Ford Commit \$2 billion investment on Monday to upgrade its Louisville, Kentucky assembly plant, aiming to produce affordable electric vehicles (EVs). This move is part of the company’s broader strategy to expand its EV lineup and create nearly 4,000 jobs across new facilities, including a \$3 billion battery park in Michigan.
Ford’s new “Universal EV Program” will begin with a midsize electric pickup truck, expected to launch in 2027 with a starting price of around \$30,000—comparable to the inflation-adjusted cost of the original Model T. The initiative reflects Ford’s commitment to innovation, American manufacturing, and meeting growing EV demand.
Additional Investment and Job Creation
This new investment adds to a previously planned $3 billion project for a battery park in Michigan. Together, these initiatives will create or secure nearly 4,000 new jobs, according to a Ford news release.
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CEO Highlights Radical Approach to Affordable EVs
Ford CEO Jim Farley described the move as a “radical approach” to tackling the challenge of creating affordable EVs without compromising design, innovation, flexibility, space, driving pleasure, or cost of ownership—all while relying on American workers.
Universal EV Program and New Electric Pickup
The Detroit automaker’s new “Universal EV Program,” focused on producing low-cost electric vehicles, will kick off with a midsize, four-door electric pickup truck made at the Louisville Assembly Plant. The launch is planned for 2027.
Historic Pricing Compared to Model T
Ford executives called the announcement the company’s next “Model T moment.” The starting price for the new EV truck will be approximately $30,000, roughly matching the inflation-adjusted price of the original Model T.
Domestic Battery Production
The new family of EVs will use lithium iron phosphate (LFP) batteries assembled in the U.S., avoiding reliance on imported batteries from China.
Industry Challenges and Competitive Landscape
During Monday’s event in Louisville, Farley highlighted the automotive industry’s crossroads, driven by new technology and intense competition from companies like BYD and tech startups worldwide.
“We needed a radical approach and a really tough challenge to create an affordable vehicle,” Farley said.
Impact of Changing EV Policies
The announcement comes amid evolving EV policies under President Donald Trump’s administration, including the planned expiration of EV tax credits after September 30.
Job Impact at Louisville Plant
Ford said the Louisville plant will secure about 2,200 jobs, though once converted for EV production, it will employ roughly 600 fewer workers compared to its current setup. As of April 2024, the plant employed over 3,000 workers.
Ford’s Job Growth Elsewhere
Farley emphasized Ford’s continued job growth elsewhere, stating in an interview that Ford is the only U.S. automaker to add 13,000 jobs since the recession.
Frequently Asked Questions
What is Ford investing in Louisville?
Ford is investing $2 billion in its Louisville, Kentucky assembly plant to produce affordable electric vehicles.
How many jobs will this investment create or secure?
Together with a battery park investment in Michigan, Ford expects to create or secure nearly 4,000 jobs.
What type of electric vehicle will be produced in Louisville?
A midsize, four-door electric pickup truck will be produced at the Louisville Assembly Plant, with a launch planned for 2027.
What is the expected starting price of the new EV truck?
The starting price is expected to be around $30,000, similar to the inflation-adjusted price of the Model T.
Where will the batteries for these EVs be made?
The lithium iron phosphate (LFP) batteries will be assembled in the U.S., not imported from China.
How will the investment affect jobs at the Louisville plant?
The plant will secure about 2,200 jobs, although it will employ approximately 600 fewer workers once converted for EV production.
Why is Ford making this investment now?
Ford aims to meet growing competition in the EV market, innovate affordably, and respond to shifting EV policies in the U.S., while maintaining American jobs.
Concluison
Ford’s $2 billion investment in the Louisville assembly plant marks a significant step toward making electric vehicles more accessible and affordable for American consumers. By focusing on innovation, domestic production, and job creation, Ford is positioning itself to compete in the rapidly evolving EV market. The new electric pickup, priced competitively and built with American-made batteries, embodies the company’s commitment to sustainable transportation and economic growth.