by Fred Lambert
Ford announced that it is separating its electric vehicle and internal combustion businesses into two different units, as the automaker is trying to navigate a future that is undeniably electric while dragging a large internal combustion engine business with it.
The move had been rumored for a few weeks, but it wasn’t clear what form exactly it would take. Initially rumors said that Ford was going to spin off either its EV or ICE business.
Now Ford confirmed that it’s operating the two business units, now Ford Model e division and Ford Blue division, within the company in order to have each unit operate as distinct businesses.
Here are the main points of the new plan as described by Ford in a new press release: Creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers
Organizes Ford to deliver for customers with the focus and speed of a startup at the leading edge of technology, supported by deep expertise in engineering and high-volume production
Ford Blue will build out company’s iconic portfolio of ICE vehicles to drive growth and profitability – relentlessly attacking costs, simplifying operations and improving quality; will provide world-class hardware engineering and manufacturing capabilities for all of Ford
Ford Model e will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford
Ford Blue and Ford Model e will operate as distinct businesses, but share relevant technology and best practices to leverage scale and drive operating improvements; along with Ford Pro, all three businesses are expected to have discrete P&Ls by 2023
Accelerates Ford+ plan to unlock growth and create value for Ford’s shareholders: total company adjusted EBIT margin of 10% and annual production of more than 2 million EVs by 2026; expect EVs to represent half of global volume by 2030