FORD

Brand creates two interdependent businesses: Ford Blue and Ford Model e

Ford continues to transform its global auto business, accelerating the development and expansion of innovative connected electric vehicles, while leveraging its iconic models that identify it to strengthen operational performance and maximize industrial and engineering capabilities.

“This is not the first time that Ford has reinvented the future and taken its own path,” said Ford Executive Chairman Bill Ford. "We have an extraordinary opportunity to lead this exciting new era of electric and connected vehicles, bring the best of Ford to our customers and help make a real difference to the health of the planet."

Last May, Jim Farley, president and CEO of Ford, presented Ford and called it the company's biggest opportunity for growth and value creation since Henry Ford expanded the production of the Model T. The formation of two different automotive businesses, but strategically interdependent: ''Ford Blue'' and ''Ford Model e'', together with the new Ford Pro business, will help unlock the full potential of the Ford plan, driving growth and value creation, while positioning Ford as a leader in the era of industry electrification.

“We made progress in a short period of time launching a series of successful products worldwide, and the demand for our new electric vehicles like the Ford F-150 Lightning and Mustang Mach-E was very successful”, said Farley. “But what we're looking for with Ford is to get back to being a really great company that changes the world, and that takes focus. We go all out, creating separate but complementary businesses that offer us speed and unbridled innovation in the Ford Model and along with Ford Blue’s industrial expertise, volume and iconic brands like the Ford Bronco.”

The impetus for this shift comes from the recognition that different approaches, talents and, ultimately, organizations are needed to drive Ford's development, and develop digitally connected electric vehicles and services, as well as fully capitalize on the iconic family of combustion vehicles. company internal.

The creation of the Ford Model was based on the success of the Ford teams that developed the Ford GT, Mustang Mach-E and F-150 Lightning, as well as the division dedicated to electric vehicles in China.

"The Ford Model e will be the center of innovation and growth for Ford, a team of the world's best automotive software and electrification talent that will come together to create truly amazing electric vehicles and digital experiences for new generations of Ford customers." said Farley.

“Ford Blue's mission is to deliver a more profitable and vibrant internal combustion engine car and truck business, strengthen our successful and iconic vehicle families, and earn greater loyalty by delivering outstanding service and experiences. It's about leveraging a century of hardware mastery to help build the future. This team will be focused on delivering quality, optimizing our resources, maximizing cash flow and decreasing our industrial footprint.”

Ford Model and Ford Blue will be run as separate businesses, but will also support each other, as will Ford Pro, which is dedicated to offering a one-stop shop for commercial and government customers with a lineup of conventional and electric vehicles, and a complete package. software, billing, financing, service and support on Ford and non-Ford products. Ford Model e and Ford Blue will also support Ford Drive mobility. 

Ford Model and you will get:

- Attracting and retaining the best talent in software, engineering, design and perfecting new technologies and concepts that can be applied across the company;

- Adopt a new approach to designing, launching and scaling innovative, high-volume electrical and connected products and services for retail, commercial and shared mobility;

- Develop key technologies and capabilities, such as batteries, electric motors, charging and recycling generators, to create innovative electric vehicles from scratch;

- Create fully connected vehicle architecture and software platforms to support enjoyable experiences, always connected and constantly improving vehicles. Ford Model e will also lead the way in creating an exciting new shopping experience for its future electric vehicle customers that includes simple and intuitive e-commerce platforms, transparent pricing and personalized customer service from Ford ambassadors. Ford Blue will adapt these practices to improve its internal combustion vehicle customer experience and deliver new levels of connectivity and customer satisfaction.

Ford Blue will use Ford's extensive automotive expertise to:

- Strengthen iconic Ford vehicles that customers love, such as the F-Series, Ranger and Maverick, Ford Bronco and Explorer trucks, as well as the Mustang, with investments in new models, experiences and services;

- Helping customers achieve their goals and fill their daily lives with personalized brand and vehicle experiences, from off-road to family activities, especially for those situations where internal combustion vehicle capabilities are required;

- Deliver new, connected, personalized and active customer experiences with Ford Model software and integrated systems technology;

- Making industry-leading quality and exceptional service a reason to choose and stay with Ford;

- Optimize resources and drastically reduce quality, product and manufacturing costs;

Support the Ford Model and Ford Pro through global-scale engineering, procurement, manufacturing, vehicle testing and development capabilities to ensure world-class safety, drive, handling experience, convenience and durability.

