An electrical Ford truck is displayed in the course of the Electrify Expo In D.C. on July 23, 2023 in Washington, DC.
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DETROIT – Ford Motor said Monday that it has hired Apple veteran Peter Stern to steer a newly created division focused on developing and marketing software-enabled customer experiences for the automaker.
Stern, who most recently served as vp of services at Apple, will likely be president of “Ford Integrated Services.” He starts with the automaker immediately.
Monetizing emerging software offerings similar to advanced driver-assist systems in addition to other safety and convenience features is viewed as a significant challenge for automakers, as they struggle to extend reoccurring revenue through software subscriptions.
“That is transformational, since the cornerstone of our Ford+ plan is creating incredible customer services and experiences enabled by great hardware and software,” Ford CEO Jim Farley said in a release. “There’s simply nobody on the earth higher able than Peter Stern to construct this strategically vital a part of our business.”
Farley said during a call with reporters after the announcement that revenue from current software services are within the a whole bunch of thousands and thousands of dollars, with gross margins of greater than 50%. He said the corporate has roughly 550,000 paid subscribers.
“We expect to 10x that in the approaching years just based on the expansion we see,” Farley said Monday.
Stern said he will likely be focused on “customer experiences that feel like magic.” He said such services will deliver incremental revenue with high margins.
“I actually have tremendous faith in our ability to not only deliver an excellent experience in the long run but in addition to construct on the muse that I’ve seen today which can be already quite strong,” Stern said. “I feel nothing but optimism from where I sit.”
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Ford’s stock in 2023
Farley has added a slew of executives from outside the automotive industry to his management team – many from the tech sector – to help in implementing the corporate’s Ford+ restructuring plan.
Most notably, Farley poached former Tesla and Apple executive Doug Field to steer Ford’s technology efforts. Stern said he and Field, who serves as chief advanced product development and technology officer, “will likely be tied on the hip” of their roles at Ford.
Ford has been restructuring its operations for several years under its Ford+ plan, led by Farley. The plan is targeted on making the automaker’s operations more efficient, while higher positioning the automaker for investments in electric vehicles, software and other emerging technologies.
Stern served as vp of services at Apple for greater than six years through January, overseeing efforts similar to Apple TV+, Apple News+, Apple Arcade, Apple Fitness+, MLS Season Pass and Apple One.
