Mar 2, 2022 - Energy & Climate

Ford creates business unit for electric cars

Ben Geman

Ford this morning said it's separating its electric vehicle and internal combustion businesses into separate units.

Why it matters: The creation of distinct business lines — called "Model e" and "Ford Blue" — underscores how auto giants are reorienting around EV development.

How it works: Ford said the two units would be "strategically interdependent" and share relevant tech.

Together with the Ford Pro commercial services line launched last year, Ford said the three units will begin to separately report profits and losses in 2023.

What's next: Ford has recently launched or unveiled electric models, including the Mustang Mach-e that began deliveries last year, and the electric F-150 pickup slated to start reaching customers later in 2022.

It said today that it expects EVs to account for half its global sales by 2030.

Quick take: The move appears to be an effort to woo investors with a pitch around combining Ford's in-house resources and balance sheet with greater agility to better compete with EV startups.

CEO Jim Farley, in a statement, said the new unit will give the automaker "start-up speed and unbridled innovation," that combined with their industrial know-how and other attributes that "start-ups can only dream about."

Go deeper: CNBC has more.

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Ford creates business unit for electric cars

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