Ford Announces Separate "Model e" EV Division and "Ford Blue" Internal Combustion Division

[North7]

Ford Model e will:

• Attract and retain the best software, engineering, design and UX talent and perfect new technologies and concepts that can be applied across the Ford enterprise
• Embrace a clean-sheet approach to designing, launching and scaling breakthrough, high-volume electric and connected products and services for retail, commercial and shared mobility
• Develop the key technologies and capabilities – such as EV platforms, batteries, e-motors, inverters, charging and recycling – to create ground-up, breakthrough electric vehicles
• Create the software platforms and fully networked vehicle architectures to support delightful, always-on and ever-improving vehicles and experiences.

Ford Model e also will lead on creating an exciting new shopping, buying and ownership experience for its future electric vehicle customers that includes simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors. Ford Blue will adapt these best practices to enhance the experience of its ICE customers and deliver new levels of customer connectivity and satisfaction.

Ford Blue will exercise Ford’s deep automotive expertise to:

• Strengthen the iconic Ford vehicles customers love, such as F-Series, Ranger and Maverick trucks, Bronco and Explorer SUVs, and Mustang, with investments in new models, derivatives, experiences and services
• Help customers fulfill their passions and daily lives with tailored brand and vehicle experiences, from off-roading to performance to family activities, especially for those situations when ICE capabilities are required
• Deliver new, connected, personalized and always-on experiences for customers powered by Ford Model e’s software and embedded systems
• Make industry-leading quality and exceptional service a reason to choose and stay with Ford
• Root out waste and dramatically reduce product, manufacturing and quality costs; and
• Support Ford Model e and Ford Pro through proven, global-scale engineering, purchasing, manufacturing, and vehicle test and development capabilities for world-class safety, ride and handling, quiet and comfort, and durability.

New EV dealership model confirmed!

ICE dealers doubling down on screwing customers with ridiculous ADM confirmed!

Apologies to @flip as we know there are some good dealers.

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[OhhhhhhSnap]

Ah Ford just lying about everything now... Exactly a week ago Farley said this wouldn't happen. He "vowed".

https://www.reuters.com/business/au...ne-powered-vehicle-businesses-ceo-2022-02-23/

 

[drew707]

New EV dealership model confirmed!

ICE dealers doubling down on screwing customers with ridiculous ADM confirmed!

I don’t think it’s expected to be a new dealership model. I believe it’s more of a direct to consumer model

 

[ocbucks1]

Ford will split EVs and legacy autos into separate units as it aims to boost electric business

• Ford will reorganize operations to separate its electric and internal-combustion engine businesses into separate units within the automaker.
• The move is expected to streamline its growing electric vehicle business and maximize profits, Ford said Wednesday morning.
• The company plans to breakout financial results for the new units as well as its Ford+ business by 2023, giving investors greater transparency into the operations.

DETROIT – Ford Motor will reorganize operations to separate its electric and internal-combustion engine businesses into separate units within the automaker.

The move is expected to streamline its growing electric vehicle business and maximize profits, Ford said Wednesday morning. It’s a similar strategy to how Ford is operating its Ford Pro commercial vehicle business under CEO Jim Farley’s “Ford+” turnaround plan.

Separating the operations but keeping them in-house goes halfway to appeasing some Wall Street analysts who have been pressuring legacy automakers such as Ford to spin off their electric vehicle operations to capture value that investors have been awarding some EV start-ups.

The EV business will be called “Ford Model E.” The traditional operations will be “Ford Blue.” Ford said they will “operate as distinct businesses but share relevant technology and best practices to leverage scale and drive operating improvements.”

The company plans to breakout financial results for the new units as well as its Ford+ business by 2023, giving investors greater transparency into the operations.



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Ford set to announce plans to run EV, ICE as separate businesses -sources

March 1 (Reuters) - Ford Motor Co (F.N) on Wednesday will announce a reorganization under which its electric vehicle (EV) and internal-combustion engine (ICE) units will be run as separate businesses in a move to fast track growth in EVs, three people familiar with the plan said.

The EV and ICE businesses will have separate names but will remain under the Ford corporate umbrella, in the same way the company operates its Ford Pro commercial business for corporate customers, said the people, who asked not to be identified.

The U.S. automaker will name executives to lead each business and Ford will also outline updated profit margin targets for the company overall, the sources said. The idea is for Ford to eventually report separate financial results for the EV and ICE businesses, one of the sources said.

Ford spokesman T.R. Reid declined to comment on the report. "We're focused on carrying out our Ford+ plan to transform the company and thrive in this new era of electric and connected vehicles," he said.

