Ford Motor Co. on Wednesday announced a new industrial structure to support its growth plan.
The moves, which include the creation of two new operational organizations and new roles for several executives, cap the organizational changes the Dearborn automaker has been making over the last few years under CEO Jim Farley. Those previous moves include the launch of the Ford+ growth plan and divvying the company up into business units based on customer groups.
“These moves will drive clarity and simplicity across Ford, so we can significantly ramp up our capabilities and combine them with businesses that are focused on the needs of different customers,” Farley said in a statement. “We’re changing how we work to give those customers experiences that go way beyond their expectations, while maximizing quality, minimizing costs and stamping out complexity everywhere.”
Kumar Galhotra, who had been leading Ford Blue, the business group dedicated to Ford’s internal combustion engine and hybrid vehicle business, will step into the revived role of chief operating officer, which most recently had been filled by Farley before he took over as CEO in October 2020.
As COO, Galhotra will have responsibility for the company’s global industrial system, including all global vehicle engineering and cycle planning, ICE and hybrid programs, supply chain management, and vehicle manufacturing for all of the business units.
Meanwhile, Doug Field — a former Apple and Tesla engineer who joined Ford two years ago— will serve as chief EV, digital and design officer. His organization will be responsible for developing EVs and creating digital platforms and software for the automaker’s entire product lineup. Field also will lead Ford’s vehicle and digital design studios.
Andrew Frick will succeed Galhotra as the head of Ford Blue. Most recently, Frick managed sales and distribution for Ford Blue; trucks, SUVs and enthusiast vehicles; and operations in Mexico and Canada.
In announcing the changes, Ford also noted the role of Peter Stern, who joined the company in August from Apple to head up an integrated services business unit. His team is tasked with creating “high-value” software-enabled services.
“We now have the right people with the right talent in the right places to give our customers products, services and value they can’t get anywhere else,” Farley said.
The new industrial structure is aimed at putting the final pieces in place to achieve the goals Ford executives laid out in detail at the automaker’s Capital Markets Day in May.
At that event, executives detailed their plan to break out of the pattern of cyclical boom-and-bust cycles, thin profit margins and low valuation by Wall Street that has typically characterized the auto sector.
Farley and his team unveiled the Ford+ plan in May 2021. A year later, they announced a major internal restructuring around business units that reflect key customer segments: Ford Model e, dedicated to EVs and software; Ford Pro, focused on commercial customers; and Ford Blue, the home of internal combustion engine and hybrid vehicles. The latter two are the profit drivers of the company as EVs lose money amid the automaker’s ramp-up.
Ford Blue, Ford Pro and Ford Model e will continue to represent the financial reporting structure of the company. Ford is scheduled to report its third-quarter earnings Oct. 26.
___
© 2023 www.detroitnews.com
Distributed by Tribune Content Agency, LLC.
