5-Year Strategy Review of Ford Motor Company (EV Division) to Stakeholders

Prepared by: Alaba Oluranti Odetola

Student Number: User11736084

Course code: Business Simulation with Professional Development (SG7003)

Date: 19th January, 2025

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Executive Summary

This report examines the strategic challenges and opportunities facing Ford Motor Company's

Electric Vehicle (EV) division. It identifies critical business issues, evaluates these challenges

through established theoretical frameworks, and analyzes Ford's position within the

competitive EV landscape. Key areas of focus include supply chain vulnerabilities,

intensifying market competition, and the rapidly evolving regulatory and consumer

environment.

The report highlights how supply chain disruptions impact production and explores strategies

for mitigating these risks. It also assesses Ford’s ability to compete in the crowded EV

market, where traditional automakers and new entrants vie for market share. Additionally, the

report evaluates regulatory shifts and changing consumer preferences as drivers shaping the

future of the EV industry.

Based on these analyses, the report recommends strategies to address challenges, strengthen

Ford's competitive position, and foster sustainable growth in its EV division. These

recommendations aim to guide decision-making and enable Ford to achieve long-term

success in the rapidly growing global EV market.

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Table of Contents

Title Page i

Executive Summary ii

Table of Contents iii

List of Tables v

Introduction

1.1 Problems and Issues in Ford’s EV Division 1

1.2 Aims and Objectives 1

1.3 Significance of Study 2

1.4 Scope of the study 2

Business Background

2.1 Overview of Ford EV Division 3

2.2 Mission 3

2.3 Vision and Strategy 4

2.4 Core Values of Ford EV Division 4

2.5 HR and Culture 5

Discussions

3.1 Performance Review and Analysis over the past five years 6

3.1.1 Competition Analysis: Porter’s Five Forces 6

3.1.2 Success of Ford's Strategy Compared to Industry Conditions and Competitors 7

3.1.3 Comparison of Actual Performance with Targets 8

3.1.4 Differences from Competitors and Industry Standards 9

3.1.5 Analysis of Strategic Changes and Impact 9

3.1.6 Marketing Strategy and Consumer Focus 10

3.1.7 Logistics and Supply Chain Management 11

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3.1.8 Simulation Performance Result 11

Conclusion, Future Plans, and Recommendations

4.1 Conclusion 14

4.2 Future Plans 14

4.3 Recommendations 15

References 17

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1.1 Key Financial Metrics (2019-2023) 11

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1.0 Introduction

The electric vehicle (EV) market is rapidly evolving due to stricter regulations and growing

consumer demand, driven by lower costs and greater model variety (BCG, 2022; Bain &

Company, 2024). Technological advancements, such as solid-state batteries and improved

charging networks, are enhancing affordability, despite challenges like supply chain

disruptions and infrastructure gaps (World Economic Forum, 2024). Governments push

adoption, requiring industry innovation to overcome hurdles and sustain momentum.

At the forefront of this is Ford Motor Company, which has made substantial progress in the

EV space but faces multiple challenges, including intense competition, supply chain

dependencies, and the need for continuous innovation. This report examines these issues,

applying business theories to provide actionable insights for application.

1.1 Problems and Issues in Ford’s EV Division

i. Supply Chain Vulnerabilities

ii. Intense Competition

iii. Regulatory Pressures

iv. Consumer Expectation

1.2 Aims and Objectives

i. To evaluate strategic progress, assess the Ford EV Division's performance over the

past five years regarding financial results, market share growth, and competitive

positioning within the EV industry.

ii. To provide strategic insights, and identify the effectiveness of implemented strategies,

including marketing, HR, logistics, and product development, in achieving division

goals.

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 iii. To chart a sustainable growth path, and develop actionable recommendations for the

next five years, aligning with industry trends, regulatory demands, and consumer

expectations.

1.3 Significance of the study

This study evaluates the Ford EV Division’s strategic and operational performance,

identifying successes and areas for improvement in its competitive position. It offers

actionable recommendations to enhance Ford’s alignment with sustainability goals and

ensure long-term growth and leadership.

