Ford believes a substantial investment in a new assembly plant will reduce costs in the long run. If successful, the plan could overhaul the vehicle assembly process more than a hundred years after the existing system was developed.
What Is Ford Planning to Do?
The company plans to implement a tree-style assembly approach, building vehicles from the bottom up rather than on a traditional rolling line. The approach should cut part usage and speed manufacturing. Ford anticipates up to 20% savings on parts and notable overhead reductions by lowering the time and labor needed to assemble SUVs and trucks.
The Goal Is to Compete With China
Overhauling assembly methods will help Ford lower costs enough to compete with manufacturers in China and elsewhere. Overseas competitors often have advantages tied to different wage and regulatory landscapes, enabling quicker and cheaper production. By streamlining manufacturing, Ford aims to make vehicles in the U.S. while remaining domestically and internationally competitive.
America Gets a Boost Too
Increased domestic production also supports the U.S. economy. A manufacturing plant bolsters the local area by creating customers with disposable income who will spend with nearby businesses. Although entirely domestic manufacturing is rare today, Ford hopes this move will help stabilize the nation's manufacturing sector.
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