Ford Motor Company has staked its future on a bold new vision for electric vehicles, announcing a sweeping $5 billion investment package aimed at transforming its US manufacturing footprint and making electric pickups affordable for the masses. The move, unveiled on August 13, 2025, centers on a $2 billion overhaul of Ford’s longtime Louisville assembly plant in Kentucky, which will be retooled to produce a next-generation, mid-sized, four-door electric pickup truck slated for launch in 2027 with an entry-level price of about $30,000.
This initiative, as reported by CNN, marks what Ford CEO Jim Farley described as a “Model T moment” for the company—a reference to the original Model T that revolutionized the auto industry more than a century ago. “We took inspiration from the Model T – the universal car that changed the world,” echoed Doug Field, Ford’s chief EV, digital, and design officer. “We think today will be a turning point for Ford Motor Company and the auto industry.”
The Louisville plant, once a stronghold for traditional gas-powered SUVs, will become the heart of Ford’s new electric ambitions. However, the transition to electric vehicle (EV) production comes with significant changes to the workforce. Hourly roles at the Kentucky facility will decrease from 2,800 to 2,200, reflecting the efficiency gains of the new assembly process. Despite this reduction, Ford has pledged no layoffs. Instead, displaced workers will be reassigned within the company or offered buyouts, and some could be moved to the nearby Kentucky Truck plant. Farley was quick to stress, “So the 2,200 (jobs) is just the beginning. By the way, we’re adding 1,700 new jobs up in Michigan that don’t exist today. The 600 people here will have plenty to do.”
The $5 billion program includes a $3 billion investment in Ford’s EV battery facility in Michigan, which has been in the works since 2023. The combined efforts are expected to create or secure nearly 4,000 jobs across Ford’s US operations. According to BizClik, this is part of Ford’s broader strategy to align more closely with American manufacturing policies and respond to competitive and regulatory pressures from both domestic and international rivals, including Tesla, General Motors, and China’s BYD.
At the core of Ford’s new approach is a universal EV platform, a product of three years of development in the company’s Silicon Valley skunkworks under the leadership of former Tesla executive Alan Clarke. The platform is designed to simplify manufacturing and support a range of affordable models, from trucks to vans to SUVs. It uses 20% fewer components than traditional vehicles, 25% fewer fasteners, and 40% fewer production workstations, enabling a 15% increase in assembly speed. These changes not only streamline production but also have a profound impact on procurement and supply chain management, as highlighted by Supply Chain Digital. Procurement executives must now focus on sourcing fewer, but more specialized, high-quality components, such as single-piece aluminum castings and pre-assembled kits.
One of the most significant technological shifts is Ford’s adoption of lithium iron phosphate (LFP) batteries, which cost under $60 per kilowatt-hour in 2024 compared to about $100 per kilowatt-hour for nickel cobalt manganese (NCM) batteries. LFP batteries are not only more affordable but also offer greater durability and faster charging. They double as structural components, lowering the vehicle’s center of gravity and increasing usable interior space. The new electric pickup is expected to provide more passenger room than a Toyota RAV4 and feature additional storage in both the front trunk and rear bed. Ford claims performance has not been sacrificed, with the vehicle projected to accelerate from 0 to 60 mph in roughly 4.5 seconds.
Alongside the new platform, Ford is breaking away from the traditional linear assembly line that has defined auto manufacturing since Henry Ford’s era. Instead, the company is implementing an “assembly tree” model that segments the build into three major sub-assemblies: the front, the rear, and a middle battery tray. These sections are assembled separately and then joined together, leveraging large aluminum castings to replace dozens of smaller parts. According to Ford, this approach reduces physical strain on workers by more than 80% during certain tasks, thanks to less bending, twisting, and reaching. As Alan Clarke described, “The process works by delivering pre-assembled kits to each workstation,” enabling a cleaner, more efficient floor layout and improved ergonomics.
Ford’s push into EVs comes amid mounting competitive and regulatory challenges. The company faces stiff competition from Tesla, GM, and Chinese manufacturers like BYD, all vying for dominance in the fast-evolving EV market. At the same time, Ford is grappling with financial headwinds. Its Model EV division reported a $1.3 billion operating loss last quarter and forecasts annual losses of up to $5.5 billion on EVs and software in 2025. Despite nearly tripling its EV revenue in the first half of the year, Ford lost $2.2 billion in the EV segment during that period, according to CNN.
Trade policy changes have added further strain. With federal tax credits for EVs shrinking and new tariffs imposed by the Trump administration, Ford expects a $2 billion reduction in annual earnings. The company has responded by delaying $12 billion in planned EV investments, including postponing the launch of a full-size electric truck to 2028 and pushing back the timeline for its next-generation electric van. Still, Ford remains committed to its US manufacturing base, noting that it already builds more cars in America than any other automaker. However, it does not plan to shift production of the Mustang Mach-E from its current plant in Cuautitlan, Mexico.
Despite the challenges, Ford’s leadership remains resolute. Doug Field summed up the company’s outlook, stating, “We think today will be a turning point for Ford Motor Company and the auto industry.” The success of this ambitious transformation will depend on Ford’s ability to deliver on its promises—making EVs more affordable, streamlining production, and navigating the turbulent waters of global competition and shifting government policies. If Ford can pull it off, the auto giant may well usher in a new era as transformative as the original Model T.