1.4 Scope of the study

The study reviews the Ford EV Division’s mission, values, and yearly performance,

analyzing marketing, HR, logistics, and finance strategies. It provides strategic

recommendations for diversification, acquisitions, and adapting to evolving industry trends.

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2.0 Business Background

2.1 Overview of Ford EV Division

Ford Motor Company, founded in 1903 by Henry Ford, is one of the largest and oldest

automobile manufacturers in the world. The company revolutionized the automotive industry

by introducing mass production techniques, significantly lowering the cost of vehicles and

making them accessible to the general public (Ford, 2022). Over the years, Ford has remained

at the forefront of automotive innovation, adapting to changing market demands, including

embracing electric vehicles (EVs) as part of its sustainability initiatives. Today, the Ford EV

Division plays a pivotal role in the company’s strategy to transition to zero-emission,

sustainable mobility, producing vehicles like the Mustang Mach-E and F-150 Lightning.

Ford's commitment to affordability, innovation, and a comprehensive EV ecosystem—such

as developing extensive charging infrastructure—reflects its vision of reshaping the future of

transportation. By leading this transformation, Ford despite the intense competition aims to

become a global leader in electric mobility (Ford, 2022).

2.2 Mission

Ford’s mission is to create a more sustainable and innovative future by delivering vehicles

that improve people's quality of life. The company aims to lead the transition to zero-

emission transportation, focusing on the development of electric vehicles that are high-

quality, affordable, and accessible (Ford, 2022). This mission is driven by cutting-edge

technologies, collaborative partnerships, and a strong dedication to sustainability.

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2.3 Vision and Strategy

The vision of the Ford EV Division aligns with Ford's broader corporate strategy of

delivering sustainable, innovative, and high-quality vehicles, with a clear focus on zero-

emission transportation. Their mission emphasizes advancing technology and forging

strategic partnerships to accelerate the adoption of electric vehicles, thus driving the

transition toward a greener future (Ford, 2022).

2.4 Core Values of Ford EV Division

Ford's core values reflect the company's commitment to innovation, sustainability, and

community. These values guide the Ford EV Division in shaping its future and achieving

long-term success in the electric vehicle industry. These values include:

● Sustainability: Ford is committed to reducing both the carbon footprint of its vehicles

and the environmental impact of its operations, aligning with global sustainability

goals (International Energy Agency, 2023).

● Innovation: Innovation is central to Ford’s strategy, especially in the realm of electric

vehicles. Ford dedicates itself to the advancement of EV technology, battery systems,

and autonomous driving. Ford's R&D focuses on affordable, high-quality vehicles

with cutting-edge technology that improves performance, safety, and sustainability.

● Innovations like solid-state batteries and new charging technologies help Ford stay

competitive in the evolving EV market. This is supported by partnerships with tech

companies like Google and Argo AI, alongside in-house efforts to enhance software,

design, and manufacturing (Ford, 2023; Bain & Company, 2024).

● Customer Focus: Ford places a strong emphasis on customer-centricity, ensuring that

its products meet the diverse needs of consumers around the world. The Ford EV

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 ● Division offers vehicles appealing to various segments, from environmentally

conscious buyers to those seeking performance or value. Ford’s strategy includes

consistent market research to understand customer preferences and enhance the

driving experience. As interest in EVs grows, Ford expands its EV lineup through

strategic partnerships, ensuring accessibility and affordability.

● Employee Empowerment: Ford fosters a culture of collaboration, diversity, and

innovation, crucial to driving its success. Human resources initiatives focus on

equipping employees with skills for electric vehicle technologies, emphasizing

sustainability and continuous improvement (Ford, 2022).

2.5 HR and Culture

Ford’s Human Resources strategy is integral to its ability to transition successfully to electric

mobility. The company focuses on upskilling its workforce to handle EV technologies.

Employee empowerment and a culture of collaboration, innovation, and diversity are central

to Ford’s approach. By encouraging employees to embrace sustainability and contribute to

the company’s mission, Ford cultivates a culture of continuous improvement, innovation, and

problem-solving (Ford, 2022). HR initiatives also prioritize recruiting top EV talent and

offering growth opportunities, helping Ford stay competitive in the fast-evolving market

(Statista, 2024).

