The Angle from T. Rowe Price The Long View: Jim Farley, President and CEO, Ford
Mar 25, 2026
Jim Farley, President and CEO of Ford, steers the automaker through electrification, software-defined vehicles, and global competition. He recounts resetting EV strategy, creating a Skunk Works teardown to learn from rivals, and reorganizing Ford into Blue, Model e, and Pro. He also describes building a metrics-driven, performance-focused culture and why E-Rev tech matters for many American buyers.
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Why Ford Was Split Into Three Businesses
- Farley split Ford into Ford Blue, Model E, and Ford Pro because customers, product economics, and operating models differ substantially across ICE, EV, and commercial businesses.
- He believed EVs require distinct platforms, distribution, and management, while Pro customers demand productivity software and service focus.
Electrification Is Lumpy Across Markets
- Electrification adoption varies globally; China leads (≈50% BEV), Europe mid, and the U.S. lagged until policy shifted against customer EV support.
- That regional lumpiness forced Ford to tailor investments and product choices by market duty cycles.
Tearing Apart Competitors Revealed ICE Prejudice
- Farley had a Skunk Works team tear apart competitors' EVs, finding ICE-based engineering bias in Ford's earlier EVs.
- The California team (F1, Tesla talent) rebuilt a low-cost EV platform with ~30% less labor content.