Ford Blue and Ford Model e will also share some related technologies and practical applications, and together with the previously announced Ford Pro for commercial vehicles and related service solutions, the three new business units are expected to become independent and self-sustaining by 2023. Together with the previously announced Ford Pro for commercial vehicles and related service solutions, the three new business units are expected to be independently operated and self-sustaining by 2023.
Specifically, Ford Blue will be the main fuel vehicle business, responsible for the profitable growth of the company’s iconic vehicle business, continuing to optimize costs, lean operations, improve quality and provide world-class vehicle hardware engineering and manufacturing support to Ford’s other business units. to create economies of scale, and is responsible for the development of software, smart grid technologies and services for Ford’s various business units.
Ford is fully accelerating its Ford+ initiative, and with the series of strategic changes announced today, Ford has raised its long-term business operating and financial metrics accordingly: by 2026 the company expects to achieve an adjusted EBIT margin of 10 percent, 270 basis points higher than in 2021. This is primarily attributable to higher sales and lower costs for electric vehicles; as well as significantly lower structural costs for fuel-fired products, with savings of up to $3 billion; and annual electric vehicle production of more than 2 million vehicles by 2026, equivalent to one-third of global sales, and expected to rise further to half of global sales by 2030. In market segments where Ford has a leading position, Ford’s electric vehicle market share will reach, and even exceed, that of fuel-fired vehicles. In addition, Ford’s spending (including capital expenditures, expenses and direct investments) in the electric vehicle business will reach $5 billion in 2022, an increase of 200 percent compared to 2021.
With the creation of Ford Blue and Model e, Ford also announced a series of senior management team appointments. Jim Farley, President and CEO of Ford Motor Co. Doug Field has been named chief electric vehicle and digital product officer for Ford Model e, with overall responsibility for product development. Marin Gjaja will serve as Ford Model e’s chief customer officer, responsible for product launch, customer experience and new business initiatives.
Stuart Rowley will serve as chief transformation and quality officer, responsible for making product quality a reason for consumers to buy Ford and leading Ford’s efforts to improve efficiency, reduce operational complexity and introduce a fully competitive lean cost structure across the company. Don Ho-Tai has been named chief industrial platform officer and will be responsible for product development, supply chain and production engineering management for fuel vehicles and common systems for Ford Blue, Ford Model e, Ford Pro and Ford Drive.