Ford's Farley: 'Winning' With EVs Dictates Separating Them For Growth, Profitability, Focus

seekingalpha2022-03-03

SummaryThis auto giant will keep traditional and EV vehicle organizations separate, though they will help one another. No spinoff is needed or planned.Ford Model e division forecast is 2 million EV ...

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Comments

koolgal
2022-03-05
koolgal
Separating the EV division from the ICE division is a brilliant idea for Ford. Let's hope it translates to better profits. Go Ford! 🚀🚀🚀🌙🌙🌙
Squid
2022-03-03
Squid
Good
KCKHOO
2022-03-03
KCKHOO
Ok
Shawrac
2022-03-03
Shawrac
Clean energy. The in-thing!
Looyusooi
2022-03-03
Looyusooi
Ok
JackOATrades
2022-03-03
JackOATrades
Winning Ford tress

Leave a comment

138

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No spinoff is needed or planned.Ford Model e division forecast is 2 million EV ...</p>\n\n<a href=\"https://seekingalpha.com/article/4492365-ford-ev-growth-profitability-focus\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ford's Farley: 'Winning' With EVs Dictates Separating Them For Growth, Profitability, Focus</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFord's Farley: 'Winning' With EVs Dictates Separating Them For Growth, Profitability, Focus\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-03 14:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4492365-ford-ev-growth-profitability-focus><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryThis auto giant will keep traditional and EV vehicle organizations separate, though they will help one another. No spinoff is needed or planned.Ford Model e division forecast is 2 million EV ...</p>\n\n<a href=\"https://seekingalpha.com/article/4492365-ford-ev-growth-profitability-focus\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"F","symbol_name":"福特汽车","start_time":0,"source_url":"https://seekingalpha.com/article/4492365-ford-ev-growth-profitability-focus","article_id":"1136926835","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1136926835","pubTimestamp":1646288049,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"SummaryThis auto giant will keep traditional and EV vehicle organizations separate, though they will","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"F":"福特汽车"},"translate_title":"福特的法利：电动汽车的“胜利”要求将它们分开，以促进增长、盈利和专注","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"F":0.9},"content_text":"SummaryThis auto giant will keep traditional and EV vehicle organizations separate, though they will help one another. No spinoff is needed or planned.Ford Model e division forecast is 2 million EV sales by 2025.Adjusted EBIT margins should increase to 10% by 2026 from current 7.3%.Ambitious reorganization risks the possibility of confusion, fear and stasis in employee ranks as a fresh corporate culture is imposed.Ford Motor Company Reveals First All-Electric Pickup TruckSince Detroit automakers relinquished their domination of the global automobile business decades ago, top executives have torn out their hair trying to streamline and modernize huge organizations to make them more competitive in terms of efficiency, speed and flexibility.Modernize, we mustJim Farley, Ford Motor Co.’s (F) chief executive officer, is the latest to take a stab at it, outlining a broad reorganization of the 118-year-old company. Under his plan, two groups – one dedicated to internal combustion engine models and a second for battery-powered electrics – will operate semi independently. A third group will focus on commercial vehicles, such as delivery vans.False rumors circulating about the possibility of a corporate spinoff of Ford’s EV business might have stemmed from leaked discussions about the internal division that was announced this morning. Farley has stated unequivocally that such a spinoff isn’t in the plan and isn’t necessary because Ford has sufficient resources and capital to develop EVs without a new and separate sale of equity.Ford Blue, the name of the new internal combustion division, is expected to generate cash and profit for a long time, sufficiently supporting EVs, which now require substantial investment, he said.Ford Bronco \"ICE\" model(Ford Motor Co.)“Ford Model e (the EV division) will be Ford’s center of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” Farley said.More black ink“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences. It’s about harnessing a century of hardware mastery to help build the future. This team will be hell-bent on delivering leading quality, attacking waste in every corner of the business, maximizing cash flow and optimizing our industrial footprint.”Farley’s blueprint looks shrewd, at least in conception. Ford and legacy automakers like General Motors Co. (GM), Toyota Motor Corp. (TM) and others intend to develop and sell battery EVs – though they are competing with many, many startups such as Rivian (RIVN), Tesla (TSLA) and others to recruit talented battery and software engineers that all the automakers need to employ. Moving to Detroit to work for strait-laced Ford and being compensated under Ford’s pay plan mightn’t look as attractive to many candidates as a job in Silicon Valley working for a startup, earning stock options – and flexible working conditions, perhaps even being able to bring your dog to work.Bunny, bunnyThough Farley wasn’t specific, Model e will offer more flexibility to offer employment packages designed to snag top prospects. As for odd demands from job prospects, Doug Field – Ford’s chief EV and digital officer with Model e – said he doesn’t care if the right candidate wants to show up for work wearing “bunny slippers.” (Farley will serve as president of Model e – and oversee this cultural shift – in addition to his role as CEO of the corporation.)As for Ford Blue, the division will concentrate on Ford models and brands that run on internal combustion engines such as Ford F150 pickups, Bronco, Mustang, Maverick and Raptor, which require more traditional automotive design and