Ford Pioneers Revolutionary Method for Automobile Production
In an effort to compete with Chinese automakers and address the affordability crisis in the global car industry, Ford's Skunk Works operation in California is leading the charge in developing cost-competitive electric vehicles (EVs) through a groundbreaking approach called unboxed assembly.
The need for a more efficient way to make cars has long been recognised, sparking innovation in the industry. Unboxed assembly allows for simultaneous installation of parts from various angles and at chest level, reducing wear and tear on workers. This method, initially proposed by Tesla, breaks down a car into modules, each containing all parts and components for a specific part of the vehicle (e.g., front, center, rear, floor, and roof).
Ford's decision to implement unboxed assembly may signal the end of traditional assembly lines in the automobile industry, which, despite being inefficient due to workers having to pick up parts, walk, and lean over cars, has been the standard for 112 years. The moving assembly line, while necessary to compensate for inefficiency by adding more workstations and workers, has now been replaced by a more streamlined process.
The leader of Ford's project to develop modular assembly methods for electric vehicles, starting in 2027, is Doug Field, who serves as Ford's Chief EV, Digital and Design Officer, along with Alan Clarke. A small team led by Clarence Avery devised the idea to move components in Ford's Highland Park assembly plant by conveyor, inspired by grain mills and slaughterhouses.
Ford is eliminating 600 people and 40% of assembly stations at its Louisville plant through retirement and attrition, while insourcing more work. The UAW agreed to Ford's plan, suggesting a strong relationship between Ford and the union at the Louisville plant. Ford is scheduled to start implementing unboxed assembly at its Louisville assembly plant in 2027.
The move towards unboxed assembly is part of Ford's Universal EV Platform, which includes other ideas to boost productivity and slash costs. This approach echoes Ford's historical success, as the time it took to assemble a Model T was slashed by 78% in 1913, making Ford the world's largest car company. The automobile industry is currently facing an affordability crisis, with global car sales stalled over the past decade due to households' inability to afford new cars. Ford's commitment to unboxed assembly and other cost-saving measures aims to make EVs more accessible to a wider audience.
China, on the other hand, has formulated an industrial policy to dominate the global industry and has locked up the global supply chain for raw materials needed for electric-vehicle batteries and electric motors, giving Chinese automakers a 30% cost advantage over others. However, with Ford's innovative approach, the landscape of the automobile industry may be set to change.
Toyota, BYD, and a European automaker are reportedly developing their own versions of unboxed assembly, indicating a growing trend towards this more efficient method of car production. As the industry continues to evolve, it remains to be seen how these changes will impact the global market and consumer choices.
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