Ford to invest $5 billion in new electric pickup, battery production

LOUISVILLE - Ford Motor Company (NYSE:F), the $45 billion automotive giant whose stock has surged nearly 29% over the past six months according to InvestingPro data, announced plans to invest approximately $5 billion across its Louisville Assembly Plant and BlueOval Battery Park Michigan, creating or securing nearly 4,000 jobs to produce a new midsize electric pickup truck and advanced batteries. The investment comes as Ford, currently trading near its Fair Value based on InvestingPro analysis, continues its aggressive push into the electric vehicle market.

The automaker, which generated over $185 billion in revenue over the last twelve months, will invest nearly $2 billion to transform its Louisville Assembly Plant, securing 2,200 hourly jobs. The facility will produce a midsize four-door electric pickup targeted to start at about $30,000 when it reaches customers in 2027. Want deeper insights into Ford’s financial health and growth potential? InvestingPro subscribers have access to over 30 exclusive financial metrics and expert analysis.

The vehicle will be built on Ford’s new Universal EV Platform, which the company says reduces parts by 20% compared to typical vehicles, with 25% fewer fasteners and 15% faster assembly time. The platform utilizes lithium iron phosphate (LFP) prismatic batteries that serve as the vehicle’s structural floor.

"We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters," said Ford President and CEO Jim Farley in a press release statement.

The midsize truck is designed to offer more passenger space than the latest Toyota RAV4 and acceleration comparable to a Mustang EcoBoost, according to the company.

Ford is also implementing what it calls the Universal EV Production System, transforming the traditional assembly line into an "assembly tree" where three sub-assemblies run simultaneously before joining together. The company expects assembly of the midsize electric truck could be up to 40% faster than current vehicles produced at the Louisville plant.

The Louisville investment complements Ford’s previously announced $3 billion investment in BlueOval Battery Park Michigan, which will produce prismatic LFP batteries for the new vehicle starting next year.

The Kentucky Economic Development Finance Authority has offered incentives to support the Louisville project, according to the announcement. Ford maintains a significant 6.71% dividend yield and has maintained dividend payments for 14 consecutive years, according to InvestingPro data, demonstrating its commitment to shareholder returns while investing in future growth. For comprehensive analysis of Ford’s investment potential, including detailed financial health metrics and expert insights, explore InvestingPro’s exclusive research reports covering over 1,400 top US stocks.

In other recent news, Ford has been in the spotlight for several developments. RBC Capital raised its price target for Ford to $11 from $10, following the company’s second-quarter earnings results that surpassed expectations, largely due to strong performance in its Pro segment. Meanwhile, Jefferies also adjusted its price target for Ford, increasing it to $9 from $8, but maintained an Underperform rating, citing Ford’s exposure to aluminum tariffs. On the regulatory front, the National Highway Traffic Safety Administration (NHTSA) has initiated a probe into approximately 35,950 Ford vehicles over concerns about B-pillar trim detachment. Additionally, Ford is recalling over 312,000 vehicles in the U.S. due to a potential brake system defect that could lead to an extended stopping distance. In a significant move to bolster its international operations, Ford has secured a £1 billion export development guarantee from the UK government. This support is aimed at enhancing Ford’s global growth strategies. These developments highlight a mix of opportunities and challenges for the automaker.

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