Ford Announces $5 Billion EV Investment — Its ‘Next Model T Moment’
🚗 Key Message: Ford is making a massive EV investment, signaling a new turning point in the auto industry.
Ford has unveiled a major Ford EV investment worth $5 billion, calling it the company’s “next Model T moment.” This bold move will focus on building a new assembly line and battery production facility in the United States, adding or securing 4,000 American jobs. The announcement marks a strategic step in Ford’s push to expand its electric vehicle (EV) lineup and stay ahead in the rapidly evolving automotive market.
📍 Louisville Plant Shift from Gas SUVs to Electric Vehicles
About $2 billion of the Ford EV investment will go toward converting the Louisville Assembly Plant in Kentucky into a next-generation EV production hub. This transition will secure 2,200 hourly jobs, although the shift from gasoline SUVs to EVs will require roughly 600 fewer jobs due to higher efficiency in the new assembly line. CEO Jim Farley noted that some of these workers could be moved to the Kentucky Truck Plant, while additional EV models will also be added to the Louisville plant.
🔋 New Battery Technology and Affordable Electric Pickup
Ford also introduced a new, smaller, and lighter battery design, enabling the production of a $30,000 electric pickup — one of the most affordable on the market. By comparison, the Ford F-150 Lightning starts at around $55,000. The new EV line is expected to begin production in 2027, reinforcing the company’s position in the growing EV segment.
🇺🇸 Expanding U.S. Manufacturing Amid Trade Policy Shifts
This Ford EV investment comes as automakers face steep tariffs on imports and political pressure to bring manufacturing back to the United States. Ford already produces more vehicles in America than any other automaker but confirmed it will not move production of the Mustang Mach-E from its plant in Cuautitlán, Mexico.
📉 Investing Despite EV Segment Losses
While Ford’s EV revenue nearly tripled in the first half of this year compared to last, the company still posted a $2.2 billion loss in its EV division. Despite these challenges, Ford is pressing forward with its Ford EV investment as part of a long-term growth and competitiveness strategy.
⚙️ First Major Assembly Line Overhaul Since 1913
In a historic move, Ford will replace its traditional straight-line assembly layout — in place since Henry Ford introduced it in 1913 — with a “tree layout.” This design connects multiple production lines that feed parts into each other, reducing costs, improving speed, and making the work less physically demanding for employees.
💡 Conclusion
The $5 billion Ford EV investment is more than just a production upgrade — it’s a clear signal of Ford’s intent to lead the electric vehicle revolution. With innovative battery technology, a competitively priced EV pickup, and a groundbreaking assembly line design, Ford is positioning itself as a leader in making electric vehicles accessible to the masses. However, with ongoing EV losses and changing policy landscapes, the road ahead will require careful navigation.
