People visit the all-electric Ford Mustang Mach-E SUV at the 2019 Los Angeles Auto Show in Los Angeles, United States, November 22, 2019.
Xinhua via Getty Images
Detroit – Ford Motor It said Wednesday it will reorganize its operations to separate the electric motor and internal combustion engine business into separate units within the automaker.
The company anticipates that the move will streamline its growing electric vehicle business and maximize profits.. It’s a strategy similar to how Ford is running its Ford Pro commercial vehicle business under CEO Jim Farley’s oversight. Ford + transformation plan.
“We’re all going,” Farley said in a statement Wednesday morning announcing the reorganization.
Separating operations while keeping them at home goes halfway to satisfy some Wall Street analysts who have been pressing old automakers like Ford to separate their electric car operations to capture the value investors give some electric car startups.
Ford’s shares are up nearly 4% during pre-market trading. The stock closed Tuesday at $16.70 a share, down 4.9%.
“Featured Business”
The electric car business will be called the “Ford Model e.” Conventional operations will be “Ford Blue”. Ford said it would “operate as distinct companies but share relevant technology and best practices to take advantage of scale and drive operational improvements.”
The company plans to achieve financial results for the new units as well as the Ford+ business by 2023, giving investors greater transparency in operations.
“We are creating a separate but integrated business that gives us the startup speed and unbridled innovation of Ford Model E combined with industry know-how, volume and iconic Ford Blue brands like Bronco, which startups can only dream of,” Farley said.
The move comes on the heels of Bloomberg News’ first report that Farley was assessing whether to separate his electrical and conventional business, including a potential branch. Farley said last week that Ford had no plans for that separate from any of the operations.
Ford’s plans follow a similar move by rival Crosstown general motors In late 2019 to divide the engineering of electric vehicles and traditional vehicles greatly. General Motors said it has no plans to separate its electric car business.
new leadership
The company said Farley will serve as Ford Model e’s president, in addition to his role as Ford’s president and CEO.
The former CEO of Tesla and Apple, Doug Field, who Ford hired last year, He will lead Ford Model e product creation as Head of EV and Digital Systems Administrator.
The Ford Model e business will be responsible for all aspects of the automaker’s electric vehicle operations. This includes designing and creating future technologies, parts and services for electric vehicles such as platforms for cars, batteries, electronic motors, inverters, charging and battery recycling.
The Model e will also drive the purchase and ownership experience of its customers in the future of electric vehicles that includes “simple and intuitive e-commerce platforms, transparent pricing and dedicated customer support.” The pricing aspect is key, with some dealers raising prices for high-demand vehicles, including the Mustang Mach-E electric crossover.
“This new structure will enhance our ability to deliver industry-leading growth, profitability, and liquidity in this new era of transportation,” said John Lawler, Ford’s chief financial officer.
Kumar Galhotra, a Ford veteran who is currently president of the Americas and International Markets, will lead Ford Blue, the automaker’s traditional business operations. He will also be tasked with reducing operating expenses and operating waste – a key task of Farley’s turnaround plan.
