Ford is betting that a hefty investment in a new assembly plant will reduce its long-term costs. If the effort pays off, it could reinvent how cars are assembled more than 100 years after the original system was developed.
What Is Ford Planning to Do?
The automaker intends to use a tree-style assembly method that builds vehicles from the bottom up rather than relying on a continuous rolling line. This could mean using fewer parts and increasing production speed. Ford says it may cut parts costs by as much as 20% and dramatically lower overhead by decreasing the workforce and time needed to assemble its SUVs and trucks.
The Goal Is to Compete With China
With a redesigned assembly approach, Ford hopes to lower costs enough to challenge competitors in China and beyond. Due to different labor and regulatory environments, manufacturers overseas can often produce vehicles more cheaply, allowing them to bring products to market faster and at lower prices. Improving manufacturing efficiency could enable Ford to produce in the U.S. and remain competitive globally.
America Gets a Boost Too
Building more vehicles domestically benefits the country. A new manufacturing facility strengthens the local economy by increasing spending power for nearby businesses. Although fully domestic production is rare today, Ford aims to boost confidence in the stability of U.S. manufacturing.
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