Video: Ford to split EV and ICE businesses

Ford is forming distinct automotive units – Ford Model e to accelerate EV production and Ford Blue to continue its internal combustion engine (ICE) side to simplify operations, boost quality and provide hardware engineering and manufacturing capabilities for all of the company.

It says Ford Model e will accelerate innovation and delivery of breakthrough EVs at scale and develop software and connected vehicle technologies and services for all of Ford.

The move is also aimed at annual production of more than two million EVs by 2026.

While Ford Blue and Ford Model e will operate as distinct businesses they will share relevant technology and best practices to leverage scale and drive operating improvements; along with Ford Pro – a standalone unit focussing exclusively on commercial and government customers – all three businesses expected to have discrete profit and loss statements by 2023.

“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,” says Ford executive chair Bill Ford.

Last May, Ford president and chief executive Jim Farley introduced the Ford+ plan, calling it the company’s biggest opportunity for growth and value creation since Henry Ford scaled production of the Model T, with the three business ventures expected to help unleash the full potential of the Ford+ plan.

“We have launched a series of hit products globally and demand for our new EVs like the F-150 Lightning and Mustang Mach-E is off the charts,” says Farley.

“But our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus.”

The creation of Ford Model e was informed by the success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup as well as Ford’s dedicated EV division in China.

“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,” adds Farley.

Ford Model e and Ford Blue will be run as distinct businesses, but also support each other – as well as Ford Pro, which is dedicated to delivering a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support on Ford and non-Ford products.

Ford Model e and Ford Blue will also support Ford Drive mobility, the former also creating a new shopping, buying and ownership experience for its future EV customers that includes simple, intuitive e-commerce platforms, transparent pricing and personalised customer support from Ford ambassadors.

Ford Blue will adapt these best practices to enhance the experience of its ICE customers and deliver new levels of customer connectivity and satisfaction.

Guidance for 2022 of US$11.5 billion to US$12.5b in company adjusted EBIT is reaffirmed by Ford.

Ford expects to spend US$5b on EVs in 2022 – a two-fold increase over 2021 – to achieve carbon neutrality by 2050, and to use 100% renewable electricity in all its manufacturing operations by 2035.