Ford hopes that a massive investment in a new assembly plant will help the company lower costs in the long run. If the company's plan works, it may also reinvent the assembly process more than a century after the existing system for putting together vehicles was created.

What Is Ford Planning to Do?

Ford plans to use a tree system to assemble vehicles from the ground up instead of a traditional rolling assembly line. This will hopefully lead to fewer parts being used and allow the company to manufacture vehicles faster. Ford hopes it can save up to 20% on the cost of parts and significantly reduce overhead by reducing the workforce and time it takes to assemble its many SUVs and trucks.

The Goal Is to Compete With China

The automaker hopes to cut costs enough to compete with similar firms in China and elsewhere by overhauling the assembly line. Foreign countries often have a competitive advantage because of fewer minimum wage rules and regulations. Companies overseas can build their vehicles for less and more quickly, allowing them to get their products to market faster and at a lower price point. By streamlining manufacturing, Ford can make its vehicles in the United States while remaining competitive in the domestic and global marketplaces.

America Gets a Boost Too

As you would imagine, building cars in the United States will boost the nation's economy. A manufacturing plant also helps increase the local economy, as other companies now have a customer base with disposable income to buy their goods and services. Although it's unlikely that anything will be manufactured exclusively in the United States anymore, Ford hopes it can instill confidence in stabilizing the country's manufacturing sector.

If you are in the market for a Ford vehicle or any other Ford product, don't hesitate to contact us today. We'll be happy to answer your questions.