Ford Restructures Electric Division: EV Unit Integrated into Global Production and Shift in Industrial Strategy

Ford has announced a profound reorganization of its strategy in the electric vehicle sector, marking the end of an era that began with great ambitions. The most significant change is the departure of Doug Field (former Apple and Tesla), head of EV, digital, and design operations, who will leave the company after nearly five years. Instead of bringing in a new executive from Silicon Valley, Ford has decided to fully integrate the electric division into its global production operations, creating a new structure called Product Creation and Industrialization, led by COO Kumar Galhotra. This choice represents a shift in philosophy: less focus on the separation between electric and traditional mobility, more attention to industrial efficiency and cost reduction. Field was hired in 2021 as a symbol of Ford's transformation towards a model more akin to tech companies. Previously, he had worked at both Apple, on the internal automotive project, and Tesla, where he contributed to the development of the Model 3. Under his leadership, Ford launched the Model e division, dedicated exclusively to EVs, and developed the Universal EV Platform, designed for electric vehicles priced under $40,000.

What are Ford's most important projects? Among the most important remaining projects is a mid-sized electric pickup priced around $30,000, expected for 2027, featuring LFP batteries, advanced aerodynamics, and a 40% reduction in production times compared to current models. Additionally, the BlueCruise system with level 3 "eyes-off" autonomous driving is still slated for 2028.

The reorganization is closely linked to the company’s financial goals. Jim Farley aims to achieve an operating margin of 8% by 2029, up from the current 5.8%. To do this, Ford plans to refresh much of its global lineup, introduce modern electric architectures with over-the-air updates, and offer electrified powertrains in 90% of its models by 2030.

However, in recent years, Ford has also scaled back some of its initial ambitions: it has canceled a three-row electric SUV, modified the strategy for the F-150 Lightning pickup, and reduced staff in the EV division. This new direction indicates that the main challenge is no longer just technological innovation, but the ability to produce electric vehicles efficiently and profitably, especially in light of the Chinese threat.