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

[Dom]

I think Ford is doing the smart thing here. They can see the writing on the wall for EV vehicles, yet still need to support ICE. If they fall behind in EV, it will be a death trap for them. Newer companies will eat up market chare attracting a younger audience. I'm glad they are doing this and hope that they will have the growth to support EV and transisiton ICE employees over time. It's an inevitable progression and they can't sit on it.

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[Blksn955.o]

Me thinks it is a shell game. split of a division and reap any gov funds and pr spin. Then end game load one up with debt and liquidate if they are going to be true seperate entities under Ford ownership.

 

[North7]

empty-suit windbag dips#!+s like Farley have to make some pretense at justifying their huge annual compensation

So what should the new EV motto be, assuming Ford can produce EV motors that self-destruct just like ICE motors?

Farley's On Road Dielectric

or

Feckless On Road Dielectric

 

[Phil]

FORD ACCELERATING TRANSFORMATION: FORMING DISTINCT AUTO UNITS TO SCALE EVS, STRENGTHEN OPERATIONS, UNLOCK VALUE

• Creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers
• Organizes Ford to deliver for customers with the focus and speed of a startup at the leading edge of technology, supported by deep expertise in engineering and high-volume production
• ·Ford Blue will build out company’s iconic portfolio of ICE vehicles to drive growth and profitability – relentlessly attacking costs, simplifying operations and improving quality; will provide world-class hardware engineering and manufacturing capabilities for all of Ford
• Ford Model e will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford
• Ford Blue and Ford Model e will operate as distinct businesses, but share relevant technology and best practices to leverage scale and drive operating improvements; along with Ford Pro, all three businesses are expected to have discrete P&Ls by 2023
• Accelerates Ford+ plan to unlock growth and create value for Ford’s shareholders: total company adjusted EBIT margin of 10% and annual production of more than 2 million EVs by 2026; expect EVs to represent half of global volume by 2030

DEARBORN, Mich., March 2, 2022 – Ford is continuing to transform its global automotive business, accelerating the development and scaling of breakthrough electric, connected vehicles, while leveraging its iconic nameplates to strengthen operating performance and take full advantage of engineering and industrial capabilities.

“This isn’t the first time Ford has reimagined the future and taken our own path,” said Ford Executive Chair Bill Ford. “We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.”

Last May, Ford President and CEO Jim Farley introduced the Ford+ plan, calling it the company’s biggest opportunity for growth and value creation since Henry Ford scaled production of the Model T. The formation of two distinct, but strategically interdependent, auto businesses – Ford Blue and Ford Model e – together with the new Ford Pro business, will help unleash the full potential of the Ford+ plan, driving growth and value creation and positioning Ford to outperform both legacy automakers and new EV competitors.

“We have made tremendous progress in a short period of time. We have launched a series of hit products globally and demand for our new EVs like F-150 Lightning and Mustang Mach-E is off the charts,” Farley said. “But our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus. 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.”

Driving the change was recognition that different approaches, talents and, ultimately, organizations are required to unleash Ford’s development and delivery of electric and digitally connected vehicles and services and fully capitalize on the company’s iconic family of internal combustion vehicles.

The creation of Ford Model e was informed by the success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup as well as Ford’s dedicated EV division in China.

“Ford Model e will be Ford’s center of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” Farley said.

“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences. It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximizing cash flow and optimizing our industrial footprint.”

Ford Model e and Ford Blue will be run as distinct businesses, but also support each other – as well as Ford Pro, which is dedicated to delivering a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support on Ford and non-Ford products. Ford Model e and Ford Blue will also support Ford Drive mobility.


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; and
• 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.

Ford reaffirms guidance for 2022 of $11.5 billion to $12.5 billion in company adjusted EBIT. The high end of the range equates to a margin of 8% which, if achieved, would be one year earlier than the company’s previous target. With these changes announced today, Ford is raising its longer-term operating and financial targets, including:

• Company adjusted EBIT margin of 10% by 2026, a 270-basis-point increase over 2021– driven by higher volumes, improvement in the cost of EVs, and a significant decline in ICE structural costs of up to $3 billion
• More than 2 million electric vehicles produced annually by 2026, representing about one-third of Ford’s global volume, rising to half by 2030, capturing with EVs the same, or even greater, market shares in vehicle segments where Ford already leads
• In addition, Ford expects to spend $5 billion on EVs in 2022, including capital expenditures, expense and direct investments, a two-fold increase over 2021

Ford reiterated its commitment to achieve carbon neutrality by 2050, and to use 100% local, renewable electricity in all of its manufacturing operations by 2035.

