Dive Brief:
- Peter Stern, former vice president of services at Apple, will head Ford Integrated Services, the automaker’s new software services group, Ford said Monday.
- The automaker wants Stern to build a team to create and market consumer products and services by integrating hardware, software and services across Ford Blue, Model e and Ford Pro, Ford said in a statement.
- Ford has tasked Stern with expanding and marketing services related to its BlueCruise hands-free driving system and overseeing productivity, safety and security services.
Dive Insight:
During his six-year tenure at Apple, Stern led the launch of Apple’s services portfolio, including Apple TV+ and Apple News+. That experience may help Ford generate new revenue streams as it transitions to software-defined vehicles.
Other automakers, including General Motors and Volkswagen, have also created new divisions or positions dedicated to creating and marketing subscription services tied to their vehicle hardware, a business model established by consumer electronics companies like Apple.
“The cornerstone of our Ford+ plan is creating incredible customer services and experiences enabled by great hardware and software,” Ford President and CEO Jim Farley said in a statement. “There’s simply no one in the world better able than Peter Stern to build this strategically vital part of our business.”
Stern will oversee new physical services, services marketing and Ford Next, the automaker’s autonomous vehicle unit, in addition to his other responsibilities.
“The moves accelerate the Ford+ strategy to transform the company by building sustained, always-on customer relationships and capturing new, high-margin services, subscription and other digital revenue,” the company said in a statement.
According to Ford, the company has over 550,000 paid software and services subscribers, with over 80% being Ford Pro commercial customers.
Earlier in his career, Stern served as executive vice president and chief product, people and strategy officer at Time Warner Cable. He started his career at consulting firm McKinsey & Company.
