Ford is creating two new divisions: Ford Blue for vehicles with internal combustion engines (ICE), and Ford Model e for electric vehicles (EV).
These new divisions will stand alongside Ford Pro — which focuses on commercial and government vehicles in the US — in the automaker’s revised corporate structure.
Under the new order, Ford Model e will develop EVs, as well as their associated platforms, batteries, motors, chargers and recycling networks.
Model e is also responsible for the online services and connected vehicle technologies used by all divisions.
In addition to developing ICE vehicles, Ford Blue is also responsible for hardware engineering and production for all Ford divisions, as well as providing purchasing, vehicle testing and engineering services to Model e and Ford Pro.
It has also been charged with rooting “out waste [to] dramatically reduce product, manufacturing and quality costs”.
In an interview last week, Ford CEO Jim Farley said the ICE side of the business had “too much complexity” and, essentially, blamed it for weighing down the company’s stock market valuation.
Ford Pro will largely remain as is. It will continue to sell both EV and ICE vehicles 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] talents”.
The new structure came about thanks to the “success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup”.
Farley said the new setup will help Ford “become a truly great, world-changing company again”.
He added, “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”.
Jim Farley will remain as Ford Motor Company’s CEO, and will also assume the role of Ford Model e’s president. Doug Field — the man who lead the development of the Tesla Model 3 — will head up vehicle development as the division’s chief EV and digital systems officer.
Kumar Galhotra will be president of Ford Blue. He currently heads up Ford’s Americas division, as well as the International Markets Group, which is responsible 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 expects to capable of producing two million EVs per annum by 2026.
By 2030 Ford expects EVs to account for half of the company’s global sales.
Last week Ford CEO Jim Farley denied the company had plans to spin off either its EV or ICE business. While he was technically correct in his assertion, today’s announcement has proven there was substance behind those reports.
By calling its new EV division Model e, Ford has finally made use of the name it stopped Tesla from using for the car now known as the Model 3.