Ford mentioned Monday it can make investments $2 billion to rework its Louisville Meeting Plant right into a manufacturing unit able to making a brand new era of inexpensive EVs, beginning with a mid-sized pickup truck with a base value of $30,000 that’s slated to launch in 2027.
This isn’t a regular manufacturing unit improve. To cut back the price of manufacturing, Ford has upended the shifting meeting line system launched by its founder Henry Ford greater than 112 years in the past.
The automaker’s willingness to alter the century-old system that made Ford a family identify displays the high-stakes juggling act of promoting a line of inexpensive electrical automobiles that might be made in the US sooner, extra effectively, and with fewer components all whereas preserving revenue margins. And as Ford’s chief EV, digital, and design officer Doug Discipline famous Monday it’s not nearly driving down particular person prices down, however a change that may permit the automaker to compete with China.
Ford CEO Jim Farley described the brand new manufacturing system, line of EVs, and $2 billion funding as a wager.
“There aren’t any ensures with this mission,” he mentioned throughout an occasion stay streamed from the Kentucky plant. “We’re doing so many new issues I can’t let you know with 100% uncertainty that it will all go good, it’s a wager. There may be threat.”
That wager started a number of years in the past with skunkworks crew of about 500 folks in California — led by former Tesla government Alan Clarke and stuffed with expertise from corporations like Tesla, Rivian, Apple, and Lucid Motors. The crew, which is cut up between Palo Alto and a brand new workplace in Lengthy Seaside, developed the brand new manufacturing system and underlying automobile platform that shall be used within the Louisville manufacturing unit.
The tip result’s what Ford calls the “common manufacturing system,” which modifications its single conveyor line right into a three-branched meeting tree. Ford has additionally developed a common EV platform that may use lithium iron phosphate batteries utilizing tech licensed from China’s CATL and manufactured at its new $3 billion BlueOval Battery Park manufacturing unit in Michigan. That manufacturing unit, which is predicted to come back on-line in 2026, will make use of 1,700 hourly staff.
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The brand new EV platform will consist of huge single-piece aluminum unicastings that makes use of far fewer components and can permit the entrance and rear of the automobile to be assembled individually on two of the branches. The third department is probably most notable; that is the place the structural battery shall be assembled with seats, consoles, and carpeting. The three parts will come collectively on the finish of the road to type the automobile.
Not like a standard meeting line, the place the employees transfer alongside including the wire harness and different components to the body, the EV platform will include three kits. Inside that package, all fasteners, scanners and energy instruments required for the job are included – and within the right orientation to be used, in keeping with Ford.
The EV platform will use 20% fewer components than a typical automobile and shall be produced 15% sooner, the corporate mentioned.
“I’ve definitely by no means seen something within the public area that appears something like this,” Clarke instructed TechCrunch in an interview forward of the launch. “And I feel {that a} manufacturing skilled would take a look at this, and particularly in the event that they’ve been within the automotive trade for a couple of many years, would type of scoff at it and say, ‘why would you do it this manner?’”
Clarke is satisfied that when manufacturing consultants see how rapidly a automobile can go from begin to end, others will try to emulate this.
The brand new format and accompanying EV platform will change how the Louisville manufacturing unit operates and scale back the variety of staff employed there. The transformation will seemingly ripple by way of the broader provide chain as properly. In the end, Clarke says, it will protect American jobs.
Ford employs about 2,808 hourly staff at its Louisville meeting plant, which makes the Ford Escape and Lincoln Cosair. Manufacturing of these two automobiles will proceed on the plant by way of 2026 earlier than switching to the brand new household of EVs. Ultimately, the plant will assist 2,200 hourly staff. A Ford spokesperson mentioned the automaker has supplied a particular retirement incentive program for others.
A discount in staff and a “vital” improve in automation would possibly sometimes immediate protests from the United Auto Employees. However Clarke says Ford labored with the UAW carefully from the start and that there’s “purchase in.”
“The groups are actually enthusiastic about what’s coming as a result of they know that we’ve got to be aggressive and we’ve got to make cash from this mission for jobs to remain in America,” he mentioned, later including, “This isn’t actually, you understand, non-obligatory.”
