We know Ford’s Ford+ Plan is a comprehensive approach toward going all-in on electrification. It essentially plots the course for the Blue Oval’s future making only battery-electric vehicles. Now, we’re seeing everything unfold and Ford has revealed that its operations will be split into two divisions Ford Model e and Ford Blue. They will join the Ford Pro commercial arm that’s already in operation.
“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,” said Jim Farley, President, and CEO of Ford. “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 startup 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.”
Ford Model e will be responsible for attracting new talent in the software, engineering, design, and user interface fields to help fine-tune new technologies that can be used across the company. It’ll focus mainly on a clean-sheet approach to designing, launching, and scaling breakthroughs of new products into high-volume goods for retail, commercial, and shared mobility applications. Ford Model e will also be responsible for developing new platforms, electric motors, batteries, inverters, charging, and recycling processes for future BEVs, and creating software platforms and fully networked vehicles that can be constantly improved via over-the-air (OTA) updates. It will also help develop new shopping, buying, and ownership models for future Ford vehicles including a new e-commerce platform, transparent pricing, and personalized customer support. These practices will then be adapted by Ford Blue to enhance customer satisfaction and connectivity levels.
Ford Blue will leverage the Ford brand’s automotive expertise. This will be aimed at strengthening the lineup with new models, derivatives, and services. It will also provide customers with specific experience based on the type of vehicle they own and deliver new connected features via the Ford Model e software architecture. Ford Blue will also be responsible for maintaining customer loyalty, cutting overall costs, and supporting Ford Model e and Ford Pro through the company’s proven research and development expertise.
The establishment of Ford Model e and Ford Blue builds on the Ford+ plan, which aims to see Ford build over 2 million BEVs by 2026. That’s a third of the brand’s global volume and will rise to half by 2030 as it aims to grab a larger market share including in segments where Ford is already the leader. This move will bolster Ford’s commitment toward achieving carbon neutrality by 2050 and the use of 100 percent local, renewable electricity in all of its manufacturing activities by 2035.
John Lawler, Chief Financial Officer of Ford, noted that this new structure will help the brand enhance its capacity to generate industry-leading growth, profitability, and liquidity in the age of electrification. 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,” added Lawler. “Most importantly, we believe it will deliver growth and significant value for our stakeholders.”
Ford also announced key executive appointments for the two new divisions. Jim Farley will serve as President of Ford Model e while retaining his current role as President and CEO of Ford Motor Company. Doug Field will be the Chief EV and Digital Systems Officer for Ford Model e and lead software and embedded systems development while Marin Gjaja will serve as Chief Customer Officer, heading the arm’s go-to-market, customer experience, and new business activities.
At Ford Blue, Kumar Galhotra will serve as its president. Stuart Rowley takes on the role of Chief Transformation and Quality Officer and will be responsible for continuous quality and efficiency improvements, complexity reduction, and the creation of a lean but fully competitive cost structure across the company. Hau Thai-Tang will be Chief Platforms Officer, leading product development, supply chain, and manufacturing engineering across all Ford vehicles and the brand’s multiple divisions.