F$ Will Split EV & Legacy Into Two Units


* Ford will reorganize operations to separate its electric and internal-combustion engine businesses into separate units within the automaker.

* The company expects the move will streamline its growing electric vehicle business and maximize profits.

* “We’re going all in,” Ford CEO Jim Farley said in a statement announcing the changes.

* The company plans to breakout financial results for the new units as well as its Ford+ business by 2023, giving investors greater transparency into the operations.



“This announcement is another encouraging proof point of action in the company’s Ford+ Strategy outlined earlier this year, and adds to a list of positive announcements made by the company in recent months, including plans to double production capacity of the F-150 Lighting and its joint investment with SK Innovation to create EV plants,” Bank of America auto analyst John Murphy said in a note. “Sometimes two is better than one with a shock to the system.”

Murphy reiterated his Buy rating on Ford and $30 price target, assuming 67% upside from current levels.