This culture of inclusion, combined with a strong HR strategy, is key to Ford’s organizational

goals, long-term success, and ability to drive innovation in the EV space.

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3.0 Discussions

This section expands on Ford’s strategic positioning using Porter’s Five Forces, performance

evaluation, and analysis, addressing the company’s competitive position, internal capabilities,

and industry trends. By analyzing Ford’s performance, HR strategies, and overall business

tactics, this section provides insights into the success and challenges faced by the company as

it navigates the electric vehicle (EV) market.

3.1 Performance Review and Analysis over the past five years

The performance review assesses Ford EV Division’s progress by comparing actual

outcomes to the targets set in the business plan. The review highlights key performance

metrics, such as market share, financial growth, and alignment with sustainability goals,

while evaluating the impact of decisions across marketing, HR, logistics, and product

development. By comparing Ford’s performance against competitors and industry trends, the

company can identify areas of success, challenges, and adjustments needed to stay

competitive in the growing EV market (Ford, 2023; Bain & Company, 2024). The analysis

also emphasizes how well Ford’s strategies have been implemented and whether they have

met the expectations outlined in their long-term vision.

3.1.1 Competition Analysis: Porter’s Five Forces

1. Industry Rivalry (High)

● Dominated by Tesla, followed by traditional automakers (GM, Volkswagen,

Toyota).

● New entrants like Rivian and Lucid Motors intensify competition.

2. Threat of New Entrants (Moderate)

● High R&D costs and economies of scale favor incumbents like Ford.

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 ● However, startups with venture funding (e.g., Rivian) pose risks in niche

markets.

3. Supplier Power (High)

● Dependence on battery suppliers (e.g., CATL, LG Chem) gives suppliers

bargaining power.

● Raw material shortages (lithium, cobalt) increase costs.

4. Buyer Power (High)

● Customers expect competitive pricing and cutting-edge technology in EVs.

● Government incentives influence purchasing decisions.

5. Threat of Substitutes (Moderate)

● Alternatives include hybrid vehicles and public transportation, which are less

eco-friendly but cost-effective.

3.1.2 Success of Ford's Strategy Compared to Industry Conditions and Competitors

Ford's strategy in the EV sector has been largely successful, as evidenced by the increasing

market share of its electric vehicles, including the Mustang Mach-E and F-150 Lightning.

However, compared to competitors like Tesla and Volkswagen, Ford is still in a catch-up

phase in terms of overall sales and technological leadership. Ford has applied the Resource-

Based View (RBV) theory, which focuses on leveraging internal resources—such as its

established brand, manufacturing scale, and R&D capabilities—to compete effectively

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in the EV space. Despite these strategic efforts, Ford faces challenges in matching Tesla’s

innovation, particularly in autonomous driving and battery efficiency. Tesla’s first-mover

advantage continues to put pressure on Ford’s strategy, despite its considerable investments

in EV infrastructure and technology. However, Ford’s strong partnerships with tech firms

such as Google and Argo AI help the company make significant strides in software

integration, a key factor in achieving future EV growth.

3.1.3 Comparison of Actual Performance with Targets

Ford's performance in the EV market has exceeded expectations in some areas, such as the

successful launch of the F-150 Lightning, which has gained significant market attention in the

pickup segment. However, Ford has fallen short of its ambitious targets in global EV sales

when compared to Tesla's rapid growth. According to Performance Prism Theory, it is

essential to align both external and internal performance metrics, and while Ford's customer

satisfaction scores and brand loyalty are strong, its financial returns from EVs still need to be

optimized (Bain & Company, 2024).

3.1.4 Differences from Competitors and Industry Standards

Ford’s position in the EV market differs from its competitors in several ways. One key

difference is Ford's reliance on its existing customer base for EV adoption, while competitors

like Tesla have attracted a new consumer segment. Ford’s strategy of launching mainstream

vehicles like the F-150 Lightning rather than niche luxury models has helped it target broader

consumer demographics. However, this approach has yet to achieve the scale seen in

competitors like Tesla. The Disruptive Innovation Theory by Clayton Christensen can be

applied to this strategy, as Ford is leveraging its mass-market models to enter the EV market

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—thus, differentiating itself from more niche, premium players like Tesla (Christensen,

1997).

