logo
Ford launches new Expedition SUV in Louisville with $500 million investment. Take a look

Ford launches new Expedition SUV in Louisville with $500 million investment. Take a look

USA Today02-05-2025
Ford launches new Expedition SUV in Louisville with $500 million investment. Take a look
Show Caption
Hide Caption
How many people work for Ford in Kentucky? See how it ranks.
Ford Motor Company has had a presence in Kentucky for more than a century.
Ford has begun shipping the 2025 Expedition SUV, which is assembled at the Kentucky Truck Plant.
The company emphasizes quality control improvements after past recalls.
The new Expedition features a redesigned exterior, upgraded technology, and a starting price of $62,000.
Kentucky represents about 20% of Ford's hourly workforce.
Ford Motor Co. has officially started to ship its newest SUV, assembled in Kentucky, just six months after the all-new 2025 Ford Expedition was unveiled in dramatic fashion at the Texas state fair late last year.
On April 30, Ford CEO Jim Farley was joined by Rocky Adkins, a senior advisor to Gov. Andy Beshear, Louisville Mayor Craig Greenberg and workers at the Ford Kentucky Truck Plant in Louisville to celebrate the launch of the new vehicle.
"Kentucky makes the greatest baseball bats, the finest American whiskey, raises a lot of very fast thoroughbreds ... But in my book, Kentucky's greatest contribution to America happens right here (at Kentucky Truck Plant)," Farley said.
In addition to the Expedition, Lincoln, the luxury vehicle producer in the Ford portfolio, showcased its 2025 Lincoln Navigator, the flagship SUV in the Lincoln brand, which is also assembled at the Kentucky Truck Plant alongside the Expedition and F-Series Super Duty trucks.
"You are the horsepower of the auto industry in Kentucky, and you're showing America what's possible," Adkins said at the launch party.
In anticipation of the 2025 Expedition launch, Ford invested roughly $500 million into the Kentucky Truck Plant to bring it updated equipment, new technologies, additional vehicle testers and more, Farley said.
Here's what we know about the new 2025 Ford Expedition SUV:
'From Kentucky, for America'
Ford is branding the launch as "From Kentucky, For America" in an effort to remind consumers during uncertain economic times that the automaker is an American company, employing a large American workforce.
Between the Kentucky Truck Plant and Ford's smaller Louisville Assembly Plant off Fern Valley Road, Kentucky currently represents about 20% of Ford's entire hourly workforce, a company spokesperson said. Last year, the Louisville area plants assembled more than 700,000 vehicles.
Buying a vehicle: Ford extends employee-pricing to July amid tariff turmoil. Is it a good deal? What to know
"At Ford, we believe we can, and we must build a strong manufacturing base in America," Farley said, adding that Ford is leading the way on revitalizing American manufacturing, with 80% of vehicles sold in the U.S. being assembled in the U.S. at facilities like the Kentucky Truck Plant or Louisville Assembly Plant.
During the event, Farley took aim at automaker competitors, noting "we never left America," and adding in that Ford has continued investment planned for the U.S., including the current construction of a plant in Ohio and Tennessee.
"Imagine, if the companies who import all the vehicles in the U.S., treated American manufacturing like Ford," Farley said. "... if our competition moves forward and moves assembly production back to the U.S. at our levels, that would be equivalent of producing 15 new auto plants in the U.S. That's the difference."
In recent weeks as President Donald Trump has enacted a slew of tariffs, automakers like Ford have been caught in the crossfire. While Farley said he supports the Trump administrations mission to restore American manufacturing, he said there is still room to grow on securing "a comprehensive set of policies to support our shared vision of that healthy and growing auto industry."
"We are not there yet," Farley said in regard to trade policy.
With the emphasis of Ford's latest marketing campaign, "Built for America" the company is hoping to "remind Americans where things come from matters and Ford is different," Farley said.
Quality control takes a front seat with new Expedition SUV
In 2023, the last time Ford launched a new vehicle out of the Kentucky Truck Plant, company officials harped on a new era of quality control standards coming into play. At the time, Ford was freshly off having seen nearly three million vehicles recalled in 2022 and surpassing $5 billion in warranty related costs in 2019.
