Ford hopes a significant investment in a new assembly plant will allow the company to reduce costs over time. If the plan succeeds, it could also reshape the assembly process more than a century after the invention of the current method for building vehicles.
What Is Ford Planning to Do?
Ford plans to replace the traditional rolling assembly line with a tree system that assembles vehicles from the ground up. This approach is expected to reduce the number of parts needed and speed up production. Ford projects parts-cost savings of up to 20% and anticipates lower overhead by trimming the labor and time required to assemble its SUVs and trucks.
The Goal Is to Compete With China
By reworking the assembly process, the automaker aims to reduce expenses enough to better compete with manufacturers in China and other countries. Overseas firms often benefit from looser wage rules and regulations, enabling them to build vehicles more cheaply and quickly. Streamlining production could allow Ford to continue to make vehicles in the U.S. while staying competitive at home and abroad.
America Gets a Boost Too
Manufacturing cars in the United States also supports the national economy. A new plant stimulates the local market, as nearby businesses gain customers with more disposable income. While complete domestic-only manufacturing is unlikely, Ford hopes this move will help stabilize American manufacturing and restore confidence in the sector.
If you are looking for a Ford vehicle or any other Ford product, please contact us today. We'll be happy to answer your questions.
