Ford Motor Company is in the midst of a major transformation as it prepares to split itself essentially in half, creating two distinct divisions – Model e, which will focus on the automaker’s EV side of the business, as well as Ford Blue, which will continue to develop the ICE side of things. Meanwhile, Ford of Europe is making major changes as well as it works to fully electrify its lineup by 2030 or sooner amid Ford’s plan to produce two million EVs annually following a $50 billion dollar investment by 2026. Now, however, Ford of Europe will reportedly no longer operate as its own separate entity when Ford’s reorganization plan begins next year, according to Automotive News.
Ford of Europe has operated as its own unique entity within FoMoCo for 55 years, but now, the automaker plans on ending its regional earnings reporting and instead reporting financial results from its five total businesses – Ford Blue, Model e, Ford Credit, Ford Pro, and Ford Drive (formerly known as Ford Mobility).
“Geographies are still going to be important to us, but we will focus more on the business units in 2023 going forward, as we report the business unit segments,” chief financial officer John Lawler said on a recent analyst call. Meanwhile, the regional business units including Ford of Europe will no longer be the focus of “how we report the way we are running the business,” Lawler added.
Ford of Europe President Stuart Rowley has already taken on an additional global job as FoMoCo’s chief transformation and quality officer, reporting to CEO Jim Farley. Meanwhile, Ford’s European business will be split mostly between Model e and Ford Pro, with Ford’s UK-based Dunton development center focusing on the commercial aspect and the automaker’s development centers in Cologne, Germany concentrating on EVs.
As Ford Authority recently reported, Ford is reportedly considering closing the Ford Saarlouis Body and Assembly Plant in Germany and the Ford Valencia Body and Assembly Plant in Spain, while it’s also launching an EV motor research project at the Cologne-Niehl plant in Germany, increasing battery pack assembly capacity at the Ford Valencia Engine Plant in Spain, transforming the Ford Cologne Assembly Plant into the Cologne Electrification Center, and building EV power units at the Ford Halewood Transmission Plant in the UK.