Why Did Ford Restructure Itself?
By next year, Ford fans will have to choose between buying their new cars from Ford Blue, Ford Model E, or Ford Pro. What inspired the change?
Starting in March,
Ford
has begun reforming its operations. Moving forward, the legendary American automaker will divide into three branches. Cars with internal combustion engines (ICE) will be offered through Ford Blue, EVs and digital products will be made under the “Ford Model E” name, and fleet vehicles, telematics, and solutions will fall under the “Ford Pro” banner.
What does the auto giant plan to get from this restructuring? A leg up on their fastest-growing competitor
Tesla
, for one thing. Customer experience from the new kid in town has Ford beat in the first three years of ownership.Jerry
took a closer look to see just how Ford plans to use its three new divisions to make itself more efficient and user-friendly for customers.Introducing Ford Blue, Ford Model E, and Ford Pro
Ford plans to develop, build, and sell their vehicles through these three separate branches, even to the point of creating separate dealership networks for each of them. By February 2023, Ford Blue dealers won’t have access to electric models and vice versa.
The move to split itself into three might seem counterproductive from the outside, but a few details help clear things up.
First off, the law mandates that ICE vehicles be sold through
car dealerships
. That puts Ford’s EVs at a disadvantage to all-electric brands like Tesla who can sell their products online and deliver them straight to consumers.Forcing dealers to choose between Blue, Model E, and Pro also helps turn sales staff into true experts in the types of vehicles they sell, thereby improving overall customer experience.
Each branch’s Ford models
Ford’s lineup is long and wide. The company offers almost any kind of street-legal, four-wheeled vehicle you can think of. Most of them are still ICE-powered—but with the automaker’s goal of being 50% electric by 2030, its pace in the
EV race
is expected to grow fast.Right now, the gas vehicles Ford Blue will focus on include the brand’s long list of crossovers and SUVs like the Expedition, Eco Sport, and Bronco, sports cars like the Mustang and then GT, and pickup trucks of all sizes, from the F-Series models to the Ranger and Maverick.
In the EV department, options are still pretty thin. As of the writing of this article, the Mustang Mach-E is still the only fully electric model available. But within the next few months, the
F-150 Lightning
is expected to drop. Electric Explorers and E-Transit cargo vans will soon follow.Will Ford’s new structure affect car insurance?
In terms of ownership costs, consumers can set their minds at ease. Ford’s new branches won’t directly affect the prices of the automaker’s vehicles in any way. In fact, the improvements to efficiency might create savings for the company that could be passed on to its customers.
The increased number of electric vehicles might raise average rates for
car insurance
, but whatever change that makes would’ve happened regardless of the way Ford sold its EVs. Drivers shouldn’t see rates move much from the brand’s $1,700 annual average.$1,700 a year for car insurance might seem like a lot, but you don’t have to get stuck paying that to cover your Ford if you shop for car insurance with Jerry.
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