“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” said John Lawler, Ford’s chief financial officer. “It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders.”

Ford Model e and Ford Blue will work hand-in-glove with other parts of the Ford enterprise. Ford Pro will continue to deliver industry-leading products, services and support that commercial customers depend on. Served by Ford Model e and Ford Blue, Lincoln will continue to create compelling vehicles with an exceptional ownership experience to match. Ford Drive will continue to develop new digitally connected mobility businesses. And Ford Credit will continue to support the customer experience and drive loyalty with a full suite of financial products and services.


Leadership

With the creation of Ford Blue and Ford Model e, Ford is announcing several leadership appointments. Farley will serve as president of Ford Model e, in addition to his role as president and CEO of Ford Motor Company.

Doug Field will lead Ford Model e’s product creation as chief EV and digital systems officer. He will also lead the development of software and embedded systems for all of Ford. Marin Gjaja will be Model e’s chief customer officer, heading the division’s go-to-market, customer experience and new business initiatives.

“Designing truly incredible electric and software-driven vehicles – with experiences customers can’t even imagine yet – requires a clean-sheet approach,” Field said. “We are creating an organization that benefits from all of Ford’s know-how and capabilities, but that can move with speed and unconstrained ambition to create revolutionary new products.”

Kumar Galhotra will serve as president of Ford Blue.

“Ford Blue’s mission is extremely ambitious,” Galhotra said. “We are going to invest in our incredible F-Series franchise, unleash the full potential of hits like Bronco and Maverick, and launch new vehicles like global Ranger pickup, Ranger Raptor and Raptor R. We’ll pair these great products with a simple, connected and convenient customer experience that earns higher loyalty. We are going to be hyper-competitive on costs and make quality a reason to choose Ford. And by doing all that, Ford Blue will be an engine of cash and profitability for the whole company.”

Stuart Rowley and Hau Thai-Tang will take on new global roles to support Ford’s transformation.

Rowley will be chief transformation and quality officer. He will establish quality as a reason to choose a Ford and lead Ford’s drive to improved efficiency, reduced complexity and a lean, fully competitive cost structure across the enterprise.

Thai-Tang will lead Ford’s industrial platform as chief industrial platform officer. He will lead product development, supply chain and manufacturing engineering for ICE products and common systems across Ford Blue, Ford Model e, Ford Pro and Ford Drive.

Biographies:

• Ted Cannis, CEO, Ford Pro
• Anning Chen, President and CEO, Ford China
• Lisa Drake, Vice President, EV Industrialization, Ford Model e
• Joy Falotico, President, Lincoln
• Jim Farley, President and CEO, Ford
• Doug Field, Chief EV and Digital Systems Officer, Ford Model e
• Kumar Galhotra, President, Ford Blue
• Marin Gjaja, Chief Customer Officer, Ford Model e
• Marion Harris, President and CEO, Ford Motor Credit Company
• John Lawler, Chief Financial Officer
• Darren Palmer, Vice President, Electric Vehicle Programs, Ford Model e
• Stuart Rowley, Chief Transformation & Quality Officer
• Hau Thai-Tang, Chief Industrial Platform Officer

Ford News Conference – Wednesday, March 2, at 8 a.m. EST

Journalists and members of the investment community interested in asking questions should additionally dial in by phone.

Toll-Free: +1.877.930.5753

International: +1.409.983.9656

Pre-registration (not required, but will expedite login)

Conference ID: 9288331

Listen-only livestream and replay

The presentation and supporting material will be available at shareholder.ford.com.



Ford Capital Markets Call – Wednesday, March 2, at 9:15 a.m. EST

Journalists and members of the investment community interested in asking questions should additionally dial in by phone.

Toll-Free: +1.888.558.1223

International: +1.845.403.8280

Pre-registration (not required, but will expedite login)

Conference ID: 8872114

Listen-only webcast and replay

The presentation and supporting material will be available at shareholder.ford.com.

Well well well what have I been saying for over a year now Good move for Ford to survive and nice to see Farley chose to lead the winner of the two companies

 

[BrentC]

This really sets up the move to EV and I'd hate to be on the ICE side of the house. I'm guessing they'll see less investment and more layoffs as the years go by until Ford is completely EV.

My previous employer had a bunch of legacy products and they attempted to move customers to the newer versions. Once they weaned enough customers off of the older products, they axed the teams. I'm guessing we're going to see something similar here.