Ford reaffirms its 2022 adjusted operating margin plan from $11.5 million to $12.5 billion. The upper end of the range is equivalent to an 8% margin which, if achieved, will advance the company's objective by one year. With these changes announced today, Ford elevates its long-term operational and financial goals, which include:

- An adjusted company operating margin of 10% for 2026, an increase of 270 basis points from 2021, driven by higher volumes, an improvement in the cost of electric vehicles and a significant decrease in structural costs of internal combustion vehicles of up to 3 billion dollars.

- More than 2 million electric vehicles produced annually by 2026, which represents around a third of Ford's global volume, increasing by half by 2030, capturing with electric vehicles the same or even greater market shares in vehicle segments where Ford already leads.

- Ford expects to invest $5 billion in electric vehicles in 2022, including capital expenditures and direct investment spending, an increase equivalent to twice as much as in 2021.

Ford reiterated its commitment to achieve carbon neutrality by 2050 and to use 100% local renewable energy in all of its manufacturing operations by 2035.

“This new structure will enhance our ability to generate growth, profitability and liquidity in this new era of transportation,” said John Lawler, Ford's chief financial officer. “This will increase our effectiveness in allocating capital to the internal combustion and electric vehicle businesses, as well as the returns we expect from them, by making the most of existing capabilities, adding new skills where needed, streamlining processes and reducing costs. More importantly, we believe it will generate significant growth and value for our shareholders.”

Ford Model and and Ford Blue will work closely with other parts of the company. Ford Pro will continue to provide the products, services and industry support that commercial customers depend on. In conjunction with Ford Model e and Ford Blue, Lincoln will continue to create compelling vehicles with an exceptional ownership experience. Ford Drive will continue to develop new digitally connected mobility businesses, and Ford Credit will continue to support the customer experience and drive loyalty with a full suite of financial products and services.

Leadership...With the creation of Ford Blue and Ford Model e, Ford announces several leadership appointments. Farley will serve as president of Ford Model and in addition to his role as president and CEO of Ford Motor Company.

Doug Field will lead the creation of Ford Model products and as director of electric vehicles and digital systems. He will also lead the development of software and integrated systems for all of Ford. Marin Gjaja will be Ford Model's Director of Customer Service and will lead the division's merchandising, customer experience and new business initiatives.

“Designing electric vehicles, based on truly amazing software, with experiences that customers can't even imagine yet, requires a whole new approach,” said Field. "We are creating an organization that benefits from all of Ford's knowledge and capabilities, but can move with unfettered speed and ambition to create revolutionary new products."

Kumar Galhotra will serve as president of Ford Blue.

“Ford Blue's mission is extremely ambitious,” said Galhotra. “We will invest in our F Series franchise, unlock the full potential of hits like the Ford Bronco and Maverick, and we will launch new vehicles like the Ranger, Ranger Raptor and Raptor R. We will combine these great products with a simple, comfortable, connected experience that generates a greater loyalty. We are going to be hypercompetitive in terms of costs and we will continue to make quality a reason to choose Ford. And in doing all of that, Ford Blue will be an engine of profitability for the entire company.”

Stuart Rowley and Hau Thai-Tang will take on new global roles to support Ford's transformation.

Rowley will serve as director of transformation and quality. It will establish quality as a reason to choose a Ford and drive the company's push from the blue oval to improved, streamlined efficiency, along with a tight, fully competitive cost structure across the entire company.

Thai-Tang will be Ford's Industrial Platform Director, leading product development, supply chain and manufacturing engineering for internal combustion products and common systems across Ford Blue, Ford Model e, Ford Pro and Ford Drive.

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