The Ford Motor Company is seeking to rekindle its Model T magic by making a historic and costly investment in electric vehicles. This month, the company announced a $5 billion outlay in EV technology, a princely sum for a company whose stock price remains relatively low. Ford’s timing seems quite odd, even curious, especially as consumer demand and federal support has changed dramatically this year.
What is Ford’s EV Initiative?
Ford’s investment announcement pertains to the U.S. market, where the company faces stiff competition, yet strong profits. CEO Jim Farley says that the company’s $5 billion investment will be split as follows:
$2 billion directed toward retooling the Louisville Assembly Plant in Kentucky. That plant currently builds a pair of crossover SUVs – the Ford Escape and Lincoln Corsair. Both models will be built through the 2026 model year, then discontinued. The factory will then be closed, overhauled, and reopened to produce EVs.
$3 billion allocated to building a new battery production facility (BlueOval Battery Park) in Michigan. The company’s EV initiative requires a heavy investment in battery technology, which will come through its plant in Marshall, Michigan. The Marshall facility is located 100 miles west of Ford’s Dearborn headquarters.
Manufacturing Process
Henry Ford developed the assembly line to mass produce cars, and Ford’s strategy for electric vehicles (EVs) is expected to alter vehicle assembly processes again, specifically for its EVs. Ford has announced plans to implement a new “assembly tree” method, in which three subassembly lines will merge into one. This approach aims to decrease the number of parts, fasteners, workstations, and the time required to assemble EVs.
The first product expected is a midsize all-electric pickup truck. Currently, the Ford Ranger fills that category, so it is not clear whether the Ranger becomes that vehicle or if it will supplement the Ranger.
In any case, Ford says the new four-door model will cost about $30,000, which is about $3,000 less than the cheapest Ranger. Ford will have to make do without federal government incentives, as the tax credit ends on September 30. Still, if this price point is kept, the truck will be one of the most affordable models in the segment.
Universal EV Platform
The new truck will be built on a universal EV platform that will be shared with various vehicles across the Ford and Lincoln marques. The automaker claims that vehicle build will be 15 to 40 percent faster as fewer parts are needed.
Indeed, the company says that its EVs will require 20 percent fewer parts, 25 percent fewer fasteners, along with reduced wire harnessing length. Ford plans to utilize domestically produced lithium iron phosphate (LFP) prismatic batteries that they say will cost less and are simpler overall.
Scant Details
Though Ford teased us with possibilities, no prototypes were displayed. The company insists that this is their modern Model T moment, signaling a wider transition to all things electric. However, without strong consumer demand for such products and no government tax assistance, Ford’s investment may fail to yield a proper response.
In other company matters, rumors that the company will finally bring back car models are circulating online. HotCars, for instance, pointed to a German publication that explained Ford’s about face.
In the US, the only car model built by Ford is the Mustang, with all models either a utility vehicle, pickup truck, or a van. The company still builds the Taurus for the Middle East market, a model that was once sold as the Mondeo in Europe.
Ford reportedly will cancel the Focus, but bring back the subcompact Fiesta and midsize Mondeo for Europe. There is no word yet on whether the North American market will see a similar shift, although Ford dealers have been clamoring for cheaper entry-level models. Currently, the Ford Maverick is its cheapest model, with prices starting around $28,000, Ford lacks a true low-cost model for consumers.
References
Ford Motor Company. “Ford’s 5B Bet on America: Innovation Meets Efficiency in New EV Platform, Assembly Process and Midsize Truck.” Ford.com (News Release), Dearborn, Mich., Aug. 11, 2025.
Weiser, Warren. “Ford Is Reinventing EV Manufacturing to Take On Tesla, BYD. The Stock Is Down.” Barron’s, Aug. 12, 2025.
Schreiner, Bruce. “Ford Hits the Pedal on EV Production with $2 Billion Overhaul of Kentucky Plant.” AP News, Aug. 11, 2025.
Sergeev, Angle. Ford Admits Error, Prepares to Bring Back Beloved Models. HotCars, July 17, 2025.
