Auto Express

Could shutting down the electric vehicle business allow Ford to produce electricity faster?


Ford is looking to separate its electric vehicle business from other activities to attract more active attention from investors, according to a Bloomberg The report was published on Friday.

Chief Executive Officer Jim Farley wants to “separate” the electric vehicle business from the internal combustion engine business and has considered phasing out one or the other, the report said, citing unnamed sources familiar with the matter. this topic.

Tesla has become a darling of Wall Street largely thanks to its all-electric product line, while Ford faces pressure to cut its electric vehicle business to boost its value by reducing costs. costs of the second-hand internal combustion vehicle business, the report noted.

2022 Ford F-150 Lightning Pro

2022 Ford F-150 Lightning Pro

During Ford’s earnings call earlier this month, Farley said that “running a successful ICE business and a successful BEV business is not the same thing.” Bloomberg noted. He thinks the electric vehicle business is “fundamentally different” from Ford’s current business and that the automaker is “made with incremental change”.

Ford said it has no plans to cut its electric vehicle business and doing so would be difficult, according to the report. Instead, Ford could internally spin off electric vehicles into a separate business unit as part of a reorganization, the report suggests.

The automaker has ramped up production of electric vehicles under its main brand. Ford has a plan triple the production of the Mustang Mach-E in 2023 and is boosting production F-150 Lightning coming soon pickup trucks to meet strong demand. E-Transit vans also recently began production, and Farley said Ford is planning a full-size electric pickup designed for “super loud. “

2022 Ford E-Transit

2022 Ford E-Transit

Other automakers have tried to differentiate their electric vehicles in sub-brands. Hyundai has done so with its Ioniq 5 and a full lineup is coming soon — but US availability is partially limited to dealers who aren’t yet EV savvy.

Mercedes also announced its EQ brand for electric vehicles years ago and said it would bring about all sorts of changes in the way electric vehicles are built, sold and powered, but EQS basically sold together with other models.

Polestar is closest to a full spinoff. Volvo Cars’ relative is undergoing a reverse SPAC consolidation that will give it more independence — and perhaps, market valuation that will make a version of the Ford EV more appealing than ever.



Source link

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button