Ford Establishing Subsidiary To Invest In News Mobility

Associated Press Staff

Ford Motor Co. said Friday that it is establishing a Silicon Valley-based subsidiary to build and invest in new mobility options like car-sharing and ride-hailing services.

Ford Smart Mobility LLC will be chaired by former Steelcase CEO Jim Hackett, who has been a member of Ford's board since 2013. Hackett resigned his board seat Friday to lead the new company. Ford Smart Mobility plans to name a CEO in the near future.

The company will operate in Palo Alto, California, and Ford's hometown of Dearborn, Michigan.

Ford CEO Mark Fields said the company will be "separate but connected" to its parent. Fields said Ford won't initially include the company in its financial reporting, but may do so once it's more firmly established.

"We wanted to make sure give it the freedom and the flexibility to move almost like tech companies do," Fields told The Associated Press.

Ford Smart Mobility will build, design and invest in services like car-sharing or ride-hailing. Ford has already conducted more than 30 global experiments over the last 14 months, including GoDrive, a car sharing program with guaranteed parking in London, and Bridj, a van service in Kansas City that users can summon with a smartphone.

Source: 
Associated Press