Ford’s stock market rose today after reports emerged CEO Jim Farley and the rest of the brand’s management is considering EV allocations. This move could potentially provide the market with an easier way to evaluate each side of the business, but at the same time it seems that we are very far from a final solution.
The message comes from Bloomberg, where they say insiders at Ford have confirmed ongoing talks about the brand’s future. Options include remaining a separate company, separating the automaker’s EV section into a new organization, or perhaps even separating the internal combustion sector under a new name.
For what it’s worth, Jim Farley himself said Bloomberg, “We are focused on our Ford + plan to transform the company and succeed in this new era of electric and connected vehicles. We have no plans to separate our business with rechargeable electric vehicles or the traditional ICE business. ”So while this sounds like a quick and firm denial, it also clarified the difference between the two sides of the business.
Related: Ford is hiring former Tesla engineering director Alan Clark
“Running a successful ICE business and a successful BEV business are not the same thing,” Farley said. “I’m very excited about the company’s commitment to doing business the way it should be.”
It is clear that each side of the equation will require some very specialized research and development, so the split does not sound completely wild. Ford is also doing its best to increase production after being overwhelmed by EV orders.
This could potentially open up space for a more accurate assessment of Ford’s EV business model side. So far Tesla is experiencing a big price boom, Ford and GM did not enjoy the same share growth. If Ford had had a special EV unit, it could have received such treatment without hitting traditional business too hard.
Bloomberg also reports that three members of the Ford family, who are members of the council, could be an obstacle to the implementation of the plan. They also say it is plausible that Ford internally shares production and keeps everything under one name. Only time will tell. Do you think Ford should create a new brand?
Ford is rumored to be thinking of separating the EV Spin-Off, and the stock market is responding
Source link Ford is rumored to be thinking of separating the EV Spin-Off, and the stock market is responding