Ford throws out Henry Ford’s assembly line to make low-cost EVs in America

In a significant shift towards affordable electric vehicles (EVs), Ford announced a $2 billion investment aimed at revamping its Louisville Assembly Plant. This ambitious plan will kick off with the production of a mid-sized pickup truck, expected to hit the market in 2027 at a base price of $30,000. In a dramatic departure from the assembly line model introduced by Henry Ford over a century ago, the automaker is reimagining its manufacturing process. By dismantling the traditional moving assembly line, Ford aims to create a more efficient system that reduces production costs while maintaining profit margins. Doug Field, Ford's chief EV, digital, and design officer, emphasized that this transformation is crucial not only for cost reduction but also for ensuring the company's competitiveness against Chinese manufacturers. CEO Jim Farley described this innovative production strategy as a gamble, acknowledging the inherent risks involved. "There are no guarantees with this project," he stated during a live event from the Kentucky facility. The groundwork for this initiative was laid several years ago by a specialized team of around 500 individuals in California, led by former Tesla executive Alan Clarke. This group, which includes talent from companies like Rivian and Apple, has developed a new production system and vehicle platform for the Louisville factory. Dubbed the "universal production system," Ford's new approach replaces the single conveyor line with a three-branched assembly tree. This design not only allows for the separate assembly of components but also integrates an innovative universal EV platform that will utilize lithium iron phosphate batteries, developed in partnership with China's CATL, and produced at the company’s upcoming BlueOval Battery Park in Michigan, projected to open in 2026. The new platform features large aluminum unicastings that minimize the number of parts needed, enabling faster assembly by allowing the front and rear sections of the vehicle to be constructed independently. Notably, the assembly tree's third branch will integrate the vehicle's structural battery along with seats, consoles, and carpeting. Ford estimates that this modernized production method will reduce the number of parts by 20% and expedite the manufacturing process by 15%. Clarke expressed confidence that this groundbreaking approach will inspire others in the industry to rethink traditional manufacturing practices. While the transformation may lead to a decrease in workforce size—from 2,808 hourly workers to an anticipated 2,200—Ford has introduced a special retirement incentive and worked closely with the United Auto Workers to ensure a collaborative transition. Clarke reassured that workers are enthusiastic about the project, recognizing the necessity of competitiveness for job preservation in America. "This isn’t really, you know, optional," he affirmed.