Staff and Wire Reports
Ford Motor Co., vowing to boost its investment in electric vehicles to $50 billion, also will split off its EV segment into a different business from its internal combustion engine operations.
The historic automaker announced Tuesday the plan to separate the EV and ICE units, called Ford model e and Ford Blue, respectively. The move, its leaders say, is a sign of full-scale commitment to an eventual decarbonization of the automobile segment and a smart business move to drive its earnings margin from 7 to 10 percent.
Ford already has developed several EV models including the F-150 Lightning pickup truck. Earlier this year, it was announced German-based technology giant Siemens’ eMobility unit is working with Ford Motor Co. to develop a specialized charger for the F-150 Lightning.
“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.”
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,” CEO Jim Farley said.
The two companies will be separate entities but will support each other, Ford officials say.
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.
