Ford is creating two new divisions: Ford Blue for vehicles with an internal combustion engine (ICE) and Ford Model e for electric vehicles (EVs).
These new divisions will join Ford Pro – focused on commercial and government vehicles in the US – in the automaker’s revised corporate structure.
According to the new order, Ford Model e will develop electric vehicles, as well as related platforms, batteries, motors, chargers and recycling networks.
The Model e is also responsible for online services and connected vehicle technology used by all divisions.
In addition to developing ICE vehicles, Ford Blue also responsible for the engineering and manufacturing of hardware for all Ford parts, as well as providing purchasing, vehicle inspection and engineering services for the Model e and Ford Pro.
It has also been charged with rooting “out of waste [to] drastically reduce product, production and quality costs”.
In one interview Last week, Ford CEO Jim Farley said ICE’s business division had “too much complexity” and that it was essentially to blame for the drop in the company’s stock market value.
The Ford Pro will largely remain that way. It will continue to sell both EVs and ICEs to commercial operators and government fleets in the US.
According to Ford, the new setup is required because EV and ICE cars require “different approaches.” [and] talent “.
The new structure was born thanks to “success of small Ford groups, with a mission to grow Ford GT, Mustang Mach-E SUVs and F-150 Lightning to pick up”.
Farley said the new setup will help Ford “become a truly great company, changing the world again”.
He added, “We are going all out, creating businesses that are distinct but add to us the speed of launch and relentless innovation in the Ford Model e along with the industry know-how, production and iconic brands like Bronco, which startups can only dream about”.
Jim Farley will remain CEO of Ford Motor Company, and will also assume the role of president of the Ford Model e. Doug Field – who led the development of Tesla Model 3 – will be in charge of vehicle development as the division’s director of EVs and chief digital systems officer.
Kumar Galhotra will be the president of Ford Blue. He currently heads Ford’s Americas division, as well as the International Markets Group, with responsibility for all regions outside of North America, Latin America, Europe and China.
The split is the latest step in the company’s Ford+ transformation plan, and the company projects a capacity to produce two million EVs a year by 2026.
By 2030, Ford expects electric vehicles to account for half of the company’s global sales.
Last week Ford CEO Jim Farley negative the company already has a plan to grow its EV or ICE business. While his assertion is technically correct, today’s announcement proves that there is substance behind those reports.
By calling its new EV division the Model e, Ford ended up using the name it had prevented Tesla from using for the vehicle now known as the Model 3.
