Ford Announces Splitting Business into Separate Units

A Brief Summary

To compete against other car competitors like Rivian and Tesla, car manufacturing giant Ford recently announced splitting its business into EV-only and internal combustion engine (ICE) units separately to face new and old rivals.

Read Full Article Below

Ford Blue, the ICE division of the company, will focus on costs, enhancing the quality and streamlining operations to increase profit. Blue will provide the company with the supply of hardware-focused engineering and manufacturing.

Jim Farley will lead the Model e unit as its president. Meanwhile, Doug Field, who joined ford in September 2021, will serve the unit as its Chief EV and Digital Systems Officer.

The company's EVs Mustang Mach-E and F-150 Lightning saw demand at the beginning, however, Tesla has been dominating the US market with deliveries touching more than one million cars last year. The move will help Ford maintain competition or overtake Tesla while keeping ICE cars viable.

Recently, some of Ford's mainstream rivals have come up with targets set for the future, such as GM planning to become EV-only by 2035, Stellantis having a "Dare Forward" plan to increase EVs sales in Europe and the US by 2030.

Electric vehicles' demand is surging and continues in the future, and Ford does not want to fall behind its competitors.