American carmaker Ford has announced that it is splitting into two different businesses that the company says will be “strategically independent.” These will be Ford Blue and Ford Model E.
There were rumors that the company was planning to do this for a while as it looks to make a real push for the EV market while maintaining its traditional internal combustion engines as well. The Ford Model E will be Ford’s push toward EVs and will reflect the company’s line of electric vehicles, including the Mustang Mach-E and the Ford F-150 Lightning.
The company is also picking Doug Field to serve as the head of the Ford Model E division. Field formerly served at Tesla and Apple in different roles. He will be in charge of the creation and development of Ford’s electric vehicles including embedded systems. Ford is looking to be the driver of innovation in the EV market.
Companies like Tesla have always been leading the way but with the entrance of traditional carmakers into the EV market, we are likely to see competition ramping up. The Biden administration has set ambitious EV targets for the US. Some people have even called them impossible and impractical. But whatever happens, Ford is positioning itself in the revolution of the EV market and looks to be set on the days ahead. The company says that it is hoping to create a unique and elaborate customer experience with its new EV vehicles.
There is also talk about transparent pricing for dealers who are expected to be central in delivering these EVs to the market. Despite this, over the last few months, the global car industry has faced massive challenges. The global chip shortage, in particular, has hampered the production of new cars. Leading car brands like Toyota have all cut production targets for the year. The semiconductor crisis does not look like it’s about to abate.
Experts warn that supply chains won’t normalize until the end of 2022. With the war in Eastern Europe, the situation could get even worse in the coming months. Runaway inflation has also pushed demand for used cars and may affect how new EV entrants perform in the US market. But there is some hope. EV adoption is expected to keep growing in the years ahead.
While the industry will see increased competition, Ford remains one of the most notable car brands in the world. There is no doubt the Michigan-based carmaker will have a significant share of that market. There were fears that legacy automakers will struggle to make a dent in the EV market. Tesla appeared to be running the show and many experts argue that companies like Ford were too late to the party.
But things have been changing quite fast. Armed with existing manufacturing infrastructure, capital, and global brand recognition, legacy car makers are now making a big push for EVs. German carmaker Volkswagen, for example, noted that it plans to produce a huge portion of EVs for the EU and US markets in the near term. Ford is also following the same playbook.