The Chief Executive of Ford is apparently looking at ways to divest his electric vehicle operation from the legacy car making business in a bid to earn “investor respect” that has led to Tesla’s value being so high.
Automotive News Europe has spoken to people familiar with what’s going on who say Jim Farley wants to “wall off” Ford’s electric operations from its internal combustion engine business and has even considered spinning off one or the other.
It says a spinoff could generate the kind of earnings multiples that have given Tesla a market value approaching $1 trillion (just under £750 billion).
It says completely splitting the two businesses may prove too difficult, so Mr Farley instead may simply separate the EV business internally as its own unit as part of a broad reorganisation that seeks to give Ford “an edge in the electric age”.
(Picture – Ford)