Latest news with #FordUniversalEVProductionSystem
Yahoo
a day ago
- Automotive
- Yahoo
Ford's 'Model T moment' leaves analysts wanting more, calling it a risk
When Ford Motor Co. CEO Jim Farley took the stage at the company's Louisville Assembly Plant in Kentucky on Aug. 11, he referenced company founder Henry Ford and the Model-T car multiple times. After all, he had promised Wall Street analysts last month that the Aug. 11 announcement would be a "Model-T moment." Farley's big news was that Ford had innovated a new electric vehicle manufacturing process and a new EV platform, both of which will allow the automaker to more efficiently bring several lower-cost EVs to market. Farley said the first EV to come from these new innovations would be a midsize, four-door electric pickup that starts at $30,000 and is due to launch in 2027. Ford is investing $2 billion in the Louisville plant to retool it starting later this year to adopt the Ford Universal EV Production System to make the pickup, which Ford believes will be profitable within 12 months of its launch. It's what Ford needs given it loses about $1 billion a quarter on its EV sales now. That new process will transform the traditional assembly line into an 'assembly tree." So instead of one long conveyor, there will be three sub-assemblies that run down their own lines simultaneously and then join together. It's meant to reduce the use of parts, speed up assembly, add efficiency and be easier on workers' bodies — and Ford said it's never been done before. "We're taking a risk," Farley said, noting there are no guarantees that the new system will work out. Still, he said, 'we're taking the fight to the competition including the Chinese, with our teams across the United States: designers in California, engineers from Michigan, American workers right here in Louisville. For too long, legacy automakers played it safe." Wall Street shrugs Ford's innovation is noteworthy, analysts said, but it fell short of a Model-T comparison, many said. The Model-T was the vehicle that helped Ford perfect the assembly line process and deliver a high-quality, adaptable and affordable car that put America on wheels in the early 1900s. Ford's new EV production process and platform are yet to be executed and they come with risks, analysts said. And, without giving analysts a peek at the upcoming new midsize EV pickup, Wall Street shrugged at the news. Ford's stock price closed down on Aug. 11 by 0.27% at $11.14. "With so many things Ford has done over the years, it will ultimately come down to execution," Sam Abuelsamid, vice president of market research at Telemetry, told the Detroit Free Press. "They can talk, but if they can't execute and get it all done and done on time, then it won't matter. That is the big challenge." Abuelsamid said the challenge is not just getting the assembly right or the vehicle nailed down; it's the software, too. "It takes totally new software and this is something that Ford and most legacy automakers have struggled with," he said. "There's lots of things that can go wrong. They're implementing a whole new manufacturing process, which is not new to the industry, but it's new to Ford. Ford has not done large scale die casting before or implemented a new software platform.' But if Ford can pull it off, it's a huge step forward for the company, Abuelsamid said. High risk to do what's never been done Abuelsamid said while the development of the Universal EV Production System and Universal EV Platform are "revolutionary" for Ford because no legacy automakers — those who've been around for decades — are doing them, it is not completely new in some ways. "Ford is not the first to adopt this type of overall vehicle architecture with large scale castings for the front and rear structures and a structural battery pack that forms the floor," Abuelsamid said, describing Ford's new Universal Production System and Universal EV platform. Abuelsamid, who is trained as a mechanical engineer, said those castings and battery pack flooring were first used by Tesla for Model Ys a few years ago with the 4680 battery pack, a lithium-ion battery developed by Tesla. It has since be adopted by numerous Chinese EV makers, including the Xpeng G6, Abuelsamid said. "Ford hasn't yet revealed many details of their specific assembly process or other aspects of the vehicle so we can't really judge how much more advanced they are, if at all," he said. Ford leaders told reporters that their focus is on efficiency and they will have better efficiency than anyone else out there using similar processes. Doug Field, Ford's chief EV, digital and design officer, drew on the Model-T comparison to tell reporters that the Universal Production and Platforms will deliver affordability and be sustainable similar to how the Model-T served Ford. To make these new processes work, Ford had to make a lot of new investments. For example, the unicasting process, which produces a giant piece of aluminum, came from new machines Ford purchased. But Field said by