Ford may have denied reports about plans to spin-off its EV operations, but the automaker today announced a reorganization that clearly separates EV from ICE operations.
From now on, Ford Motor Company will have three main divisions dedicated to the core brand: Ford Blue (ICE), Ford Model e (EV) and Ford Pro (commercial vehicles).
While the move is not as radical as a spin-off, it creates distinct but interdependent electric vehicle and internal combustion businesses "poised to compete and win against both new EV competitors and established automakers."
While operating as distinct businesses, they will share relevant technology and practices to leverage scale and drive operating improvements. Interestingly, all three businesses are expected to have "discrete" profit and loss (P&L) statements by 2023.
Ford says this reorganization will enable it to have the focus and speed of a startup at the leading edge of technology, supported by its rich expertise in engineering and high-volume production.
"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."
Jim Farley, Ford Motor Company CEO
Ford Model e's main goals will be to accelerate innovation and delivery of breakthrough electric vehicles at scale, as well as developing software and connected vehicle technologies and services for all of Ford, including the ICE division.
Gallery: Ford creates distinct auto units for EVs and ICEs: Ford Model e and Ford Blue
Jim Farley says the creation of Ford Model e was inspired by the success of the small teams that developed the Ford GT, Mustang Mach-E and F-150 Lightning, as well as the company’s dedicated EV division in China.
"Ford Model e will be Ford's center 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."
Here are Ford Model e's main goals, as laid out in the company's press release.
- Attract and retain the best software, engineering, design and UX talent and perfect new technologies and concepts that can be applied across the Ford enterprise;
- Embrace a clean-sheet approach to designing, launching and scaling breakthrough, high-volume electric and connected products and services for retail, commercial and shared mobility;
- Develop the key technologies and capabilities – such as EV platforms, batteries, e-motors, inverters, charging and recycling – to create ground-up, breakthrough electric vehicles; and
- Create the software platforms and fully networked vehicle architectures to support delightful, always-on and ever-improving vehicles and experiences.
In addition, Ford Model e will lead on creating a new and exciting shopping, buying and ownership experience for future EV customers by way of "simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors." Ford Blue will adapt these practices for its ICE customers.
Speaking of Ford Blue, it will continue to build the company's iconic portfolio of ICE vehicles such as the F-Series, Ranger and Maverick trucks, Bronco and Explorer SUVs, and Mustang, with a focus on attacking costs, simplifying operations and improving quality. Additionally, it will aim to "provide world-class hardware engineering and manufacturing capabilities for all of Ford," including the EV business.
Last but not least, Ford Model e will be run by Jim Farley as president, in addition to his role as CEO of Ford Motor Company. Doug Field will be Ford Model e's chief EV and digital systems officer, while Kumar Galhotra will serve as president of Ford Blue.