Ford will split its electric vehicle and internal combustion activities into two distinct activities to accelerate its adaptation to new technologies and the Detroit The automaker said Wednesday that its transformation into an electric vehicle company is accelerating.
Ford plans a major restructuring with two distinct but strategically interdependent automotive businesses – Ford Blue focusing on traditional combustion engines and Ford Model e, which will develop electric vehicles.
Jim Farleythe general manager of Ford Motor Co., will lead the electrical division. Speaking candidly at an investment conference last week, he said that Ford didn’t want to completely break up its electrical division, but that changes were coming.
“We pull out all the stops, building distinct yet complementary businesses that give us start-up speed and unbridled innovation in Ford Model e with Ford Blue’s industry know-how, volume and iconic brands like Bronco that start-ups can only dream of,” said Farley.
The transformation of the auto industry over the past year in pursuit of electric vehicle technology has been astounding even to proponents who have for years pushed to put gas-powered cars in the rear window. A handful of startups have raised billions in capital, including significant funding from traditional automakers.
But these newcomers have neither the financing of traditional automakers, which sell millions of cars each year, nor the capacity to build on a large scale.
Lucid Group and Lordstown Enginesnewcomers, released disappointing production projections this week, highlighting how difficult it is to secure materials and produce vehicles in large numbers.
Farley said the company recognizes the need to become more nimble on the technology side with so many competitors entering the market.
“Our legacy organization held us back,” Farley said. “We had to change”
Corn Ford also competes with heavy-duty EVs You’re herewhich posted record profits last year, and another traditional automaker, General Motorswhich promises an even faster transition to electric vehicles. GM went so far as to change its logo, with the “m” in the logo underlined to look more like an electrical outlet.
“Is it a question of winning? 100%,” Farley said. “We want to beat the old players. We want to beat new players.
Ford has already embarked on the development of electric vehicles with Ford GTs, Mustang Mach-E SUVs and F-150 Lightning pickups, and demand is high.
The company has already taken orders for 150,000 electric versions of its F-150 pickup and full production of the vehicle is expected to begin early this year. It is building three battery factories, including one that will also build electric trucks.
In January, GM said he would make the biggest investment in company history in his home state Michiganspending near $7 billion convert a factory to make electric vans and build a new battery cell factory.
Wednesday, Ford said it now expects half of its vehicles to be electric by 2030. Less than a year ago, the company announced a goal to go 40% electric by the. It also said it would produce more than 2 million electric vehicles per year by 2026, which would represent about a third of its global fleet.
Ford Blue will provide hardware engineering and manufacturing capabilities for the entire company. Ford Model e will develop software and connected vehicle technologies and services.
Both divisions will be short of Dearborn, Michigan, the automaker’s longtime home. Each will account for their profits and losses individually.
Ford anticipates expenses $5 billion on electric vehicles this year, including capital expenditures, expenditures and direct investments.
Farley, in addition to the rubric Ford Model e, will continue as CEO of Ford Motor Co. The president of Fordit’s Americas and International Markets Group, Kumar Galhotrawill become president of Ford Blue. Galhotra said Ford Blue would be the economic engine that would drive the electric division forward.
Shares of Ford rose over 4% before the opening bell.
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