March 3, 2022
Conventional internal combustion operations will be known as “Ford Blue” while EV products will be run through “Ford Model e”
U.S. automaker giant Ford said on Wednesday it was creating separate businesses for its conventional and electric vehicle (EV) operations as it ramps up its build of zero-emission cars.
Under the plan, which sent Ford shares soaring, conventional internal combustion operations will be known as “Ford Blue”, while EV products will be run through “Ford Model e”.
The reorganization, while significant, keeps the two operations under one roof and avoids a potential spin-off that had generated speculation on Wall Street.
“Our legacy organization held us back,” said general manager Jim Farley. “We had to change.”
Ford said the intention was to give the EV business “the focus and speed of a start-up.”
Farley said the conventional business will try to excel in the challenges of a mature business, “relentlessly tackling cost, simplifying operations and improving quality.”
The two companies will each have separate executive leadership and report their own financial results. Both companies will continue to be headquartered in the Midwestern state of Michigan.
The move is the latest announcement from a conventional automaker as the industry pivots hard to pursue electric vehicles after the success of Elon Musk’s Tesla.
“This move represents the dual nature of every traditional automaker as it transitions from internal combustion drivetrains to electric vehicles,” said iSeeCars.com analyst Karl Brauer.
Ford shares jumped 8.3% to $18.09 in afternoon trading.
- AFP, with additional editing by George Russell