Ford ramps up big SUV output to fund electrics

Ford is spending $25 million more at its Kentucky factory to pump out more of the profitable big sport utility vehicles that are critical to funding its ambitious — and expensive — electric and self-driving vehicle plans.

The investment will allow the second-largest U.S. automaker to boost production of the new Lincoln Navigator and Ford Expedition by 25 percent from what the company was planning last fall, when the redesigned models first hit showrooms.

“The Expedition and Navigator products are very important to both the Ford and Lincoln lineups,” Joe Hinrichs, Ford’s president of global operations, told reporters on a tour of the plant. “It’s really important that this plant is able to produce more because we know we have this high demand now.”

The Kentucky factory — which also assembles Ford’s Super Duty pickups — is a money minter for Ford, churning out models that analysts estimate can generate profits that exceed $10,000 a vehicle. Those earnings are essential as the company plays catch-up to rivals including General Motors and Tesla in developing battery-powered cars and autonomous vehicles.

The incremental spending is on top of the $900 million investment that Ford announced for the factory in June. Upgrades to the Kentucky Truck Plant in Louisville include 400 new robots and a parts-making 3D printer.

Ford CEO Jim Hackett has warned profit will fall this year as it invests in self-driving and electric cars.