It’s not surprising, but it’s still good news — EV adoption has been extra-strong among commercial customers, according to Ford.
Clearly, Ford has made commercial fleet production a huge focus for its shift to EVs, from the Ford F-150 Lightning Pro to the E-Transit and Ford Pro service suite. And this has paid off for the company, according to CEO Jim Farley.
“On the commercial EV, I have to say, the demand for the move to electric on our commercial customers is, in many ways, more robust than the retail side, even though we’re completely sold out in both, for the three products, the turn rates are just enormous, the order rates,” Farley said during the company’s Q3 earnings call. “But the profitability is different between a commercial EV and a retail EV. And we’re going to be breaking out our EV business and profitability soon. So this is going to be quite interesting for all of you and for us as we do that. So … but I will tell you, this is a big help. This will really help the profitability of our commercial vehicle [sic] that are EV and I think it will really stimulate the demand.”
The EV van segment has been led by the Ford E-Transit since its release earlier this year, while the Pro has made up roughly 20% of total Lightning production. In fact, Ford apparently had to stop taking orders for the 2023 Pro back in August because demand was just too high.
Another bonus will be for consumers, as the Inflation Reduction Act will offer $7,500 in tax credits for EVs that have their final assembly happening in North America. Farley estimates that more than half — 55% to 65% — of Ford’s commercial customers would qualify for those credits.
In short, things are looking up for more widespread adoption of EVs and for Ford — and good for them! Hopefully, the brand’s dealers will keep the good news coming by adopting Model E certification sooner than later.
SOURCE | IMAGES: FORD, VIA FORD AUTHORITY.
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