The quality control efforts implemented at the truck plant and across town at the smaller Louisville Assembly Plant that produces the Ford Escape and Lincoln Corsair, have produced mixed results. Ford has had several recalls, impacting at least 11,000 Super Duty trucks since the 2023 model launched along with recalls facing its other Kentucky-made vehicles.
But amid the ongoing effort to battle quality issues, Ford is confident its latest SUV to hit the road is a winner.
"We think it's the right time to emphasize that on quality, we will never be done with quality," Farley said. "Every time you come here for a launch, you're going to be hearing about quality. It is a game of inches and millimeters."
Claire Yarmak, a quality manager at Kentucky Truck Plant, told The Courier Journal quality control was a "relentless" focus for the automaker this go around, and led to the introduction of 20 new trained drivers to do tests and audits on 100% of the new vehicles and 72 new finished vehicle compliance audits to ensure vehicle features work as intended.
One of the most evident areas of quality control inside the Kentucky Truck Plant is the deployment of the Mobile Artificial Intelligence Vision System, an AI technology developed by Ford that uses machines to scan vehicles in real time and identify quality issues such as electrical, component and trim issues.
Domestic pride: Ford and Stellantis address tariff turmoil with bold 'made-in-America' ad campaigns
This technology was first used at the truck plant in 2023 with only 20 machines but ahead of the Expedition launch, the company installed more than 100 machines at the plant to up its quality control for the newest SUV.
"We do not want to go through the issues we have in the past, and so far, the quality looks great," Farley said.
What are the features on the all-new 2025 Ford Expedition?
The 2025 Ford Expedition boasts a multitude of new features, packages and an upgraded design. To date, some 16,000 vehicles have been produced and are making their ways to consumers across all 50 states.
"Expedition is all about serving families that live big lives," said Adrian Aguirre, chief program engineer for Ford Expedition. "We know these customers and we know them because we are obsessed with finding out what will make their lives easier and their experiences better."
So much of the newest vehicle's focus is around elevating the experience for families who spend a lot of time in and around their vehicle, from camping trips to long days hauling it across town, leading Aguirre to call it, the "most dependable Expedition ever."
While not a new generation vehicle redesign, the outside appearance of the vehicle has received a stylish facelift with a new take on the front grille, new headlights and taillights, and a new wheel design.
One of the hallmark features of the new large SUV is a power tailgate split into independently opening upper and power sections to create a variety of new features.
The three-row SUV which can seat up to eight people also features a "squircle" shaped steering wheel to make room for a newly revamped interior, touch screen display in the vehicle.
The manufacturer suggested retail price for the most basic version of the vehicle starts at $62,000 and goes up to a starting price of $86,655 for the Expedition Max King Ranch model. There are seven models of the vehicle available.
Here are 15 additional new features on the 2025 Ford Expedition:
Note: This list is not inclusive of all features for all models of the 2025 Ford Expedition.
Tremor off-road model
24-inch front display screen
Horizontally split power tailgate
9,600-pound towing capacity
Blue Cruise hands-free highway driving system
15 Beverage Holders
Illuminated entry system with theater-dimming
Auto-dimming rearview mirror
Lane-Keeping system which includes Lane-Keeping assist, Lane-Keeping alert, road edge protection and driver alert
360-degree camera
Rock crawl mode
Panoramic vista roof
Intelligent four-wheel drive with terrain management system
Pro-trailer hitch assist
3.5L EcoBoost engine
Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, the platform formerly known as Twitter at @oliviamevans_.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Basic Capital Closes $25 Million Series A Funding Round Led by Forerunner and Lux Capital
Basic Capital Closes $25 Million Series A Funding Round Led by Forerunner and Lux Capital

