Ford Taps Apple Exec To Build High-Margin Digital Services

Ford has hired former Apple executive Peter Stern to help build new high-margin digital and subscription services. Reuters reports: Stern, who previously oversaw Apple TV+, iCloud and Apple News+, will report to Ford CEO Jim Farley. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units. Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products. Stern joins an executive team at Ford that includes another Apple alumnus, Doug Field, who is chief advanced product development and technology officer. [...] Stern said Ford plans to create "bundles of services" that will provide "safer, more convenient and more productive experiences." "The basis for differentiation is shifting from the vehicles alone to the integration of hardware, software and services," Stern said. One of Stern's first tasks is to help expand Ford's BlueCruise hands-free driving package, which is being extended to more vehicles in the 2024 model year. Ford will install BlueCruise hardware on another 500,000 vehicles next year, while giving customers the option of activating the subscription package at any point during ownership, rather than just at time of purchase. The automaker plans to offer BlueCruise in a wider variety of Ford and Lincoln models, including F-150, F-150 Lightning, Expedition, Navigator, Nautilus and Corsair.

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