Detroit, Michigan - Ford has confirmed that it is establishing a Silicon Valley-based subsidiary to build and invest in new mobility options such as car-sharing and ride-hailing services.
Ford Smart Mobility 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 on Friday to lead the new company, which plans to name a CEO in the near future.
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The company will operate in Palo Alto, California, and Ford's hometown of Dearborn, Michigan.
Ford CEO Mark Fields said the company would be “separate but connected” to its parent. Ford wouldn't initially include the company in its financial reporting, he said, but might do so once it was more firmly established.
“We wanted to make sure give it the freedom and the flexibility to move almost like tech companies do,” he said.
Ford Smart Mobility will build, design and invest in services such as car-sharing or ride-hailing. Ford has already conducted more than 30 global experiments over the last 14 months, including GoDrive, a car sharing programme with guaranteed parking in London, and Bridj, a van service in Kansas City that users can summon with a smartphone.
However, Fields said the research and design of autonomous vehicles and vehicle connectivity would remain with the parent company.
He said Hackett, who spent 30 years at office furniture maker Steelcase, helped transform the industry, in part by predicting the end of traditional cubicles.
“Jim is a fantastic strategic thinker and has a very good network in Silicon Valley,” Fields said.
AP