Ford Disbands Electric Vehicle Division

[Corporate Strategy] Ford has announced the dissolution of its standalone electric vehicle division, Model e, integrating it into the newly established Product Creation and Industrialization division.

Key Development: Moving Away from Internet-Style EV Thinking Toward Profit-First Approach

Ford has officially terminated its independently operated Model e division, merging its electrification, digital, and design teams into a new end-to-end organization led by Chief Operating Officer Kumar Galhotra. Doug Field, former Tesla executive who spearheaded the transformation for nearly five years, will depart the company in May.

Strategic Rationale: Shifting from Aggressive Expansion Back to Manufacturing and Hybrid-Electric Parallel Strategy

In 2021, Ford had planned to invest $30 billion in electrification and set a target for 40% of its global vehicle sales to be fully electric by 2030. The company is now adopting a more pragmatic approach, emphasizing a dual-track strategy of hybrids and battery-electric vehicles, manufacturing-led execution, and a profit-first priority, signaling a broader retreat from the earlier EV boom among traditional automakers.