Ford Restructures Into Three Divisions Under the Ford+ Strategy

On 02/03/2022, Ford Motor Company announced a major restructuring of its automotive operations as part of CEO Jim Farley’s “Ford+” growth strategy, creating three separate business divisions focused on electric vehicles, gasoline-powered vehicles, and commercial services. The restructuring was introduced to help the company accelerate electric vehicle development while continuing to generate profits from its established internal combustion business and expand its commercial operations. Under the new structure, Ford created Ford Model e to lead electric vehicle and software innovation, Ford Blue to manage traditional gasoline and hybrid vehicle operations, and Ford Pro to oversee commercial vehicles, fleet services, and related software solutions. Jim Farley described the arrangement as a way to combine the speed and flexibility of a startup with the manufacturing scale and industrial experience of a long-established automaker. The company stated that the divisions would operate with distinct leadership teams and individual profit and loss reporting structures. Ford said the restructuring was intended to support ambitious electric vehicle production targets, including plans for electric vehicles to represent a significant share of global output by the end of the decade. The company also increased investment commitments for EV development and battery production during this period. Ford executives emphasized that profits from Ford Blue would help fund the transition toward electric mobility and connected vehicle technologies. The restructuring reflected broader changes across the global automotive industry as manufacturers faced increasing competition in electric vehicles from companies such as Tesla and emerging Chinese automakers. In later interviews, Jim Farley stated that studying competing EV platforms influenced Ford’s decision to reorganize and accelerate development efforts inside the Model e division. Why This Moment Matters : Ford’s 2022 restructuring marked one of the company’s largest operational reorganizations in years and highlighted how legacy automakers were adapting to the growing shift toward electric and software-focused vehicles. The move also demonstrated Ford’s effort to balance investment in future technologies while maintaining profitability from its traditional vehicle business.