The news: Ford, which recently received more than 275,000 electric vehicle pre-orders, has decided to restructure by creating two separate divisions, one for EVs and another for internal combustion engine vehicles.
Why it's worth watching: Ford CEO Jim Farley, who has been leading the company since 2020, said developing and selling EVs requires new technical expertise and a different sales strategy than those for traditional combustion-engine vehicles, per The Wall Street Journal.
Why this could succeed: Ford says the creation of Ford Model e was informed by the success of smaller, mission-driven teams that developed the Ford GT, Mustang Mach-E SUV, and F-150 Lightning pickup, as well as Ford’s dedicated EV division in China.
By separating EV from combustion, Ford is making room to compete at the highest level without any crossover or baggage from its established combustion-engine business.
What’s next? Automotive companies shifting to EVs are realizing that to compete against Tesla, they need to focus on the future and pivot away from legacy product development, marketing, and sales.
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