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Ford+’s plan saw the Blue Oval turn into two separate divisions: Model E and Blue. They will operate as separate business units with their respective focus on electric vehicles and combustion-powered vehicles, but will be able to share innovations. This strategy will give the business an edge against emerging EV competitors and established automakers, Ford claims.
According to Ford, the Model E division will have “startup speed on the cutting edge of technology” while also having access to the automaker’s high-volume manufacturing capabilities. This will include development of the EV platform, batteries, electric motors, inverters, charging and related systems.
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The group will also be responsible for developing software platforms and user experiences for the brand-wide vehicles. This will include future connected car technology and advanced driving assistance systems. The team will also develop a new vehicle shopping experience that will be “a simple and intuitive e-commerce platform, transparent pricing, and personalized customer support,” according to Ford’s announcement.
The automaker has pledged to build more than 2 million EVs per year by 2026. This is a significant increase as the latest info from Ford has made the company touting 600,000 EV production globally every year at the end of 2023.
Ford will also invest $5 billion in EVs by 2022. The target is half of global volumes to be EVs by 2030.
The Blue Division will be in charge of combustion-powered vehicles such as the Mustang, F-150, and Bronco. The company will continue to invest in combustion engines, but this will only happen in very specific segments such as trucks, according to CEO Jim Farley during a live broadcast announcing the new strategy.
“Ford Blue will be Ford’s profit engine that provides the lifeblood to fund our future,” Stuart Rowley, Chief Transformation and Quality Officer, says in the video above. This suggests that ICE vehicles will largely fund electric vehicle development at least in the near future.
A rumor from February suggests that Ford is considering divesting its EV operations into a separate company to attract investors. During the live broadcast, Farley confirmed that the company was considering this option. The automaker decided that it had enough capital to create a Model E division. This kept everything under one corporate structure and allowed for easier communication with Ford Blue.
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