Revolutionizing EV Production: How Ford is Transforming Henry Ford’s Assembly Line for Affordable Electric Vehicles in America

Ford just announced a $2 billion investment to revamp its Louisville Assembly Plant. This upgrade will enable the production of a new line of affordable electric vehicles (EVs), starting with a mid-sized pickup truck priced around $30,000, set for release in 2027.

This isn’t just a simple factory update. To cut manufacturing costs, Ford is moving away from the traditional assembly line model introduced by its founder over a century ago. Doug Field, Ford’s chief officer for EVs, emphasizes that this shift is crucial for creating affordable electric cars in the U.S. and competing with Chinese manufacturers.

CEO Jim Farley believes this is a risky but necessary move. Ford’s EV division reported a loss of about $1.3 billion in the second quarter of 2025, and sales of popular models, like the F-150 Lightning and the Mustang Mach-E, are declining.

A key part of this transformation began years ago with a talented team led by former Tesla executive Alan Clarke. Their goal was to develop a new production system and vehicle platform. This new setup, referred to as the “universal production system,” will replace the lengthy conveyor lines with a more efficient three-branch assembly tree.

The assembly process will use fewer components, resulting in approximately 20% fewer parts compared to traditional vehicles. Notably, this design will employ large single-piece aluminum parts instead of many smaller components, which simplifies the manufacturing process.

Ford’s new EV platform will also use lithium iron phosphate batteries. These batteries will be produced at the upcoming $3 billion BlueOval Battery Park in Michigan, which is expected to start operations in 2026 and create around 1,700 jobs.

The three-branch system will allow different parts of the vehicle to be assembled simultaneously, making the process about 15% faster. This innovative approach could reshape how cars are built in the future, leading to greater efficiency across the industry.

Clarke believes that once other companies see how quickly this system works, they might follow suit. However, this shift will also reduce the workforce at the Louisville plant. Currently, about 2,808 employees work there, but that number is expected to drop to around 2,200.

Ford is encouraging early retirements to soften the blow. If not enough workers take the offer, they might find roles at other Ford facilities.

Despite concerns about job losses and automation, UAW representatives have voiced support for the changes. They believe the new system will be safer and healthier for workers. Brandon Reisinger, the UAW chairperson at the Louisville plant, mentioned that the new setup will reduce physical strain on assembly workers, promoting a healthier workplace.

For Ford, this investment reflects its commitment to evolving with the market while keeping American jobs alive. As the electric vehicle landscape continues to change, innovations like these will be crucial in shaping the future of automotive manufacturing. To delve deeper into Ford’s production strategies, check out this report.

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