Ford has announced that it will split its company into two separate entities – a “Model e Division” with its electric fleet as well as a “Blue Division” for its older line of vehicles powered by internal combustion engines.
The Dearborn, Michigan-based automaker said the change would lead to “the formation of two distinct, but strategically interdependent auto businesses.”
Jim Farley, chief executive officer of Ford Motor Co., will lead the electrical division while retaining the title of CEO.
“We’re going all out, creating separate but complementary businesses that give us the entrepreneurial pace and relentless innovation in Ford Model e along with the industry know-how, the block quality and iconic brands like Bronco, which startups can only dream of,” said Farley.
“The Ford Model e will be at the heart of innovation and growth for Ford, a group of the world’s best software, electrical and automotive talents who have disappeared to create electric vehicles and experiences,” he said. Digital is truly incredible for new generations of Ford customers.”
Farley says the company recognizes the need to become more technologically nimble with so many competitors entering the market.
“Our legacy organization held us back,” says Farley. “We had to change.”
Last fall, Ford announced that it would invest $11.4 billion in four new plants in the US – one of which will be used to make electric trucks. The remaining three companies will produce batteries for the company’s EV fleet.
Ford says the investment will help it produce more than a million electric vehicles a year in the second half of this decade and is part of a commitment to invest at least $30 billion in electric vehicles by 2025.
The company expects that half of its vehicles will be electric by 2030. Less than a year ago, the company announced a goal to switch to 40% electric by then.
It also says it will produce more than 2 million electric vehicles a year by 2026, about a third of the global fleet.
Four new plants will support the production of electric F-Series trucks, like the new F-150 launched earlier this year.
Shares of Ford were up more than 4.5% in early morning trading on Wall Street on Wednesday.
Ford’s strategy is to increase its share in the emerging electric vehicle market as it competes with Elon Musk’s Tesla and other legacy automakers like General Motors, which are also investing heavily in transformation. to battery-powered vehicles.
“Is this a victory? 100%,” Farley said. “We want to beat the old players. We want to beat the new players.”
Ford has already begun developing electric vehicles with the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup. Ford also operates an electric vehicle division in China.
https://nypost.com/2022/03/02/ford-will-split-company-in-two-as-it-ramps-up-ev-production/ Ford will split the company in two as it ramps up production of electric vehicles