Ford announces dedicated EV and ICE divisions

Ford has made the decision to split its electric vehicle (EV) and internal-combustion engine (ICE) development into two separate businesses.

The Ford Blue division will be dedicated to petrol and diesel vehicles, while the Ford Model E division will look after EVs and connectivity technology.

The company says the two departments will be run as distinct businesses, but will also support each other.

“Ford Model E will be Ford’s centre of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” CEO Jim Farley said at the announcement.

“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences,” he said.

“It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximising cash flow and optimising our industrial footprint.”

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Above: Ford CEO Jim Farley.

Farley’s comments come a week after he flatly denied rumours Ford was about to split its EV and ICE divisions.

The recent announcement comes under the ‘Ford+ Plan’ umbrella – the carmaker’s roadmap to leverage its strengths to create increased value and growth for its customers, introduced in 2021.

“We have made tremendous progress in a short period of time. We have launched a series of hit products globally and demand for our new EVs like F-150 Lightning and Mustang Mach-E is off the charts,” Farley said.

“But our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus. We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model E together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about.”

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It’s thought the ‘Ford Model E’ name could be a taunt to electric vehicle maker Tesla.

Elon Musk originally wanted to use the name for the Tesla Model 3 – in order to spell out ‘SEXY’ when combined with the rest of its cars – but Ford blocked the name at the time, according to Automotive News Europe, claiming it sounded too similar to the iconic Model T.

Ford isn’t the only manufacturer with Tesla in its sights. In late 2020, Volkswagen Group CEO Herbert Diess announced ‘Mission T’, in an attempt to “catch up with Tesla”.