Ford announced plans this week to separate it internal combustion engine and electric vehicle businesses in a bid to improve profits. It plans to invest $68 billion dollars in the development of electric vehicles under a new Ford Model e business structure whilst renaming its internal combustion engine division Ford Blue.

The Ford Motor Company estimates that electric vehicles will represent 30 per cent of its global sales within five years and 50 percent by the end of the decade. In announcing the new forecast Ford has boosted investment in the electric vehicle business by a further $27.4 billion dollars, on top of the 41.1 billion already committed to electric vehicle development last year.

In splitting the two businesses Ford is making wide ranging changes to its dealer network – selling electric vehicles under an agency agreement, with dealers not carrying any stock inventory and selling at non-negotiable prices.

I’m David Berthon.

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