Ford CEO Jim Farley is dividing up company operations, creating three separate automotive business units that include its existing commercial arm, as well as two new ones: Ford Blue, which will focus on the traditional internal combustion engine, and Ford Model e, which will develop the battery electric vehicles and connectivity, the company revealed Wednesday morning.

This step is designed to make the 118-year-old automaker more competitive against Tesla, the biggest electric vehicle competitor in the industry, as well as others, Farley told the Free Press during an interview.

Each division will have its own leadership, with the traditional vehicle skill team led by Kumar Galhotra, who has been Ford president of the Americas and International Markets Group. The newly created all-electric vehicle (EV) skill team will be led by Farley.