Ford Motor Company has announced it will split up its internal combustion engine and electric operations into two separate branches called Ford Blue and Ford Model e.
Ford Blue will serve as the company’s ICE arm and will “build out the company’s iconic portfolio of ICE vehicles to drive growth and profitability – relentlessly attacking costs, simplifying operations and improving quality,” the automaker said in a press release issued Wednesday. The Ford Model e branch, meanwhile, “will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford,” the company said. These new operational arms join the previously established Ford Pro branch, which is aimed at fleet sales and service.
“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,” Ford CEO Jim Farley said in a prepared statement.
Ford made the decision to split its business up as it believes “that different approaches, talents and, ultimately, organizations are required to unleash Ford’s development and delivery of electric and digitally connected vehicles and services and fully capitalize on the company’s iconic family of internal combustion vehicles.” The creation of Ford Model e, specifically, was partially driven by the success of other small, mission-driven Ford teams that developed highly successful models like the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup.
As for its Lincoln luxury brand, it will remain adjacent to the Ford brand and will be “served by Ford Model e and Ford Blue,” as it continues its mission of creating “compelling vehicles with an exceptional ownership experience to match.”
Ford also announced new executive appointments this week, with Farley serving as the president of Ford Model e, in addition to his role as CEO of Ford Motor Company, and Kamar Galhotra serving as the president of Ford Blue. Doug Field will lead Ford Model e’s product creation in his role as chief EV and digital systems officer, as well.
While GM has strongly considered the idea of spinning off its EV business into a separate entity, company president Mark Reuss told CNBC in 2020 that it believes keeping its EV and ICE businesses under one umbrella will give it an advantage.
“We looked at it very carefully, “Reuss said at the time. “We studied it. We looked in-depth at what it would take from a human capital and a regular capital standpoint, and our human resource and expertise that we have at General Motors, I believe is a real competitive advantage.”
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Comments
Wow, either way you’ll get the same results from this company..
Frustrated Owners Remain Deserted….
Not surprising. They want the E part to get the valuations tech companies get, sometimes where simply delivering twice as much product at 10 times the losses gives a 2X stock price. The market is just nuts. Ukraine invasion, hot inflation, markets up today.
I hope and Pray GM doesn’t do something this idiotic.
As I have been stating for some time, Legacy Automakers will have huge issues switching to BEV’s as they all waited far too long to do so. This will not end very well. I bet you Ford will Bankrupt its so called ICE Division.
Ford has always done it the “Ford way” aka, lots of top down Bureaucracy, not a lot getting done. GM has always (though scary Mary has put huge brakes on it) let the divisions work fairly independently. This is how Ford has the ecoturd motors, and why they sold off Range Rover, and why GM has largely had the largest market share in North America.
Huh. There will be a Ford Blue Bronco? And a Ford Model e Mustang Mach E? Weird.
Much ado about nothing. Just Ford dedicating more assets to its electric vehicles division
@Peter G
The only reason I can think of to make this move/announcement is that Ford knows five years from now their ICE Division will be losing money and their BEV Division will start making money. Since they will start announcing Financials individually starting in 2023, this will make it much easier for Ford to one day announce to Wall Street and their customers that they unfortunately cannot keep losing money with their ICE Division. It will allow them to do a couple of different things.
One – Justify cutting certain Programs and majorly reducing spending for ICE
Two – Streamline to only Legacy High Revenue Products like F-150, Ranger, Bronco, Transit, and Mustang.
Three – Cut off their ICE Division altogether one day while showing that they had to do so Financially so Wall Street doesn’t freak out.
All this move is about is pandering to Wall Street. IMHO ICE vehicles are not going away anytime soon despite the Greenies and leftist governments pushing it. At the end of the day people will not buy what they don’t like.
That being said, since Bill Ford Jr took over the chairmanship at the turn of this century it has been one cluster$!*% after another. The o ly really good CEO they had was Mulally. I would not be surprised to see another “restructuring” and another CEO with a few years.
With only one electrified vehicle in the market, Ford is creating a new company.
If you read Ford announcement, you won<t find anything new.
Ford is far behind many carmakers on EV and new technologies. Time will tell, but I wouldn't be surprised if nothing happens.
More aptly named: Ford Truck and Ford Woke
Leftist propaganda
Speaking of which, you obviously missed the news that your ilk rebranded pedophiles as “minor-attracted people”
Definitely gives Ford the separate company platform they need to skirt state laws and sell direct to consumer. No more dealership profits.