engineering talent.Ford Blue will be tasked to reduce costs on ICE models by $3 billion over the next few years, a key tactic to improving EBIT profitability to 10% from its latest level of 7.3%. Reducing complexity, improving warranty costs, chopping advertising budgets, sharper purchasing of parts and materials will play roles – as will layoffs. The three operating divisions will report their own profit and loss statements, an accounting measure meant to add transparency and to measure performance.Could jealousies and rivalries arise between the two organizations – and slow them down – as they compete for scarce resources, promotions and so forth? Quite possibly. The company’s management skill and organizational psychology will be tested in order to ensure that creative tension among executives doesn’t get out of hand. Internal rivalries at Ford have flared in the past, leading to bickering and management turnover.Dealers keyFarley was careful to reassure franchised retailers that Ford has no intention of ditching or side-stepping its dealer network – in light of the practice of EV startups to distribute vehicles without franchisees and thereby save on costs. Ford is discussing a distribution strategy whereby its dealers will be encouraged to specialize in EVs or commercial vehicles or legacy models – or some combination. Presumably, each option will bring its own set of required investments and commitments to training. Farley wasn’t specific about additional investment or commissions for EVs beyond saying that dealers should be “ready to specialize.”Farley’s comprehensive plan to overhaul Ford operations for the EV and digital age looks to be well thought out, logical and necessary. The stock market loved it, bidding up F more than 8% on Wednesday in a market that was up about 2%. In fairness, F shares had been beaten down in the past few weeks and were looking for a reason to regain some lost ground.Ford Motor share price down from peak(Fidelity)What could wrong? Almost everything. Or nothing. The biggest fundamental risk remains the question around how quickly consumers will migrate to EVs from ICE. Ford’s strategy is to push EVs hard and use the cash from legacy models to keep the ship afloat until the tipping point for EV adoption is reached. Ford is exultant about 200,000 reservations for the Ford Lightning EV pickup, a model whose success will serve as a proof point over the next year to 18 months for whether consumers are as excited about EVs as politicians, regulators, climate scientists, environmentalists and others who have dictated their role in mobility.I could get very excited about F once consumers show they are willing to switch to EVs. For the moment, wait and see how the new culture plays out is the best counsel, which makes me maintain a NEUTRAL rating on shares at their present price.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9031121322,"gmtCreate":1646478056832,"gmtModify":1676534133518,"author":{"id":"3559581955535845","authorId":"3559581955535845","name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":1,"authorIdStr":"3559581955535845","idStr":"3559581955535845"},"htmlText":"Separating the EV division from the ICE&nbsp;division is a brilliant idea for Ford.&nbsp; Let's hope it translates to better profits.&nbsp; Go Ford! 🚀🚀🚀🌙🌙🌙","listText":"Separating the EV division from the ICE&nbsp;division is a brilliant idea for Ford.&nbsp; Let's hope it translates to better profits.&nbsp; Go Ford! 🚀🚀🚀🌙🌙🌙","text":"Separating the EV division from the ICE division is a brilliant idea for Ford. Let's hope it translates to better profits. Go Ford! 🚀🚀🚀🌙🌙🌙","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9031121322","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9033565401,"gmtCreate":1646317935243,"gmtModify":1676534116422,"author":{"id":"4101354765322210","authorId":"4101354765322210","name":"Squid","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"4101354765322210","idStr":"4101354765322210"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9033565401","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9033276061,"gmtCreate":1646300237663,"gmtModify":1676534114460,"author":{"id":"4097285050099240","authorId":"4097285050099240","name":"KCKHOO","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4097285050099240","idStr":"4097285050099240"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9033276061","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9033249143,"gmtCreate":1646296225352,"gmtModify":1676534114137,"author":{"id":"4096363831830380","authorId":"4096363831830380","name":"Shawrac","avatar":"https://community-static.tradeup.com/news/4b57d6b0577b4a1a6c2ad29fb9cfe92f","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"4096363831830380","idStr":"4096363831830380"},"htmlText":"Clean energy. The in-thing!","listText":"Clean energy. The in-thing!","text":"Clean energy. The in-thing!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9033249143","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9033251186,"gmtCreate":1646293098349,"gmtModify":1676534113833,"author":{"id":"4100437715079400","authorId":"4100437715079400","name":"Looyusooi","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4100437715079400","idStr":"4100437715079400"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9033251186","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9033225480,"gmtCreate":1646291569535,"gmtModify":1676534113703,"author":{"id":"3578225630518844","authorId":"3578225630518844","name":"JackOATrades","avatar":"https://static.tigerbbs.com/a864e0513924ced47472353efa85e296","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3578225630518844","idStr":"3578225630518844"},"htmlText":"Winning Ford tress","listText":"Winning Ford tress","text":"Winning Ford tress","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9033225480","repostId":1136926835,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":138,"commentSize":12,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1136926835"}