Ford stated Monday it should make investments $2 billion to rework its Louisville Meeting Plant right into a manufacturing unit able to making a brand new era 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 unit improve. To cut back the price of manufacturing, Ford has upended the transferring meeting line system launched by its founder Henry Ford greater than 112 years in the past.
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 may very well be made in america quicker, extra effectively, and with fewer components all whereas preserving revenue margins. And as Ford’s chief EV, digital, and design officer Doug Area famous Monday it’s not nearly driving down particular person prices down, however a change that may 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 wager.
“There are no guarantees with this project,” he stated throughout an occasion reside streamed from the Kentucky plant. “We’re doing so many new things I can’t tell you with 100% uncertainty that this will all go just right, it is a bet. There is risk.”
It’s a wager Farley believes is value making. The corporate’s EV division posted a lack of round $1.3 billion within the second quarter of 2025 and gross sales of its high two EVs, the F-150 Lightning and the Mustang Mach-E, are falling.
And it’s a wager that started a number of years in the past with skunkworks crew of about 500 folks in California — led by former Tesla government Alan Clarke and crammed with expertise from corporations like Tesla, Rivian, Apple, and Lucid Motors. The crew, which is cut up between Palo Alto and a brand new workplace in Lengthy Seashore, developed the brand new manufacturing system and underlying automobile platform that will probably be used within the Louisville manufacturing unit.
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The top result’s what Ford calls the “universal production system,” which modifications its single conveyor line right into a three-branched meeting tree. Ford has additionally developed a common EV platform that may use lithium iron phosphate batteries utilizing tech licensed from China’s CATL and manufactured at its new $3 billion BlueOval Battery Park manufacturing unit in Michigan. That manufacturing unit, which is anticipated to come back on-line in 2026, will make use of 1,700 hourly employees.
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 automobile to be assembled individually on two of the branches. The third department is maybe 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 automobile.
The top result’s an EV that has 20% fewer components, together with 50% fewer cooling hoses and connections, and 25% fewer fasteners, based on Ford. The primary EV off the road will probably be an mid-sized pickup that’s is about the identical dimension as a Ford Maverick, however roomier on the within.
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 include three kits. Inside that package, all fasteners, scanners and energy instruments required for the job are included – and within the right orientation to be used, based on Ford. The system additionally reduces the variety of dock stations by 40%.
The EV platform will probably be produced 15% quicker, the corporate stated.
“I’ve certainly never seen anything in the public domain that looks anything like this,” Clarke informed TechCrunch in an interview forward of the launch. “And I think that a manufacturing expert would look at this, and especially if they’ve been in the automotive industry for a few decades, would sort of scoff at it and say, ‘why would you do it this way?’”
Clarke is satisfied that when manufacturing specialists see how rapidly a automobile can go from begin to end, others will try to emulate this.
The brand new format and accompanying EV platform will change how the Louisville manufacturing unit operates and scale back the variety of employees employed there. The transformation will possible ripple by means of the broader provide chain as effectively. In the end, Clarke says, this may protect American jobs.
Ford employs about 2,808 hourly employees at its Louisville meeting plant, which makes the Ford Escape and Lincoln Cosair. Manufacturing of these two automobiles will proceed on the plant by means of the top of this yr, earlier than Ford begins retooling the manufacturing unit and switching to the brand new household of EVs. Finally, the plant will help 2,200 hourly employees — 600 fewer than at this time.
A Ford spokesperson stated the automaker has supplied a particular retirement incentive program for employees. If fewer than 600 employees take the early retirement supply, they are going to be supplied roles at different amenities.
Fewer employees and a “significant” enhance in automation would possibly usually immediate protests from the United Auto Staff. However Clarke says Ford labored with the UAW carefully from the start and that there’s “buy in.”
“The teams are really excited about what’s coming because they know that we have to be competitive and we have to make money from this project for jobs to stay in America,” he stated, later including, “This isn’t really, you know, optional.”
A number of UAW representatives spoke in the course of the occasion and supported the change, which they stated will scale back the twisting, turning, bending required of meeting employees and enhance security.
“Ergonomics has been taken into it a whole lot more,” Brandon Reisinger, UAW chairperson of Louisville meeting plant stated on the occasion. “We should have a healthier workforce. Should be able to go home to your families and not be sore at the end of the day, which is going to be great.”