building a vehicle using the unicasting process, it reduces the need for parts. That means in the upcoming midsize electric pickup, Ford was able to remove 4,000 feet of electrical wiring from previous generation EVs using the new Universal Production process, Field said. "When we now build this in the tree, with the three pieces and bring them together, everything is going to change," Field told the plant assembly line workers in Louisville. "If we can pull this off, you'll never put an instrument panel or a seat through a door opening again. This way of building a vehicle, we're confident, is the first time anyone's done this anywhere in the world.' A return on investment is years out Morningstar autos analyst David Whiston said the proof remains to be seen as to whether this announcement really does equate to a Model-T moment. "If it ends up being a platform that restarts mass interest in EVs, then yes," Whiston told the Detroit Free Press. "Hard to get excited about a vehicle you can't see yet though. The manufacturing techniques suggest a way to be competitive with Chinese EV firms, which is critical to compete with them." Farley has long benchmarked the Chinese automakers, viewing them as offering top-notch technology at affordable prices that Ford will need to beat if it is to survive another 122 years. As the Free Press reported, Farley started taking his leadership team to Shanghai and other big markets in China a couple times a year starting about two years ago. The team drives China-made vehicles, talks to the experts in China, studies the technology and the customer service to ensure Ford has the right partnerships and strategy to succeed. Whiston said it will take high sales volume of this new midsize EV pickup to erase Ford's $4 billion-plus annual losses in its Model-e electric vehicle unit and "that's a ways off still." Then, there is the risk the EV won't appeal to consumers, some of whom just do not want to own an EV. In that case billions will have been wasted if sales don't take off. "So Farley was right today to call out the risk," Whiston said. "That's why you need great product, great range and lower battery and vehicle manufacturing techniques — which they announced." 'A good poker move' Also, even at a competitive price point, politics cannot be ignored, Abuelsamid added. 'There is a part of the population that said, 'Nope, not going to buy an EV,' ' Abuelsamid said. 'And, who knows what the (President Donald) Trump administration will do to undermine EVs. All of those are potential risk factors to Ford, too.' But there are those that say the innovation is just that: innovative and smart. "This is an aggressive and smart move for Ford to seize market share with cheaper EVs. The market is missing a cheaper EV and Ford sees the window of opportunity," said Dan Ives, managing director and senior equity analyst at Wedbush Securities. "There could be some growing pains with this strategy but it's a good poker move in our view." Abuelsamid said he sees the play as smart, too, in some ways despite the risks. For one thing, part of the reason people have stayed away from EVs is because they've been too expensive, he said. So with the starting price for a gasoline-powered Maverick XL pickup at $28,000 and the bigger gasoline-powered Ranger pickup at $33,500, this new midsize EV will fall in the middle. Ford has said the EV will be closer in size to a Maverick, but offer more interior leg room due to the design and the new EV platform. 'You eliminated affordability as a challenge and you've got a form factor that Americans like to buy: They're very much into midsize pickup trucks. The midsize segment is doing great," Abuelsamid said. "The way they're building this platform, they can build SUVs and cars on this architecture and so consumers will have an option on what to buy.' Ford's top-secret team tasked to compete Ford's Field said the automaker broke with tradition to develop the new manufacturing process, the platform and even the midsize EV pickup — which it will reveal to the public at a later date. He said a Henry Ford quote served as constant inspiration: 'The Model-T was affordable, not because there was a thrifted version of other cars out there. It was the result of brilliant minds taking fundamentally new approaches to old problems.' Field said Ford took a new approach, starting small with a handpicked team of the best people inside and outside of Ford who were "dying for a chance to challenge convention." "We ran the team differently," Field said. "It had a fraction of the typical oversight and much lower numbers of people. We didn't allow people who needed to be managed on the program. We wanted leaders." Every member was expected to understand how their work affected the entire project and to prioritize the total cost and the way the EV would be built. "One of our mantras was: 'The best part is no part,' " Field said. "So we locked the doors, we kept the project secret to shield it from well-intended, but sometimes disruptive corporate oversight. Even Jim (Farley) would joke that he wasn't sure his badge worked on the building.' Field said the team had access to everything that Ford offers, and the team had permission to question everything. 