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Amidst one of the auto industry’s largest wholesale shifts in modern history, the Ford Motor Company is investing $550 million to turn a factory that was dedicated to making large and fuel-hungry sport utility vehicles into a modern and scalable small-car plant that will eventually produce an all-electric version of the Focus.

The Michigan Assembly Plant, known as one of the world’s most profitable manufacturing sites during the S.U.V. boom of the 1990s, was once the hub for the Ford Expedition and Lincoln Navigator. The plant is expected to begin building the new Ford Focus next year, followed by production of the all-electric Focus in 2011.

The electric Focus will be Ford’s first all-electric passenger car for the mass market. In addition to the electric Focus, the company plans to sell an electric version of its Transit Connect commercial vehicle in 2010.

Ford has previously promised that they will deliver four new electric vehicles to the American market by 2012.

“The transformation of the Michigan Assembly Plant embodies the larger transformation under way at Ford,” said Ford’s president and chief executive, Alan Mulally, in a statement. “This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles.”

The electric Focus is part of a larger strategy announced by Ford in January to develop electric vehicles for North America quickly using its global reach and capability to keep the cars affordable.

In addition to the Michigan Assembly Plant, Ford is retooling two other factories to build new cars in the face of global market changes. The company’s Cuautitlán Assembly plant in Mexico is slated to begin building the new Fiesta subcompact early next year, and its Louisville Assembly plant in Kentucky is also expected to begin producing small vehicles based on the Focus platform beginning in 2011.

“We’re changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles,” said Mark Fields, Ford’s president of the Americas. “As customers move to more fuel-efficient vehicles, we’ll be there with more of the products they really want.”