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Ford Reorganization Will Split EV, ICE Units Into Two Distinct Divisions

Ford has significantly increased its investment in EVs over the past year-plus, developing new models, platforms, building multiple new EV and battery production facilities, and hiring top talent from tech companies as it aims to double its planned annual production of all-electric vehicles over the next year or so. For now, the automaker is focused on electrifying its “Icons,” commercial vehicles, and vehicles with a gross vehicle weight rating (GVWR) of under 8,500 pounds as CEO Jim Farley recently stated that he believes customers will continue to buy ICE-powered models to serve as “lifestyle” vehicles. Now, shortly after clarifying that the automaker won’t completely spin off its EV business from its ICE business, a new Ford reorganization has been revealed that splits those segments into two distinct divisions – Model e and Ford Blue.

The Model e component of this Ford reorganization is dedicated to developing key technologies and capabilities related to software platforms, fully networked vehicle architectures, connected products and services, EV platforms, batteries, e-motors, inverters, charging, recycling, and electric vehicles themselves. Ford plans to utilize a “clean sheet approach” with its EV division, partly by hiring the very best software, engineering, design, and UX talent.

On the flip side, Ford Blue will focus on the ICE part of FoMoCo’s business by continuing to invest in Ford’s iconic models while also developing new products, services, and experiences. However, Ford Blue also aims to root out waste and dramatically reduce product, manufacturing, and quality costs, shore up customer service, utilize technologies created by the Model e team, and provide tailored brand and vehicle experiences that include family activities, off-roading adventures, and performance-oriented outings. The two divisions will continue to work hand-in-hand, and both will also benefit Lincoln, which is aiming to electrify its entire lineup by 2027.

Along with these announcements, Ford also revealed that it will undergo a bit of corporate reshuffling as well. In addition to continuing as Ford’s CEO, Jim Farley will also serve as the president of Model e, while Kumar Galhotra will take on the role of Ford Blue’s president. Doug Field will serve as chief EV and digital systems officer of Model e and will also lead the development of software and embedded systems for all of Ford. Finally, Marin Gjaja will be Model e’s chief customer officer, Stuart Rowley will take on the role of chief transformation and quality officer, and Hau Thai-Tang will be Ford’s new chief industrial platform officer.

We’ll have much more on Ford’s reorganization soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. David Dickinson

    Smart move.

    Reply
  2. Steve

    good way to cover the losses from either side in case this takes off or belly flops

    Reply
  3. MontanaGriz

    Those of us with Ford stock didn’t hire you to sit on your hands, Jim Farley.
    I think this is a smart move, and one that’ll benefit Ford Corporation with funds allocation specifically for the exponential demand for and growth in sales of electric vehicles. We do the same on the ranch; livestock is a completely separate entity from leaf and grain commodities.
    It makes sense Ford would do it, as well.

    Reply
  4. Michael

    Lets see, who is going to finance the EV side of the company? Why the ICE side. So expect to continue to pay higher prices for ICE vehicles, and EV vehicles, trying to pay for the $60 billion the EV side is going to spend. If I were the ICE guys, I would be pissed, having to had over my profits and to, be bled to death by, the EV guys, and at the end of the day, really be pissed off when the company spins off ( or closes ) the ICE side and hangs on to the EV side.

    Reply
  5. Big M from 10th

    Point well taken, but consider that has been the history. For decades, the pickup trucks and SUVs have funded the black holes that were Lincoln, Ford passenger cars, and all almost all overseas operations. Still going to make and hand over the cash, but the hope is that Model e is the profitable future rather than hopeless cash sinks…

    Reply
  6. NCEcoBoost

    Yet even more wasting of time and corporate resources (including money) unnecessarily on Ford’s part. The internet is overwhelmingly opposed to this plan.

    Reply
  7. Stephen Ketterer

    I like this decision.

    The auto giants are now realizing the limitations that battery power has over the ICE. Battery tech is at about half the power density it needs to be to make certain vehicles viable as EVs, like trucks and vehicles that are drive over long distances under heavier loads. Splitting the Corp. into two entities is a CYA move for sure.

    And, I have serious questions about source elements for batteries, how they’re obtained, who’s profiting, plus weak electric infrastructure is the other rung in the ladder that politicians won’t talk about.

    Reply
  8. mick1

    Commie countries supply the bulk of rare minerals. Swallow that.

    Reply
  9. OLGYRENE

    This retired Ford employee is really glad to no longer have any stock in the company, since it seems the mental giants in Dearborn have decided to invest billions in E vehicles and the resulting huge expense of retooling & reconfiguring their plants. One cannot help but wonder if any one in a position of influence has given any thought to the future that our nation’s politicians, organizations and supporters of renewable energy sources are on board with. There are only Five viable ways to recharge these batteries made with a rare earth element that the nation of China practically has a monopoly on, #1 wind power which man has no control over at all, #2 water driven generators, #3 nuclear power plants ( most people are afraid of accidents like 3mile island & Chernobyl, #4 fossil fuel driven generators ( coal, natural gas, petroleum) , or regenerative systems. If one looks at it through non politically driven Rose colored glasses it becomes apparent that at some point there will no longer be a viable automotive vehicle manufacturer known by the name Ford Motor Co.

    Reply
    1. Daniel Hoffman

      Is #5 solar?

      Reply

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