Ford splits EV and gas-powered business units

The Ford Motor Company expects EVs to form half of its global production volume by 2030. But in order to do that, the automaker wants to unleash the full potential of its existing internal combustion engine (ICE) vehicles to maximize its profits. In line with this goal, the American auto giant has reorganized its operations by creating two separate business units – Ford Model e for electric vehicles (EV), and Ford Blue division to take care of its existing models using an internal combustion engine.

This recent split is based on the Ford+ Plan which is poised to keep the Blue Oval competitive against upcoming EV brands and other established carmakers. It utilizes both the strengths of a startup company coming to rapid development and Ford's long-standing expertise in engineering and high-volume production.

According to Jim Farley, Ford's President and CEO, Model e will be the automaker's “center for innovation and growth”. The new division allows unhindered development on EV platforms, batteries, motors, and other related systems.

On the other hand, “Ford Blue is going to be the profit engine of Ford delivering the lifeblood to fund our future”, says Stuart Rowley, Chief Transformation and Quality Officer of the Ford Motor Company. The Blue Oval's iconic combustion-powered vehicles like the Mustang, Bronco, and its F-series trucks will belong in this division.

Farley will also serve as president of the Ford Model e division, while North America & International Market Groups president Kumar Galhotra will now assume a new role to lead Ford Blue.

With this strategy, Ford is keeping itself focused on the present, with one eye on the future.