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E.V. operations will focus on technology and growth while the traditional business continues to chase profits. “You can’t have people work on both at the same time,” the chief executive said.
Ford Motor has decided the best way to make the transition to electric vehicles is to transform itself first.
On Wednesday, the automaker said it had reorganized its auto operations into two distinct businesses — one that makes its gasoline-powered vehicles and focuses on maximizing profits and another that develops and ramps up production of electric models and aims for rapid growth.
Ford’s chief executive, Jim Farley, said in an interview that the two businesses required different skills and mind-sets that would clash and hinder each area if they remained parts of one organization. “You can’t be successful and beat Tesla that way,” he said.
Sales of battery-powered cars are rising rapidly, a trend that Mr. Farley and other auto executives see as the industry’s biggest disruption since Henry Ford introduced mass production and the Model T in 1908. Ford, General Motors, Toyota, Volkswagen and other traditional manufacturers are spending tens of billions of dollars to field new models, build battery plants and develop new technologies that Tesla has pioneered, such as advanced driver-assist systems and over-the-air software updates.
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