Dive Brief:
- Ford Motor Co. has established a new end-to-end “Product Creation and Industrialization” unit that will work to deliver what it calls one of the most intensive product, software and services rollouts in company history, the automaker announced in a press release.
- By 2030, 90% of Ford’s vehicles by volume will feature updated electrical architectures, in-house-developed hardware, continuous over-the-air software capabilities and improved customer experiences and services, per the release.
- The new organization integrates Ford’s Electric Vehicle, Digital and Design team with its global Industrial System and will be led by COO Kumar Galhotra. “The progress our teams have made in the past few years – from quality and cost to software delivery – has fundamentally reshaped the way we work and positioned Ford for a new era,” said Galhotra in a statement.
Dive Insight:
Ford said its Advanced Electric Vehicle Development team and its “skunkworks” team tasked with designing an affordable, mass-market electric truck has been highly effective, and now the company aims to scale the development model globally and adopt it for future electrified vehicle programs under the new unit.
The Universal Electric Vehicle platform developed by Ford’s skunkworks team features a fully zonal architecture with in-house software controls and advanced driver assist systems that support a wide range of vehicle types and battery chemistries. Ford said the software-based vehicle architecture enables the rapid rollout of the BlueCruise automated driving system and the Ford Digital Experience.
The new Product Creation and Industrialization organization will work to combine these technology breakthroughs with engineering, purchasing and manufacturing. Ford said the unit will be key to achieving an 8% adjusted EBIT margin by 2029.
Alan Clarke will continue to lead Ford’s skunkworks team as Executive Director of Advanced EV Development and was promoted to VP, Advanced Vehicle Development Projects.
“The progress our teams have made in the past few years — from quality and cost to software delivery — has fundamentally reshaped the way we work and positioned Ford for a new era,” Galhotra said in a statement. “By uniting advanced technology with industrial execution, we can make decisions faster, eliminate complexity and deliver great vehicles and digital experiences with the quality and efficiency our customers and shareholders expect.”
Ford also targets a major revamp of its global vehicle portfolio under its Product Creation and Industrialization unit. The automaker aims to refresh 80% of its North American portfolio and 70% of its global portfolio by volume in 2029. New vehicles planned include the first midsize pickup built on its UEV platform, a next-generation F-150 and F-Series Super Duty.
The automaker said its UEV platform development has led to innovations such as more efficient electric motors that will improve the automaker’s future hybrid vehicles. Ford said roughly 90% of its global models will offer electrified powertrains by 2030, including hybrids, extended-range electric vehicles and fully electric vehicles.
“This is the culmination of years of work and progress to create the modern Ford – a talented, unified organization capable of scaling high-quality, software-defined vehicles with a choice of propulsion, distinctive digital experiences and features, and a personalized ownership experience that improves over time,” said Jim Farley, Ford president and CEO, in a statement.
As part of the reorganization, Doug Field, who joined Ford nearly five years ago from Apple and led the development of the Model 3 at Tesla, has elected to leave the company next month, according to Ford. It said in the release that Field helped foster collaboration between the company’s Electric Vehicle, Digital & Design and Industrial System teams that made the integration of the two units possible.
“Doug has been an invaluable partner for me as CEO and helped Ford find its place in this new era of electric propulsion and software-defined vehicles,” Farley said in a statement.
Also departing is Kieran Cahill, Ford VP, manufacturing, Europe and IMG, who is retiring effective May 1 after a 37-year career at the automaker.
