve. To scale back the price of manufacturing, Ford has upended the transferring meeting line system launched by its founder Henry Ford greater than 112 years ago.
The automaker’s willingness to alter the century-old system that made Ford a family title displays the high-stakes juggling act of promoting a line of inexpensive electrical automobiles that might be made in the US sooner, extra effectively, and with fewer components all whereas preserving revenue margins. And as Ford’s chief EV, digital, and design officer Doug Discipline famous Monday it’s not nearly driving down particular person prices down, however a change that can permit the automaker to compete with China.
Ford CEO Jim Farley described the brand new manufacturing system, line of EVs, and $2 billion funding as a guess.
“There are not any ensures with this challenge,” he mentioned throughout an occasion reside streamed from the Kentucky plant. “We’re doing so many new issues I can’t inform you with 100% uncertainty that it will all go excellent, it’s a guess. There may be threat.”
That guess started a number of years in the past with skunkworks group of about 500 folks in California — led by former Tesla government Alan Clarke and full of expertise from corporations like Tesla, Rivian, Apple, and Lucid Motors. The group, which is break up between Palo Alto and a brand new workplace in Lengthy Seashore, developed the brand new manufacturing system and underlying car platform that will probably be used within the Louisville manufacturing facility.
The top result’s what Ford calls the “common manufacturing system,” which modifications its single conveyor line right into a three-branched meeting tree. Ford has additionally developed a common EV platform that can use lithium iron phosphate batteries utilizing tech licensed from China’s CATL and manufactured at its new $3 billion BlueOval Battery Park manufacturing facility in Michigan. That manufacturing facility, which is predicted to come back on-line in 2026, will make use of 1,700 hourly staff.
Techcrunch occasion
San Francisco
|
October 27-29, 2025
The brand new EV platform will consist of enormous single-piece aluminum unicastings that makes use of far fewer components and can permit the entrance and rear of the car to be assembled individually on two of the branches. The third department is probably most notable; that is the place the structural battery will probably be assembled with seats, consoles, and carpeting. The three elements will come collectively on the finish of the road to kind the car.
In contrast to a standard meeting line, the place the employees transfer alongside including the wire harness and different components to the body, the EV platform will encompass three kits. Inside that equipment, all fasteners, scanners and energy instruments required for the job are included – and within the right orientation to be used, in accordance with Ford.
The EV platform will use 20% fewer components than a typical car and will probably be produced 15% sooner, the corporate mentioned.
“I’ve actually by no means seen something within the public area that appears something like this,” Clarke advised TechCrunch in an interview forward of the launch. “And I feel {that a} manufacturing professional would take a look at this, and particularly in the event that they’ve been within the automotive business for a couple of a long time, would kind of scoff at it and say, ‘why would you do it this manner?’”
Clarke is satisfied that when manufacturing specialists see how rapidly a car can go from begin to end, others will try and emulate this.
The brand new format and accompanying EV platform will change how the Louisville manufacturing facility operates and cut back the variety of staff employed there. The transformation will possible ripple by way of the broader provide chain as nicely. In the end, Clarke says, it will protect American jobs.
Ford employs about 2,808 hourly staff at its Louisville assembly plant, which makes the Ford Escape and Lincoln Cosair. Manufacturing of these two automobiles will proceed on the plant by way of 2026 earlier than switching to the brand new household of EVs. Finally, the plant will assist 2,200 hourly staff. A Ford spokesperson mentioned the automaker has provided a particular retirement incentive program for others.
A discount in staff and a “vital” enhance in automation may sometimes immediate protests from the United Auto Employees. However Clarke says Ford labored with the UAW carefully from the start and that there’s “purchase in.”
“The groups are actually enthusiastic about what’s coming as a result of they know that we now have to be aggressive and we now have to become profitable from this challenge for jobs to remain in America,” he mentioned, later including, “This isn’t actually, you recognize, non-obligatory.”