Ford to Split Company into Seperate EV and ICE Businesses

    Photo: Brittany Greeson [via The NYT]

    The Facts

    • Ford is planning to split its business into two units: Ford Blue for gas powered vehicles and Ford Model E for new electric models.

    • The two units will continue to exist under the same corporate umbrella, a move that goes against the advice of analysts who proposed spinning off electric vehicle production as a separate company.


    The Spin

    Narrative A

    Ford's decision may cost them. Auto analysts believe they will find it more difficult to hire top-tier talent and risk upsetting dealers, whose margins have already been hurt by the shift to electric.

    Narrative B

    This move is a focus on innovation over profits in the short-term. But Ford seems to be making a sensible market decision, as their stock jumped by as much as 9% after the plan was unveiled.

    Narrative C

    The not-quite split of the companies is an unhappy middle path. If the growing trajectories and margins in EV markets hold, Ford will have to make a stronger commitment to battery-powered vehicles in the future.

    Nerd narrative

    The Metaculus community predicts that 88% of US car sales in 2050 will be all-electric.


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