iNDICA NEWS BUREAU-
The American auto manufacturer, Ford has decided to split its electric vehicle and internal combustion operations into two individual businesses to accelerate its adaptation of new technology.
On Wednesday, the Detroit automaker said that this move is a part of its transition into a major EV company, and its plan includes two distinct, but strategically interdependent, auto businesses – Ford Blue focusing on traditional combustion engines and Ford Model e, which will develop electric vehicles.
During the announcement of its new business model, Ford named the Punjab-born Kumar Galhotra as its global president of the non-electric automobile business which clocks annual revenues in excess of over $100 billion.
Before this role, the India-born Galhotra was president of the company’s Americas & International Markets Group.
“We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model e together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about,” said CEO Jim Farley, who will head the electric vehicle division.
“Ford Blue will provide hardware engineering and manufacturing capabilities for the entire company,” the report said. Both divisions will be run out of Dearborn, Michigan, “the automaker’s longtime home,” the report added.
Galhotra has worked at Ford for nearly 34 years now, and will be reporting to Ford’s president and CEO Jim Farley.
Since joining the company in 1988, the 55-year-old has served in various positions in product development and product strategy and has risen in the ranks. He most recently served as president, North America, leading all aspects of Ford’s North American business, a position he was named to in 2018.
Before that, he was group vice president, Lincoln and chief marketing officer for Ford Motor Company, a position he was named to in 2017. He also led the company’s Marketing function and efforts to connect more closely with customers by identifying new opportunities to serve them. His focus included shifting investments towards product categories that played to the company’s strengths and developing more effective brand communications including digital services, mobility and autonomy.
The Detroit Free Press described Galhotra as “down-to-earth, but a big-deal executive hiding in plain sight.”
In a profile on Galhotra, The Detroit Free Press described him as “down-to-earth, but a big-deal executive hiding in plain sight.”
Before Lincoln, Galhotra was vice president, Engineering, a position he assumed on Aug. 1, 2013. In this global role, Galhotra was responsible for the engineering of all cars, trucks, SUVs and crossover vehicles for Ford and Lincoln brands. Galhotra became vice president, Product Development for the Asia Pacific and Africa in 2009. He was appointed a corporate officer on June 1, 2012.
“We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model e together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about,” said CEO Jim Farley, who will head the electric vehicle division.
Ford expects to have more than 2 million electric vehicles produced annually by 2026, representing about a third of its global volume. It anticipates electric vehicles comprising half its global volume by 2030.
Farley, in addition to heading Ford Model e, will continue as CEO of Ford Motor Co. The president of Ford’s Americas & International Markets Group, Kumar Galhotra, will become president of Ford Blue.
“We are going to be hyper-competitive on costs and make quality a reason to choose Ford,” Galhotra said.
“And by doing all that, Ford Blue will be an engine of cash and profitability for the whole company.” Shares of Ford rose more than three percent before the opening bell.