LOUISVILLE, Ky. (AP) 鈥 Ford Motor Co. will invest nearly $2 billion retooling a Kentucky factory to produce electric vehicles that it says will be more affordable, more profitable to build and will outcompete rival models.
The automaker鈥檚 top executive unveiled the new EV strategy at Ford鈥檚 Louisville Assembly Plant which, after producing gas-powered vehicles for 70 years, will be converted to manufacture electric vehicles.
鈥淚n our careers, as automobile people we鈥檙e lucky if we get to work on one, maybe two, projects that really change the face of our industry,鈥 CEO Jim Farley told plant workers in Kentucky on Monday. 鈥淎nd I believe today is going to light the match as one of those projects for all of us here.鈥
The Big Detroit automakers have continued to transition from internal combustion engines to EV technology even as President Donald Trump鈥檚 administration unwinds incentives for automakers to go electric. Trump鈥檚 massive tax and spending law targets EV incentives, including the that saves buyers up to $7,500 on a new electric car.
Yet Farley and other top executives in the auto industry say that electric vehicles are the future and there is no going back.
The first EV to be produced by the revamped Louisville production process will be a midsize, four-door electric pickup truck in 2027 for domestic and international markets, the company said Monday.
The new electric trucks will feature plenty of interior space to fit five adults and pack enough power to have a targeted 0-60 time as fast as a Mustang EcoBoost but with more downforce, Ford said
The electric trucks will be powered by lower-cost batteries made at a Ford factory in Michigan. The Detroit automaker previously announced a $3 billion investment to build the battery factory.
The automaker sees this as a 鈥淢odel T moment鈥 for its EV business 鈥 a reference to revolutionary changes on the production line led by the company's founder, Henry Ford, when it began churning out vehicles from a factory more than a century ago. Farley said the changes will upend how electric vehicles are made in the U.S.
鈥淚t represents the most radical change on how we design and how we build vehicles at Ford since the Model T,鈥 Farley said.
The company said it will use a universal platform and production system for its EVs, essentially the underpinning of a vehicle that can be applied across a wide range of models.
The Louisville factory 鈥 one of two Ford assembly plants in Kentucky鈥檚 largest city 鈥 will be revamped to cut production costs and make assembly time faster as it鈥檚 prepared to churn out electric vehicles.
The result will be 鈥渁n affordable electric vehicle that we expect to be profitable,鈥 Farley said in an interview with The Associated Press ahead of the announcement. 鈥淭his is an example of us rejuvenating our U.S. plants with the most modern manufacturing techniques.鈥
The new platform enables a lineup of affordable vehicles to be produced at scale, Ford said. It will reduce parts by 20% versus a typical vehicle, with 25% fewer fasteners, 40% fewer workstations dock-to-dock in the plant and a 15% faster assembly time, Ford said.
The traditional assembly line will be transformed into an 鈥渁ssembly tree鈥 at the Louisville plant, the company said. Instead of one long conveyor, three subassembly lines will operate simultaneously and then join together, it said.
Other specifications for the midsize electric truck 鈥 including its reveal date, starting price, EPA-estimated battery range, battery sizes and charge times 鈥 will be announced later, the company said. Farley revealed that the truck will have a targeted starting price of about $30,000.
Ford said its investment in the Louisville plant will secure 2,200 hourly jobs.
Kentucky Gov. Andy Beshear said Monday that the automaker鈥檚 plans for the Louisville plant will strengthen a more than century-old partnership between Ford and the Bluegrass State.
鈥淭his announcement not only represents one of the largest investments on record in our state, it also boosts Kentucky鈥檚 position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford鈥檚 future,鈥 Beshear said.
Ford said its combined investment of about $5 billion at the Kentucky assembly plant and Michigan battery plant is expected to create or secure nearly 4,000 direct jobs between the two plants while strengthening the domestic supply chain with dozens of new U.S.-based suppliers.
Ford previously for this year and further losses in its electric vehicles business as it works to control costs. Model e, Ford鈥檚 electric vehicle business, posted a full-year loss of $5.08 billion for 2024 as revenue fell 35% to $3.9 billion.
Ford鈥檚 new EV strategy comes as are quickly expanding across the globe, offering relatively affordable electric vehicles.
鈥淲e鈥檙e not in a race to build the most electric cars,鈥 Farley told the AP when asked about competition from China. 鈥淲e鈥檙e in a race to have a sustainable electric business that鈥檚 profitable, that customers love.
鈥淎nd this new vehicle built in Louisville, Kentucky, is going to be a much better solution to anything that anyone can buy from China,鈥 he added.
Ford could have opted to launch its EV project overseas to reap lower-cost labor and currency advantages but instead is 鈥渢aking the fight to our competition鈥 from the plant in Kentucky, Farley said at Monday's event. But the Ford CEO cautioned that 鈥渢here are no guarantees鈥 with project.
鈥淲e鈥檙e doing so many new things I can鈥檛 tell you with 100% certainty that this will all go just right,鈥 he said. "It is a bet. There is risk. The automotive industry has a graveyard littered with affordable vehicles that were launched in our country with all good intentions. And they fizzled out with idle plants, laid off workers and red ink. And at Ford ... we set out to break that cycle.鈥
