Ford Bets Billions on Converting Its Factories for a New Electric Future

Ford has unveiled a US$2 billion investment to reimagine its long-standing assembly plant in Louisville, Kentucky. The facility will soon shift gears, transitioning from its traditional setup to produce a mid-sized, four-door electric pickup truck, scheduled to debut in 2027.

The truck, which is expected to start at around US$30,000, is being built on Ford’s new “universal EV platform.” This flexible base is designed to support a broad range of affordable electric models, enabling the company to compete in an increasingly aggressive market.

This investment forms part of a wider US$5 billion program. Alongside Louisville, Ford is also pouring US$3 billion into its battery plant in Michigan. Combined, these projects are expected to create or secure nearly 4,000 jobs. Although the workforce in Kentucky will shrink from 2,800 to 2,200 hourly positions, Ford has emphasised that there will be no layoffs. Some employees will be reassigned, while others will be offered voluntary buyouts.

The universal EV platform represents the outcome of a three-year skunkworks project in Silicon Valley, led by Alan Clarke, a former Tesla executive. It is built around efficiency. By reducing component use by 20 percent, cutting fasteners by 25 percent, and streamlining assembly to require 40 percent fewer workstations, the platform enables production that is 15 percent faster.

This design shift sets new benchmarks in sustainable manufacturing. The platform utilises lithium-iron-phosphate batteries instead of nickel-cobalt-manganese cells, which Ford claims are more durable, charge faster, and are significantly less expensive. By 2024, LFP cells had dropped to less than $60 per kilowatt-hour, compared with roughly $100 for NCM cells. These prismatic batteries are not only cheaper but also serve as structural elements, lowering the centre of gravity while freeing up interior space.

Ford claims the new pickup will offer more passenger room than a Toyota RAV4, along with additional storage solutions, creating a vehicle that balances practicality, comfort, and sustainability.

Ford is also rethinking the assembly process for vehicles. Instead of the traditional linear production line, the company will implement what it calls an “assembly tree” method. Three major sub-assemblies, the front, the rear, and the middle structural battery tray, will be built separately and then joined together. This allows for the use of single-piece aluminium castings rather than dozens of smaller parts.

The new approach is expected to ease the workload for employees significantly. Tasks that once required repetitive, physically demanding labor will be reduced by more than 80 percent. Workers will receive pre-assembled kits at each station, improving both efficiency and ergonomics.

Ford CEO Jim Farley has described the project as a “Model T moment,” underscoring his vision of a sustainable and profitable EV business. He acknowledged, however, that there are risks, noting that “there are no guarantees.”

Ford faces a challenging landscape. Chinese automaker BYD continues to lead the EV charge globally, while Tesla and GM remain fierce competitors at home. Doug Field, Ford’s Chief EV, Digital, and Design Officer, admitted that competing with the best in the world is “a bold and difficult

undertaking.”

Financially, the road will be tough. Ford’s Model EV division reported a US$1.3 billion operating loss in the last quarter, and the company expects up to US$5.5 billion in losses this year from its EV and software divisions. Some plans have already been scaled back. Ford delayed $ 12 billion in EV investments last year, pushed back the launch of its full-size electric truck to 2028, and postponed the rollout of its next-generation electric van.

Adding to the strain are policy headwinds. Reductions in EV tax credits and higher tariffs are forecast to reduce Ford’s annual earnings by another US$2 billion.

Despite these challenges, Ford is pushing forward, betting that the combination of affordable electric models, innovative manufacturing, and a renewed focus on sustainability will put it back in contention for leadership in the EV market.