Ford Motor Company announced plans to invest close to $2 billion to retool its Louisville Assembly Plant in Kentucky for electric vehicle (EV) manufacturing. The move marks a major shift for the factory, which has been producing gasoline-powered vehicles for 70 years.
Company executives shared that the reconfigured facility will focus on building a new generation of electric vehicles that aim to be more cost-effective and easier to produce. The first vehicle planned for production is a mid-sized, four-door electric pickup truck, set to roll out in 2027. The model will be marketed both domestically and internationally.
According to Ford CEO Jim Farley, the company’s goal is to deliver electric vehicles that are competitive in design, performance, and cost—while being manufactured in the U.S. using modern production techniques. The updated strategy arrives amid significant shifts in the automotive industry, even as recent federal policy changes under the Trump administration move to phase out certain tax incentives for electric vehicle buyers. These include the upcoming elimination of a $7,500 consumer tax credit for EV purchases.
Despite the policy landscape, Ford and other major automakers continue to advance their EV plans. Ford’s latest investment includes building more affordable electric trucks powered by low-cost batteries produced at a separate battery plant in Michigan. That facility, backed by a $3 billion investment, is expected to supply the Kentucky plant.
The Louisville Assembly Plant will undergo significant upgrades to implement a new manufacturing process that emphasizes modularity and efficiency. Ford says this updated system will rely on a universal vehicle platform adaptable to multiple vehicle types—including sedans, SUVs, and both electric and internal combustion models.
The factory will introduce an “assembly tree” approach in place of the traditional linear assembly line. This system will include three separate sub-assembly lines that operate concurrently, later merging in the final stages of production. The company expects this approach to reduce production costs, improve build speed, and cut down the number of parts and workstations needed.
The new system delivers notable efficiency gains, featuring a 20% reduction in parts compared to standard vehicles, 25% fewer fasteners, 40% fewer dock-to-dock workstations, and a 15% improvement in assembly time.Ford said the project will secure 2,200 hourly positions at the Louisville plant. In total, the company’s combined investments in Kentucky and Michigan related to this EV rollout now total approximately $5 billion, expected to support or create around 4,000 direct jobs.
Kentucky Governor Andy Beshear welcomed the announcement, calling it one of the most significant manufacturing investments in the state’s history. “This solidifies Kentucky’s role as a key player in the future of electric vehicle manufacturing,” he stated.
While the company has yet to disclose full specifications for the new electric truck—such as battery range, charging time, or detailed pricing—Ford has indicated a targeted starting price of roughly $30,000.
This shift comes as the company works to improve financial performance in its EV segment. Ford’s electric vehicle unit posted a $5.08 billion loss for the 2024 fiscal year, with revenue down 35% to $3.9 billion.
Despite those figures, executives say the company is committed to developing a long-term, sustainable EV business. With increasing global competition, particularly from Chinese manufacturers offering lower-cost electric models, Ford is focusing on profitability and domestic production advantages. “This isn’t about flooding the market with electric cars,” Mr Farley said. “It’s about building a stable, cost-effective business that delivers vehicles people want—built in America.”
Ford Motor Company, headquartered in Dearborn, Michigan, is a global automotive leader dedicated to creating a world where people have the freedom to move and pursue their aspirations. Guided by its Ford+ strategy for growth and value creation, the company leverages its legacy strengths while building new capabilities and fostering lasting customer relationships.
Ford designs, engineers, and delivers a wide range of vehicles including Ford trucks, SUVs, vans, and cars, as well as Lincoln luxury models, complemented by connected services that enhance the ownership experience. Ford Motor Company structures its operations around three customer-focused segments. Ford Blue is dedicated to engineering and delivering the company’s iconic gas-powered and hybrid vehicles, while Ford Model e leads innovation in electric vehicles and integrated digital technologies that create seamless, always-connected experiences for customers.
Ford Pro focuses on commercial clients, offering vehicles, tailored services, and business solutions that enable them to expand and operate more efficiently. Beyond its automotive operations, Ford also provides financial products and services through Ford Motor Credit Company. This division supports both customers and dealers around the world with financing solutions, helping drive growth and strengthening the company’s global presence.
