{"id":32234,"date":"2022-03-03T13:49:18","date_gmt":"2022-03-03T10:49:18","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/?p=32234"},"modified":"2026-03-28T00:28:34","modified_gmt":"2026-03-27T21:28:34","slug":"ford-accelerating-transformation-forming-distinct-auto-units-to-scale-evs-strengthen-operations-unlock-value","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/ford-accelerating-transformation-forming-distinct-auto-units-to-scale-evs-strengthen-operations-unlock-value\/","title":{"rendered":"Ford Accelerating Transformation: Forming Distinct Auto Units to Scale EVs, Strengthen Operations, Unlock Value"},"content":{"rendered":"\n<ul class=\"wp-block-list\"><li>Creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers<\/li><li>Organizes Ford to deliver for customers with the focus and speed of a startup at the leading edge of technology, supported by deep expertise in engineering and high-volume production<\/li><li>Ford Blue will build out company\u2019s iconic portfolio of ICE vehicles to drive growth and profitability \u2013 relentlessly attacking costs, simplifying operations and improving quality; will provide world-class hardware engineering and manufacturing capabilities for all of Ford<\/li><li>Ford Model e will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford<\/li><li>Ford Blue and Ford Model e will operate as distinct businesses, but share relevant technology and best practices to leverage scale and drive operating improvements; along with Ford Pro, all three businesses are expected to have discrete P&amp;Ls by 2023<\/li><li>Accelerates Ford+ plan to unlock growth and create value for Ford\u2019s shareholders: total company adjusted EBIT margin of 10% and annual production of more than 2 million EVs by 2026; expect EVs to represent half of global volume by 2030<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>AlRiyadh, Saudi Arabia, 03 March 2022 <\/strong>\u2013 Ford is continuing to transform its global automotive business, accelerating the development and scaling of breakthrough electric, connected vehicles, while leveraging its iconic nameplates to strengthen operating performance and take full advantage of engineering and industrial capabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis isn\u2019t the first time Ford has reimagined the future and taken our own path,\u201d said Ford Executive Chair Bill Ford. \u201cWe have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Last May, Ford President and CEO Jim Farley introduced the Ford+ plan, calling it the company\u2019s biggest opportunity for growth and value creation since Henry Ford scaled production of the Model T. The formation of two distinct, but strategically interdependent, auto businesses \u2013 Ford Blue and Ford Model e \u2013 together with the new Ford Pro business, will help unleash the full potential of the Ford+ plan, driving growth and value creation and positioning Ford to outperform both legacy automakers and new EV competitors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe 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,\u201d Farley said. \u201cBut 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\u2019s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Driving the change was recognition that different approaches, talents and, ultimately, organizations are required to unleash Ford\u2019s development and delivery of electric and digitally connected vehicles and services and fully capitalize on the company\u2019s iconic family of internal combustion vehicles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The creation of Ford Model e was informed by the success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup as well as Ford\u2019s dedicated EV division in China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFord Model e will be Ford\u2019s center of innovation and growth, a team of the world\u2019s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,\u201d Farley said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFord Blue\u2019s 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. It\u2019s 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, maximizing cash flow and optimizing our industrial footprint.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ford Model e and Ford Blue will be run as distinct businesses, but also support each other \u2013 as well as Ford Pro, which is dedicated to delivering a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support on Ford and non-Ford products. Ford Model e and Ford Blue will also support Ford Drive mobility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ford Model e will:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Attract and retain the best software, engineering, design and UX talent and perfect new technologies and concepts that can be applied across the Ford enterprise;<ul><li>Embrace a clean-sheet approach to designing, launching and scaling breakthrough, high-volume electric and connected products and services for retail, commercial and shared mobility;<\/li><\/ul><ul><li>Develop the key technologies and capabilities \u2013 such as EV platforms, batteries, e- motors, inverters, charging and recycling \u2013 to create ground-up, breakthrough electric vehicles; and<\/li><\/ul><ul><li>Create the software platforms and fully networked vehicle architectures to support delightful, always-on and ever-improving vehicles and experiences.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Ford Model e also will lead on creating an exciting new shopping, buying and ownership experience for its future electric vehicle customers that includes simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors. Ford Blue will adapt these best practices to enhance the experience of its ICE customers and deliver new levels of customer connectivity and satisfaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ford Blue will exercise Ford\u2019s deep automotive expertise to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Strengthen the iconic Ford vehicles customers love, such as F-Series, Ranger and Maverick trucks, Bronco and Explorer SUVs, and Mustang, with investments in new models, derivatives, experiences and services;<ul><li>Help customers fulfill their passions and daily lives with tailored brand and vehicle experiences, from off-roading to performance to family activities, especially for those situations when ICE capabilities are required;<\/li><\/ul><ul><li>Deliver new, connected, personalized and always-on experiences for customers powered by Ford Model e\u2019s software and embedded systems;<\/li><\/ul><ul><li>Make industry-leading quality and exceptional service a reason to choose and stay with Ford;<\/li><\/ul><ul><li>Root out waste and dramatically reduce product, manufacturing and quality costs; and<\/li><\/ul><ul><li>Support Ford Model e and Ford Pro through proven, global-scale engineering, purchasing, manufacturing, and vehicle test and development capabilities for world-class safety, ride and handling, quiet and comfort, and durability.