What is Ford Doing to Convert Production Line for EVs?

Ford has announced a US$2bn commitment to repurposing its Louisville, Kentucky, US assembly plant.

It plans to produce a new mid-sized, four-door electric pick-up truck set to debut in 2027.

With a starting price of approximately US$30,000, this vehicle will be crafted on Ford's "universal EV platform," a base set to support a diverse family of cost-effective electric 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.

This platform reduces component use by 20%, employs 25% fewer fasteners and streamlines the assembly requiring 40% fewer workstations.

These efficiencies contribute to making the assembly process 15% faster, setting new standards for sustainable manufacturing practices.

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 that the truck will not only offer more passenger room than a Toyota RAV4 but also include additional storage options, marrying form and function in a fully electric, sustainable package.

The '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.

Implemented changes aim to improve the in-plant conditions for workers, lessening the physical demands associated with repetitive tasks by more than 80%.

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". 

Navigating competitive landscapes

Ford faces pressure from cutting-edge Chinese manufacturers like BYD and established competitors 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.