Model e, a new business entity within Ford dedicated only to electric vehicles, is doubling down on ambitions to fight with Elon Musk’s Tesla, General Motors, and other worldwide rivals in the battle to dominate the fast-moving electric car industry. The stock’s growth implies that investors and analysts agree that this is a wise decision.
Current and future battery-powered products, such as the Mustang Mach-E crossover and F-150 Lightning pickup truck, will be overseen by the new Ford Blue unit, while the 118-year-old manufacturer’s gasoline, diesel, and hybrid models will be overseen by the new Ford Blue unit, according to CEO Jim Farley.
Doug Field, a former top engineer at both Tesla and Apple, will drive Model e’s product development as the company’s chief electric vehicle and digital systems officer. He is also in charge of Ford’s software and embedded system development. “Model e will be Ford’s hub of innovation and development,” Farley said on Wednesday, “with a team of the world’s top software, electrical, and automotive talent unleashed to produce really remarkable electric vehicles and digital experiences for future generations of Ford consumers.”
The Dearborn, Michigan-based carmaker plans to invest $5 billion in 2022 to expand its ability to create electric vehicles, as well as the battery packs, motors, and other crucial components they’ll require.
Farley has stated that Ford is rushing to quadruple production of the fast-selling Mach-E, a competitor to Tesla’s Model Y, to 80,000 units in 2022, and to increase yearly output of the F-150 Lightning to 150,000 trucks from an earlier target of 80,000 trucks. Hundreds of thousands of the battery-powered trucks have been ordered, according to Ford.
Musk’s plan for a vehicle line that spelled out SEXY was thwarted by Ford, which began its business over a century ago with the Model T. In 2014, Ford blocked Musk’s attempt to use the Model E name for a Tesla vehicle, thwarting the billionaire entrepreneur’s plan for a vehicle line that spelled out SEXY. Tesla, on the other hand, introduced the Model 3 in late 2017. Ford previously moved its commercial vehicles to the Ford Pro unit, with Farley’s Ford+ strategy guiding all three business lines.