An aerial view as a Ford sign stands on the sales lot of the Metro Ford dealership on May 06, 2025 in Miami, Florida.
Joe Raedle | Getty Images
Ford on Monday announced it would invest $2 billion in a Louisville, Kentucky, assembly plant aimed at rolling out more affordable electric vehicles.
The investment comes on top of $3 billion already planned for a battery park in Michigan. Together the facilities will create or secure nearly 4,000 new jobs, Ford said in a news release.
“We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership – and do it with American workers,” Ford CEO Jim Farley said in the release.
Ford said the Louisville plant will secure about 2,200 jobs, but noted that once it’s retooled for EV production, it will employ about 600 fewer workers than in its current configuration.
The Detroit automaker’s new “Universal EV Program” centered around low-cost EVs will start with a midsize, four-door electric pickup, produced at the Louisville Assembly Plant. That vehicle launch is slated for 2027.
Executives had teased the announcement on the company’s latest earnings call as its next “Model T moment.” Ford said the starting price of the new EV truck, $30,000, will be roughly the same as the famed Model T, when adjusted for inflation.
Ford noted that new lithium iron phosphate (LFP) batteries for the new family of EVs will be assembled in the U.S. and not imported from China.
Farley said during an event in Louisville on Monday that the announcement comes as the automotive industry sits is at a crossroads due to new technology and new competition.
“We knew that the Chinese would be the major player for us globally, companies like BYD, new startups from around the world, big technology has their ambition in the auto space. They’re all coming for us, legacy automotive companies,” Farley said. “We needed a radical approach and a really tough challenge to create an affordable vehicle.”
Correction: This article has been updated to correct that the Louisville Assembly Plant will secure about 2,200 jobs. A previous version misstated the job impact.
This story is developing. Please check back for updates.
— CNBC’s Phil LeBeau contributed to this report.