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Ford bets $2B on EV factory overhaul to compete globally, cut costs and speed production

August 12, 2025
Ford is investing $2 billion to retool its Louisville plant for a new EV production system that reduces vehicle parts by 20%, speeds output by 15%, and cuts dock stations by 40%, while aiming to produce EVs faster, cheaper, and more competitively. The overhaul, led by former Tesla executive Alan Clarke, will debut with a $30,000 mid-sized pickup launching in 2027.
Mike Mareen/Adobe

Replacing the century-old moving assembly line is a “universal production system” that uses a three-branch assembly process and a new EV platform with large single-piece aluminum castings and structural batteries. The change incorporates lithium iron phosphate battery technology licensed from CATL, to be produced at Ford’s upcoming BlueOval Battery Park in Michigan.

While the plant revamp will reduce the current workforce, the plan has received support from the United Auto Workers due to early retirement incentives, potential relocation offers, improved ergonomics and reduced physical strain on workers. The new process is designed to lessen twisting, turning, and bending on the line. CEO Jim Farley acknowledges the risks but sees the overhaul as essential to preserving U.S. manufacturing jobs and competing in the global EV market.

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