On Wednesday, Ford Motors announced that it is reorganizing the company to form separate units. The automaker will separate its electric vehicles division from its internal combustion engine (gas) vehicles. The move is expected to boost its high growth electric units and maximize profits. It is also a step that could spur investor growth.

CEO Jim Farley said that they were announcing one of the biggest changes in the long history of the American automaker. As he announced the separation, he said that the new EV business would produce as much excitement as a “pure EV competitor” but would have capacities such as scale and resources which are absent in a startup. He also said that their legacy business remained “a profit and cash engine” for the automaker.

Farley said that the synergy between the two units was the reason why there was a separation instead of a spinoff. The automaker also didn’t need additional capital to fund the operations so there was no need of a spinoff.

Farley also spoke of the vehicle manufacturer’s plans which included generating 10 percent adjusted operating profits. He said that they intended to make over 2 million vehicles by 2026 as well as decrease structural costs by $2 billion by the same year.

Farley declared that the EV business would be called “Ford Model e.” He would be the president of the division and will remain as president and CEO of Ford Motors. Doug Field, formerly of Tesla and Apple, will be chief EV and digital systems officer.

Ford veteran Kumar Galhotra will lead Ford Blue, the traditional operations of the Dearborn, Michigan automaker. He will be responsible for decreasing operating expenses and waste expenses in current operations, a mission close to Farley’s future vision of the company.

Galhotra said that they had three areas– complexity, quality and construction costs that they needed to concentrate on. He added that “nothing’s going to be off the table.”

See how we’re transforming our global automotive business at Ford Motor Company to scale #EVs, strengthen operations, and unlock value. https://t.co/q5mLFPiK9p

– Ford Motor Company (@Ford) March 2, 2022