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Ford Motor Company has announced a $2 billion investment to overhaul its Louisville, Kentucky, Assembly Plant, with plans to produce a new generation of affordable electric vehicles. The initiative, which will add 2,200 jobs, is part of Ford's broader $5 billion commitment to domestic EV manufacturing, including a $3 billion battery facility in Michigan.
The Louisville plant, which has produced gas-powered vehicles for 70 years, will be retooled to launch a midsize, four-door electric pickup truck in 2027. Ford CEO Jim Farley described the project as a "radical approach" to delivering low-cost EVs without compromising design, performance, or quality. "We needed a tough challenge to create an affordable vehicle — and we're doing it with American workers," he said.
The new model is expected to start at around $30,000, a price point Ford likens to the iconic Model T when adjusted for inflation. It will feature U.S.-assembled lithium iron phosphate (LFP) batteries, a move intended to reduce reliance on imports and strengthen the domestic supply chain.
To meet cost and efficiency goals, Ford is introducing a "universal platform" for EV production, reducing parts by 20%, fasteners by 25%, and assembly time by 15%. The Louisville plant's traditional conveyor system will be replaced with an "assembly tree," allowing three sub-assembly lines to work in parallel before joining together.
Kentucky Governor Andy Beshear welcomed the investment, calling it one of the largest in state history and a boost to Kentucky's growing role in EV manufacturing.
The strategy comes as Chinese automakers like BYD expand globally with competitively priced electric models. Farley said Ford's goal isn't to outproduce competitors but to create a profitable EV lineup that appeals to customers and supports U.S. manufacturing.
Ford's EV division, Model e, posted a $5.08 billion loss in 2024, highlighting the challenge of balancing innovation with profitability. Executives hope the Louisville project will mark a turning point — a modern "Model T moment" — that positions the company to compete in a rapidly shifting global auto market.
Additional details, including battery range, charge times, and official launch date, will be released closer to the vehicle's debut.
