As it is trying to scramble up resources and keep going, Ford Motor Company has announced the decision to shut down its Model e department responsible for electric vehicle development. Founded around four years ago, it proceeded to accrue 4.8 billion in debt in 2025, with a pessimistic outlook extending to the current year.
Back in 2022, Ford attempted a split into two nominally independent companies: the combustion-car-focused Ford Blue and the EV-focused Model e. The latter division was headed by Doug Field, ex-Tesla executive who also helped Apple design its own electric vehicle that eventually got scrapped before it could reach mass production.
However, the EV market started stagnating in 2023, and the company started accumulating losses due to its poorly conceived EV product strategy. As he attempted to straighten up his business, Ford CEO Jim Farley ended up cancelling multiple EV projects mid-development, essentially leaving the Model e division without work to do.
It’s now become official that Blue and Model e both get scrapped, and a new structure called Product Creation and Industrialization (PC&I) is coming to replace them. It will handle the development of both traditional ICE cars and EVs through all stages from conceptualization to delivery. As for Doug Field, he will have to start looking for new employment opportunities.
Over the next four years, the Blue Oval plans to refresh 80% of its U.S. product portfolio and up to 70% of its global vehicle lineup. Full electrification is no longer mentioned in the company’s strategy for any given region, even the EV-friendly Europe.
