It appears recent rumours about Ford wanting to run its electric vehicle business separately from internal-combustion engine (ICE) businesses may be coming true.
Reuters reports Ford will make the announcement of the separation of EV and ICE businesses on Wednesday, according to unnamed people familiar with the matter.
Once separated, the businesses will still be under the Ford corporate umbrella, similar to the company’s Ford Pro enterprise business, say unnamed sources.
Ford will appoint executives to lead the new separate businesses, expected to have different names. Ford will also detail its profit margin targets for the overall company as a whole, say sources. Eventually, the EV and ICE businesses will report financial results separately.
A Ford spokesperson did not comment on the speculative report, only to say, “we’re focused on carrying out our Ford+ plan to transform the company and thrive in this new era of electric and connected vehicles.”
Ford CEO Jim Farley last week poured cold water on reports the company was wanting to separate its EV business, a move seen to allow for increased capital investments and also higher valuations akin to Tesla.
The American automaker plans to scale up its EV production to 600,000 vehicles per year by 2023, an ambitious plan amid global supply chain and semi conductor shortages.
