Ford hopes that pouring significant capital into a new assembly plant will help drive down costs over the long term. If the strategy works, it could transform vehicle assembly over a century after the original process was developed.
What Is Ford Planning to Do?
Instead of the conventional rolling assembly line, Ford plans to adopt a tree-based system that constructs vehicles from the ground up. The change should reduce part counts and speed up production. Ford could lower parts expenses by up to 20% and cut overhead substantially by reducing labor needs and assembly time for their SUVs and trucks.
The Goal Is to Compete With China
By revamping how cars are assembled, Ford aims to trim costs to better compete with firms in China and other markets. Foreign manufacturers often enjoy cost advantages because of different wage and regulatory frameworks, letting them build faster and cheaper. Streamlined manufacturing could enable Ford to keep production stateside while remaining price-competitive globally.
America Gets a Boost Too
Making cars in the U.S. also delivers economic benefits at the national level. A manufacturing plant helps local businesses by creating customers with more disposable income. While exclusive U.S. production is unlikely, Ford hopes this investment will reinforce confidence in the country's manufacturing base.
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