Friday, February 23

Ford is split in two with a very clear objective: prioritize the electric car and catch Tesla

Just one year after confirming that Ford will only produce electric models in Europe from 2030, the manufacturer confirms the separation of its company in two independent product lines: Ford Model e (dedicated exclusively to the manufacture of electric cars) and Ford Blue (which will house the combustion and electrified models).

The company undertakes “the greatest transformation in the life of the company”, in the words of Jim Farley, CEO of Ford, who has been in charge of announcing this restructuring plan. The firm’s goal, Farley said, is “to become a truly great, world-changing company again, and that requires a new approach.”

Ford, which already revolutionized the automobile sector with the first mass production, that of the Ford Model T, is now facing one of the most decisive turning points in the history of the automobile: the electric car.

Ford Press Conference

Ford Model e, electrical and services

With the new restructuring, Ford Model e will become a new line that in practice will function as an independent company. In other words, it will not be one more family within the same firm, as is the case with IDs. Volkswagen or Kia EVs. Without offering many more details, it has been announced that the plan is to function as a start-up but taking advantage of all the values ​​that Ford has behind it.

With this division between Ford Model ey Ford Bluethe brand hopes to continue offering benefits with the latter, in charge of the most immediate profitability of the Ford brand through its combustion vehicles and the gradual electrification that reaches these.

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Ford Model e will be in charge of electric cars, although benefiting from the knowledge of Ford Blue. But, in addition, it will be dedicated to the development of connected services for the entire manufacturer, a space in which other brands are also entering and where extensive growth is expected in the coming years.

That is, Ford separates its product lines under two different names but they will work completely independently. One of the incentives that has motivated this step is to facilitate possible future movements in the electrical field and connected services, with a smaller Ford Model e, in which more risks can be taken and where changes of course can be more agile. .

The goal is Tesla

With this announcement, the investment figures that the brand will dispense to the development of the electric vehicle in the future have also been revised. The company has raised the amount it will dedicate to the electric and connected vehicle to $50 billion (45,000 million euros) until 2026. The previous accounts handled figures of 30,000 million dollars (27,000 million euros) between 2021 and 2025.

For a long time it has been pointed out that Ford’s true objective is to cut ground to Tesla, who widely leads electric sales in Europe with the Tesla Model 3 and the United States with the electric compact and the Model Y, the car it points to the Ford Mustang Mach E.

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The life of the Ford Mustang Mach E is very short and in 2021 it sold 27,140 units in the United States, far from the 190,395 Tesla Model Y that were sold last year. Despite everything, Ford’s electric SUV is the third best-selling electric car in the United States. The forecasts, in addition, have encouraged this restructuring, since of the plans to manufacture 600,000 electric cars in 2024, 2 million units are already targeted in 2026.

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With Ford Model e, it is believed that the firm can facilitate a sweet transition from combustion to full electrification, the former financing the foreseeable short-term losses of the former. Bloomberg analysts believe that 2026 may be the year that the company’s new electric brand is able to function completely independently, without financial support from the new Ford Blue.

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