Ford to Invest $2 Billion in Kentucky Plant for New Electric Pickup

Ford Motor Co. has unveiled a $2 billion investment to retool its Louisville Assembly Plant in Kentucky, a facility that has produced gas-powered vehicles for 70 years. The reconfiguration will begin in 2027 and will focus on producing a midsize, four-door electric pickup truck designed for both domestic and international markets. This model is intended to be affordable and profitable, with a target starting price of around $30,000 [1].

The investment marks a significant step in Ford’s transition from internal combustion engines to electric vehicles (EVs). The Louisville plant will be overhauled with a streamlined manufacturing approach, including the use of a universal platform for EV production. This system allows the same underpinning to be used across multiple models, reducing parts by 20%, fasteners by 25%, and workstations by 40%. Assembly time is expected to improve by 15%, while the traditional linear assembly line will be replaced by an “assembly tree,” where three sub-assembly lines operate simultaneously before combining [1].

Production of the new electric truck will rely on lower-cost batteries manufactured at a $3 billion Ford plant in Michigan. The Louisville project is expected to secure 2,200 hourly jobs, while the combined investment in Kentucky and Michigan is projected to create or secure nearly 4,000 direct jobs. Ford has also committed to expanding the Louisville facility by 52,000 square feet to accommodate the new production model [2].

CEO Jim Farley described the initiative as a “Model T moment” for Ford’s EV strategy, referencing the historic shift in mass production that transformed the automotive industry over a century ago. He emphasized the need for Ford to reinvent its production methods to ensure the long-term success of its EV business. “This has to be a good business,” Farley said, adding that the company is not simply trying to build another “good college try” that ends in plant closures or job losses [1].

The investment comes at a time when Ford’s EV business, known as Model e, reported a $5.08 billion loss in 2024, with revenue falling 35% to $3.9 billion. The company previously projected weaker earnings for 2025 as it continues to work through cost challenges. Despite these financial pressures, Ford remains confident in the long-term viability of electric vehicles. Farley stressed that the company is not in a race to build the most EVs but rather to establish a sustainable, profitable electric business [1].

Kentucky Gov. Andy Beshear hailed the investment as one of the largest in the state’s history and a reinforcement of Ford’s long-standing partnership with Kentucky. He noted that the announcement strengthens the state’s position in EV-related innovation and cements the Louisville Assembly Plant as a key part of Ford’s future [1].

Ford’s strategy appears focused on combining advanced manufacturing techniques with cost-effective battery production to create a competitive advantage in the global EV market. The company’s emphasis on affordability, efficiency, and profitability reflects a broader industry shift toward sustainable and scalable EV solutions [1].

Source:

[1] Ford to invest nearly $2 billion in Kentucky assembly plant to ... (https://finance.yahoo.com/news/ford-invest-nearly-2-billion-143637085.html)

[2] Ford puts $2B into Louisville Assembly Plant for new, ... (https://www.kentucky.com/news/business/article311657770.html)