Ford rallies after confirming plan to split electric business from ICE business
Mark_KA/iStock Editorial via Getty Images

Ford Motor (NYSE:F) confirmed a plan to create distinct electric vehicle and internal combustion businesses.
Ford Blue will build out company's portfolio of ICE vehicles with a goal to drive growth and profitability, while Ford Model e is said to be aimed at accelerating innovation and delivering breakthrough electric vehicles at scale while developing software and connected vehicle technologies.
The Detroit automaker believes that the formation of two distinct, but strategically interdependent, auto businesses will help unleash the full potential of the Ford+ plan, driving growth and value creation and positioning Ford to outperform both legacy automakers and new EV competitors.
âWe have made tremendous progress in a short period of time. We have launched a series of hit products globally and demand for our new EVs like F-150 Lightning and Mustang Mach-E is off the charts," noted CEO Jim Farley.
"But our ambition with Ford+ is to become a truly great, world-changing company again, and that requires focus. 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 Blueâs industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about," he added.
Ford (F) also reaffirmed guidance for 2022 of $11.5B to $12.5B in company adjusted EBIT. Looking much further ahead, Ford (F) reiterated its commitment to achieve carbon neutrality by 2050, and to use 100% local, renewable electricity in all of its manufacturing operations by 2035.
Shares of Ford (F) rose 2.10% in premarket action to $17.05. General Motors (NYSE:GM) gained 0.79% and Tesla (NASDAQ:TSLA) was 0.77% higher.
Compare Seeking Alpha Quant Ratings across the auto sector.