Ford Motor Co. (NYSE: F) is set to announce that its electric vehicle (EV) and internal combustion engine (ICE) businesses will be run separately. The reorganization will allow Ford to fast-track growth in EVs.
While the EV and ICE businesses will have separate names, they will remain under the Ford corporate umbrella, similar to how the company runs its Ford Pro commercial business for corporate customers.
Sources said that US automaker will name the executives who lead each business and they will also outline the updated profit margin targets for the company overall, but the goal is for the company to eventually report separate financial results for the two businesses.
This move follows a growing preference among investment managers for companies focused on low-carbon technology, which was what helped Tesla become the world’s highest-valued carmaker.
Ford spokesman T.R. Reid declined to comment on the report. “We’re focused on carrying out our Ford+ plan to transform the company and thrive in this new era of electric and connected vehicles,” he said.
A huge push for the EV business
The company on Tuesday released a video on their plans to scale up global battery EV production capacity to 600,000 annually by the end of 2023.
Shortly after, US President Joe Biden also tweeted about Ford and GM’s investment in EVs.
Ford closed at $16.70 on March 1, 2022.
Information for this briefing was found via Ford, Twitter, Youtube, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.