The End of the Production Line? Ford Bets Big on EVs

It's risky business betting big on EVs in the US – Ford knows and acknowledges as much. 

But that hasn't stopped the automotive giant announcing a US$2bn investment in overhauling its traditional assembly plant in Louisville, Kentucky, to build a mid-sized, four-door electric pick-up truck set to debut in 2027. Prices will start from about US$30,000 for the new vehicle, which will be made using a “universal EV platform” that the company plans to use across a family of affordable models.

The investment forms part of wider US$5bn programme, including Ford’s US$3bn commitment to its EV battery facility in Michigan.

It says the combined projects will create or secure almost 4,000 jobs, with no lay-offs expected despite a reduction in workforce at the Kentucky site from 2,800 to 2,200 hourly roles. Some staff will be reassigned or offered buyouts.

What is the universal EV platform? 

The universal EV platform is the result of Ford’s three-year skunkworks project in Silicon Valley, led by Alan Clarke, a former Tesla executive.

The design uses 20% fewer parts than a typical vehicle, with 25% fewer fasteners and 40% fewer workstations from start to finish. It's said the change makes the assembly process 15% faster.

The platform supports multiple vehicle types – trucks, vans and SUVs – and will be software-defined, with over-the-air updates to improve performance.

Ford is adopting lithium iron phosphate (LFP) batteries instead of nickel cobalt manganese (NCM) units, citing their durability, faster charging and lower cost. In 2024, LFP cell prices were under US$60 per kWh compared with about US$100 per kWh for NCM cells. These prismatic cells will be structural elements in the vehicle, lowering the centre of gravity and increasing interior space.

Ford says the mid-size truck will have more passenger room than the Toyota RAV4, plus additional storage in the front trunk and truck bed. Despite the focus on cost, the model will go from 0-60 mph in roughly 4.5 seconds.

Shift to 'assembly tree' manufacturing model

Ford is replacing the traditional linear production line with an “assembly tree” method. Three major sub-assemblies – the front, the rear and the middle structural battery tray – will be built separately before being joined, allowing the use of single-piece aluminium castings in place of dozens of smaller parts.

The organisation says the approach will simplify production and improve ergonomics for workers, reducing bending, twisting and reaching by more than 80% when carrying out some tasks.

Alan describes the change as giving workers pre-assembled kits at each station, streamlining workflow and storage.

Ford CEO Jim Farley has labelled the project a “Model T moment” for Ford, aiming for a sustainable, profitable EV business that avoids past pitfalls where affordable models led to idled plants and job losses. He recognises, however, that there will be doubters, even admitting there are "no guarantees". 

The company is attempting to position itself to withstand tariffs better than General Motors due to its higher percentage of domestic production, aligning with President Donald Trump's push for US manufacturing.

Competitive pressures and market challenges

Ford's move comes as it faces intense competition from lower-cost Chinese manufacturers such as BYD, as well as established rivals Tesla and GM.

Doug Field, Chief EV, Digital and Design Officer at Ford, called it a "bold and difficult undertaking to compete with the best in the world". 

The company’s Model EV division posted a US$1.3bn operating loss last quarter and it forecasts up to US$5.5bn in losses on EVs and software this year.

In fact, Ford has scaled back some EV plans due to slower demand and dealer resistance to infrastructure costs. Last year, it delayed US$12bn in EV investment, before pushing the launch of a full-size electric truck to 2028 and postponing its next-generation electric van.

Trade policies are adding further pressure, with upcoming reductions in EV tax credits and tariffs expected to cut Ford’s annual earnings by US$2bn.

Ultimately, Ford believes its universal platform, streamlined manufacturing and cheaper batteries will allow it to deliver EVs at scale and compete on price while maintaining profitability.