The Ford Motor Company announced on Thursday it plans to add 1,800 new jobs and invest $600 million to revamp its Louisville, Ky. assembly plant.
And, with the recent increase in Ford's share price target from Bank of America-Merrill Lynch to $24, this expansion could be another boost in Ford's already bullish run. The automaker's share price has nearly doubled in the past year.
"What we've done through our transformation is make our plants more productive, Mark Fields, executive vice president of Ford Motor Company , told CNBC's "The Strategy Session" on Thursday.
A number of commodities contribute to the cost of making a vehicle—aluminum, steel and cooper. Ford is trying to offset those costs through increased productivity and improved efficiency, Fields said.
"It all comes down to what the customer sees in the value of the product and the good news, from our standpoint, is that our transaction prices have been going up significantly over the last number of quarters," he said.