'To ensure focus we also made sure the entire team was in one building in California. The designers, the aerodynamicists, the people doing the manufacturing work and decisions were made really quickly," Field said. "We wouldn't have gotten this far with this much innovation otherwise.' He said the efficiency they came up with in the new EV platform and process will allow Ford to get the same range on EVs, but with one-third less battery, which is "the kind of ingenuity that Ford needs to compete with the Chinese." 'Are we going to compete on labor to make batteries, no?" Field said. "But if we use our brains to have a third smaller battery, we can compete.' Ford will start making the batteries for this new EV at its BlueOval Battery Park in Marshall, Michigan, next year. More: Ford has spent 18 months trying to fix quality problem that's costing company billions Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This story was updated to add a video. This article originally appeared on Detroit Free Press: Ford's 'Model T moment' leaves analysts wanting more, calling it a risk Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
IOL News
a day ago
- Automotive
- IOL News
Model T of the electric era? Ford announces affordable EV family with 'revolutionary' assembly process
Big, heavy and expensive electric vehicles (EVs) have limited profit potential for Ford, its global CEO Jim Farley has previously stated. For that reason, the company is now shifting its focus towards smaller and more affordable EVs that better align with customer needs and cost structures. This new strategy will be underpinned by Ford's brand-new 'Universal EV Platform', designed to enable a family of affordable EVs that can be produced at scale. Instrumental in this plan is what it calls a more efficient assembly process. 'More than a century after the invention of the moving assembly line, Ford combines its industrial know-how with a start-up mentality to create the new Ford Universal EV Production System, radically simplifying vehicle assembly for safety, quality and speed,' Ford said at an event held at its Louisville plant in Kentucky on Tuesday. To achieve this, Ford transformed the traditional assembly line, which is essentially one long conveyor, into three sub-assemblies which run down their own lines simultaneously before joining together near the end. Large single-piece aluminium unicasings replace dozens of smaller parts, allowing the front and rear of the vehicle to be assembled separately. The battery forms the basis of the third sub-assembly, to which the seats, consoles and carpeting are assembled. Parts are moved down the assembly tree in a kit, which includes all the fasteners, scanners and power tools required by the operator, and in the correct orientation for use. Ford says the new platform reduces parts by 20%, with 25% fewer fasteners and 40% fewer workstations. Assembly time is also said to improve by 15%. See how it works in the video below:
Newsweek
2 days ago
- Automotive
- Newsweek
Ford's New Assembly Line Design is Key to Lowering Vehicle Costs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Ford tore up the moving assembly line concept and designed a better one, the company's CEO Jim Farley explained to a crowd gathered at Louisville Assembly Plant in Kentucky for Ford's announcement that a new, lower-cost electric truck is coming to market in 2027. "One of the first things we did was bring in manufacturing expertise directly from our teams in Dearborn. That was incredibly important [it] set the baseline of what the architecture of the products would be off the platform. [It is a] marriage of both worlds, in terms of the expertise of 122-year-old company with massive capabilities and supply chain and industrialization in general," Alan Clarke, Ford's executive director of advanced EV development, told Newsweek. "[It] was really important to not only engage early, but also ensure that the ideas were able to fail fast. That's a startup mentality. When you're moving quickly, you want to really quickly determine: Is this actually more efficient? Does it actually save us money? Do we still deliver what we need to the customer in order to effectively make the product?" he said. The formula for the new assembly line structure, the Ford Universal EV Production System, starts with the new Ford Universal EV Platform. That platform underpins future battery-electric vehicles and is the result of a California-based skunkworks operation that was designed and enabled to break Ford's timeline, agility and product development norms. F-150 Lightning trucks coming down an assembly line. F-150 Lightning trucks coming down an assembly line. Ford Motor Company Instead of a traditional snaking assembly line structure, Ford's Louisville plant, which expanded 52,000 square feet as