Ford is counting on significantly investing in a new assembly plant to lower long-term costs. If the company's idea succeeds, it could change how vehicles are assembled more than a century after the original assembly system was invented.
What Is Ford Planning to Do?
Rather than relying on the classic rolling assembly line, Ford plans to use a tree assembly system that builds cars from the ground up. This should reduce part counts and accelerate production timelines. By cutting down on workforce and assembly time across its SUVs and trucks, Ford expects to save as much as 20% on parts and significantly reduce overhead.
The Goal Is to Compete With China
By modernizing the assembly process, Ford hopes to slash costs enough to compete with manufacturers in China and other markets. Foreign firms can often produce vehicles at lower cost due to different wage and regulatory environments, letting them move products to market faster and at reasonable prices. Streamlining manufacturing could allow Ford to continue building in the U.S. while staying competitive globally.
America Gets a Boost Too
Building vehicles domestically gives the U.S. economy a lift. A new plant helps local businesses by creating consumers with more disposable income. While exclusive U.S.-only manufacturing is unlikely, Ford hopes this initiative will increase confidence in stabilizing American manufacturing.
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