Mar 2, 2022 - Energy & Environment

Ford creates business unit for electric cars

Illustration: Sarah Grillo/Axios

Illustration: Sarah Grillo/Axios

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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