Ford Motor Co. will invest nearly $2 billion to retool its Louisville Assembly Plant in Kentucky for electric vehicle (EV) production, aiming to build affordable and profitable models that can compete globally. The move marks a major transition for the facility, which has produced gas-powered vehicles for 70 years.“We took a radical approach to solve a very hard challenge: Create affordable vehicles that are breakthrough in every way that matters — design, technology, performance, space and cost of ownership — and do it with American workers,” Ford CEO Jim Farley said in a release, reported AP. The announcement comes even as President Donald Trump’s administration rolls back EV purchase incentives, including plans to eliminate a federal credit worth up to $7,500. Farley, however, stressed that electric vehicles remain central to Ford’s future strategy.The first EV from the revamped Louisville plant will be a midsize, four-door electric pickup truck for domestic and international markets, set to launch in 2027. It will use lower-cost batteries manufactured at a Ford plant in Michigan, part of a previously announced $3 billion investment.Ford described the programme as a “Model T moment” for its EV division, referencing the mass-market vehicle that transformed the company’s history. The new platform will support multiple models, from sedans to SUVs, and combine electric and internal combustion variants.The Louisville plant will adopt an “assembly tree” system instead of a traditional single-line conveyor, cutting production costs and improving efficiency. Ford expects the new platform to reduce parts by 20%, cut fasteners by 25%, lower the number of workstations by 40% and shorten assembly time by 15%.“This is an example of us rejuvenating our US plants with the most modern manufacturing techniques,” Farley told the Associated Press. The midsize truck is expected to start at around $30,000, though specifications such as range, battery size and charge times will be announced later.The $2 billion investment will secure 2,200 hourly jobs in Louisville. Kentucky Governor Andy Beshear called it “one of the largest investments on record in our state,” boosting Kentucky’s standing in EV innovation.Combined with the Michigan battery plant, Ford’s total $5 billion investment is projected to create or secure nearly 4,000 direct jobs and expand the domestic EV supply chain through dozens of new US-based suppliers.Ford’s EV unit, Model e, reported a $5.08 billion loss in 2024 with revenue down 35% to $3.9 billion. Farley emphasised that the goal is not to produce the most EVs, but to build a sustainable and profitable EV business that customers value.“This new vehicle built in Louisville, Kentucky, is going to be a much better solution to anything that anyone can buy from China,” he added.
