Ford’s EV Shift: Can New Platform Transform Manufacturing?
Ford has placed a major wager on EVs in the US, committing $2bn to overhaul its Louisville assembly plant in Kentucky.
The facility, which has long served as a centrepiece for traditional vehicle production, will be retooled to build a new mid-sized, four-door electric pick-up truck.
The vehicle is due to launch in 2027, with an entry-level price of around US$30,000.
The project is part of a broader US$5bn programme, which includes a US $3bn spend at Ford’s EV battery facility in Michigan.
The combined efforts will create or preserve nearly 4,000 jobs across the business – while hourly roles at the Kentucky site will decrease from 2,800 to 2,200, Ford says no lay-offs are expected. Instead, workers will either be reassigned within the company or offered buyouts.
It represents a bold move from the automotive giant, which has acknowledged the risks involved, particularly as EV adoption in the US is progressing slower than expected.
Ford Chief Executive Officer Jim Farley has called the programme a “Model T moment”, underlining the strategic importance of EVs to the company’s long-term ambitions.
Universal EV platform aims to simplify manufacturing
Central to the investment is the introduction of a new universal EV platform, the result of a three-year development effort in Ford’s Silicon Valley skunkworks. Led by former Tesla executive Alan Clarke, the platform is designed to serve as the foundation for a family of affordable vehicles.
In manufacturing terms, the platform represents a push toward simplification.
It uses 20% fewer components than a standard vehicle, with 25% fewer fasteners and 40% fewer production workstations. Ford claims these changes allow a 15% increase in assembly speed.
The universal platform is flexible, supporting a range of body styles including trucks, vans and SUVs. Vehicles will be software-defined, meaning that performance enhancements and fixes can be delivered via over-the-air updates.
A critical change in Ford’s approach lies in the use of lithium iron phosphate (LFP) batteries instead of the more expensive nickel cobalt manganese (NCM) cells. LFP batteries offer durability, lower cost and faster charging.
In 2024, LFP cells cost under US$60 per kWh compared to around $100 per kWh for NCM. These batteries also serve as structural parts of the vehicle, which helps lower the centre of gravity and increases usable interior space.
Ford says the new electric pick-up will provide more passenger room than a Toyota RAV4, with additional storage in both the front trunk and the rear bed.
The company highlights that performance has not been compromised, with the vehicle expected to accelerate from 0 to 60 mph in approximately 4.5 seconds.
New ‘assembly tree’ model retools traditional production line
In tandem with the new platform, Ford is moving away from conventional linear production lines.
The new “assembly tree” model segments the build into three major sub-assemblies: the front of the vehicle, the rear and a middle battery tray that serves as a structural component.
These sections are assembled separately and then joined, enabling Ford to make use of single-piece aluminium castings that replace dozens of smaller parts.
This shift has implications for both efficiency and ergonomics. Ford reports the change reduces physical strain on workers by more than 80% during certain tasks, thanks to less bending, twisting and reaching.
Alan has explained that the process works by delivering pre-assembled kits to each workstation. This is designed to streamline the workflow and minimise storage requirements, enabling a cleaner and more efficient floor layout.
The move is positioned as a step toward manufacturing scalability, with an eye on longer-term cost control and flexibility.
The universal approach, combined with lower-cost batteries and more efficient assembly, forms the foundation of Ford’s strategy to produce EVs at scale in a competitive pricing bracket.
Pressure mounts from competitors, policies and cost
Ford’s EV push comes at a time when the company is grappling with competitive and regulatory challenges. Chief EV, Digital and Design Officer Doug Field calls the shift a “bold and difficult undertaking to compete with the best in the world”.
Chinese carmakers such as BYD are gaining ground in the global EV space, while Tesla and General Motors maintain strong positions in the US market.
In response, Ford is seeking to differentiate through domestic production, aligning more closely with policies aimed at supporting American manufacturing.
That strategy, however, is not without cost. Ford’s Model EV division reported a $1.3bn operating loss last quarter and forecasts annual losses of up to $5.5bn this year on EVs and software.
In response to weakening demand and dealer resistance to infrastructure investment, the company has delayed $12bn in EV investment. This includes postponing the launch of a full-size electric truck to 2028 and pushing back the timeline for its next-generation electric van.
Trade policy changes are adding further strain. With tax credits on EVs set to shrink and new tariffs introduced, Ford expects a $2bn reduction in annual earnings.
Still, the company is banking on its streamlined approach to manufacturing and platform engineering to deliver long-term value. The universal platform, combined with more efficient assembly processes and a shift to lower-cost LFP batteries, is designed to make Ford’s EV offerings both competitive and profitable.
