Ford Motor on Monday said it has hired former Apple executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services.

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.

Ford said the new unit will enable the company to offer the first end-to-end revenue platform that executes all internal and external revenue workflows, from prospecting to closing to renewing.

The move is part of Ford’s strategy 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. Ford said Stern will bring his experience in creating and scaling digital services to the automaker.

“Peter is a world-class leader who understands how to build and scale subscription and digital services that consumers love,” Farley said in a statement. “He will help us create breakthrough experiences for our customers across our iconic brands.”

Stern said he is excited to join Ford and help the company transform its business model. “Ford is at an inflection point in its history, with incredible opportunities to reimagine the future of transportation and mobility,” he said. “I look forward to working with Jim, Doug and the entire Ford team to create amazing services that delight our customers and drive growth.”

Ford said it now has more than 550,000 paid software and services subscribers, more than 80% of them through the Ford Pro commercial unit. That business is generating “hundreds of millions of dollars” in revenue, Farley said, “with enormous margins” of 50% and more.

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.

Ford also plans to launch more digital and subscription services in the future, such as vehicle health monitoring, remote diagnostics, predictive maintenance, fleet management, insurance and financing.

Ford said it expects its digital and subscription services to generate more than $20 billion in annual revenue by 2030.

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