Ford announced on Monday that it will invest $2 billion to transform its Louisville Assembly Plant into a facility capable of producing a new generation of affordable electric vehicles. The first model to roll off the line will be a mid-sized pickup truck with a starting price of $30,000, expected to launch in 2027.
This is not a typical factory upgrade. To cut manufacturing costs, Ford is overhauling the moving assembly line system pioneered by its founder, Henry Ford, more than a century ago. The company’s decision to revamp this long-standing method highlights the high-stakes challenge of producing affordable EVs in the U.S. efficiently, with fewer parts, while maintaining profitability.
Doug Field, Ford’s chief EV, digital, and design officer, emphasized that this shift isn’t just about reducing costs—it’s about staying competitive with China. CEO Jim Farley described the new production system, EV lineup, and $2 billion investment as a calculated risk.
“There are no guarantees with this project,” Farley said during a livestreamed event from the Kentucky plant. “We’re doing so many new things that I can’t say with 100% certainty everything will go perfectly. It’s a bet—there is risk.”
Farley believes the gamble is worth taking. Ford’s EV division reported a $1.3 billion loss in the second quarter of 2025, and sales of its flagship EVs, the F-150 Lightning and Mustang Mach-E, have declined.
The groundwork for this transformation began years ago with a specialized team of about 500 people in California, led by former Tesla executive Alan Clarke. The team, which includes talent from Tesla, Rivian, Apple, and Lucid Motors, developed the new production system and vehicle platform that will be used in Louisville.
Ford’s “universal production system” replaces the traditional single conveyor line with a three-branched assembly tree. The company has also created a universal EV platform featuring lithium iron phosphate batteries, using technology licensed from China’s CATL. These batteries will be produced at Ford’s new $3 billion BlueOval Battery Park in Michigan, set to open in 2026 and employ 1,700 workers.
The new EV platform includes large single-piece aluminum castings, reducing the number of parts significantly. The front and rear of the vehicle will be assembled separately on two branches, while the third branch handles the structural battery, seats, consoles, and carpeting. The three components merge at the end of the line to form the complete vehicle.
Ford claims this approach cuts parts by 20%, cooling hoses and connections by 50%, and fasteners by 25%. The first EV, a mid-sized pickup similar in size to the Ford Maverick but with more interior space, will be assembled 15% faster than traditional methods.
Unlike conventional assembly lines, where workers move along adding parts to the frame, Ford’s new system uses three pre-arranged kits containing all necessary tools and fasteners in the correct orientation. This method also reduces dock stations by 40%.
Alan Clarke, who led the project, acknowledged that industry veterans might question the unconventional approach. However, he believes once they see the efficiency gains, others will follow suit.
The changes will reshape the Louisville plant’s operations and reduce its workforce. Currently employing 2,808 hourly workers who produce the Ford Escape and Lincoln Corsair, the plant will eventually support 2,200 workers—600 fewer than today. Ford has offered early retirement incentives, with remaining employees given opportunities at other facilities.
Increased automation and job reductions might typically draw opposition from the United Auto Workers, but Clarke said Ford collaborated closely with the union from the start. UAW representatives praised the changes for improving worker safety and ergonomics.
Brandon Reisinger, UAW chairperson at the Louisville plant, noted that the new system reduces physical strain on workers. “Ergonomics has been prioritized much more,” he said. “Workers should leave feeling less sore, which is a big win for everyone.”
The transformation at Louisville is a bold step for Ford, reflecting its commitment to innovation and competitiveness in the evolving EV market.