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.
This is breaking news. Check back for updates.