Ford Forms Distinct Auto Units for EVs and ICE Vehicles

Ford Forms Distinct Auto Units for EV and ICE Vehicles

Ford Blue and Ford Model e will be two distinct but strategically interdependent auto businesses aimed at outperforming both legacy automakers and new EV competitors.

Ford has announced that it is forming two distinct, but strategically interdependent, auto businesses — Ford Blue and Ford Model e — to drive growth and value creation and position itself to outperform both legacy automakers and new EV competitors.

“This isn’t the first time Ford has reimagined the future and taken our own path,” said Bill Ford, executive chair of 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.

“We have made tremendous progress in a short period of time,’ said Farley. “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. 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 startups 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,” said Farley.

“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.

“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” said John Lawler, chief financial officer of Ford. “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.

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,” said Field. “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,” said Galhotra. “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.

You May Also Like

Electric Vehicles: It All Starts with the Intake Process

Having an established vehicle intake process will mitigate your risk, but so will educating yourself and having the proper knowledge and training.

Sponsored By:

Battery-electric vehicles (BEVs) and hybrid-electric vehicles (HEVs) currently account for 7% of the vehicle population in the U.S. — which means it is likely sooner rather than later that you'll encounter one at your repair facility. But maybe you think you’ll be able to successfully dodge EVs for now. Good luck ...since growth is expected to be 30 to 35% nationwide in the next seven to 12 years! 

GM Announces New Leadership at Customer Care and Aftersales

General Motors has named David Marsh as global VP of Customer Care and Aftersales, with Jennifer Goforth replacing him as executive director North America Sales, Service and Marketing. 

GM-Honda Begin Commercial Production at Hydrogen Fuel Cell Joint Venture

GM and Honda’s 50-50 joint venture production facility, FCSM, is the first large-scale manufacturing joint venture to build fuel cells.

Toyota Announces New Certified Collision Center

Capitol Auto Group Collision Center in Salem, Ore., is the newest Toyota Certified Collision Center.

GM Recycling Program Giving Headlamps New Life

GM and Llink Technologies have collaborated to eliminate 95% of headlamp waste.

Other Posts

USPS Unveils First Postal EV Charging Stations, Vehicles

The USPS, alongside White House officials, recently unveiled its first set of EV charging stations at its South Atlanta Sorting and Delivery Center.

Global EV Sales Expected to Triple in 2024

Americans are expected to buy close to 1.3 million electric vehicles this year, or 10% of global sales.

Deloitte Study: EV Adoption Slowing Amid Economic Headwinds

ICE vehicles have risen in popularity amid shifting consumer expectations and economic headwinds.

I-CAR, Ford Launch Four New Ford Repair Courses

These online courses cover the latest Ford vehicle models and were designed in alignment with Ford repair procedures.