Ford Ditching Assembly Line for EV Production in America

Ford Invests $2 Billion in Louisville Plant for Next-Gen EVs

Ford Motor Company announced on Monday a $2 billion investment dedicated to the transformation of its Louisville Assembly Plant. This facility will be retooled to manufacture a new generation of affordable electric vehicles (EVs), beginning with a mid-size pickup truck projected to launch in 2027 with a starting price of $30,000.

Reimagining the Assembly Process

This undertaking represents more than a typical factory modernization. In an effort to lower manufacturing expenses, Ford is fundamentally altering the moving assembly line system pioneered by its founder, Henry Ford, over 112 years ago.

The company’s willingness to deviate from this long-standing, iconic system underscores the complex challenge of delivering a range of competitively priced EVs that can be produced domestically with increased speed, efficiency, and a reduced component count, all while maintaining profitability. As Doug Field, Ford’s chief EV, digital, and design officer, highlighted, this shift is crucial not only for cost reduction but also for competing effectively with manufacturers in China.

A Strategic Investment with Inherent Risks

Ford CEO Jim Farley characterized the new production system, the forthcoming EV lineup, and the $2 billion investment as a calculated risk.

“There are no certainties associated with this endeavor,” he stated during a live-streamed event from the Kentucky plant. “Given the numerous innovations we are implementing, I cannot guarantee complete success; it is, fundamentally, a bet, and carries inherent risk.”

Despite the risks, Farley believes the investment is justified. The company’s EV division experienced a loss of approximately $1.3 billion in the second quarter of 2025, and sales of its flagship EVs, the F-150 Lightning and Mustang Mach-E, have been declining.

Development Driven by a Dedicated Team

This strategic initiative began several years ago with a specialized team of around 500 individuals based in California. Led by former Tesla executive Alan Clarke, the team comprised talent sourced from companies including Tesla, Rivian, Apple, and Lucid Motors. Operating from locations in Palo Alto and Long Beach, this group developed the novel production system and the underlying vehicle platform that will be implemented at the Louisville factory.

Introducing the “Universal Production System”

The outcome of this development is Ford’s “universal production system,” which replaces the traditional single conveyor line with a three-branched assembly structure. Furthermore, Ford has created a universal EV platform utilizing lithium iron phosphate batteries, leveraging technology licensed from China’s CATL and manufactured at its new $3 billion BlueOval Battery Park facility in Michigan. This battery plant is anticipated to begin operations in 2026 and will employ 1,700 hourly workers.

The new EV platform will incorporate large, single-piece aluminum unicastings, reducing the number of parts required. The vehicle’s front and rear sections will be assembled independently on two of the assembly branches. The third branch is dedicated to assembling the structural battery, along with the seats, consoles, and carpeting.

These three components will converge at the end of the line to complete the vehicle assembly.

Streamlined Design and Increased Efficiency

According to Ford, the resulting EV design features 20% fewer parts overall, including a 50% reduction in cooling hoses and connections, and a 25% decrease in fasteners. The first EV to be produced on this new line will be a mid-sized pickup, comparable in size to the Ford Maverick, but offering increased interior space.

In contrast to a conventional assembly line where workers move along the frame adding components, the EV platform will utilize three distinct kits. Each kit will contain all necessary fasteners, scanners, and power tools, pre-oriented for ease of use. This system also reduces the number of dock stations required by 40%.

A Paradigm Shift in Manufacturing

The company projects a 15% increase in production speed with the new platform.

“I have not encountered anything publicly available that resembles this approach,” Clarke stated in an interview with TechCrunch prior to the launch. “A manufacturing specialist, particularly one with extensive automotive experience, might initially dismiss it, questioning the rationale behind this methodology.”

Clarke is confident that once the speed and efficiency of the new system are demonstrated, other manufacturers will seek to replicate it.

Impact on Workforce and Supply Chain

The new format and accompanying EV platform will alter the operations of the Louisville factory and result in a reduction in the number of employees. This transformation is also expected to have ripple effects throughout the broader supply chain. Clarke believes that, ultimately, this will help to preserve American jobs.

Currently, Ford employs approximately 2,808 hourly workers at its Louisville assembly plant, which produces the Ford Escape and Lincoln Corsair. Production of these vehicles will continue until the end of the year, after which the factory will be reconfigured for the new EV family. The plant will eventually support a workforce of 2,200 hourly workers – a reduction of 600 positions.

Ford has offered a special retirement incentive program to its workers. If fewer than 600 employees accept the offer, they will be provided with opportunities at other facilities.

Collaboration with the UAW

A reduction in workforce and increased automation could typically lead to opposition from the United Auto Workers. However, Clarke stated that Ford collaborated closely with the UAW from the outset and has secured their support.

“The teams are enthusiastic about these changes because they recognize the need to remain competitive and ensure job security in America,” he explained, adding, “This is not a discretionary matter.”

Several UAW representatives voiced their support during the event, noting that the changes will reduce the physical strain on assembly workers and enhance safety.

“Ergonomics have been significantly improved,” said Brandon Reisinger, UAW chairperson of the Louisville assembly plant. “We anticipate a healthier workforce, with employees able to return home to their families without experiencing soreness at the end of the day.”

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