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Ford reaffirms guidance for 2022 of $11.5 billion to $12.5 billion in company adjusted EBIT. The high end of the range equates to a margin of 8% which, if achieved, would be one year earlier than the company\u2019s previous target. With these changes announced today, Ford is raising its longer-term operating and financial targets, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Company adjusted EBIT margin of 10% by 2026, a 270-basis-point increase over 2021\u2013 driven by higher volumes, improvement in the cost of EVs, and a significant decline in ICE structural costs of up to $3 billion<ul><li>More than 2 million electric vehicles produced annually by 2026, representing about one- third of Ford\u2019s global volume, rising to half by 2030, capturing with EVs the same, or even greater, market shares in vehicle segments where Ford already leads<\/li><\/ul><ul><li>In addition, Ford expects to spend $5 billion on EVs in 2022, including capital expenditures, expense and direct investments, a two-fold increase over 2021<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Ford reiterated its commitment to achieve carbon neutrality by 2050, and to use 100% local, renewable electricity in all of its manufacturing operations by 2035.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,\u201d said John Lawler, Ford\u2019s chief financial officer. \u201cIt will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them \u2013 by making the most of existing capabilities, adding new skills wherever they\u2019re needed, simplifying processes and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ford Model e and Ford Blue will work hand-in-glove with other parts of the Ford enterprise. Ford Pro will continue to deliver industry-leading products, services and support that commercial customers depend on. Served by Ford Model e and Ford Blue, Lincoln will continue to create compelling vehicles with an exceptional ownership experience to match. Ford Drive will continue to develop new digitally connected mobility businesses. And Ford Credit will continue to support the customer experience and drive loyalty with a full suite of financial products and services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Leadership<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the creation of Ford Blue and Ford Model e, Ford is announcing several leadership appointments. Farley will serve as president of Ford Model e, in addition to his role as president and CEO of Ford Motor Company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Doug Field will lead Ford Model e\u2019s product creation as chief EV and digital systems officer. He will also lead the development of software and embedded systems for all of Ford. Marin Gjaja will be Model e\u2019s chief customer officer, heading the division\u2019s go-to-market, customer experience and new business initiatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDesigning truly incredible electric and software-driven vehicles \u2013 with experiences customers can\u2019t even imagine yet \u2013 requires a clean-sheet approach,\u201d Field said. \u201cWe are creating an organization that benefits from all of Ford\u2019s know-how and capabilities, but that can move with speed and unconstrained ambition to create revolutionary new products.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kumar Galhotra will serve as president of Ford Blue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFord Blue\u2019s mission is extremely ambitious,\u201d Galhotra said. \u201cWe are going to invest in our incredible F-Series franchise, unleash the full potential of hits like Bronco and Maverick, and launch new vehicles like global Ranger pickup, Ranger Raptor and Raptor R. We\u2019ll pair these great products with a simple, connected and convenient customer experience that earns higher loyalty. We are going to be hyper-competitive on costs and make quality a reason to choose Ford. And by doing all that, Ford Blue will be an engine of cash and profitability for the whole company.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stuart Rowley and Hau Thai-Tang will take on new global roles to support Ford\u2019s transformation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rowley will be chief transformation and quality officer. He will establish quality as a reason to choose a Ford and lead Ford\u2019s drive to improved efficiency, reduced complexity and a lean, fully competitive cost structure across the enterprise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thai-Tang will lead Ford\u2019s industrial platform as chief industrial platform officer. He will lead product development, supply chain and manufacturing engineering for ICE products and common systems across Ford Blue, Ford Model e, Ford Pro and Ford Drive.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers Organizes Ford to deliver for customers with the focus and speed of a startup at the leading edge of technology, supported by deep expertise in engineering and high-volume production Ford Blue will build out [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":32235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"1","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_pr_autopilot_social_copy":"","_yoast_wpseo_opengraph_title":"","_yoast_wpseo_opengraph_description":"","_yoast_wpseo_opengraph_image":"","_yoast_wpseo_opengraph_image_id":0,"_yoast_wpseo_twitter_title":"","_yoast_wpseo_twitter_description":"","_yoast_wpseo_twitter_image":"","_yoast_wpseo_twitter_image_id":0,"_yoast_wpseo_primary_category":26,"_extra_hide_author_box":"","_extra_featured_post":"","_partner_post_id":0,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-32234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized 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