Ford splits company into EV and ice divisions

Ford splits company into EV and ice divisions

Ford is splitting into two divisions called ‘Ford Model e’ and ‘Ford Blue’ which will focus on electric vehicles and internal combustion engine (ICE) models respectively, and all that goes along with their development. Announced by Ford President and CEO Jim Farley, Ford Model e will be Ford’s centre of “innovation and growth”, while Ford Blue will “deliver a more profitable and vibrant ICE business”.

“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” commented Farley. The creation of Model e was said to be informed by the success of ‘small, missiondriven’ Ford teams responsible for the Ford GT supercar, Mustang Mach-E SUV and all-electric F-150 Lightning pickup.

Ford’s goals for Model e include attracting software, engineering, design, and user experience talent; embracing a ‘clean-sheet approach to designing, launching and scaling breakthrough, high-volume electric and connected products’; developing key technologies (including EV platforms, batteries, motors, inverters, charging and recycling) and creating new software platforms. The Blue Oval also says Model e will be in charge of the future of how people shop for and buy their new electric Ford, along with customers’ ownership experience.

Ford Blue gets a quite different brief, because it’s in charge of legacy ‘iconic’ Ford models like F-Series pickup trucks, Ranger, Maverick, Bronco, Explorer and Mustang, most of which aren’t available in the UK. It’s also the side of the business tasked with rooting out waste and drastically reducing its product, manufacturing, and quality-related costs to the tune of $3 billion (£2.25 billion) according to Ford’s statement.

It’s no secret Ford Blue will be the profit machine that helps bankroll the Model e division; Kumar Galhotra adding “Ford Blue will be an engine of cash and profitability for the whole company.” In essence, Ford Blue will help fund Ford’s transition to electrification, and achieve its target of selling two million EVs by 2026.

Farley will add president of Ford Model e to his office door, joined by Doug Field in the role of chief electric vehicle and digital systems officer. Kumar Galhotra will become the president of Ford Blue, moving from his former role of president of the Americas and International Markets Group.

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