Ford to separate EV and legacy auto business units

Ford’s Rouge Electric Vehicle Center, Dearborn, Michigan. The company announced it will seperate its electric vehicle and internal combustion engines divisions. (Courtesy: Ford)

Ford announced that it will separate its internal combustion and EV divisions within the company, yet another sign of the changing automotive industry.

Ford CEO Jim Farley told analysts and media that Ford’s legacy business was holding it back.

He said, “We are going all-in” on electric cars.

Ford announced plans for a huge electric vehicle manufacturing plant in Tennessee in September 2021. It also plans to build two additional battery facilities in Kentucky. This is what Ford called the largest single investment in the U.S. market for electric vehicles by an automaker. (Courtesy: Ford)

Farley called electric vehicles Ford’s greatest opportunity since Model T. Ford expects that electric vehicles will make up 40-50% of its global vehicle volumes by 2030.

Ford was able to double its production capacity to 150,000 units per annum after the electric F-150 Lightning gained popularity. Ford stated that it expected to increase production for electric Mustang Mach-E units to 200,000 units by 2030. Ford stated that the success of both vehicles prompted the company to separate the ICE and EV business units.

Ford announced plans to build an electric vehicle manufacturing plant in Tennessee in September 2021. There will also be two additional battery plants in Kentucky. The total investment is expected at $11 billion.

Ford Model e will be the home of the company’s electric vehicle business, while Ford Blue will house the legacy business. Although they will be independent, the units will still support one another and share some resources.

Doubling up

Ford’s focus is on electric vehicles might not be surprising. According to the U.S. Department of Energy, sales of light-duty plug in electric vehicles almost doubled from 308,000 in 2020 and 608,000 in 2021. Energy.

However, light-duty vehicle sales increased 3% year-overyear.

The Biden administration, meanwhile, set a goal of electric vehicles making up 50% of U.S. car sales by 2030.

  • John Engel is the Content Director at Renewable Energy World. John Engel has been a journalist for over ten years, covering news, sports, and politics across all media — print, radio, television, and digital. He lives with Malia, his wife, in Asheville North Carolina.

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