Ford said Monday it would invest $2 billion to transform its Louisville assembly plant into a factory that can manufacture a new generation of affordable EVS, starting with a base price of $30,000, with a base price of $30,000.
This is not a standard factory upgrade. To reduce manufacturing costs, Ford improved the mobile assembly line system, launched by founder Henry Ford over 112 years ago.
The willingness of carmakers to change the system that made Ford famous is a reflection of the high-stakes juggling practice of selling affordable electric vehicles that can use fewer parts faster, more efficiently in the US, while still maintaining profitability. And Dougfield, Ford’s chief EV, digital and design director, noted on Monday changes that would not only cut individual costs, but also allow automakers to compete with China.
Ford CEO Jim Farley explained his bets on the new production system, the EV line and $2 billion investment.
“There is no guarantee for this project,” he said at an event that was live streamed from the Kentucky factory. “We’re doing so many new things, so we can’t tell you with 100% uncertainty. All this will go right. It’s a bet. There’s risk.”
The bet began several years ago with a Skunkworks team of about 500 people in California. Leaded by former Tesla executive Alan Clarke, he was filled with talent from companies such as Tesla, Rivian, Apple and Lucid Motors. The team, split into new offices in Palo Alto and Long Beach, has developed a new production system and an underlying vehicle platform for use at the Louisville plant.
The final result is what Ford calls the “universal production system,” which changes a single conveyor line into a three-branch assembly tree. Ford also developed a universal EV platform using lithium iron phosphate batteries, using technology licensed from CATL in China and manufactured at Michigan’s $3 billion Blueoval Battery Park Factory. The factory, which is expected to be online in 2026, will employ 1,700 hourly workers.
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The new EV platform consists of large single piece aluminum unicasting with much fewer parts, allowing for two branches to assemble the front and back of the vehicle separately. The third branch is probably the most notable. This is where the structural battery is assembled with seats, consoles and carpets. The three components gather at the edge of the line to form the vehicle.
Unlike traditional assembly lines where employees move wire harnesses and other components to the frame, the EV platform consists of three kits. Within that kit, it includes all the fasteners, scanners and power tools needed for the job. According to Ford, it is included in the right direction for use.
The EV platform uses 20% fewer parts than a typical vehicle and is produced 15% faster, the company said.
“I’ve certainly never seen anything in the public domain that looks like this,” Clark told TechCrunch in an interview before its release. “And I think manufacturing experts are seeing this, especially if they’ve been in the automotive industry for decades, they’ll scoff at it and say, ‘Why do you make it this way?’ ”
Clark is sure that once manufacturing experts understand how fast a vehicle can go from start to finish, others will try to emulate this.
The new format and accompanying EV platforms will change the way Louisville plants operate and reduce the number of workers employed there. Transformations can ripple through the wider supply chain. Ultimately, Clark says this will keep American jobs.
Ford employs approximately 2,808 hourly workers at its Louisville assembly plant, which will become Ford Escape and Lincoln Cosier. Production of these two vehicles will continue at the plant until 2026 before switching to a new family of EVs. Ultimately, the factory will support 2,200 hourly workers. A Ford spokesperson said the automaker is offering special retirement incentive programs to others.
A “significant” increase in worker cuts and automation can usually encourage protests from United auto workers. However, Clark says Ford has worked closely with the UAW from the start and has “shop.”
“The team is really excited about what’s coming, knowing we need to be competitive and we need to make money from this project to stay in the US,” he said.