While Ford is competitive in terms of vehicle performance and features, it lags behind

competitors in terms of autonomous driving capabilities and software integration. Tesla’s

emphasis on AI and machine learning technologies has given it a significant edge, one that

Ford is still working to bridge through its partnerships and in-house innovations (Bain &

Company, 2024). Ford’s future performance will depend on its ability to achieve a

competitive advantage in software and autonomous technologies.

3.1.5 Analysis of Strategic Changes and Impact

Ford has made several strategic changes to adapt to market conditions. For instance, it shifted

its focus to EVs earlier than many traditional automakers, announcing plans to invest $22

billion in electrification by 2025. This pivot directly responds to growing environmental

concerns and stricter regulatory policies worldwide. The company also adjusted its business

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model to focus more heavily on software and services, alongside vehicle production. This

shift in strategy can be better understood by looking at Kotter’s 8-Step Change Model.

Essentially, Ford recognized the need to adapt in response to shifts in market conditions and

increasing regulatory demands. They effectively communicated this urgency and vision to

their employees, helping everyone understand and align with the new direction (Kotter,

1996).

3.1.6 Marketing Strategy and Consumer Focus

Ford’s marketing strategy has been highly focused on appealing to a wide consumer base,

with an emphasis on both performance and sustainability. Aligning with customer needs,

Ford has developed vehicles like the Mustang Mach-E, which blends performance with

sustainability, and the F-150 Lightning, which is designed to meet the needs of pickup

owners transitioning to electric vehicles. Following Kotler's Marketing Mix theory, Ford has

worked to optimize its product offering, pricing strategy, promotion efforts, and distribution

channels to reach the broadest possible audience (Kotler, 2009).

Ford’s use of targeted digital marketing campaigns and emphasis on customer feedback

further strengthen its customer-first approach. However, while Ford has managed to capture a

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a significant portion of the U.S. EV market, it still lags behind Tesla in terms of brand loyalty

among early adopters, who are more likely to favor Tesla's reputation for cutting-edge

technology (Statista, 2023). To close this gap, Ford may need to expand its customer

engagement efforts and enhance its focus on building long-term customer relationships.

3.1.7 Logistics and Supply Chain Management

Supply chain disruptions have been a major challenge for Ford, particularly in securing the

raw materials needed for EV battery production. The Supply Chain Resilience Framework

can be used to analyze how Ford has responded to these challenges by securing more stable

sources of key materials and expanding partnerships with suppliers to strengthen its logistics

capabilities (Christopher, 2000). In response to supply chain disruptions caused by the

COVID-19 pandemic and geopolitical tensions, Ford has invested in regional manufacturing

facilities and improved its forecasting processes to manage risks more effectively.

3.1.8 Simulation Performance Results

Key Financial Metrics (2019-2023)

Metric 2019 2020 2021 2022 2023

EV Revenue ($ Billion) 6.0 8.5 12.0 16.8 22.5

EV Sales (Units) 120,000 190,000 310,000 500,000 720,000

Market Share (Global EV) 6% 8% 9% 11% 13%

Source: Ford, 2024. Table 1.1

1. Performance Highlights

● Revenue Growth: EV revenue grew at a CAGR of 35% from 2019–2023.

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 ● Market Share: Captured 13% global EV market share by 2023, up from 6%

in 2019.

● Profitability: Achieved profitability in the EV division by 2023 due to

economies of scale and improved supply chain efficiency.

2. Performance Analysis

i. Strategic Initiatives

● Marketing: Positioned the Mustang Mach-E as a premium yet affordable EV,

appealing to both mass and niche markets.

● Logistics: Invested in AI-driven supply chain management to mitigate

disruptions from COVID-19 and chip shortages.

● Finance: Allocated 30% of R&D budget to EV innovation, prioritizing battery

development.

● Product Development: Launched high-demand products like the Ford F-150

Lightning, capitalizing on consumer trust in the F-series.

