buying: Ford Restructures, Splitting into Ford Blue and Ford Model e (for Electric)

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  • Ford announced today a major restructuring, with two new divisions, Ford Model e and Ford Blue, joining the existing commercial arm, Ford Pro.
  • Ford Model e will center around developing technologies for Ford’s future EVs as well as software and vehicle connectivity.
  • Ford Blue will streamline the internal-combustion business and strengthen existing subbrands including the Bronco, F-series, and Mustang with new models and accompanying "brand experiences."

Jim Farley, who has been praised for his leadership since taking over as Ford president and CEO in October 2020, continues to shake things up at the long-lived American automaker. The company announced today that it will form two separate but interdependent businesses under the Ford banner—Ford Model e, which will focus on electric vehicles and connectivity, and Ford Blue, which will be dedicated to the company's traditional internal-combustion-engine business. The division is part of Farley’s Ford+ plan introduced last year, and the two new branches join Ford Pro, the company's commercial vehicle department.

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Ford Model e and Ford Blue © Ford Ford Model e and Ford Blue

Ford says that Ford Model e and Ford Blue "will be run as distinct businesses, but also support each other"—for instance, Ford Blue will make use of the software developed by Ford Model e—and both will also serve Lincoln. Ford Model e will center around future technology, developing things like electric platforms, batteries, e-motors, and recycling capabilities for Ford’s next generation of EVs. Ford Model e will also focus on the software and vehicle architectures that future Fords will run on, as well as the future of the car shopping, buying, and ownership experiences. Farley will add the role of president of Ford Model e to his list of duties.

Ford Blue, on the other hand, will "strengthen the iconic Ford vehicles" via investments in new models and related experiences and services having to do with the F-series, Ranger, Maverick, Bronco, Explorer, and Mustang. Ford says these brand experiences will range "from off-roading to performance to family activities," particularly for "situations when ICE capabilities are required." The Ford Blue division also intends to decrease waste and production costs as ways to streamline the internal-combustion business. Blue will support Ford Model e and Ford Pro through the global engineering, manufacturing, and testing systems that Ford already has. Kumar Galhotra, previously president of Ford North America, will become president of Ford Blue.

Whatever this means for EV development, it seems clear that the traditional gas-powered Ford vehicles that buyers clearly still want are still getting Ford's attention, not moving to any kind of back burner.

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Ford Blue Advantage extends trial period to 14 days or 1,000 miles .
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