Like many automotive groups that have differentiated, dividing their strengths and businesses, thus creating new brands that are always looking for performance, Ford has reconsidered its organization. And that is to more agilely negotiate this milestone in the ecological transition and stay on the cutting edge of technology, embracing the start-up culture as he claims. Note that it is a historic group dating back to 1903, with more than 150,000 employees worldwide, producing more than 4 million cars for a turnover of over $130 billion.
Since the beginning of 2022, the American manufacturer has been working with several organizations. Although it retained the Ford brand and the blue oval logo, it decided to separate its thermal and electrical activities. two business units, Ford Blue and Ford Model e, respectively. “Our traditional way of organizing was holding us back. We had to change”, said CEO Jim Farley. And to add: “We create separate but complementary businesses by risking everything. […] On the one hand, the speed of the start-up with Model e and its unbridled sense of innovation, on the other hand, industrial know-how, sales volumes and iconic brands like Bronco with Blue that start-ups can only dream of. ”
Therefore, the leading division is Ford Blue, managing the entire ecosystem around internal combustion engines, up to the management of engineering and production forces. The goal is to drive growth and profitability, empower iconic tools through investments in new models, derivatives, connected and personalized experiences and services, while simultaneously reducing production costs, improving quality, research and development, and optimizing financial flows and industrial footprint. Based on the success of Mustangs, Broncos or F-150 pick-ups, “There will be a blue ATM”According to the boss, this new traditional activity is a part of “more profitable and dynamic thermal business”. No important announcements are made in the product plan. Business Operations Manager Kumar Galhotra takes over as CEO of Ford Blue.
Ford Model e
The risks are higher on the Ford Model e side. The division is responsible for accelerating the innovation and production of electric vehicles, as well as the development of proprietary vehicle software and technologies for the entire Ford Group. There are several areas of action:
- Attracting and retaining the best talent in software, engineering, design and user experience and developing new technologies and concepts that can be applied to the Ford business.
- take a clean page approach to design, Launch and scale revolutionary electrified and connected products and services high volume for retail, commercial and shared mobility,
- Developing core technologies and capabilities such as electric vehicle platforms, batteries, electric motors, inverters, charging and recycling to create groundbreaking electric vehicles,
- Build software platforms and fully networked vehicle architectures to support enjoyable, always-on, ever-evolving tools and experiences.
50 billion dollars allocated to electric vehicles
Jim Farley remains head of the group, and the Model e will be accompanied by Doug Field, who was previously responsible for electric cars from Apple and Tesla.
Ford plans to spend $50 billion between 2022 and 2026 on electric vehicles, where it previously planned to spend $30 billion from 2021 to 2025. Two million electric vehicles per year by 2026that is, one-third of its global production will reach half by 2030.
Note that Ford Model e and Ford Blue will join Ford Pro division, a brand dedicated to professional customers at the head of light commercial vehicle fleets.
“The structures we build make us stronger than a by-product”welcomes Jim Farley. If there was no mention of the creation of two separate sales networks, then from 2023 Ford Blue and Ford Model e will have very different financial results, namely, which of the two business units devoted to vehicles, thermal or electric, will have the best profits or the largest losses. A 10% operating margin, better sales, improvement in the cost of electricity, and a 10% reduction in expenditure in the thermal sector by 2020. 3 billion dollars.
TO READ. daimler. Shareholders approve of the split of the group.