1. Comparison to Competitors

● Ford vs. Tesla: Tesla leads in battery efficiency and autonomous tech; Ford’s

strength lies in trusted truck and SUV brands.

● Ford vs. GM: GM’s Ultium battery system gives it a cost edge, but Ford has

stronger brand loyalty in the truck segment.

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2. Missed Targets

● EV sales in China fell short by 10% in 2023 due to intense competition from

local manufacturers like BYD.

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4.0 Conclusion, Future Plans, and Recommendations

4.1 Conclusion

Ford’s Electric Vehicle (EV) Division stands at a pivotal moment in its journey to become a

global leader in electric mobility. With a robust strategy focusing on scaling production,

enhancing battery technology, expanding charging infrastructure, and strengthening its global

presence, Ford is well-positioned to thrive in the rapidly evolving EV market. The company’s

emphasis on sustainability, innovation, and diversification through strategic acquisitions

ensures that it remains competitive in the face of industry shifts and challenges.

However, Ford’s ability to achieve its goals relies on effective execution of its plans,

managing supply chain risks, and maintaining a customer-first approach. Ford can solidify its

leadership in the EV market by prioritizing R&D, forming key partnerships, and

strengthening internal capabilities while aligning with environmental goals and consumer

demand for sustainable products (BCG, 2022; Bain & Company, 2024; Ford, 2023). Its

innovation and strategic vision will be crucial to success in the competitive EV landscape.

4.2 Future Plans

Ford’s EV Division aims to strengthen its position in the global electric mobility market over

the next five years, focusing on several key areas:

1. Scaling Production Capacity: Ford plans to increase its EV production, particularly

for electric trucks and SUVs, through expanded manufacturing and automation. This

will help meet growing demand while maintaining efficiency (BCG, 2022).

2. Advancing Battery Technology: By investing in solid-state batteries, Ford aims to

enhance vehicle efficiency, range, and charging times, reinforcing its leadership in

sustainable mobility (Bain & Company, 2024).

network, forming strategic partnerships to provide customers with reliable home and

public charging stations (Ford, 2023).

4. Strengthening Global Market Presence: The company plans to focus on high-

growth regions like Asia and Europe, tailoring products to meet regional needs and

regulatory standards to capture more market share (Bain & Company, 2024).

5. Sustainability Focus: Ford is committed to carbon neutrality by 2050, incorporating

renewable energy into operations and reducing emissions across its supply chain and

vehicle fleet, aligning with global environmental goals (BCG, 2022).

6. Diversification through Acquisitions: Strategic acquisitions in technology sectors,

such as AI and autonomous driving, will help Ford accelerate innovation and remain

competitive (Ford, 2023).

7. Supply Chain Resilience: Ford plans to internalize key components, like battery

production, to mitigate risks from global supply chain disruptions and ensure a stable

supply of critical materials (Bain & Company, 2024).

4.3 Recommendations

1. Intensify Consumer Education: Ford should enhance marketing to highlight the

financial and environmental benefits of EV ownership, emphasizing affordability,

sustainability, and long-term savings to boost customer adoption (BCG, 2022).

2. Expand EV Lineup: Expanding Ford’s EV lineup with more affordable and diverse

models, including fleet and premium options, will allow the company to better cater

to varying consumer preferences and meet demand across market segments (Ford,

2023; Bain & Company, 2024)

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 3. Strengthen R&D Investments: Increased investment in R&D, especially in solid-

state battery technologies and autonomous driving systems, is vital to maintain Ford’s

competitive edge. Developing more efficient, long-range batteries can reduce

operational costs and ultimately improve vehicle performance (BCG, 2022).

4. Pursue Acquisitions: Strategic acquisitions, particularly in autonomous driving or AI

technology companies, could enable Ford to enhance its technology portfolio, making

its vehicles smarter and more competitive in the future of mobility (Bain & Company,

2024).

By implementing these recommendations, Ford can effectively capitalize on the opportunities

presented by the EV market, strengthen its competitive position, and ensure long-term growth

and sustainability.

