Sunita Somvanshi
Ford Motor Company is investing about $5 billion across Kentucky and Michigan to build a family of affordable electric vehicles. The first product will be a midsize electric pickup truck with a target price around $30,000, arriving in 2027.
“We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership – and do it with American workers,” said Ford President and CEO Jim Farley.
The plan includes nearly $2 billion for the Louisville Assembly Plant in Kentucky, securing 2,200 hourly jobs, plus $3 billion for BlueOval Battery Park Michigan to make lithium iron phosphate (LFP) batteries. Together, these investments will create or secure nearly 4,000 jobs while building domestic supply chains.
Ford’s new Universal EV Platform reduces parts by about 20% versus a typical vehicle, with 25% fewer fasteners according to the company. The wiring harness will be more than 4,000 feet shorter and 10 kilograms lighter than in Ford’s first-generation electric SUV.
Ford says the cobalt-free and nickel-free LFP battery pack is integrated into the vehicle structure and floor, which the company says helps handling and cabin quietness. Despite being a midsize pickup, Ford claims the truck will offer more passenger space than a Toyota RAV4, with additional storage in both a front trunk and traditional bed.
Performance won’t be sacrificed, with Ford targeting 0-60 mph acceleration comparable to a Mustang EcoBoost.
“We took inspiration from the Model T – the universal car that changed the world,” said Doug Field, Ford chief EV, digital and design officer. “We applied first-principles engineering, pushing to the limits of physics to make it fun to drive and compete on affordability.”
Ford calls the new layout an “assembly tree,” where three sub-assemblies join. The company says the approach significantly reduces workstations and shortens build time compared with traditional lines. Because of the integration between the production system and platform, assembly of the midsize electric truck could be up to 40% faster than Louisville Assembly Plant’s current vehicles. Some of that time will be reinvested into insourcing and automation to improve quality and cost, ultimately netting a 15% speed improvement.
The approach includes large aluminum single-piece castings that replace dozens of smaller parts. Parts arrive to workers in kits with all necessary tools, improving ergonomics by reducing twisting, reaching, and bending.
“We put our employees at the center and re-created the factory from scratch,” said Bryce Currie, Ford vice president, Americas Manufacturing. “We live and breathe continuous improvement, but sometimes you need a dramatic leap forward. We expect ergonomic breakthroughs and complexity reduction – through elimination of parts, connectors and wire – will flow through to significant quality and cost wins.”
Ford says BlueOval Battery Park Michigan will put the company on a path to be the first automaker to make prismatic LFP batteries in the U.S. The LFP batteries cost less than traditional EV batteries and have better fire safety, though they store less energy by volume.
Kentucky Governor Andy Beshear welcomed the investment: “This announcement not only represents one of the largest investments on record in our state, it also boosts Kentucky’s position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford’s future.”
This initiative comes as Ford works to improve its EV business performance. Its electric vehicle division posted a full-year loss of $5.08 billion for 2024 as revenue fell 35% to $3.9 billion.Ford plans to announce additional details about the midsize electric truck, including exact pricing, battery range, and charge times, at a later date.
