Ford is still accelerating on the electric car



The race for electrification is intensifying among traditional car manufacturers, anxious to demonstrate to the financial markets that they are not being outmoded by Tesla. Barely twenty-four hours after the upward revision of Stellantis’ ambitions, which now aims for 5 million 100% electric cars per year by 2030, Ford has also announced higher sales targets, and above all a review of its organization.

The group will separate into two separate entities, its CEO Jim Farley announced on Wednesday, although they will still be part of the same group. One, called “Ford Model e”, will be dedicated to electric vehicles. The second, Ford Blue, will continue to produce combustion engine cars. This two-headed organization is supposed to provide the Blue Oval brand with the best of both worlds, freeing the electrical business from the constraints inherent in the operation of a 118-year-old industrial company.

“Separate but complementary”

“We’re going all out, creating separate but complementary businesses that give us the speed of a start-up and a sense of unbridled innovation with Model e, while Ford Blue will have the industrial know-how, sales volumes and iconic brands like Bronco,” commented the CEO. In the background, the long-term possibility of opening the capital of Ford Model e must also support the stock market.

The American manufacturer is not isolated in its approach: Renault mentioned a similar project during the presentation of its 2021 results a few days ago. But the diamond firm does not seem ready to take action before this fall.

In the process, the boss of Ford also raised the objectives that he has set for himself in the medium term. It now plans to sell 600,000 electric cars in 2024, and pass the milestone of 2 million units per year from 2026. The amount of investment to achieve this is increased to 50 billion dollars (45 billion euros) over five years, against 30 billion previously. These promises pleased Wall Street: at mid-session, the share price rose by 6.8%.

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