Ford pulls electric vehicles out of gasoline engine division

  • Ford creates the Model e division for electric models, while organizing gasoline and diesel engine offerings under the Ford Blue unit.
  • The automaker’s move was prompted by the success of smaller teams, such as those that developed the Mustang Mach-E, and Ford’s separate electric vehicle business in China.
  • Ford is preparing to start production of the F-150 Lightning in a few weeks; it will join the Mach-E in the automaker’s battery-electric lineup.

    Ford is restructuring to separate its electric vehicles from its longtime business division powered by generations of internal combustion engines.

    Dubbed Ford Model e, the new entity will exist alongside Ford Blue, which will offer the company’s gasoline and diesel engine offerings, while a third business unit, Ford Pro, will focus on commercial vehicles.

    The decision was prompted by the success of smaller teams developing the all-electric Mustang Mach-E and F-150 Lightning pickups, in addition to the creation of a separate EV division for Ford in China.


    “The Ford Model e will be Ford’s center of innovation and growth – a team of the world’s top software, electrical and automotive talent has come together to create truly amazing electric vehicles and digital experiences. for new generations of Ford customers,” said Jim Farley, Ford president and CEO. noted.

    The Ford Model e is expected to take an entirely new approach to design, engineering and technology, working on batteries, electric vehicle platforms, charging, electric motors and battery recycling, more to develop software platforms for networked vehicle architectures.

    Do you think Ford will get closer to its sales target of 2 million BEVs per year by 2026, while making money along the way? Please comment below.

    As BEV production ramps up with new vehicles in the coming years, Ford plans to produce 2 million BEVs per year by 2026, representing one-third of Ford vehicle production, with the ambition achieve an adjusted EBIT profit margin of 10%, also in 2026.

    The division will seek to attract the best design, engineering and user interface developers to create technologies that can be used across Ford divisions.

    The automaker’s gasoline and diesel engines won’t be overlooked in the coming years, with Ford planning to bolster its key consumer models while promising to “eliminate waste” and cut manufacturing and production costs. Internal combustion models won’t be leaving any time soon, but count on a few optimization moves.

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    “Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, to strengthen our iconic and successful vehicle families and to earn greater loyalty by delivering incredible service and experiences,” said Farley. “It’s about harnessing a century of material mastery to help build the future. This team will be committed to delivering industry-leading quality, tackling waste in all areas of the business, maximizing cash flow and optimize our industrial footprint.”

    Ford’s reorganization follows industry speculation that market pressures will force the three Detroit automakers to adopt similar business structures. The Model e business unit should not include an entirely separate dealership Pitchesfor example, so the change should hardly be noticed by consumers.

    But there will be some changes for dealerships as Ford continues to introduce new electric models. The F-150 Lightning will go into production in a few weeks, with the first examples expected in showrooms this spring.

    “This isn’t the first time Ford has reinvented the future and charted our own course,” said Ford Executive Chairman Bill Ford Jr. “We have a tremendous opportunity to lead this exciting new era of connected vehicles and electric cars, to bring the best of Ford to our customers and help make a real difference to the health of the planet.”

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