Ford Splits Up ICE And EV Divisions Into ‘Ford Blue’ And ‘Ford Model e’

Ford announced today that it is splitting up its automaking business into two separate but interconnected companies called Ford Blue and Ford Model e. The former will handle the production of internal combustion vehicles, while the latter will handle electric vehicles and digital connectivity.

An extension of the automaker’s previously announced Ford+ plan for the future, Ford Blue will take over stewardship of the company’s legacy vehicles like the F-150, the Bronco, the Mustang, and others. Ford Model e, meanwhile, will continue what was started by the Mustang Mach-e and push forward with new vehicle platforms, software design, and the development of new technologies.

“Our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus,” said Jim Farley, Ford’s president and CEO. “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.”

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Specifically, Ford Model e will be in charge of software engineering, design and UX, and perfecting new technologies that can be applied across Ford’s whole business. It will also create clean-sheet high-volume electric and connected vehicles, as well as services for retail, commercial, and shared mobility. It will also develop EV platforms, batteries, motors, inverters, charging products, and recycling capabilities for Ford.

Beyond working on internal combustion vehicles, Ford Blue will develop brand and vehicles experiences for off-roading and performance driving. It will be supported by Ford Model e’s software and embedded technology and will work to “reduce product, manufacturing and quality costs.”

Both will support ‘Ford Pro’

In addition to these new entities, both will support Ford Pro, the division tasked with handling commercial and military vehicles. It will be supported by Ford Model e’s technology and Ford Blue’s manufacturing know-how.

“This new structure will enhance our capacity to generate industry-leading growth, profitability, and liquidity in this new era of transportation,” said John Lawler, Ford’s chief financial officer. “It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes, and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders.”

Indeed, Ford also said today that it could reach a margin of eight percent in 2022, which would be a year earlier than the company had previously targeted. It also reiterated its commitment to achieve carbon neutrality by 2050 and to use 100 percent local, renewable electricity in all of its manufacturing operations by 2035.

Jim Farley will lead Ford Model e as its president, with Doug Field appointed as chief EV and digital systems officer. Kumar Galhotra will serve as president of Ford Blue while Stuart Rowley and Hau Thai-Tang will take on new global roles to support Ford’s transformation.

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