Ford is continuing to transform its global automotive business and is creating two distinct electric vehicle (EV) and internal combustion businesses. The company is accelerating the development and scaling of breakthrough electric vehicles (EVs), while using its iconic nameplates to strengthen operating performance.
Bill Ford, Ford executive chair, said: “This isn’t the first time Ford has reimagined the future and taken our own path. 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.”
Last May, Jim Farley, Ford president and CEO, 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.
The formation of two distinct, but strategically interdependent, auto businesses – Ford Blue and Ford Model e – together with the new Ford Pro business, will help unleash the full potential of the Ford+ plan, driving growth and value creation.
Jim Farley, Ford president and CEO, said: “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.
“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 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.”
Driving the change was recognition that different approaches, talents and, ultimately, organisations are required to unleash Ford’s development and delivery of electric and digitally connected vehicles and services, and capitalise on the company’s internal combustion vehicles.
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.
Farley added: “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.”
Ford Model e and Ford Blue, which aims to deliver a more profitable and vibrant internal combustion engine (ICE) business, will be run as distinct businesses, but also support each other – as well as Ford Pro.
Ford Model e is designed to 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.
It will 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.
Ford e will also develop the key technologies and capabilities, such as electric vehicle platforms, batteries, e-motors, inverters, charging and recycling, to create ground-up, breakthrough electric vehicles.
It will also create the software platforms and fully networked vehicle architectures to support delightful, always-on and ever-improving vehicles and experiences.
Ford Model e also will lead on creating an exciting new shopping, buying and ownership experience for its future electric vehicle customers. This includes simple, intuitive e-commerce platforms, transparent pricing and personalised customer support from Ford ambassadors.
Ford plans to produce more than two million electric vehicles annually by 2026, representing about one-third of Ford’s global volume, rising to half by 2030. In addition, Ford expects to spend $5 billion on electric vehicles in 2022, including capital expenditures, expense and direct investments, a two-fold increase over 2021.
The company also reiterated its commitment to achieve carbon neutrality by 2050 and to use 100 percent local, renewable electricity in all of its manufacturing operations by 2035.
John Lawler, Ford’s chief financial officer, said: “This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation.
“It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs.”