- Ford creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers
- Ford Model e will accelerate innovation and delivery of breakthrough electric vehicles 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
As the electric vehicle market expands in the US, Ford has upped its investments in EV and other technologies to US$ 50 billion by 2026. The carmaker had previously announced a US$ 30 billion investment through 2025. This year, Ford plans to spend US$ 5 billion on EVs.
According to Bill Ford, Ford Executive Chair, this isn’t the first time the carmaker has reimagined its future and taken its own path.
“We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet,” commented Ford.
Last year, Ford announced the formation of two distinct, but strategically interdependent, auto businesses. The Ford Blue and Ford Model e, together with the new Ford Pro business, will help unleash the full potential of the Ford+ plan, driving growth and value creation and positioning Ford to outperform both legacy automakers and new EV competitors.
Ford Model e and Ford Blue will be run as distinct businesses, but also support each other – as well as Ford Pro, which is dedicated to delivering a one-stop-shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services, and support on Ford and non-Ford products. Ford Model e and Ford Blue will also support Ford Drive mobility.
Among the plans for Ford Model e include:
- Attract and retain the best software, engineering, design, and UX talent and perfect new technologies and concepts that can be applied across the Ford enterprise;
- Embrace a clean-sheet approach to designing, launching, and scaling breakthrough, high-volume electric and connected products and services for retail, commercial and shared mobility;
- Develop the key technologies and capabilities – such as EV platforms, batteries, e-motors, inverters, charging, and recycling – to create ground-up, breakthrough electric vehicles; and
- Create the software platforms and fully networked vehicle architectures to support delightful, always-on, and ever-improving vehicles and experiences.
The company will also lead on creating an exciting new shopping, buying, and ownership experience for its future electric vehicle customers that includes simple, intuitive e-commerce platforms, transparent pricing, and personalized customer support from Ford ambassadors.
At the same time, with Ford spending US$ 5 billion on EVs in 2022, the company aims to produce more than 2 million EVs annually by 2026. This will represent about one-third of Ford’s global volume, rising to half by 2030, capturing with EVs the same, or even greater, market shares in vehicle segments where Ford already leads.
For John Lawler Ford’s CFO, the new structure will enhance the carmaker’s capacity to generate industry-leading growth, profitability, and liquidity in this new era of transportation.
“It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes, and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders,” said Lawler.
30 March 2023