Ford Motor separates its business from internal combustion engines and electric vehicles in order to increase profit margins and better exploit the unique opportunities of each type of propulsion.
The company has announced that it will form two separate but interdependent businesses under the banner of Ford – Ford Model e, which will focus on electric vehicles and connectivity, and Ford Blue, which will be dedicated to the company’s traditional business with internal combustion engines.
Jim Farley, who has been praised for his leadership since taking over as president and CEO of Ford in October 2020, continues to shake things up for the long-lived American carmaker.
The division is part of Farley’s Ford + plan introduced last year, and the two new branches join Ford Pro, the company’s commercial vehicle department. Ford says Ford Model e and Ford Blue “will be run as separate businesses, but will support each other” – for example, Ford Blue will use software developed by Ford Model e – and both will serve Lincoln.
Ford Model e will focus on future technology, developing things like electric platforms, batteries, electric motors and recycling capabilities for the next generation of Ford electric vehicles. Model e will also focus on the software and architectures of the vehicles on which the future Ford will run, as well as on the future of shopping, buying and owning car experiences. Farley will add the role of Ford Model President to the to-do list.
Ford is preparing for the future
Ford Blue, on the other hand, will “strengthen Ford’s flagship vehicles” by investing in new models and related experiences and services related to the F-Series, Ranger, Maverick, Bronco, Explorer and Mustang.
Ford says these brand experiences will range “from off-road to performance to family activities,” especially for “situations where ICE capabilities are needed.” The Ford Blue Division also intends to reduce waste and production costs as a way to streamline the internal combustion business. Blue will support Ford Model e and Ford Pro through the global engineering, manufacturing and testing systems that Ford already has.
Kumar Galhotra, former president of Ford North America, will become president of Ford Blue.
Whatever that means for the development of electric vehicles, it seems clear that traditional Ford petrol vehicles, which buyers still want, continue to attract Ford’s attention.