Ford doubles down on US EV push

Ford commits $2 billion to retool the Louisville plant for a low-cost EV pickup launching in 2027 using a three-branch production system.

Ford bets big on new production system at Louisville plant to cut costs for affordable EVs

Ford said it will invest $2 billion to transform the Louisville Assembly Plant into a hub for a new generation of affordable electric vehicles. The centerpiece is a universal production system that replaces the traditional single conveyor with a three-branch assembly tree and a shared EV platform. Ford plans a mid sized pickup with a base price near $30,000, targeting a 2027 launch and using lithium iron phosphate batteries licensed from CATL, produced at a separate $3 billion battery plant in Michigan. The company says the change will cut parts and speed up building, boosting output by about 15 percent. The Michigan battery site is expected online in 2026 and will employ about 1,700 hourly workers.

Louisville will stop producing the Escape and Corsair as it switches to the new EV family; production of the current models will continue through the end of the year. When fully running, the plant will support roughly 2,200 hourly workers, about 600 fewer than today, with some staff offered roles at other facilities or a retirement package. Ford says it has secured buy in from the United Auto Workers, with officials praising ergonomics and safety gains. The company describes the project as a bet with no guaranteed outcome, acknowledging risk while arguing it is necessary to stay competitive in a cost sensitive market.

The move signals a shift from labor intensive carmaking to modular, kit based assembly. If the three branch system and the shared platform deliver the promised speed and cost cuts, Ford could gain a foothold in the growing US EV market and set a template for others. The plan also leans on CATL licensed tech and a large scale battery plant, tying U.S. production to a global supply chain and adding a layer of strategic risk. Still, the spares light on parts and faster assembly could transform factory economics if the execution holds.

Highlights

The test will be how quickly Ford can translate design gains into steady profit and steady jobs.