“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,” Farley said in a statement.
The move follows Bloomberg News first reporting that Farley was evaluating whether to separate its EV and traditional business, including a potential spinoff. Farley last week said Ford had no plans to spin off either of the operations.
Ford’s plans follow a similar move by crosstown rival General Motors in late 2019 to largely split up its engineering of EVs and traditional vehicles. GM has said it does not have plans to spin off its EV business.
“Today, our corporate structure is holding us back,” Farley said. “It does not allow us to focus. We need the ICE business to be cash generating and serving those iconic brands. We need our electric business, the digital business, to be about innovation.”
The company said Farley will serve as president of Ford Model e, in addition to his roles as president and CEO of Ford.
Former Tesla and Apple executive Doug Field, who Ford hired last year, will lead Ford Model e’s product creation as chief EV and digital systems officer.
The Ford Model e business will be responsible for all aspects of the automaker’s electric vehicle operations. That includes designing and creating future EV technologies, parts and services such as dedicated vehicle platforms, batteries, e-motors, inverters, charging and battery recycling.
Model e also will lead buying and ownership experience for its future electric vehicle customers that includes “simple, intuitive e-commerce platforms, transparent pricing and personalized customer support.” The pricing aspect is key, as some dealers have significantly marked up prices for vehicles in high demand, including the Mustang Mach-E electric crossover.
“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” said Ford CFO John Lawler.
Ford veteran Kumar Galhotra, who currently serves as president of the Americas and international markets, will lead Ford Blue, the automaker’s traditional business operations. He’ll also be tasked with cutting operating expenses and waste from the operations – a main mission of Farley’s turnaround plan.
“We have three areas, three big areas that we really need to go after: complexity, quality, construction costs; and nothing’s going to be off the table,” Galhotra said.
Extracted in full from: Ford splits EVs and legacy autos into separate units (cnbc.com)