Company says new Ford Model E outfit is to become the automaker’s ‘centre of innovation and growth’
Ford has separated its electric vehicle (EV) business out from its internal combustion engine division, arguing the move will allow it to significantly accelerate innovation and delivery of its zero-emission vehicle range.
The US carmaker said the two subsidiaries, dubbed Ford Blue and Ford Model E, would operate as distinct businesses, but share relevant technology and best practices that would drive operating improvements and leverage scale.
Ford Executive Chair Bill Ford said the move put the carmaker at the forefront of the global transition to electric vehicles. “This isn’t the first time Ford has reimagined the future and taken our own path,” he said. “We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.”
Ford is aiming to produce more than two million EVs by 2026 and generate half its sales from EVs by 2030. It has pledged that every model in its European line-up will be available as a plug-in hybrid (PHEV) or pure EV by the middle of 2026, ahead of delivering a fully electric passenger line-up by 2030.
Ford president and CEO Jim Farley said the restructure came after the carmaker had launched a string of electric models, such as the Mustang Mach-E and F-150 Lightening, which he said had been met by “off the charts” demand.
“But our ambition with Ford+ [growth plan] is to become a truly great, world-changing company again, and that requires focus,” he said. “We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model E together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about.”
Farley will take on a new role as president of Ford Model E, while Kumar Galhotra, who heads up the company’s US operation, has been appointed the boss of Ford Blue.
On top of developing and manufacturing EVs for the retail, commercial, and shared mobility markets, the new Ford Model E business will be responsible for developing software platforms and connected vehicle technologies for all Ford businesses, according to the update.
The EV business will also be tasked with developing a new shopping, buying, and ownership experience for EV customers that is set to include intuitive e-commerce platforms, transparent pricing, and personalised customer support, Ford said.
“Ford Model E will be Ford’s centre of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” Farley said.
The company said it had decided to create the two companies after recognising that different approaches, talents, and organisations were required to capitalise on the two market segments.
John Lawler, Ford’s chief financial officer, said the split would drive growth and deliver “significant value” for stakeholders.
“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” he said. “It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs.”
Want to help celebrate and showcase the best of the green economy? You can now enter the BusinessGreen Leaders Awards 2022 and be in with a chance of joining us at the UK’s largest and most prestigious green business awards this summer.
