Ford Reaffirms 2022 Adj. EBIT Guidance; To Form Model E And Ford Blue Businesses

(RTTNews) - Ford (F) reaffirmed guidance for 2022 adjusted EBIT of $11.5 billion to $12.5 billion. The company noted that the high end of the range equates to a margin of 8% which, if achieved, would be one year earlier than previous target.

Ford raised its longer-term operating and financial targets. The company now targets adjusted EBIT margin of 10% by 2026, a 270-basis-point increase over 2021. It also expects more than 2 million electric vehicles produced annually by 2026, representing about one-third of Ford's global volume, rising to half by 2030. The company expects to spend $5 billion on EVs in 2022, including capital expenditures, expense and direct investments, a two-fold increase over 2021.

Ford also announced the formation of two distinct, but strategically interdependent, auto businesses - Ford Blue and Ford Model e - together with the new Ford Pro business. Ford Model e will develop the key technologies and capabilities - such as EV platforms, batteries, e-motors, inverters, charging and recycling - to create breakthrough electric vehicles. Ford Blue will strengthen the iconic Ford vehicles with investments in new models, derivatives, experiences and services.

The company said Ford Blue and Ford Model e - together with the new Ford Pro business, will help unleash the full potential of the Ford+ plan. Ford Pro will deliver a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support on Ford and non-Ford products.

Farley will serve as president of Ford Model e, in addition to his role as president and CEO of Ford Motor Company. Doug Field will lead Ford Model e's product creation as chief EV and digital systems officer. Kumar Galhotra will serve as president of Ford Blue. Thai-Tang will lead Ford's industrial platform as chief industrial platform officer.

Ford reiterated its commitment to achieve carbon neutrality by 2050. The company will use 100% local, renewable electricity in all of its manufacturing operations by 2035.