Ford Motor Co. is embarking on a bold retooling of its Louisville Assembly Plant, marking a pivotal shift from seven decades of gas-powered car production. The automaker is committing nearly $2 billion to convert the facility into a cutting-edge hub for electric vehicle (EV) manufacturing. Under this plan, production of the Ford Escape and Lincoln Corsair will cease by the end of 2025, triggering a shutdown of the plant, projected for 8 to 10 months, to overhaul operations and replace traditional assembly lines with advanced EV systems.
Ford’s investment includes a substantial expansion of the plant’s infrastructure, adding 52,000 square feet that encompass new dock space and a 12,000-square-foot EV charging station featuring 16 chargers.According to UAW Local 862, approximately 2,300 hourly workers will face temporary layoffs during this retooling, receiving benefits and expected to return once construction is complete.
A $30,000 EV Pickup: Blueprint for the Future
At the heart of Ford’s strategy is an affordable mid‑size electric pickup, slated for production in 2027 and expected to launch for the 2028 model year with a starting price of $30,000. Built on the new Universal EV platform and assembled via an innovative “assembly tree” system—a departure from traditional conveyor lines—this approach promises greater efficiency and cost savings.
The enhanced process emphasizes a lean build: 20% fewer parts, 25% fewer fasteners, and 40% fewer workstations, with assembly times improved by ~15%. Additionally, the vehicle will deploy lithium‑iron phosphate (LFP) batteries, integrated as structural elements and sourced from Ford’s Michigan battery plant. Ford touts performance metrics akin to the Mustang EcoBoost, with a 0–60 mph time near 4.5 seconds.
The company envisions a family of “software‑defined” EVs, ranging from sedans to larger vans and SUVs, all deriving from this modular platform.
A Strategic Gambit in a Global EV Market
Ford’s Louisville initiative unfolds amid heightened competition from cost-effective Chinese EV manufacturers like BYD. The move is not just technological—it’s financial and symbolic. The integrated approach ties together a $5 billion investment across the Louisville plant and a Michigan battery facility and aims to secure or create nearly 4,000 U.S. jobs.
This step carries a message: Ford’s low-cost EV program isn’t merely a product pivot—it’s the centerpiece of its EV turnaround. CEO Jim Farley characterizes the initiative as a “Model T moment”, underscoring its transformative potential and faith in American manufacturing. Meanwhile, a specialized “skunkworks” team, led by former Tesla executive Alan Clarke, is driving development to bring Ford’s EV ambitions from concept to mass-market reality.
While Ford’s EV unit, Model e, reported a $5 billion loss in 2024, the company believes that leaner, consumer-priced EVs will be the key to profitability and renewed market relevance.