Ford Motor Company has unveiled a bold plan to invest $5 billion in electric vehicle (EV) production, promising to deliver a new affordable EV model starting at just $30,000 by 2027.
The investment aims to modernize manufacturing and build a new battery plant in Michigan, signaling a big step toward making electric trucks and cars accessible to more people.
The Detroit-based automaker revealed that $2 billion will go toward upgrading its Louisville Assembly Plant, while $3 billion will fund the construction of a new battery factory in Michigan, CBS News said.
This move is part of Ford's goal to produce EVs more efficiently and at a lower cost.
Ford CEO Jim Farley described the new approach as "the most radical change on how we design and how we build vehicles at Ford since the Model T."
The company is introducing a fresh assembly line design called an "assembly tree." Unlike the traditional straight line, this new setup will feature three different lines converging into one, speeding up the building process and making it easier for workers.
Doug Field, Ford's chief of EV digital and design, said, "This way of building a vehicle, we're confident, is the first time anyone's done this anywhere in the world."
Ford believes the new line will use 40% fewer workstations and 20% fewer parts per vehicle, helping reduce production time and costs.
Ford announced a significant shift in its electric vehicle (EV) strategy, committing to a nearly $5 billion investment focused on developing and producing lower-cost EVs. This strategy aims to compete with rivals in the evolving EV market, particularly affordable models from… pic.twitter.com/SsP16mLN6O
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Ford's EV Truck to Charge Tools and Power Homes with Built-In Outlets
The new system will debut with a four-door midsize electric truck, which is planned to launch in 2027.
The truck will have room for five passengers and come with handy features like a front trunk, also called a "frunk," plus a traditional pickup bed.
Ford also highlighted the truck's power outlets that can run tools, appliances, or even provide backup power for homes.
According to CNN, priced at $30,000, the new truck will be much cheaper than current EV pickups like the Ford F-150 Lightning, which starts around $55,000.
Ford is making big changes to speed up how they build their midsize electric truck — they expect production at their Louisville plant to be up to 40% faster thanks to a new assembly process. On top of that, they're switching to smaller batteries that don't use cobalt or nickel, which will help lower costs.
This new battery design is a key part of Ford's plan to offer affordable electric vehicles without giving up on quality or performance.
Even though Ford faces challenges like more competition and shifting government rules around EV incentives, this move shows they're serious about shaping the future of electric cars.
Auto expert Patrick Anderson pointed out that if Ford can prove it can build a reliable compact electric truck for around $30,000, it could sell tons of them — and even pave the way for making electric sedans using the same production method.
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