Contrary to what he had specified in his most recent meeting with analysts, Jim Farley – Ford’s number one – announced the separation of the Blue Oval electric vehicle business from the ‘traditional’ one of models equipped with combustion engines.
The two units, which will have separate new managers, specific organizations and separate budgets, will be called ‘Ford Model e’ for the electrical part and ‘Ford Blue’ for the (currently more profitable) part of the ICE-powered vehicles.
“Our goal is to once again be a great company that will change the world – said Farley – and to do so we will focus on creating separate but complementary businesses”.
With this Ford wants to combine the speed and innovative power of a start-up with the industrial know-how and volume of Ford Blue. The two new business units are therefore destined to operate as independent companies, but nevertheless sharing technologies and ‘best practices’ to exploit economies of scale and to improve operational processes. From 2023, both new business units are expected to report their business results.
Oversight of the transformation has been entrusted to Ford’s current chief for Europe, Stuart Rowley, – with the rank of Ctqo (Chief Transformation and Quality Officer) dealing with quality, efficiency, complexity and cost structure across the company . According to Automobilwoche magazine Rowley should also remain in charge of operations in Europe for the time being.
The new ‘Ford Model is’ unit dedicated to the electric revolution will instead be led by CEO Jim Farley himself, who will also remain CEO of Ford Motor Company. Product development for this division will be led by Doug Field as Cevdp (Chief EV and Digital Products).
Field will remain responsible for software development and systems integration for all Ford areas at the same time, while the sales and customer side of ‘Ford Model e’ will be handled by Marin Gjaja, a former Boston Consulting professional. Kumar Galhotra, formerly head of sales americas and international markets, will take over the management of the vehicles division with ‘Ford Blue’ combustion engines.
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