by John Engel: In yet another sign of the changing auto industry, and the growing penetration of electric vehicles, Ford said it will split its EV and internal combustion divisions into two distinct units within the company…
Ford CEO Jim Farley reportedly told media and analysts that the company’s legacy business is holding it back.
“We are going all in” on electric vehicles, he said.
In September 2021, Ford announced plans for an electric vehicle manufacturing campus in Tennessee, as well as two additional battery facilities in Kentucky. The total investment is expected to top $11 billion.
Ford Model e will house the company’s electric vehicle interests while Ford Blue will contain the legacy business. The units, while separate, will still support each other and share certain resources.
Doubling up
Ford’s focus on electric vehicles may not come as a surprise. Sales of new light-duty plug-in electric vehicles nearly doubled from 308,000 in 2020 to 608,000 in 2021, according to the U.S. Department. of Energy.
By contrast, light-duty vehicle sales increased by 3% year-over-year.
The Biden administration, meanwhile, set a goal of electric vehicles making up 50% of U.S. car sales by 2030.