An electrified world is a physical and engineering impossibility. High-level estimates of the metals needed to be mined to build the things needed to build the electrical distribution grid to the capacity needed to supply the equivalent energy currently being provided by fossil fuels (including ICE transportation) arrives at a number exceeding the total known quantity of metals contained in the earth. Add to this the actual amount of mining required to extract and then process these metals at strip ratios typically at 8:1 or greater means the earth will literally need to be turned upside down to meet the goals. As I said, it’s impossible.

Add to that the fact that most of Asia, India and China have no IPCC commitments so they will continue to use ICEs. Do some searching and see how many autos, scooters and motorcycles are sold each year in Asia, China and India. The number pales the North American total. Now add other developing countries in Africa and South America who also do not have infrastructure to support BEVs.

In Bali, for example, I bought fuel for my rental scooter from a rack of gasoline-filled vodka bottles with rags stuffed in the top of them. These “gas stations” were everywhere along the street in front of various shops. This low-budget infrastructure will continue to power these countries for decades.

The rumours of the elimination of ICEs by 2050 are greatly exaggerated, IMO. As mining costs go up, so will the price of BEVs. I’m in no hurry to electrify my vehicles, but I’m glad those of you who choose to go that route have free choice to do so.

 

[Jdc]

An electrified world is a physical and engineering impossibility. High-level estimates of the metals needed to be mined to build the things needed to build the electrical distribution grid to the capacity needed to supply the equivalent energy currently being provided by fossil fuels (including ICE transportation) arrives at a number exceeding the total known quantity of metals contained in the earth. Add to this the actual amount of mining required to extract and then process these metals at strip ratios typically at 8:1 or greater means the earth will literally need to be turned upside down to meet the goals. As I said, it’s impossible.

Add to that the fact that most of Asia, India and China have no IPCC commitments so they will continue to use ICEs. Do some searching and see how many autos, scooters and motorcycles are sold each year in Asia, China and India. The number pales the North American total. Now add other developing countries in Africa and South America who also do not have infrastructure to support BEVs.

In Bali, for example, I bought fuel for my rental scooter from a rack of gasoline-filled vodka bottles with rags stuffed in the top of them. These “gas stations” were everywhere along the street in front of various shops. This low-budget infrastructure will continue to power these countries for decades.

The rumours of the elimination of ICEs by 2050 are greatly exaggerated, IMO. As mining costs go up, so will the price of BEVs. I’m in no hurry to electrify my vehicles, but I’m glad those of you who choose to go that route have free choice to do so.

"Extraordinary claims require extraordinary evidence"
There's enough lithium to supply electric cars for some time. 38 million tons of known lithium reserves.


Not to mention the lithium in the oceans which is estimated at over 180 billion tons
https://www.science.org/content/art...y-unlimited-amounts-critical-battery-material

https://www.wsj.com/amp/articles/wh...-phones-beneath-a-california-lake-11644037217
"The geothermal reservoir under the Salton Sea area is capable of producing 600,000 metric tons a year of lithium carbonate, according to estimates from the California Energy Commission. That level of output would surpass last year’s global production."

Energy production will have to be increased and we're certainly not capable of going fully electric today but as long as production increases with consumption we'll be fine.

 

[GoTigersGoBronco]

Ford and GM are in a weird position against Tesla and Rivian. The legacy companies make more money and have greater revenues.

If Ford is going to deliver for its shareholders, it doesn’t need to make money or build cars. It needs to demonstrate that it can contend with Tesla for ev marketshare. The market will greatly reward that sort of move.

 

[Carolina Jim]

It needs to demonstrate that it can contend with Tesla for ev marketshare

Ford's been at ICE for 100+ years, and they're already up to 12.6% marketshare

 

[Bird Dog Off Road]

Who gets custody of the Hybrids in this divorce?

BTW, not a serious question.

 

[BrentC]

"Extraordinary claims require extraordinary evidence"
There's enough lithium to supply electric cars for some time. 38 million tons of known lithium reserves.


Not to mention the lithium in the oceans which is estimated at over 180 billion tons
https://www.science.org/content/art...y-unlimited-amounts-critical-battery-material

https://www.wsj.com/amp/articles/wh...-phones-beneath-a-california-lake-11644037217
"The geothermal reservoir under the Salton Sea area is capable of producing 600,000 metric tons a year of lithium carbonate, according to estimates from the California Energy Commission. That level of output would surpass last year’s global production."

Energy production will have to be increased and we're certainly not capable of going fully electric today but as long as production increases with consumption we'll be fine.

