Ford Set To Announce Plans To Operate EV And ICE Units As Separate Businesses: Report
Both EV and ICE businesses will have separate names but will remain under the Ford corporate umbrella
New Delhi: Ford Motor Company is all set to announce reorganisation on Wednesday in which the US auto major will run the units of electric vehicle (EV) and internal-combustion engine (ICE) as separate businesses.
The move is aimed to focus its growth in EVs, according to the news agency Reuters report. Both EV and ICE businesses will have separate names but will remain under the Ford corporate umbrella. This will be similar to its Ford Pro commercial business run for corporate customers.
ALSO READ: Ukraine Crisis: World Bank To Offer $3 Bn Support Package, Says Commodity Prices & Inflation To Rise
What is expected in the announcement?
According to the report, the US auto giant will announce the names of executives for leading each businesses along with an update on its profit margin targets for the company overall. The company eventually aims to report separate financial results for the EV and ICE businesses, according to the agency sources.
Declining to comment on the report, Ford spokesperson T R Reid said, "We're focused on carrying out our Ford+ plan to transform the company and thrive in this new era of electric and connected vehicles.“
On the contrary, Chief Executive Jim Farley has earlier said the company had no plans to spin off either its EV or ICE businesses
"We know our competition is Nio and Tesla, and we have to beat them, not match them," he said at a Wolfe Research conference. "And we also have to beat the best of the ICE players."
Now, with its aim to keep the EV business as a separate unit, the automaker would be setting the table for a possible spinoff down the road, industry officials said.
The automaker is looking to separate the businesses with a view to earn the kind of investor support enjoyed by Tesla.
Top Headlines
