Lauren Ramesbottom

Lauren Ramesbottom

March 2, 2022 7:28 pm


Earlier today, Ford announced that it plans to separate its electric vehicle and internal combustion efforts into two separate divisions of the company. This announcement arrives on the heels of some major investments made by the automaker into an electric future.

According to the official press release, Ford will now be split into two distinct business units: Ford Model e division for electrics and Ford Blue division for internal combustion engines (ICE). The intent of this separation is to “create distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers.” Additionally, Ford hopes the separation will empower the automaker to better serve 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.

2021 Ford Mustang Mach-E GT

2021 Ford Mustang Mach-E GT

As for each division, 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, on the other hand, “will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford.”

Although the divisions will operate separately, Ford notes that they may share relevant resources where applicable, to scale and accelerate operating improvements. The press release also notes that, along with Ford Pro (its commercial fleet and connected fleet services division), “all three businesses are expected to have discrete P&Ls [profit and loss statements] by 2023.”

Read more: Ford to nearly double Lightning production to meet demand

This announcement maintains Ford’s prior promise to reach an annual production of more than 2 million EVs by 2026, with EVs representing half of global volume by 2030.

“We have made tremendous progress in a short period of time. We have launched a series of hit products globally and demand for our new EVs like F-150 Lightning and Mustang Mach-E is off the charts, shares Ford CEO, Jim Farley. “But our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus. We are going all in, creating sep-arate 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.”

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