part of the effort, will feature an "assembly tree." That tree will include three sub-assemblies that run down their own separate assembly lines in unison, then join together at the end. "There's been a lot of work in the last three years on AI, on plants, and we're doing that and putting that into the system too. You've seen some of that already, but then we've also taken to this new platform, what we're able to do and add to that. So again, it's a win, win on both sides," a Ford spokesperson said. As part of the vehicle building shift, single-piece aluminum unicastings will replace dozens of smaller parts. This will allow the front and rear of the vehicle to be assembled separately. Additionally, less parts means fewer opportunities for failures that result in recalls, a business element that Ford has continuously struggled with during Farley's tenure, costing the company billions. "Elegant, simple designs are ultimately what enable low-cost: deletion of parts, deletion of process.... There's a lot of innovation of powertrain, in how we put the whole product together," the spokesperson said. Under the new assembly plan, Ford's assembly line workers on the third branch of the line put together the battery, seats, consoles and carpeting. Parts travel down the assembly tree to operators, further simplifying operations, in kit form with all fasteners, scanners and power tools included, in the order in which they are intended to be used. The team has further optimized the assembly line and order of operations for building the vehicle to improve the ergonomics for employees, reducing twisting, reaching and bending. Ford estimates that this new way of assembling vehicles will be 40 percent faster than the current assembly time of the Ford Escape. Some of that time, Ford says, will be yielded back to the company for other tasks, with an ultimate net speed improvement of 15 percent. It takes 20 hours to build one Ford Escape today.
Business Wire
2 days ago
- Automotive
- Business Wire
Ford's $5B Bet on America: Innovation Meets Efficiency in New EV Platform, Assembly Process and Midsize Truck
LOUISVILLE, Ky.--(BUSINESS WIRE)--Ford Motor Company is once again taking a revolutionary leap forward in engineering and manufacturing to bring a new family of affordable, high-quality electric vehicles within reach for millions around the world. The new Ford Universal EV Platform and Ford Universal EV Production System introduced today were born from a team that combines the discipline, expertise and scale of a company with 122 years of experience with the speed, innovation and first-principles thinking of a California-based electric vehicle hardware and software skunkworks team. The result: a simple, efficient, flexible ecosystem to deliver a family of affordable, electric, software-defined vehicles – the first of which is a midsize, four-door electric pickup that will be assembled at Ford's Louisville Assembly Plant for U.S. and export markets. Its launch is scheduled for 2027. 'We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership – and do it with American workers,' said Ford President and CEO Jim Farley. 'We have all lived through far too many 'good college tries' by Detroit automakers to make affordable vehicles that ends up with idled plants, layoffs and uncertainty. So, this had to be a strong, sustainable and profitable business. From Day 1, we knew there was no incremental path to success. We empowered a tiny skunkworks team three time zones away from Detroit. We tore up the moving assembly line concept and designed a better one. And we found a path to be the first automaker to make prismatic LFP batteries in the U.S.' The Ford Universal EV Platform The numbers tell the story, Farley said. The platform reduces parts by 20% versus a typical vehicle, with 25% fewer fasteners, 40% fewer workstations dock-to-dock in the plant and 15% faster assembly time. Lower cost of ownership over five years than a three-year-old used Tesla Model Y. Take for instance the wiring harness in the new midsize truck; it will be more than 4,000 feet (1.3 kilometers) shorter and 10 kilograms lighter than the one used in our first-gen electric SUV. Lithium iron phosphate (LFP) prismatic batteries also enable space and weight savings, while delivering cost reduction and durability for customers. The platform's cobalt-free and nickel-free LFP battery pack is a structural sub-assembly that also serves as the vehicle's floor. This low center of gravity improves handling, creates a quiet cabin, and provides a surprising amount of interior space. The new midsize truck is forecasted to have more passenger room than the latest Toyota RAV4, even before you include the frunk and the truck bed. You can lock your surfboards or other gear in that bed – no roof rack or trailer hitch racks required. But it's not just about space and utility. Ford makes passion products – and this electric vehicle platform with a low center of gravity from the battery, instant torque from electric motors and obsessive chassis engineering will make it fun to drive. The midsize truck will have a targeted 0-60 time as fast as a Mustang EcoBoost, with more downforce. 