Ford believes investing heavily in a new assembly plant will lower long-term costs. If the plan succeeds, it could reinvent vehicle production more than a century after introducing the current assembly method.
What Is Ford Planning to Do?
The company intends to switch from a conventional rolling assembly line to a tree-based system that builds vehicles from the ground up. That change should reduce the number of parts and speed the manufacturing process. Ford expects to cut parts costs by up to 20% and reduce overhead considerably by trimming the labor and time needed to assemble SUVs and trucks.
The Goal Is to Compete With China
By changing how it assembles vehicles, Ford hopes to lower costs enough to compete with firms in China and other countries. Because of different wage and regulatory environments, overseas competitors can often produce at lower cost, letting them move products to market faster. Streamlined manufacturing could allow Ford to keep production in the U.S. while remaining competitive globally.
America Gets a Boost Too
Increasing domestic manufacturing provides economic benefits for the nation. A new plant helps local businesses since residents employed by the plant will have more disposable income to spend. Although full U.S.-only production is unlikely, Ford hopes the initiative will help stabilize American manufacturing.
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