Ford splits its business into two separate companies
There is not a day that goes by in the world without some news of electric cars, and recently the century-old company Ford has decided to divide its company into two independent business units.
And those business units have been called Ford Blue , which is going to continue manufacturing cars with fuel engines; and Ford Model E that is going to manufacture all electric cars.
Because today Ford’s business, like that of all “old” automobile companies, is based on the sale of cars with fuel engines, and they need the money they get to support the enormous investments required for new electric cars.
The appearance of Tesla and its worldwide success manufacturing in the USA, Asia and Europe, and delivering more than a million cars a year, has revolutionized the entire market; and each company adapts to the new reality as best it can.
All the companies say they are turning to the electric car, but their benefits are still obtained with conventional gasoline cars. The electric car is a great consumer of economic resources, although we see that in the market there is a lot of money decided to invest in companies with new non-polluting ideas.
The strategy that Ford has just announced is one more, and it may or may not work.
The main problem is that one of the business lines (Ford Blue) has a downward future to end up disappearing in little more than 10 years, and despite what its leaders say, it does not motivate the staff very much. Nobody likes to be in a company that they know is going to disappear.
To make the situation a little more difficult for the workers who remain in the “old” part of the business, Ford Blue has announced a reorganization to save 3 billion dollars, and thus be able to help with the large costs of new investments needed at Ford. Model E
Those who win are put under pressure so that they earn a little more, and the future of their work is not at all certain. But that is the world of business.
In the case of other companies such as Honda and Sony they have announced that they are coming together to jointly form a new Company dedicated to developing, producing and selling electric cars. They want to start selling them in the year 2025.
Honda dominates car manufacturing, and Sony electronics, computers, and software. They are complementary to go together to this new market, and the results are yet to be seen.
No company has its future assured and all of them have to “reinvent” themselves to try to continue being in the market, and more so in this one that is “new” and different from the current one.
Ford tries it with this new reorganization and it remains to be seen if it will be successful. But at least they try, and that must be recognized.