Business Wire

time15 minutes ago

  • Business Wire

Basic Capital Closes $25 Million Series A Funding Round Led by Forerunner and Lux Capital

NEW YORK--(BUSINESS WIRE)--Basic Capital, a 401(k) platform that offers an innovative financing option to help workers achieve their retirement goals, announced the successful closing of its $25 million Series A funding round led by Forerunner and Lux Capital, with participation from existing investors SV Angel, Box Group and financial luminaries including Henry Kravis. New investors included HOF Capital and Inspired Capital. Basic Capital is the first and only 401(k) platform that allows participants to finance assets and offers access to alternative investments. This significant investment will accelerate the company's expansion efforts, allowing Basic Capital to modernize and enhance 401(k) offerings for employers and employees. "The engine of 401(k)s has not been significantly upgraded in 40 years,' said Abdul Al-Asaad, Founder and CEO of Basic Capital. 'This new investment into Basic Capital, alongside policy changes emerging from Washington, D.C., represents a huge win for American workers as retirement plans get brought into the 21st century.' ​​ Basic Capital plans to use the funding to accelerate the adoption of its 401(k) solution among employers and continue building out its team. The company partners with employers to offer its 401(k) platform and offers individual IRA plans, with the goal of scaling to serve significantly more retirement savers across both product lines. 'American innovation has generated extraordinary financial prosperity,' said Peter Hebert, Co-Founder & Partner, Lux Capital. 'But historically, federal regulation has prevented millions of American workers from accessing opportunities to build wealth. The Basic Capital team has developed a novel solution to help everyday Americans finance investment, rather than consumption.' About Basic Capital Basic Capital is a full-stack retirement platform that amplifies retirement investments by providing financing within IRAs and 401(k)s. The company offers $4 of financing for every $1 contributed, giving investors 5x the investing power in diversified portfolios designed for long-term growth About Forerunner Forerunner is a venture capital firm focused on the modern consumer. The firm invests at the intersection of shifting behavior and emerging technology, backing changemakers building category-defining companies across health and wellness, commerce, personal finance, career and learning, productivity and empowerment, social and entertainment, and resilience. Founded in 2012 and based in San Francisco, Forerunner has raised nearly $3 billion in assets under management to date. About Lux Capital Lux Capital is a venture firm based in New York City and Silicon Valley with more than $5 billion under management. It invests in counter-conventional, seed, and early-stage science and technology ventures. For more information about Basic Capital, visit .

How retail accounting could distort profitability as tariffs take effect
How retail accounting could distort profitability as tariffs take effect

