Ford Motor (NYSE:F) is creating a new niche for itself under new CEO, Jim Farley, with the company entering the electric vehicle market with an electric van.
Recently the company unveiled the Ford E-transit commercial van as part of Ford’s plan of investing $11.5 billion in the manufacture of electric cars through 2022. Ford has designed the vehicle for work and commercial buyers which is a significant step in its operations and growth area under the leadership of Farley.
Ford delivering commercial electric vehicles
In the “Mad Money” interview with CNBC’s Jim Cramer, Farley said that the move is a big deal for the company since it will be different as Ford is investing in commercial vehicles. He said that Ford’s bet is electrifying its commercial vehicles in the US where they control around 50% for commercials. The plan is part of a transformation strategy for Ford and Farley’s plan to enhance the attractiveness of the automaker tot investors after years of declining value under the leadership of his predecessor.
Ford will market the e-Transit van expected in late 2021 as an electric vehicle. It will be available to companies such as United Parcel Service (NYSE:UPS), Amazon.com Inc. (NASDAQ:AMZN) and other companies that offer delivery and maintenance services. It will be an important vehicle for firms looking to switch their fleets to electric from diesel and gasoline vehicles. The Ford e-transit van will cost around $45 million when it arrives next year.
Ford sells 500,000 Transits annually
The Dearborn, Michigan-based company expects to maintain its stronghold in the commercial vehicle market that it has dominated for years. It expects to leverage the shift to electric vehicles seeking sustainable transport modes. Farley said, each year they sell over 0.5 million Transits across the globe which the company wants to electrify. He added that commercial customers are different compared to retail since they don’t over purchase on the range. Farley explained that the Ford electric vehicles would bring electrification to the job site enabling people to use the battery in the E-transit in powering the job site.