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Ford to “separate” EV & internal combustion businesses

Ford Motor (NYSE: F) CEO Jim Farley revealed the company will split its electric vehicle (EV) operations from its traditional internal combustion engine business into two units within the company.

“Going all in” 

Ford raised its expected investments in EVs & similar technologies from $30 billion to $50 billion by 2026, with $5 billion coming this year, double that of 2021. 

Investors love it

Ford shares jumped over 8% following the announcement as investors applauded the move.

Although most investors were urging a full-on spin-off of the EV business, this move is a big step towards that ask. 

That’s a big u-turn from just a few days ago

Just a few days ago, Farley denied reports claiming Ford would spin-off its EV business. And while this move isn’t a spin-off, it’s a big stride towards it.

Farley says the move will create “separate but complementary businesses.”

What made them turn heads

Not to make any assumptions, but a couple of days ago, U.S. President Joe Biden gave a shout out to Ford & General Motors in his State of the Union address.

He praised their big investments in EVs, & choosing to build factories “here, when just a few years ago, they would have built them overseas.”