Lithium is plentiful but not in concentration. You have to process a lot of seawater, sand, salt or whatever to get the lithium. Environmental restrictions aside, mining and processing lithium is not going to get cheaper. Check the 1yr chart for lithium to see where the price is going.

But lithium is the easy one, and is only one metal needed for electrification of transportation. You need copper, cobalt, magnesium, aluminum, tungsten, REEs to name a few in quantities orders of magnitude higher than what’s currently being mined globally, and that’s just to meet the US’s needs.

You cannot get production up to the levels needed unless you start mining in protected wilderness areas, or possibly in your city’s backyard, or continue to exploit 3rd world countries for their resources and cheap labour.

The electrification of everything is an extremely complicated, horrifically expensive, and ultimately impossible in the timeline proposed. Expect only the rich to have a BEV for the near term, and likely not as their primary vehicle.

The fun thing is, we can have these talks again in 2030 to see how many GND goals were reached. We’ll also see what will happen to the climate, sea level rise, record-setting heat and the rest of the scary claims. My prediction - all is going to be fine. Fossil fuels will continue to provide the brunt of the world’s energy, with nuclear generation becoming the obvious choice over wind and solar for being clean and green. Many of you will be enjoying your BEVs while others like me continue to enjoy our ICEs.

My engineering-based, pragmatic .02. And hopefully no one feels the need to hate on any of this.

 

[North7]

Ford and GM are in a weird position against Tesla and Rivian. The legacy companies make more money and have greater revenues.

If Ford is going to deliver for its shareholders, it doesn’t need to make money or build cars. It needs to demonstrate that it can contend with Tesla for ev marketshare. The market will greatly reward that sort of move.

"it doesn’t need to make money or build cars"

Ford is not a Meme stock...

 

[GoTigersGoBronco]

"it doesn’t need to make money or build cars"

Ford is not a Meme stock...

Not yet, but they’re trying.

 

[hoss]

An electrified world is a physical and engineering impossibility. High-level estimates of the metals needed to be mined to build the things needed to build the electrical distribution grid to the capacity needed to supply the equivalent energy currently being provided by fossil fuels (including ICE transportation) arrives at a number exceeding the total known quantity of metals contained in the earth. Add to this the actual amount of mining required to extract and then process these metals at strip ratios typically at 8:1 or greater means the earth will literally need to be turned upside down to meet the goals. As I said, it’s impossible.

Add to that the fact that most of Asia, India and China have no IPCC commitments so they will continue to use ICEs. Do some searching and see how many autos, scooters and motorcycles are sold each year in Asia, China and India. The number pales the North American total. Now add other developing countries in Africa and South America who also do not have infrastructure to support BEVs.

In Bali, for example, I bought fuel for my rental scooter from a rack of gasoline-filled vodka bottles with rags stuffed in the top of them. These “gas stations” were everywhere along the street in front of various shops. This low-budget infrastructure will continue to power these countries for decades.

The rumours of the elimination of ICEs by 2050 are greatly exaggerated, IMO. As mining costs go up, so will the price of BEVs. I’m in no hurry to electrify my vehicles, but I’m glad those of you who choose to go that route have free choice to do so.

I’m with you, all the way up to the comment about Asia. Let me explain.

Business trip to Shanghai in 2009, downtown is littered with junky gas-powered scooters.

Business trip to Shanghai in 2019, downtown is littered with junky electric-powered scooters. Complete replacement.

It’ll take a while for cars but every Buick, VW, and Nissan driving around Shanghai is built right there.

 

[TeocaliMG]

Tag this thread to revisit my prediction in a year or so. Dealers had to opt into EV and buy a bunch of equipment well before Mach E came out. Still not enough running around to justify the money outlay if you look at if from a service ROI. I really think Ford is going to use the EV spin off to be able to do direct sales but utilize the dealer network for service (this is where Ford would have an advantage over Tesla). There will probably be a separate or addendum to the master dealer agreement that allowed them to do this. Wouldn't be the least surprised if they pushed for separate facilities if you want to have vehicles on the lot to sell, otherwise direct order only.

Bingo

 

[John Auer]

Well they said they weren't going to split into two different companies...and they're technically not. To be honest, I think in the shift to EVs it might actually be easier to use this strategy because I'm guessing they can more easily shift ICE profits to develop EVs.

I agree. They said they weren't going to split, and issue separate stock, but the handwriting is on the wall. The future is electric, for multiple reasons. If you stand in the way of advancing technology, you'll be run over.

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