Ford forms separate automotive units for electric vehicles and ICE vehicles
Ford announced it was forming two separate, yet strategically interdependent automotive businesses – Ford Blue and Ford Model e – to drive growth and value creation and position itself to outperform both traditional automakers and new vehicle competitors electrical.
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“This isn’t the first time Ford has reinvented the future and charted our own course,” said Ford executive chairman Bill Ford. “We have an extraordinary opportunity to lead this exciting new era of connected and electric vehicles, bring the best of Ford to our customers and help make a real difference to the health of the planet.”
Last May, Ford Chairman and CEO Jim Farley outlined the Ford+ plan, calling it the biggest opportunity for growth and value creation for the company since Henry Ford ramped up production. of the T model.
“We’ve made tremendous progress in a short time,” Farley said. “We’ve launched a series of successful products around the world, and the demand for our new electric vehicles like the F-150 Lightning and Mustang Mach-E is out of this world. But our ambition with Ford+ is to be a truly great company that changes the world again, and that takes focus. We strive to create distinct but complementary businesses that give us start-up speed and unbridled innovation in the Ford Model e, along with the industry know-how, volume and iconic brands of Ford Blue like Bronco, including startups can only dream.
The change was driven by the recognition that different approaches, talents and, ultimately, organizations are needed to unleash Ford’s development and delivery of electric and digitally connected vehicles and services and take full advantage of the family emblematic of the company’s internal combustion vehicles.
The creation of the Ford Model was informed by the success of small, mission-focused Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup, as well as Ford’s dedicated electric vehicle division. Ford in China.
“The Ford Model e will be Ford’s center of innovation and growth, a team of the world’s top software, electrical and automotive talent to create truly amazing electric vehicles and digital experiences for new generations of Ford customers,” said Farley.
“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, to strengthen our successful and iconic vehicle families and to earn greater loyalty by delivering incredible service and experiences. It’s about operating a century of material mastery to help build the future. This team will be committed to delivering industry-leading quality, tackling waste in all areas of the business, maximizing cash flow and optimizing our industrial footprint.
Ford Model e and Ford Blue will be run as separate businesses, but will also support each other – along with Ford Pro, which is dedicated to providing one-stop shopping for commercial and government customers with a range of conventional and electric vehicles and a suite comprehensive package of software, charging, financing, service and support on Ford and non-Ford products. Ford Model e and Ford Blue will also support Ford Drive mobility.
“This new structure will strengthen our ability to generate industry-leading growth, profitability and cash in this new era of transportation,” said John Lawler, Ford’s chief financial officer. “It will enhance our efficiency in allocating capital to ICE and EV businesses and the returns we expect from them – making the most of existing capabilities, adding new skills where needed, simplifying processes and reducing costs. Most importantly, we believe this will bring growth and significant value to our stakeholders.”
Ford Model e and Ford Blue will work hand in hand with other parts of the Ford business. Ford Pro will continue to provide industry-leading products, services and support that commercial customers depend on. Served by Ford Model e and Ford Blue, Lincoln will continue to create compelling vehicles with an exceptional ownership experience to match. Ford Drive will continue to develop new digitally connected mobility businesses. And Ford Credit will continue to support the customer experience and build customer loyalty with a full suite of financial products and services.
With the creation of Ford Blue and Ford Model e, Ford announces several leadership appointments. Farley will serve as president of Ford Model e, in addition to his role as president and CEO of Ford Motor Company.
Doug Field will lead Ford Model e’s product creation as director of electrical and digital systems. He will also lead software and in-vehicle systems development across Ford. Marin Gjaja will serve as Model e’s Chief Customer Officer, responsible for the division’s go-to-market, customer experience and new business initiatives.
“Designing truly amazing electric and software vehicles — with experiences customers can’t even imagine yet — requires a clean sheet approach,” Field said. “We are creating an organization that benefits from all of Ford’s know-how and capabilities, but can scale with speed and unconstrained ambition to create groundbreaking new products.”
Kumar Galhotra will be president of Ford Blue.
“Ford Blue’s mission is hugely ambitious,” Galhotra said. “We will invest in our incredible F-Series franchise, unlock the full potential of success like Bronco and Maverick, and launch new vehicles like the Ranger Global Pickup, Ranger Raptor and Raptor R. We will combine these great products with a simple, connected and convenient customer experience that builds more loyalty. We’re going to be hyper cost competitive and make quality a reason to choose Ford. And by doing all of this, Ford Blue will be a cash and profitability driver for all the company.
Stuart Rowley and Hau Thai-Tang will take on new global roles to support Ford’s transformation.
Rowley will be responsible for processing and quality. It will establish quality as a reason to choose a Ford and drive Ford’s drive towards improved efficiency, reduced complexity and a lean, fully competitive cost structure across the business.
Thai-Tang will lead Ford’s industrial platform as director of the industrial platform. He will lead product development, supply chain and manufacturing engineering for ICE products and systems common to Ford Blue, Ford Model e, Ford Pro and Ford Drive.