Sunday, October 2, 2022
News Ford will Not Spin Off its EV Business After All

Ford will Not Spin Off its EV Business After All

Ford denied rumours about a possible EV spin off

  • Rumours said that the automaker would spin off its EV operations in a separate brand

  • The CEO denied these rumours

  • The EV business could be run separately from within Ford

Ford was rumoured to be looking at ways to spin off its electric vehicle operations into a new, standalone brand in order to benefit from the same level of investor enthusiasm as Tesla and Rivian are enjoying, but this is not the case.

Jim Farley, CEO of Ford, recently dismissed these rumours by saying that the automaker has no plans to spin off either its electric or its legacy businesses.

The rumours started when the CEO mentioned he was looking at ways to improve the company’s access to capital, as well as saying that running a successful EV operation is not the same as running a successful company which makes combustion powered vehicles.

In addition, start up automakers who are focused on electric vehicles are all the rage on the stock market, with Tesla being the highest valued automaker ever and Rivian rising to third place, in front of Ford, after having produced only a couple of hundred vehicles. Many legacy automakers who are also working on electrification feel their business is being undervalued and are working on ways to catch the attention of investors by giving more space to their EV business.

Now, rumours are saying that the move might have been cancelled by members of the Ford family, which is still very present in the company, who didn’t feel comfortable splitting up the company founded by their ancestor.

Instead, Ford could proceed to a reorganisation that could see the EV business being run independently from the rest of the car making operations, but still from within the company.

This reorganisation could be fueled by private capital and the CEO is reportedly working on this possibility with Doug Field, who previously lead Apple’s car project after having been Tesla’s chief engineer.

Trending Now

Battery Problems will Lead to a Volkswagen EV Recall

A manufacturing defect has been found in some battery cells This problem affects the ID.4 and the ID.3 Volkswagen estimates this recall to...

Nearly 75% of Potential EV Buyers Still Want the Dealership Experience

The result of the survey is that buyers want both in-person and online shopping options. More than half of those surveyed think the...

Cadillac Lyriq: Deliveries are Paused due to a Recall

The Infotainment screen can fail to boot up in some circumstances. The problem will be fixed by a software update, but owners will...

Rivian Is now Certified by Transport Canada

The automaker had failed to obtain its certification earlier this week. Transport Canada has now cleared the company after receiving the requested documentation ...

The Jeep Wrangler Soldiers on Without the EcoDiesel Engine From Next Year

A final Farout Edition will close order books on the 3.0L diesel engine. The EcoDiesel will no longer be offered with the Ram...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.