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References

Ansoff, H. I., 1957. Strategies for Diversification. Harvard Business Review, 35(5), pp.113-

124.

Bain & Company, 2024. Global Electric Vehicle Market Trends. [online] Available at:

https://www.bain.com/insights/electric-vehicle-market-trends [Accessed 13 December 2024].

BCG, 2022, Electric Cars Are Finding Their Next Gear. Available at:

https://www.bcg.com/publications/2022/electric-cars-finding-next-gear

Christopher, M., 2000. The Agile Supply Chain: Competing in Volatile Markets. Industrial

Marketing Management, 29(1), pp.37-44.

Energy Center, Center for Sustainable Energy, "State of Electric Vehicle Adoption," 2024.

Ford Motor Company (2022). Sustainability Report 2022. Available at:

https://corporate.ford.com/social-impact/sustainability.html [Accessed 13 December 2024].

Ford, 2023. Ford’s Electric Vehicle Strategy: Powering a Sustainable Future. [online]

Available at: https://media.ford.com/content/fordmedia/fna/us/en/news/2023/05/10/ford-

electric-vehicle-strategy.html [Accessed 13 December 2024].

Ford Motor Company Annual Reports, 2024. [online] Available at: https://www.ford.com

[Accessed 13 December 2024].

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International Energy Agency (IEA), 2022, Clean energy supply chains vulnerabilities.

Available at: https://www.iea.org/reports/energy-technology-perspectives-2022 [Accessed 13

December 2024].

International Energy Agency (IEA), 2023, Energy Technology Perspectives 2023: Clean

energy supply chains vulnerabilities. Available at: https://www.iea.org/reports/energy-

technology-perspectives-2023 [Accessed 13 December 2024].

International Energy Agency (2023) Global EV Outlook 2023. Available at:

https://www.iea.org/reports/global-ev-outlook-2023 (Accessed: 13 December 2024).

Investopedia, 2024, What Are Tesla's (TSLA) Main Competitors? Available at:

https://www.investopedia.com/ask/answers/120314/who-are-teslas-tsla-main-

competitors.asp#:~:text=Ford%2C%20GM%2C%20and%20BYD%20Company,some%20of

%20Tesla's%20main%20competitors. [Accessed 13 December 2024].

Kotler, P., 2009. Marketing Management: Analysis, Planning, and Control. 13th ed. Upper

Saddle River, NJ: Pearson Prentice Hall.

Kotter, J. P., 1996. Leading Change. Boston: Harvard Business School Press.

Statista 2024, eMobility: in-depth market analysis. [online] Available at:

https://www.statista.com/study/49240/emobility---market-insights-and-data-analysis/

[Accessed 13 December 2024].

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Statista, 2023. Electric vehicles: A global overview. [online] Available at:

https://www.statista.com/study/134904/electric-vehicles-a-global-overview/ [Accessed 13

December 2024].

World Economic Forum, 2024, The Transition to EVs Must Be Sustainable. Available at:

https://www.weforum.org/stories/2024/04/electric-vehicle-evs-energy-transition-demand/

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Business Plan for Ford Motor Company's EV Division

Executive Summary

Ford’s Electric Vehicle (EV) division is poised to lead the company into a sustainable future.

This plan outlines our strategy to achieve market leadership by addressing supply chain

constraints, intense competition, and regulatory pressures. Key initiatives include enhancing

product innovation, building resilient supply chains, and expanding market share through

strategic partnerships and customer-centric solutions.

Company Overview

● Name: Ford Motor Company - EV Division

● Mission: To build a sustainable future by delivering innovative, affordable, and eco-

friendly electric vehicles to global markets.

● Vision: To be the most trusted company in EV innovation and sustainability, leading

the transition to a zero-emissions future.

● Core Values: Innovation, sustainability, customer-centricity, and integrity.

Industry Analysis

Market Trends

1. Global EV adoption is growing rapidly, driven by regulatory mandates and consumer

interest in green solutions.

○ Source: BloombergNEF (2024 EV Outlook).

2. Consumers increasingly demand long-range, affordable EVs with advanced

connectivity features.

○ Source: McKinsey Insights: Automotive & Assembly.

