DETROIT – Ford Motor said Wednesday it will reorganize operations to separate its electric and internal combustion engine businesses into different units within the automaker.

The company expects the move will streamline its growing electric vehicle business and maximize profits. It’s a similar strategy to how Ford is operating its Ford Pro commercial vehicle business under CEO Jim Farley’s “Ford+” turnaround plan.

Ford also upped its expected investment in EVs and other technologies to $50 billion by 2026, up from a previously announced $30 billion through 2025. It plans to spend $5 billion on EVs this year, double its 2021 total.

We’re announcing one of the biggest changes in our history today,” Farley said Wednesday morning.

Separating the operations but keeping them in-house goes halfway to appeasing some Wall Street analysts who have been pressuring legacy automakers such as Ford to spin off their electric vehicle operations to capture value that investors have been awarding some EV start-ups.

Farley said the new EV business will “produce as much excitement as any pure EV competitor, but with scale and resources that no start-up could ever match.” He described the legacy business as “a profit and cash engine” for the company.

That leverage and interconnectivity between the two is why Ford decided to not spin off either of the operations, Farley said. Ford also does not need additional capital to fund the operations, he said.

Shares of Ford were up more than 6% in early trading Wednesday. The automaker’s stock is down by about 16% this year.

While announcing the new businesses, Farley said Ford plans to generate 10% adjusted operating profit across the company and produce more than 2 million electric vehicles by 2026. The company plans to cut $3 billion in structural costs by 2026.

‘Distinct businesses’

The EV business will be called “Ford Model e.” The traditional operations will be “Ford Blue.” The company said they will “operate as distinct businesses but share relevant technology and best practices to leverage scale and drive operating improvements.”

Ford plans to breakout financial results for the new units as well as its Ford+ business by 2023, giving investors greater transparency into the operations.