Ford is to split into distinct electric vehicle and internal combustion businesses in a move to scale its EV work and strengthen operations.

Ford said the move creates distinct electric vehicle and internal combustion businesses poised to compete and win against both new EV competitors and established automakers

The move will create a Ford Model e division that will accelerate innovation and delivery of breakthrough electric vehicles at scale, and develop software and connected vehicle technologies and services for all of Ford.

This will be completed by the Ford Blue division, which will build out the carmaker’s portfolio of ICE vehicles to drive growth and profitability. This side of the business will also provide hardware engineering and manufacturing capabilities across all vehicles.

Ford said the split into two distinct units would enable it to spearhead developments in electric and digitally connected vehicles and services while capitalising on the company’s ICE background.

The restructuring will also help drive its EV targets; it’s pledged to have more than two million electric vehicles produced annually by 2026, representing about a third of Ford’s global volume, rising to half by 2030 – up from the 40% cited last year. In addition, Ford expects to spend $5bn (£3.7bn / €4.5bn) on EVs in 2022, including capital expenditures, expense and direct investments; a two-fold increase over 2021.

In Europe, Ford has already pledged for its passenger vehicle range to go all-electric by 2030, while two-thirds of commercial vehicle sales are expected to be all-electric or plug-in hybrid by 2030.

Explaining the restructure, Ford president and CEO Jim Farley, said: “Ford Model e will be Ford’s centre of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers.

“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences. It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximising cash flow and optimising our industrial footprint.”

Ford Model e and Ford Blue will also support Ford Drive mobility and will operate alongside the Ford Pro standalone global commercial vehicle business launched last year; all three will accelerate the Ford+ plan, announced in May 2021 and created to unlock growth and create value for Ford’s shareholders.

“This isn’t the first time Ford has reimagined the future and taken our own path,” said Ford executive chair Bill Ford. “We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.”

Ford has also reiterated its commitment to achieve carbon neutrality by 2050, and to use 100% local, renewable electricity in all of its manufacturing operations by 2035.