Ford is reorganizing its operations to create a distinct EV business unit separated from the conventional internal combustion engine (ICE) operations. The split is designed to assist, in particular, the scale-up and speed of the company’s burgeoning EV business.
‘Ford Blue’ will build out company’s portfolio of ICE vehicles while ‘relentlessly attacking costs, simplifying operations and improving quality’, the company says.
‘Ford Model e’ will accelerate innovation and delivery EVs ‘at scale, and develop software and connected vehicle technologies and services for all of Ford’.
Ford Blue and Ford Model e will operate as distinct businesses, but share relevant technology and best practices to leverage scale and drive operating improvements; along with Ford Pro, all three businesses are expected to have discrete P&Ls by 2023.
Ford said the move accelerates the Ford+ plan to unlock growth and create value for Ford’s shareholders. The company is aiming for total company adjusted EBIT margin of 10% and annual production of more than two million EVs by 2026 with EVs representing half of global volume by 2030.