'We took inspiration from the Model T – the universal car that changed the world,' said Doug Field, Ford chief EV, digital and design officer. 'We assembled a really brilliant collection of minds across Ford and unleashed them to find new solutions to old problems. We applied first‑principles engineering, pushing to the limits of physics to make it fun to drive and compete on affordability. Our new zonal electric architecture unlocks capabilities the industry has never seen. This isn't a stripped‑down, old‑school vehicle.' Additional specifications for the midsize electric truck – including reveal date, starting price, EPA-estimated battery range, battery sizes and charge times – will be communicated later. The Ford Universal EV Production System The Ford team obsessed about efficiency in manufacturing, too, transforming the traditional assembly line into an 'assembly tree'. Instead of one long conveyor, three sub-assemblies run down their own lines simultaneously and then join together. Large single-piece aluminum unicastings replace dozens of smaller parts, enabling the front and rear of the vehicle to be assembled separately. The front and rear are then combined with the third sub-assembly, the structural battery, which is independently assembled with seats, consoles and carpeting, to form the vehicle. Parts travel down the assembly tree to operators in a kit. Within that kit, all fasteners, scanners and power tools required for the job are included – and in the correct orientation for use. The Ford Universal EV Production System dramatically improves ergonomics for employees by reducing twisting, reaching and bending, allowing them to focus on the job at hand. Because of the integration between the Ford Universal EV Production System and Platform, assembly of the midsize electric truck could be up to 40% faster than Louisville Assembly Plant's current vehicles. Some of that time will be reinvested into insourcing and automation to improve quality and cost, ultimately netting a 15% speed improvement. 'We put our employees at the center and re-created the factory from scratch,' said Bryce Currie, Ford vice president, Americas Manufacturing. 'We live and breathe continuous improvement, but sometimes you need a dramatic leap forward. We expect ergonomic breakthroughs and complexity reduction – through elimination of parts, connectors and wire – will flow through to significant quality and cost wins.' Continued Investment in American Manufacturing Ford builds on its strong legacy of investing in U.S. vehicle assembly, planning to invest nearly $2 billion in Louisville Assembly Plant to assemble the midsize electric truck, securing 2,200 hourly jobs. The project is supported by an incentive offer from the Kentucky Economic Development Finance Authority. 'Today, Ford and Team Kentucky are introducing the world to the future of automotive production with nearly $2 billion being invested to transform the Louisville Assembly Plant, which will also secure 2,200 jobs for Kentuckians,' said Kentucky Gov. Andy Beshear. 'This announcement not only represents one of the largest investments on record in our state, it also boosts Kentucky's position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford's future. Thanks to Ford's leaders for their continued faith in Kentucky and our incredible workforce. Ford and Kentucky have been a tremendous team for more than 100 years, and that partnership has never been stronger than it is today.' Louisville Assembly Plant will expand by 52,000 square feet in order to move material more efficiently. Digital infrastructure upgrades will give Louisville Assembly Plant the fastest network with the most access points out of any Ford plant globally, enabling more quality scans. Ford's investment in Louisville Assembly Plant is in addition to its previously announced $3 billion investment in BlueOval Battery Park Michigan, which will build the prismatic LFP batteries for the midsize electric truck starting next year. Together, the investments total approximately $5 billion, and between the two plants, Ford expects to create or secure nearly 4,000 direct jobs while strengthening the domestic supply chain with dozens of new U.S.-based suppliers. # # # About Ford Motor Company Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company's Ford+ plan for growth and value creation combines existing strengths, new capabilities, and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company offers freedom of choice through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles ('EVs') along with embedded software that defines always-on digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, the Company provides financial services through Ford Motor Credit Company. Ford employs about 169,000 people worldwide. More information about the company and its products and services is available at Ford From the Road.
