(Reuters) – Ford Motor Co said on Wednesday its electric vehicle (EV) and internal-combustion engine (ICE) units would be run as separate entities, in a move aimed at supercharging its EV business as it plays catch up with Tesla Inc.
Reuters reported on Tuesday that although Ford was planning to separately run the two businesses, it would keep them under its corporate umbrella.
Automakers around the world, including General Motors and Volkswagen Group, are spending billions of dollars to electrify gasoline models and introduce electric cars to fight for market share with Elon Musk’s Tesla and a number of other electric-only startups.
Brokerage Wedbush estimates the EV market could be worth $5 trillion over the next decade.
By separating the EV business into a separate unit, Ford would be setting the table for a possible spinoff down the road, industry officials said.
Ford Chief Executive Jim Farley said last week that his management team believes the automaker’s EV and ICE businesses are underperforming on an earnings basis.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Anil D’Silva)
