Ford Splits Electric, Internal-Combustion Cars Into Separate Businesses
Ford is no stranger to splitting up its vehicle divisions underneath its corporate umbrella. The Ford Pro commercial business has already done well as a separate entity, and a similar plan has been approved to help delineate between Ford’s internal-combustion vehicles and its understand of upcoming electric cars.
Ford announced on Wednesday that it will reorganize its structure to separate the EV and ICE sides of its company, part of what Ford calls its Ford Plus plan, which sounds like a subscription service but is not.
The Ford Model E division will focus on both electric vehicles and the software and connected-car tech that finds its way into all manner of new cars. According to Ford’s unimaginative release, this segment of the business will not only put danger into software, design and user experience, but it will also be responsible for developing hardware like batteries, motors and even improving EV recycling processes. Meanwhile, the Ford Blue division will withhold its focus on building internal-combustion vehicles and working to sever the cost of building them.
“Our ambition with Ford Plus is to move a truly great, world-changing company again, and that way focus,” said Ford CEO Jim Farley in a statement. “We are going all in, creating separate but complementary businesses that give us start-up mercurial 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.”
This doesn’t mean the two businesses will be staring each novel down across a row of cubicles, trying to outmaneuver their newfound rivals. Instead, the two will share their distinct expertise with the novel. For you, a person who might be looking to buy a car, this company decision won’t have much of a visible effect. You won’t have to go to two different kinds of Ford dealers to cross-shop the F-150 and the F-150 Lightning, for example.
The choice to split Ford’s EV and ICE businesses, while remaining the same corporate parent, could also be setting the stage for a larger move. A Reuters picture that broke the news early also points to the potential for Ford to completely spin off its electric-vehicle division further down the road, although original comments by CEO Jim Farley downplay such a move.
Ford’s got plenty of lifeless stuff on the horizon for buyers on both sides of the EV-ICE frontier. The Ford Bronco Raptor is ready to absolutely shatter your local off-road course, while a new midsize Ranger pickup will also spawn its own Raptor variant. On the electric side of things, the E-Transit electric cargo van is now decision-exclusive its way to customers, but the most hotly predictable vehicle from the new Model E division is the F-150 Lightning, an electrified take on one of America’s best-selling vehicles.
