Ford is counting on significantly investing in a new assembly plant to lower long-term costs. The strategy could transform vehicle assembly over a century after the present system was developed.
What Is Ford Planning to Do?
The automaker plans to implement a tree-format assembly process that builds vehicles from the base upward rather than using a continuous rolling line. This could cut down on parts and speed production. Ford expects to reduce parts costs by as much as 20% and sharply decrease overhead by cutting the workforce and time required to assemble SUVs and trucks.
The Goal Is to Compete With China
By revamping assembly, Ford hopes to bring costs down enough to take on competitors in China and elsewhere. Overseas manufacturers frequently have cost advantages because of different labor and regulatory conditions, enabling faster and affordable production. Making manufacturing more efficient could allow Ford to build in the U.S. while remaining globally competitive.
America Gets a Boost Too
Producing vehicles domestically will also help the U.S. economy. A new plant supports the local area by generating customers with disposable income for surrounding businesses. Although entirely U.S.-only manufacturing is rare today, Ford hopes this move will help stabilize American manufacturing.
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