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| Ford plans to spend $50 billion on electric cars |
Ford said it will increase spending on electric vehicles to $50 billion by 2026, up from $30 billion previously.
The company said it would split into two separate but strategically linked auto companies called Ford Blue and Ford Model E to accelerate the development of electric vehicles.
While Ford Blue powers all vintage cars with internal combustion engines, the Ford Model E marks its push into electric cars with products like the Mustang Mach-E and Ford F-150 Lightning.
The electronics division, which operates separately from its previous combustion engine business, wants to catch up with Tesla.
The restructuring and additional investments come at a time when the CEO is making strong bets on the company's energy strategy.
Ford plans to produce more than two million electric cars in 2026, about a third of its annual global production, and by 2030 electric cars will make up 50% of its total production.
Doug Field, the former CEO of Tesla and Apple, drove the Ford Model E electric car and led the company's digital systems division.
Works at Tesla. But in 2018, he joined Apple to work on Project Titan, a self-driving electric car.
Field is responsible for product development on the Ford Model E, as well as software and systems built into both units.
Ford's president and CEO Jim Farley is also president of Ford's Model E. Kumar Galhotra, president of Ford Americas and International Markets Group, and president of Ford Blue.
In addition to product development, the new chassis solves another problem that many electric vehicles sell to customers.
Ford Model E pushes its customers to create a new shopping, buying, and ownership experience in the future of electric vehicles, including a simple e-commerce platform, transparent pricing, and customized Ford Ambassador customer support.
Ford Model E is all about electric cars
Ford Model E takes a new approach to designing, building and delivering electric vehicles with a connected, always-on experience. My approach fundamentally changed Ford's internal structure and the way local dealerships operated.
Electric vehicle-focused companies such as Tesla continue to dominate sales in this segment. But well-established automakers are offering up catch-up plans.
Stellantis has shared images of an electric Jeep and revealed plans for Dare Forward 2030 to deliver on its promises of electrification and software. GM also said it will invest $35 billion in building electric and self-driving cars by 2025.
The automaker also plans to reduce fuel costs by $3 billion over the next four years.
Additionally, the program allows the Ford Model E to attract top talent in software, engineering, design and user experience.
In addition, the company will invest $5 billion in electric vehicles in 2022 alone, and profits and losses will be shared between the two companies starting next year. The electronics division is expected to be profitable over the next four years.