Ford Motor Co. is revamping its Louisville Assembly Plant in Kentucky to produce electric vehicles (EVs) with a $2 billion investment. The new strategy aims to create more affordable, profitable, and competitive models that will outdo rival options.
In an effort to adapt to the changing automotive industry, Ford’s top executive, CEO Jim Farley, announced the overhaul at the plant on Monday. The company plans to launch its first midsize electric pickup truck in 2027 for domestic and international markets.
The revamped plant will use a universal platform and production system, enabling it to produce a wide range of affordable EVs. This change aims to reduce production costs and assembly time by 40%, making the vehicles more profitable.
Ford’s investment is part of its $5 billion commitment to create or secure nearly 4,000 direct jobs between the Kentucky assembly plant and Michigan battery plant. The company expects this will strengthen the domestic supply chain with dozens of new U.S.-based suppliers.
CEO Farley emphasized that Ford is not in a race to build the most electric cars but rather to establish a sustainable business that’s profitable and customer-driven. He stated, “We’re taking the fight to our competition by producing an affordable electric vehicle built in the U.S., which will be a better solution than anything available from China.”
Ford’s new EV strategy aims to break the cycle of failed affordable vehicles launched in the country with high costs and low profitability. The company is willing to take risks, but CEO Farley acknowledged that there are no guarantees for success.
The revamped Louisville plant will secure 2,200 hourly jobs, and Kentucky Gov. Andy Beshear said the investment will boost the state’s position at the center of EV-related innovation.
Source: https://apnews.com/article/ford-louisville-assembly-plant-electric-vehicles-bde8fee4209176be186e6b4f91252dd2