Ford divides electric and vintage cars into separate units

Detroit – Ford Motor On Wednesday, it said it would reorganize its operations to separate the electric motor and internal combustion engine business into separate units within the automaker.

The company anticipates that the move will streamline its growing electric vehicle business and maximize profits.. It’s a strategy similar to how Ford is running its Ford Pro commercial vehicle business under CEO Jim Farley’s oversight. Ford + transformation plan.

“We are all going,” Farley said in a statement Wednesday morning announcing the reorganization.

Separating operations while keeping them at home goes halfway to satisfy some Wall Street analysts who have been pressuring old automakers like Ford to separate their electric car operations to capture the value investors give some electric car startups.

Ford’s shares rose more than 4% during the trading period before it was released to the market. The stock closed Tuesday at $16.70 a share, down 4.9%.

The electric car business will be called the “Ford Model e.” Conventional operations will be “Ford Blue”. Ford said it would operate “as distinct companies but share relevant technology and best practices to take advantage of scale and drive operational improvements.”

The company plans to achieve financial results for the new units as well as the Ford+ business by 2023, giving investors greater transparency in operations.

“We are creating a separate but integrated business that gives us the startup speed and unbridled innovation of Ford Model E combined with industry know-how, volume and iconic Ford Blue brands like Bronco, which startups can only dream of,” Farley said.

The move comes on the heels of Bloomberg News’ first report that Farley was assessing whether to separate his electrical and conventional business, including a potential branch. Farley said last week that Ford had no plans for that separate from any of the operations.

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