Ford Motor Co. on Wednesday will announce a reorganization under which its electric and internal-combustion engine (ICE) businesses will be run separately in a move meant to allow the EV business to maximize profits and move with greater speed, three people familiar with the plan told Reuters.
The EV and ICE businesses will remain under the Ford corporate umbrella, similar to the way the company operates its Ford Pro commercial business, said the people, who asked not to be identified.
The U.S. automaker will name executives to lead each business, which will have separate names, and Ford also will outline updated profit margin targets for the company overall, the sources said. The idea is for Ford to eventually report separate financial results for the EV and ICE businesses, one of the sources said.
Ford spokesman T.R. Reid declined to comment on the report.
“We’re focused on carrying out our Ford+ plan to transform the company and thrive in this new era of electric and connected vehicles,” he said.
In response to reports Ford was weighing a full spinoff of its EV business, CEO Jim Farley last week said the company had no plans to spin off either its EV or ICE businesses.
