DETROIT, Feb 23 (Reuters) - Ford Motor Co (F.N) has no plans to spin off its electric vehicle or gasoline-powered vehicle businesses, Chief Executive Jim Farley said on Wednesday.
“We have no plans to spin off our electric business or our ICE business,” Farley said at a Wolfe Research conference appearance that was webcast, using an acronym for internal-combustion engine.
Farley said on Wednesday that his management team believes the U.S. automaker’s EV and ICE businesses are underperforming on an earnings basis.
March 2, 2022
NEW YORK – Ford will split its electric vehicle and internal combustion operations into two individual businesses to accelerate its adaptation of new technology and the Detroit automaker said Wednesday that its transformation into an EV company is accelerating.
Ford plans a major restructuring with two distinct but strategically interdependent auto businesses – Ford Blue focusing on traditional combustion engines and Ford Model e, which will develop electric vehicles.
Both divisions will be run out of Dearborn, Michigan, the automaker’s longtime home. Each will book its profits and losses individually.
I think someone speculated here a week or two ago that the plan will end up being an IPO for a bit of the EV stock, while Ford retains the bulk of it, and splitting the P&L reporting, to take the EV investments off Ford’s income statement to juice profits, while Ford inflates the value of it’s EV division to Tesla levels, to reduce it’s apparent debt load.
And, Farley has provided another example of why to never believe what a CEO says in public.