Ford divides to better reign over the world of electric. At the head of this section, Doug Field, the “father” of the Model 3.
Ford today faces a dilemma. Indeed the brand does not have enough employees to both develop the electric as it would like, and at the same time continue to produce thermal cars, which are today those that bring the most to the American group. In order to better work on these two worlds that everything seems to oppose, the historic manufacturer has decided to use a vile adage: divide and conquer better.
As Ford CEO Jim Farley acknowledges, “For Ford to win against new players and other manufacturers, we have to focus more — on the electric — that we don’t do it today”. Because Farley knows it better than anyone, historic manufacturers are not the only ones to take advantage of the electrification of cars to enter the automobile market.
Ford must fight on two fronts with ever more competition
New players like Tesla, but also Sony, and maybe soon Apple have also arrived, reducing de facto the market share of historic brands like Ford. In order to fight against these new adversaries, Ford has therefore decided to divide the company in two: one part dedicated to electric vehicles, another to thermal cars.
As far as thermal power is concerned, the idea is to reduce expenses as much as possible. In concrete terms, the group has announced that it wants to save $3 billion over the next four years. For the time being Ford does not rule out dismissal to achieve its ends. On the other side of the spectrum, the world of electric automobiles will continue to grow.
Facing the historic Ford, the Tesla mountain seems impassable
Ford should invest heavily in the car of tomorrow. The brand hopes to produce two million electric cars per year by 2026. In order to lead the boat of this new branch of Ford, Jim Farley should keep the reins, but he will be firmly supported by Doug Field, a former executive at Prestigious CV, he who notably went through Tesla, where he is seen as the “father” of the Model 3. He was also at the head of the team which works on the very secret Apple Car before joining the iconic manufacturer last September.
This decision to split the Ford company is therefore not a big surprise. While the Ford Mustang E-Mach was voted the best electric car in the world by Consumer Reports, it remains much less popular than Tesla’s Model 3 and Model S. By way of comparison, Elon Musk’s brand managed to sell just under a million vehicles in 2021. For its part, Ford did not exceed the 300,000 sales mark, despite a very good start to sales. the electric Mustang.
While Elon Musk’s company seems to be “the” firm to beat in the automotive world, Jim Fradley reminds us that we must also keep an eye on other more “traditional” manufacturers. This is for example the case of General Motors or the Stellanis alliance which has planned major investments to switch to an electric future.