Ford Motor Company is making a major push into the affordable electric vehicle market, committing $5 billion to develop a universal EV platform and overhaul its manufacturing process. The initiative, spread across two U.S. plants, aims to deliver a family of low-cost electric vehicles that can compete head-to-head with Chinese automakers on both pricing and features.
A Break from Tradition
At the heart of the project is a bold departure from the century-old moving assembly line model pioneered by Henry Ford himself. The company is designing a new manufacturing approach that assembles vehicles in three large sections, which are later joined in final assembly. This method is expected to speed up production, lower costs, and reduce physical strain on workers.
The first vehicle based on the platform will be a mid-sized, four-door electric pickup, set to launch in 2027 with a starting price of around $30,000. Future models will share the same platform, enabling efficiency gains across Ford’s EV lineup.
Efficiency Gains — and Job Impacts
Ford says the redesigned platform will require 20% fewer parts and 40% fewer fasteners compared to conventional vehicles. Production time per unit is expected to be 40% shorter, with the number of employee workstations also reduced by 40%.
While these efficiencies will streamline manufacturing, they will also reshape the workforce. At the Louisville Assembly Plant in Kentucky — where part of the investment will be made — Ford plans to retain 2,200 of the 2,800 current positions. About 600 employees will be offered buyouts or the option to transfer to other facilities, including the nearby Kentucky Truck Plant.
Powering the Platform
A significant portion of the $5 billion investment — roughly $3 billion — will go toward a new battery facility in Michigan. This plant will produce lithium-iron-phosphate (LFP) batteries, using technology licensed from Chinese battery manufacturer CATL.
Aiming for Sustainable Profitability
Ford leadership has emphasized that this initiative is designed for long-term viability, not just as an experimental push into the affordable EV segment. The combination of innovative manufacturing, advanced battery technology, and a scalable platform could position the company as a serious contender in the next wave of mass-market EV adoption.
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IMAGE: Reuters