Competitive Landscape

Ford faces strong competition from Tesla, GM, Rivian, Volkswagen, and BYD. Ford’s

opportunity lies in leveraging its established manufacturing scale and innovative partnerships.

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 ● Source: Statista EV Market Share Data (2024).

Target Market

1. Primary Market: Developed regions (North America, Europe) with established

charging infrastructure.

2. Secondary Market: Emerging economies with growing EV adoption, such as India

and Southeast Asia.

○ Source: International Energy Agency (IEA) Global EV Data.

3. Customer Segments:

○ Middle-income families seeking affordable EVs.

○ Fleet operators transitioning to electric solutions.

○ Eco-conscious consumers valuing sustainability and innovation.

Business Objectives

1. Increase EV production by 50% over the next three years.

○ Source: Ford’s Press Release (2024 Production Goals).

2. Achieve a 10% global EV market share by 2028.

○ Source: Assumption based on Ford’s historical market expansion trends.

3. Build a vertically integrated battery supply chain by 2026.

○ Source: Ford Motor Company Sustainability Report (2024).

4. Reach carbon neutrality across operations by 2035.

○ Source: Ford’s Climate Action Plan.

Products and Services

● Current Products:

○ Ford Mustang Mach-E

○ Ford F-150 Lightning

○ Ford E-Transit

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 ○ Source: Ford Official Website.

● Future Product Line:

○ Affordable compact EVs for emerging markets.

○ Premium electric SUVs.

○ Fully autonomous EV models.

○ Source: Based on Ford’s projected development roadmap in annual reports.

Marketing Strategy

1. Brand Positioning: Reinforce Ford as a trusted legacy brand transitioning into EV

innovation.

2. Pricing Strategy: Competitive pricing with flexible financing and subscription

options.

3. Promotion:

○ Digital marketing campaigns targeting tech-savvy buyers.

○ Collaborations with environmental advocacy groups.

○ EV showcase events in urban centers.

○ Source: Analysis of automotive marketing trends (Forbes, 2024).

4. Distribution Channels:

○ Expand direct-to-consumer sales through e-commerce.

○ Strengthen dealership networks for EV-specific sales and services.

○ Source: Ford EV Sales Channel Plan.

Operations Plan

Supply Chain Strategy

1. Invest in domestic battery manufacturing plants.

2. Diversify raw material suppliers to reduce geopolitical risks.

○ Source: Ford’s North American Supply Chain Investments Report (2024).

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Infrastructure Development

● Partner with charging infrastructure providers to expand networks, especially in

underserved areas.

● Introduce home charging solutions for consumers.

○ Source: Market insights from the International Council on Clean

Transportation (ICCT).

Financial Plan

Revenue Projections

1. Year 1: $10 billion

2. Year 2: $15 billion

3. Year 3: $22 billion

○ Source: Projections based on Ford’s historical EV sales growth and industry

benchmarks (Morningstar).

Funding Requirements

● Total funding required: $20 billion.

● Sources: Internal cash reserves, green bonds, and government grants for sustainable

development.

○ Source: Ford’s Financial Reports and Sustainability Grant Opportunities.

Risk Management

1. Supply Chain Risks: Mitigated by supplier diversification and vertical integration.

2. Technological Risks: Continuously updating software platforms and aligning with

industry standards.

3. Regulatory Risks: Monitoring and complying with global emission standards and

subsidies.

4. Market Risks: Conducting consumer research to stay aligned with preferences.

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 ○ Source: Harvard Business Review – Risk Management in Automotive.

Sustainability Initiatives

1. Reduce reliance on non-renewable materials in vehicle production.

2. Partner with renewable energy providers for charging solutions.

3. Commit to sustainable end-of-life practices for EV batteries.

○ Source: Ford Motor Company Climate Goals (2024).

Conclusion

Ford’s EV division is at a critical juncture in its journey to lead in electric mobility. By

addressing supply chain vulnerabilities, leveraging technological advancements, and aligning

with consumer and regulatory trends, Ford can achieve sustainable growth. Strategic

recommendations in this plan ensure that the division capitalizes on market opportunities

while mitigating risks.

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