Ford Restructures EV Unit as Chief Departs, Targets 8% Profit Margin
April 16, 2026
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Ford’s restructuring of its EV unit signals an accelerated push towards software-defined, electrified vehicles as the automaker chases higher profit margins.Today inDetroitFord has announced a major restructuring of its electric vehicle division, establishing a new ‘Product Creation and Industrialization’ department led by Chief Operating Officer Kumar Galhotra. This move comes as the company’s EV chief, Jim Field, departs after a transition period. Ford is targeting an 8% adjusted EBIT margin by 2029 through this reorganization, which integrates the EV, digital, and design teams with its global industrial systems.
Why it matters
Ford’s restructuring of its EV unit signals a strategic shift towards software-defined vehicles and electrification as it aims to improve profitability. The departure of the EV chief also highlights the challenges automakers face in navigating the transition to electric and digital-centric transportation.
The details
The new department will focus on developing high-quality, software-defined vehicles with multiple powertrain options and distinctive digital experiences. Ford plans to update over 80% of its North American portfolio and 70% of its global portfolio by volume by 2029, with over 90% of its vehicles featuring updated electrical architectures and electrified powertrains by 2030.
- Ford reported mixed Q4 2025 earnings on April 16, 2026.
- The new ‘Product Creation and Industrialization’ department will be established in the coming months.
The players
Kumar Galhotra
Ford’s Chief Operating Officer, who will lead the new ‘Product Creation and Industrialization’ department.
Jim Field
Ford’s outgoing EV chief, who will depart the company after a month-long transition period.
Jim Farley
Ford’s CEO, who stated that the restructuring represents the ‘modern Ford’ and its focus on software-defined vehicles.
Ford
The Detroit-based automaker that is restructuring its EV unit and targeting an 8% adjusted EBIT margin by 2029.
What they’re saying
“The change represented the ‘modern Ford,’ offering ‘high-quality, software-defined vehicles,’ with multiple powertrain options and ‘distinctive digital experiences’.”
— Jim Farley, Ford CEO
What’s next
Ford’s new ‘Product Creation and Industrialization’ department will be tasked with driving the company’s electrification and software-defined vehicle goals over the next several years.
The takeaway
Ford’s restructuring of its EV unit and the departure of its EV chief highlight the automaker’s strategic shift towards software-defined vehicles and electrification as it aims to improve profitability and competitiveness in the rapidly evolving transportation landscape.
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