CNBC

time16 minutes ago

  • CNBC

How retail accounting could distort profitability as tariffs take effect

As more tariffs take effect on goods imported into the U.S., a specific accounting method could have major implications for how American retailers calculate the impact. A tariff adds to the cost of an imported item when it's received and paid for when it crosses a border. While there's debate over who pays that tariff — the manufacturer, the retailer, the consumer or some combination — the hit will likely show up in retailers' bottom lines. But a specific accounting practice, called retail inventory method accounting, or RIM, can make profitability appear stronger than it is in the short term. "Retail inventory method accounting (RIM) is less responsive to initial product cost changes compared to cost accounting, and can initially overstate profitability," said Ali Furman, PwC U.S. consumer markets industry leader. "This would normalize once tariffs stabilize, depending on how much of the cost retailers absorb." Because RIM uses an average cost-to-retail price ratio across a broad group of items, rather than the actual cost of every item, like in cost accounting, RIM does not entirely capture the immediate impact of rising costs. Nearly a quarter of U.S. retailers use the retail inventory method of accounting, according to PwC. Walmart, Target and Home Depot are among them. All three retailers report quarterly earnings this week, and their results may not fully show how tariffs have cut into their profitability so far. Take Walmart, the largest U.S. retailer, which will post fiscal second-quarter earnings Thursday. TD Cowen analyst Oliver Chen estimated about half of Walmart's quarter will include the impact of levies, as the company brought in inventory at different cost levels before and after new tariff rates took effect. That could temporarily distort gross margin profitability, Chen said. Walmart's accounting has in part informed its strategy in recent months as it navigates President Donald Trump's unpredictable tariff policy. A week after Trump's April 2 announcement of so-called "reciprocal tariffs" on a wide swath of trade partners, Walmart withdrew its guidance for operating income in its first fiscal quarter. However, the company maintained its annual forecast, citing in part the influence of RIM accounting. Then when it reported its fiscal first-quarter earnings in May, Walmart said it would mitigate higher costs as much as possible, but would likely have to increase some prices at the current tariff rates. In response, Trump wrote on his Truth Social platform that Walmart should "just eat" the tariffs. Doing so could actually benefit a retailer's bottom line, at least initially, according to Furman. "The more costs retailers absorb in retail accounting, the greater the risk of overstating profitability during periods of increasing costs, such as tariff increases," she said. Walmart management briefed Trump this spring about the impact its accounting method may have on results in a high-tariff environment, according to a person familiar with the discussion, who asked to remain unnamed while speaking about private conversations. Still, James Bowie, managing director in EY's technical accounting advisory group, warned "all of the inventory costing methodologies will be affected in some ways." It typically takes a large, non-fast fashion retailer using RIM roughly two to four quarters for cost volatility to settle and profitability to get closer to its true level, according to PwC. The method could make profitability look higher initially, then lower in a subsequent quarter, before it has time to stabilize. "It's kind of like you've got a speed boat on the price," he said. "I can turn pretty quickly, but I've got a cruise liner that is carrying all my average of my inventory. It takes a little longer for it to turn and so even though they might ultimately be able to go the same speed, it takes a little bit of time for that one turn to take place." While RIM is more likely to lead to a temporary overstating of profitability, it can also wind up understanding profits if tariffs are negotiated lower. Bowie said if a retailer responds to lower tariff rates by cutting retail prices, under RIM accounting, "it looks like my margin has eroded, but it's only because I now am waiting for the cost relationship to catch back up, so [it] might look like there's margin compression even in a period of decreasing tariffs." Furman added that PwC is seeing "a clear disconnect" for companies that use RIM accounting. "Companies might be doing all the right things: navigating sourcing challenges, managing suppliers, and even mitigating tariffs," she said. "But, those efforts often aren't reflected in the financials. That misalignment between operational execution and reporting for those using RIM is exacerbating the challenges retailers face." The retail inventory method of accounting is an older method that was most useful for retailers when they had many items from a range of categories without an easy, or technological, way to track inventory. "Inventory accounting methods existed before this thing called Excel," said Bowie. "[A retailer] had an abacus and a dream trying to figure out what you're going to do." Over time, technology made it easy to use actual costs rather than averages, so cost accounting became more common. As retailers grow and accounting methods become ingrained, it's difficult, though not impossible, to switch tactics. Macy's and Nordstrom recently made the change to cost accounting. PwC said it takes an average of two to three years to make the transition from one accounting method to another and can require millions of dollars and a restatement of previous years' financials to provide apples-to-apples comparisons. Still, the accounting firm said about half of retailers that use RIM have considered switching. CNBC worked with PwC's Furman and Suni Shamapande, the firm's U.S. retail customer experience and operations leader, to develop a simplified example demonstrating the difference between RIM and weighted average cost accounting in how they affect gross profit margins. The example demonstrates how RIM accounting can "overstate" true profitability at a moment in time when costs increase quickly. For the purposes of this example, PwC and CNBC used weighted average cost accounting, which takes a SKU-level weight average and blends all costs together, regardless of purchase date. A SKU is a stock-keeping unit, which retailers use to track inventory of specific items. Base case: No tariffs The base case, which does not include tariffs, uses three different T-shirts types from three different countries. Each type of T-shirt, or individual SKU, has a different cost and is sold to consumers at a different retail price. The retailer bought each type of T-shirt in different quantities, as did consumers. Here's how the math differs to start. The gross profit margin for the items calculated using weighted average cost accounting is 46%. Using RIM, it's 53%. Tariff case 1: Retailer's costs increase, all else remains the same If the retailer's cost for each T-shirt goes up as a result of tariffs, but everything else — units bought, units sold and retail price — remains the same, gross margin falls if calculated using cost accounting and RIM. But it would still be higher under RIM than if the company used cost accounting. Here's the math for our simplified example: Tariff case 2: Retailer raises prices to offset higher costs If the retailer passes on the full dollar value of the tariff cost to the customer, and units bought and sold stay the same, gross margin improves under both accounting methods. In our example, it goes to 36% in cost accounting and 47% with RIM. Both gross margin percentages are lower than the base case, which assumes no tariffs, but the percentage change is smaller under RIM than under cost accounting. Tariff case 3: Retailer raises prices and units bought and sold both fall Here's where it gets interesting, and likely more realistic, to reflect supply and demand choices a retailer and consumer would likely make as costs rise. If the retailer passes on the full dollar value of tariffs to the customer and also sells fewer items to consumers at the higher retail price, RIM makes profit margins look temporarily rosier. Gross margin in our example falls to 27% under cost accounting, but holds steady under RIM at 47% even though units sold have changed. Here's where you see how the ratio of cost of goods sold to selling price hasn't had time to adjust.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store