Ford Invests $2 Billion in Louisville Assembly Plant for Affordable EV Production

Ford is investing $2 billion to transform its Louisville Assembly Plant into a factory capable of making affordable EVs, starting with a mid-sized pickup truck with a base price of $30,000 in 2027. The automaker is upending its century-old moving assembly line system to reduce manufacturing costs and compete with China. The new production system, line of EVs, and investment are considered a bet by Ford CEO Jim Farley, who believes it's worth making despite risks involved.

Ford Motor Company has announced a significant investment of $2 billion to transform its Louisville Assembly Plant (LAP) into a factory capable of producing affordable electric vehicles (EVs), starting with a mid-sized pickup truck. The investment, which comes on top of a previously announced $3 billion investment in a battery park in Michigan, is aimed at rolling out more affordable EVs and creating or securing nearly 4,000 new jobs [1].

The new investment will involve the production of a midsize, four-door electric pickup truck at the Louisville Assembly Plant, with a planned launch in 2027. The truck is expected to have a starting price of around $30,000, making it more affordable than many other electric vehicles currently on the market [2].

Ford's decision to invest in the Louisville plant is part of a broader strategy to compete with Chinese automakers and reduce manufacturing costs. The automaker is upending its century-old moving assembly line system by adopting a new "assembly tree" production model. This new system will allow for more efficient use of parts and improve ergonomics and safety for workers [2].

The transformation of LAP will involve a temporary closure of the plant for retooling to accommodate the new production model. During this time, some workers will be eligible for a buyout, while others may look at a plant transfer to places such as the Kentucky Truck Plant [2].

Ford CEO Jim Farley has described the investment as a "bet" due to the risks involved in developing and producing a new line of EVs. However, he remains optimistic about the potential for success. "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," Farley said in a news release [1].

The investment in the Louisville plant is part of a broader trend of Ford's commitment to Kentucky for its newest investments. Just four months after launching the 2025 Expedition from the Kentucky Truck Plant, Ford announced the $2 billion investment into the Louisville Assembly Plant [2].

The EV industry has grown rapidly in Kentucky due to Ford's investments in the state. The company's decision to produce the new electric pickup truck in Louisville is expected to further solidify the state's position as a leader in EV production [2].

References:
[1] https://www.cnbc.com/2025/08/11/ford-louisville-assembly-plant-ev-investment.html
[2] https://www.courier-journal.com/story/money/companies/2025/08/12/ford-investing-2-billion-louisville-assembly-plant-for-new-electric-vehicles/85458148007/