Ford expects a significant investment in a new production plant to help lower costs over time. If the approach works, it could change how vehicles are assembled for the first time in more than a hundred years.
What Is Ford Planning to Do?
Ford plans to adopt a tree assembly system that constructs vehicles from the ground up instead of relying on a traditional rolling line. The approach should reduce part counts and speed up assembly. Ford projects up to 20% savings on parts and meaningful overhead reductions by lowering the time and workforce required to build SUVs and trucks.
The Goal Is to Compete With China
By rethinking assembly, the automaker hopes to cut costs enough to better compete with Chinese and other global manufacturers. Foreign companies often benefit from different wage structures and regulations, allowing them to produce more quickly and affordably. Improving manufacturing efficiency can help Ford make vehicles in the U.S. while staying competitive domestically and abroad.
America Gets a Boost Too
Making cars in the United States also gives the national economy a lift. A new manufacturing facility strengthens the local economy because surrounding businesses gain customers with more spending power. While production exclusively in the U.S. is unlikely, Ford hopes this effort will boost confidence in the country's manufacturing sector.
If you are in the market for a Ford vehicle or any other Ford product, don't hesitate to contact us today. We'll be happy to answer your questions.