Ford's $5 Billion Bet on Electrifying Vehicles to Transform Electric Operations into a Lucrative Venture
Ford's Revolutionary Strategy for Affordable Electric Vehicles
Ford Motor Co. is set to revolutionise its electric vehicle (EV) program with a new strategy that focuses on reinventing the assembly line and producing more affordable EVs. The company has announced plans to invest approximately $5 billion to reset its EV program, with a significant portion going towards the production of a new midsize, four-door electric pickup truck.
The heart of the strategy is the Ford Universal EV Platform and the Ford Universal Production System. These innovative solutions enable the production of a family of affordable, adaptable electric vehicles with multiple body styles. The platform emphasises design, technology, performance, passenger space, and cost of ownership while maintaining digital advancements like over-the-air updates.
The Ford Universal EV Production System simplifies vehicle assembly, improving safety, quality, and speed. It transforms traditional assembly processes that were founded more than a century ago. This new approach will be implemented at Ford's Louisville Assembly Plant, which will shift from producing gas-powered vehicles to manufacturing electric vehicles. The plant will be expanded by 52,000 square feet to optimise material flow and will gain upgraded digital infrastructure, including the fastest network at any Ford plant to enhance quality control.
The new investment is projected to secure approximately 2,200 jobs at Louisville, and with the $3 billion investment at BlueOval Battery Park Michigan for domestically made LFP (lithium iron phosphate) batteries, total nearly 4,000 new or secured jobs in the U.S.
The new electric pickup truck will feature a number of innovative features, including a frunk (front trunk), bed, exportable power, and will be capable of Ford's Blue Cruise automated driving technology. The front and rear of the new electric truck are being assembled separately using large single-piece aluminum unicastings.
The new battery pack is a cobalt-free and nickel-free lithium-iron phosphate, or LFP, battery pack that also serves as the vehicle's floor. This battery technology reduces costs and complexity, improving the ride quality and handling of the vehicle.
The first vehicle to be produced will be the midsize, five-seat, four-door electric pickup truck, due to reach customers in 2027 with a starting price estimated at about $30,000. The new investment in Ford's BlueOval Battery Park will start producing prismatic LFP batteries for the midsize electric pickup truck next year.
Ford's approach aims to deliver breakthrough electric vehicles by innovating across manufacturing, software, and vehicle design, focusing on affordability and large-scale production made possible by a radically modernized and simplified assembly line system and domestic battery production. The company's announcement comes a little more than six weeks before the $7,500 federal tax incentive on qualified EVs ends, positioning Ford to capitalise on the growing demand for affordable electric vehicles.
[1] Ford's New Strategy: Reinventing the Assembly Line and Producing More Affordable EVs, Ford Media Centre, https://media.ford.com/content/ford/en/news/2022/01/27/ford-electrifies-u-s-manufacturing-with-investments-in-louisville-assembly-plant-and-blueoval-battery-park.html
[2] Ford's new EV strategy: Affordable, adaptable, and innovation-focused, Green Car Reports, https://www.greencarreports.com/news/1138695_ford-s-new-ev-strategy-affordable-adaptable-and-innovation-focused
[3] Ford's new EV strategy: Building a family of affordable electric vehicles, Electrek, https://electrek.co/2022/01/27/ford-new-ev-strategy-building-family-affordable-electric-vehicles/
[4] Ford's New EV Strategy: Simplified Production, Lower Costs, and More Affordable EVs, InsideEVs, https://insideevs.com/news/519070/ford-new-ev-strategy-simplified-production-lower-costs-affordable-evs/
- Ford's strategy for affordable electric vehicles involves reinventing the assembly line process, with a focus on producing a new midsize, four-door electric pickup model, aiming for a starting price of about $30,000.
- The newly announced Ford strategy is also committed to casino-and-gambling with investment, as approximately $5 billion is targeted to reset their EV program, with a significant portion going towards the production of electrified vehicles and the development of domestic battery parks, potentially securing thousands of jobs.
