Ford Splits Electric, Internal-Combustion Cars Into Separate Businesses
The move should help Ford focus its efforts around increasing its EV presence.
Ford is no stranger to splitting up its vehicle divisions underneath its corporate umbrella. The Ford Pro commercial business has already done well as a separate entity, and a similar plan has been approved to help delineate between Ford's internal-combustion vehicles and its slate of upcoming electric cars.
Ford announced on Wednesday that it will reorganize its structure to separate the EV and ICE sides of its business, part of what Ford calls its Ford Plus plan, which sounds like a subscription service but is not.
The Ford Model E division will focus on both electric vehicles and the software and connected-car tech that finds its way into all manner of new cars. According to Ford's press release, this segment of the business will not only put effort into software, design and user experience, but it will also be responsible for developing hardware like batteries, motors and even improving EV recycling processes. Meanwhile, the Ford Blue division will retain its focus on building internal-combustion vehicles and working to reduce the cost of building them.
"Our ambition with Ford Plus is to become a truly great, world-changing company again, and that requires focus," said Ford CEO Jim Farley in a statement. "We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model E together with Ford Blue's industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about."
This doesn't mean the two businesses will be staring each other down across a row of cubicles, trying to outmaneuver their newfound rivals. Instead, the two will share their distinct expertise with the other. For you, a person who might be looking to buy a car, this business decision won't have much of a visible effect. You won't have to go to two different kinds of Ford dealers to cross-shop the F-150 and the F-150 Lightning, for example.
The choice to split Ford's EV and ICE businesses, while remaining the same corporate parent, could also be setting the stage for a larger move. A Reuters report that broke the news early also points to the potential for Ford to completely spin off its electric-vehicle division further down the road, although recent comments by CEO Jim Farley downplay such a move.
Ford's got plenty of interesting stuff on the horizon for buyers on both sides of the EV-ICE border. The Ford Bronco Raptor is ready to absolutely demolish your local off-road course, while a new midsize Ranger pickup will also spawn its own Raptor variant. On the electric side of things, the E-Transit electric cargo van is now making its way to customers, but the most hotly anticipated vehicle from the new Model E division is the F-150 Lightning, an electrified take on one of America's best-selling vehicles.
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