In response to reports Ford was weighing a full spinoff of its EV business, Chief Executive Jim Farley last week said the company had no plans to spin off either its EV or ICE businesses. read more

"We know our competition is Nio and Tesla, and we have to beat them, not match them," he said last Wednesday at a Wolfe Research conference. "And we also have to beat the best of the ICE players."

However, by separating the EV business into a separate unit, Ford would be setting the table for a possible spinoff down the road, industry officials said.

The growing preference among investment managers for companies focused on low-carbon technology has helped Tesla Inc (TSLA.O) become the world's highest-valued automaker, and led some investors and analysts to urge other carmakers to consider separating their combustion engine and electric businesses as a way to better tap into their full values.

Companies such as General Motors Co (GM.N) have resisted those calls, arguing that ICE profits will fund the transition to EVs.

Ford's expected move echoes one outlined earlier this month by French automaker Renault (RENA.PA), which said it was looking at creating separate divisions for its EV and ICE businesses. It said the EV business could be focused on France, while the ICE operations could be focused outside France. read more

Farley also said last week that Ford's EV and ICE businesses were underperforming on an earnings basis, adding that costs could still be cut from the ICE business.

"We have too many people, we have too much investment, we have too much complexity and we don't have expertise in transitioning our assets," he said of the ICE business. "That's the simple answer. There's waste."

He also said Ford needed to add more people to improve profit margins for its EV busines, including in such areas as electrical components, advanced electrical architectures and the digital customer experience.

Candidates to run the businesses could include Ford's chief advanced technology officer Doug Field, who was hired from Apple Inc (AAPL.O); Hau Thai-Tang, chief product platform and operations officer; Lisa Drake, chief operating officer of North America; and Kumar Galhotra, president of the Americas and International Markets, industry officials said.

Hate to say it, and I hope not, but there is a lot of trouble brewing here. Too little to late? EV can’t make a profit for years. ICE is diminishing and scaling down is difficult. As he admits they have the wrong people and there is a lot of waste. Not a recipe for success.

 

[TheDoctor]

Ah Ford just lying about everything now... Exactly a week ago Farley said this wouldn't happen. He "vowed".

https://www.reuters.com/business/au...ne-powered-vehicle-businesses-ceo-2022-02-23/

Either you do not understand the differences, or you just want to stir the pot.

Initial reports were taking the EV business as a completely separate company. That is not what is happening. This is no different than the businesses of North America and Europe being separate fingers, but still coming together on the same hand.

Ford stock recent runup was stricktly due to BEV announcements/plans. What do you think would happen to F stock if they took BEV's as a separate company? No way the Ford family would let that happen.

 

[OhhhhhhSnap]

Either you do not understand the differences, or you just want to stir the pot.

Initial reports were taking the EV business as a completely separate company. That is not what is happening. This is no different than the businesses of North America and Europe being separate fingers, but still coming together on the same hand.

Ford stock recent runup was stricktly due to BEV announcements/plans. What do you think would happen to F stock if they took BEV's as a separate company? No way the Ford family would let that happen.

No initial reports were a spin off, exactly like this situation. Not hard to understand.

To quote Farley they have "too many people, and too much waste".

 

[Carolina Jim]

Tag this thread to revisit my prediction in a year or so.

Great observations...scanning other threads, seems a majority of forum members will still be waiting for a Bronco this time next year. From whoever the manufacturer turns out to be

 

[friethmiller]

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz. I fell asleep watching this.... good God!

 

[Toccoa]

Wow! Ford really has a stick up their butt about Tesla having a higher stock price. This is just getting silly.

 

[vrtical]

I don’t think it’s expected to be a new dealership model. I believe it’s more of a direct to consumer model

As long as Ford provides the service side of it. Trying to get a Tesla fixed / maintenanced is a nightmare ATM.

 

[Cable Guy]

I'd hate to be with Ford, period. They don't have a strong leg to stand on in either venture.

As for Ford's ability to communicate, they spent the last 2 weeks saying they were NOT going to do this.

Typical CEO subtle lying without technically lying. Farley specifically said they wouldn‘t spin-off the ICE end of the house (which typically means a separate legal entity). This is the same end result without that stipulation. This will be a tale of 2 companies. The haves and the have-nots. Resources and talent to one, cost cutting and layoffs to the other… SOP

 

[Carolina Jim]

This will be a tale of 2 companies. The haves and the have-nots.

That's IF they get lucky....could easily become the have-nots & the have-nots

 

[BuzzyBud]

I found this YouTube video interesting considering this most recent development.

 

[Roger123]

I wouldn't be surprised if it has something to do with .gov handout's for EV manufacturers. They probably need to be able to say X% of the business is devoted to EV's and this may be a way to meet that requirement. Follow the money, no company does anything just for the hell of it.

 

[Lab00Rat]

Government regulations somewhere driving this beast.

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