(CTN News) – Ford announced on Monday that it will allocate $2 billion to an assembly facility in Louisville, Kentucky, with the objective of producing electric vehicles that are more economically priced.

The investment aims to manufacture electric vehicles. This expenditure is in addition to the three billion dollars that were originally intended for a battery park in the state of Michigan.

A Ford news release said the facilities will create or guarantee 4,000 jobs.

In a statement that was incorporated into the news release, Ford CEO Jim Farley stated, “We adopted a radical strategy to address a very difficult challenge: to develop affordable vehicles that satisfy customers in all relevant aspects, including design, innovation, flexibility, space, driving pleasure, and cost of ownership.”

“We implemented a daring approach to confront an exceptionally difficult challenge.” This task was effectively accomplished with the assistance of American laborers.

The initial phase of the Detroit automaker’s new “Universal EV Program” will involve the production of a midsize electric pickup vehicle with four doors at the Louisville Assembly Plant.

The primary objective of this initiative is to develop electric vehicles that are reasonably priced. In 2027, the organization anticipates that the automobile will be accessible to the general public.

The executives of the company had hinted at the development during the most recent earnings call, alluding to it as the next “Model T moment” for the company. The cost of Ford’s new electric vehicle is expected to be approximately $30,000, which is equivalent to the renowned Model T.

In order to account for inflation, this price will be adjusted.

The new lithium iron phosphate (LFP) batteries that will be utilized in the new line of electric vehicles will be manufactured in the United States, as opposed to being imported from China, as stated by Ford. These batteries will be employed in the production of new electric vehicles.

During an event in Louisville on Monday, Farley declared that the automotive industry is at a juncture as a result of the emergence of new technologies and competitors. During the event, he issued the statement.

We arrived at the conclusion that the Chinese would be the most significant player for us on a global scale after meticulous consideration. The automobile industry is the focus of numerous organizations, including BYD, new startups from around the globe, and major technological organizations.

“All of these legacy automotive companies are pursuing us.” In order to create a vehicle that was within our budget, we were required to implement a novel approach and address a highly complex issue.

Ford and other manufacturers in the United States are presently in the process of negotiating changes to the regulations that govern electric vehicles during the current administration of President Donald Trump. One of these initiatives is the termination of tax benefits for electric vehicles, which will be implemented after September 30.

Louisville will “secure” nearly 2,200 jobs this year, according to Ford.

Nevertheless, the organization also disclosed that it will employ approximately 600 fewer individuals than it does in its current configuration once the facility is retooled for the production of electric vehicles.

The facility was employing more than three thousand workforce members as of April 2024, as indicated by the information available on the Ford website.

During an interview with Phil LeBeau of CNBC for the program “Squawk on the Street,” Farley mentioned that the manufacturer of vehicles is consistently expanding its employment opportunities in other regions.

Ford has been the sole vehicle manufacturer in the United States to expand its personnel by 13,000 positions since the onset of the economic downturn. Farley has declared, “We are not going to slow down.”

SOURCE: CNBC