A major reorganization is in the cards for Ford Motor Co. as it prepares for an electric future, with the automaker set to accelerate spending for its EV program by as much as $20 billion. Former Apple Inc. and Tesla executive would lead the reshuffle, and now Ford Chief Executive Officer Jim Farley.
According to people with knowledge of the plan, Ford will infuse an additional $10 billion to $20 billion in spending over the next five to 10 years to help transform its factories worldwide from makers of gasoline-powered cars to facilities set for electric-vehicle production. That massive $20 billion investment would be on top of the $30 billion Ford already has committed to developing electric vehicles through 2025.
The effort is part of Farley's initiative to challenge Tesla's dominance in the global EV market. He is even taking pages from Tesla's successful playbook, using that as a roadmap for Ford to follow for them to catch up with the world's most valuable automaker. Investors like what they are seeing thus far with Ford, with the company's market value briefly soaring above $100 billion last month.
To help accelerate its push for electrification, Ford plans to restructure its organizational chart. The company's main priority right now is to hire an unspecified number of engineers specializing in disciplines such as artificial intelligence, EV software, and battery chemistry, fields relatively new to Ford.
Rumors are even swirling that Ford may spin off a small part of its EV business to get some great value investors providing electric startups. The potential spinoff would involve lower-volume models, allowing Ford to focus its attention on mass-market electric vehicles.
Ford declined to comment regarding the potential spinoff and planned reorganization. The company's chief communications officer, Mark Truby, did issue a statement, saying they are executing their Ford Plus plan to transform the company and thrive in this new era of electric and connected vehicles. Ford would not comment on speculation.
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Farley tasked to lead this massive overhaul for Ford is former Apple and Tesla executive Doug Field. He was the former head of Apple's car project and was a top engineer for Tesla during its development of the Model 3. Ford poached Field from Apple to lead the reorganization of the 118-year-old company.
Ford appears to be in good hands with Farley and Field at the helm. Ever since Farley became the CEO of Ford 16 months ago, the company has accelerated its EV plans. The company has tripled the production of the electric Mustang Mach-E model and doubled the output of the F-150 Lightning plug-in pickup that is set to launch this spring.
Ford is also investing $11.4 billion with South Korea's SK Innovation to build three battery factories and an EV truck plant in Kentucky and Tennessee.
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