DEARBORN, MI—Ford Motor Co. is separating its electric vehicle operations from its legacy internal combustion engine business. The formation of two distinct, but strategically interdependent, businesses—Ford Blue and Ford Model e—aims to help Ford compete effectively in both old and new markets.
The 119-year-old automaker recently unveiled the Ford+ plan, calling it the company’s biggest opportunity for growth and value creation since Henry Ford scaled production of the Model T with the moving assembly line.
“We have made tremendous progress in a short period of time,” claims Jim Farley, president and CEO of Ford. “We have launched a series of hit products globally and demand for our new EVs, like the F-150 Lightning and Mustang Mach-E, is off the charts.
“But, our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus,” says Farley. “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 that start-ups can only dream about.”
According to Farley, driving the change was recognition that different approaches, talents and, ultimately, organizations are required to unleash Ford’s development and delivery of EVs, while simultaneously capitalizing on the company’s iconic family of ICE vehicles.
“Ford Model e will be [our] center of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of customers,” explains Farley.
“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families, and earn greater loyalty by delivering incredible service and experiences,” adds Farley. “It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximizing cash flow and optimizing our industrial footprint.”
Farley will serve as president of Ford Model e, in addition to his existing role as president and CEO of Ford Motor Co. Doug Field will lead Ford Model e’s product creation as chief EV and digital systems officer. Lisa Drake is vice president of EV industrialization for Ford Model e. Kumar Galhotra will serve as president of Ford Blue.