Ford took aim at Tesla by splitting in two! Electric vehicle 'launch' is separate from combustion engine business, but Australian R&D unit is safe

Part of the Model e business will be responsible for electric vehicles and more.

Ford is ramping up its electrification plans by dividing its business into two separate areas - electric vehicles (EV) and internal combustion engine vehicles (ICE).

The American auto giant is taking a step to maximize its profits, streamline processes and make electric vehicle development easier in the future.

The EV business will be known as Model e and the ICE business as Ford Blue. This is an addition to the Ford Pro created last May for commercial vehicles.

Model e and Blue Ford will operate independently, Ford said, although they will collaborate on some projects.

Ford wants to operate just like a startup like Rivian or any number of other smaller electric car makers that have popped up over the past couple of years. When Tesla was smaller, it was described as a startup, but now it has moved beyond that status to become the most valuable car company in the world.

It doesn't look like the split will affect the Australian engineering, research and development division, a Ford spokesman said.

"We do not expect any impact on the work of our Australian team, which remains focused on the design and development of the Ranger, Ranger Raptor, Everest and other vehicles around the world."

Ford says electric vehicles will account for 30% of its global sales in five years, rising to 50% by 2030. The company hopes its electric vehicles will capture "the same or even greater market share in vehicle segments where Ford already leads the way." ".

The company plans to double its spending on electric vehicles to $5 billion.

While the Model e team will be responsible for building Ford's electric vehicle portfolio, which already includes the F150 Lightning pickup truck, the Mustang Mach-E four-door crossover and the Transit van.

Model e will take a clean slate approach to developing and launching new vehicles and products, creating new software platforms, and even working on a new “shopping, buying and owning experience” for electric vehicle buyers.

Ford Blue will build on Ford's current ICE lineup, which includes the F-Series, Ranger, Maverick, Bronco, Explorer and Mustang, "with investment in new models, derivatives, expertise and services."