Ford announces $5 billion plan to make EVs cheaper. Here’s what to know.

Ford says it plans to invest $5 billion into building a new generation of lower-cost electric vehicles.

Ford Motor Company is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand.

The two‑pronged investment includes $2 billion to retool its Louisville, Kentucky, assembly plant and $3 billion for battery production at Michigan’s BlueOval Battery Park. Together, these efforts aim to create or secure nearly 4,000 U.S. jobs while bolstering domestic supply chains.

Dubbed the “Universal EV Platform,” this modular architecture supports a family of electric vehicles with streamlined design and software‑defined capabilities. At the heart of this is a revolutionary “assembly tree” system that merges three sub‑assembly lines (front, battery core, rear) into a single efficient flow, reducing parts by 20%, fasteners by 25%, and workstations by up to 40%, and cutting assembly time by 15% to 40%.

$30,000 Electric Pickup

In 2027, Ford’s first vehicle on this platform—a four‑door midsize electric pickup—will reach showrooms with a target MSRP of around $30,000.

With a frunk, roomy interior reminiscent of the Toyota RAV4, Mustang‑like acceleration, and powered by lighter, safer li‑iron‑phosphate (LFP) batteries that double as structural elements, it promises to combine affordability with innovation.

Global Competition

CEO Jim Farley framed the plan as the company’s most “radical change” since the Model T, signaling a fresh strategy to build affordable, beloved EVs with American workers at the helm. Facing mounting EV competition from Chinese automakers and policy headwinds—including reduced federal credits—Ford sees domestic retooling and cost efficiencies as pivotal to sustainable EV profitability.

Insight

This EV pivot arrives as Ford’s electric-vehicle unit reported significant losses, over $5 billion in 2024, with revenue down 35%, highlighting the urgency of the turnaround. By combining scale efficiencies with lower-cost battery tech and streamlined manufacturing, Ford aims to tear down price barriers and reassert itself in the global EV race.

The “Model T moment” framing is ambitious—historic comparisons demand deliverable results.

Success hinges on execution: can Ford truly make high-quality, affordable electric trucks using fewer parts and workers, while maintaining margin and consumer trust? If so, this could reposition Ford, and perhaps the broader U.S. auto industry, at the forefront of accessible electric mobility.