Ford CEO Jim Farley sent a big message to investors on Wednesday at its capital markets day: It's an EV company first.
"Our legacy business has been holding us back," Farley said on a livestream presentation to media and analysts.
The auto giant announced it would create two distinct internal teams: Ford Blue and Ford Model e. The maneuver is designed to free up resources so Ford could better attack the opportunity in EVs. Ford Blue — essentially the company's gas-powered auto business — will be focused on managing profits. That means attention on lowering costs, and plowing those savings into the EV Ford Model e division.
Farley stressed Ford will not be spinning off its electric vehicle operations, tamping down recent speculation.
The company outlined $3 billion in cost savings from Ford Blue by 2026.
"We are going all in," Farley added.
Ford outlined that it expects to produce 2 million EVs by 2026. It sees an adjusted operating profit margin of 10% by 2026, up 270 basis points from 2021.
In total, Ford guided to a $50 billion in EV investment through 2026.
Ford shares (F) rose about 4%in pre-market trading Wednesday.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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