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Ford CEO Farley Says IRA Will Greatly Benefit Pro EV Customers

Much ado has been made about the Inflation Reduction Act of 2022 and the impact it will have on the electric vehicle market, as well as EV battery production and charging infrastructure. However, most of that attention has revolved around consumer EV credits and how they’re being overhauled from the prior $7,500 tax credit, and not on the commercial side of the business. But as Ford CEO Jim Farley pointed out while speaking on the automaker’s Q3 earnings call recently, Ford Pro EV customers figure to benefit greatly from the new bill, too.

“The second benefit is often overlooked. I haven’t actually read anyone in the media covering this, but it’s super important for Ford. And that’s the commercial EV credit,” Farley said. “You know that Ford is the number one commercial vehicle brand in the US, and our commercial customers can now claim next year $7,500 per EV vehicle they buy with no restrictions on battery sourcing or manufacturing. Our preliminary estimate is that between 55 percent and 65 percent of all of our commercial vehicle customers will qualify.”

This is big news for both commercial EV customers and Ford, as the automaker currently expects that 70 percent of the full-size van segment alone will consist of all-electric vehicles by 2030. Additionally, it previously predicted that all-electric models will make up a grand total of 30 percent of full-size truck sales by that same date.

The short-term success of the Ford E-Transit – which launched earlier this year – would seem to put FoMoCo in a solid competitive position in that regard, too. In fact, the all-electric van has remained the best-selling vehicle in its segment for multiple consecutive months beginning in April and lasting through September, as Ford Authority previously reported. Altogether, the E-Transit commanded a 90 percent share of the EV van segment last month, which is an impressive figure indeed.

We’ll have more on the Inflation Reduction Act of 2022 soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. David Dickinson II

    What the Democratic majority did in 2022, the Republican super-majority will un-do in 2024. Purchase with caution.

    Reply
  2. Donny

    And with the economy grinding to a halt why would I invest money in EVs? The old spend 10k to save $500 over 5 years argument? Businesses would invest if the economy were strong. If they had money to waste. Now they’ll be lucky to retain the staff they have. They’ll probably be forced to downsize. We should even start to see plenty of cheap vehicles entering the used market. Adding new untested unproven technology and chargers now? Pffft. No way. Not happening. Zero upside to using EV trucks/vans right now vs traditional proven most likely already paid for vehicles. Maybe your big corporations can, but Joe Blow plumbers and roofers? Average Joes? No way.

    Ford obviously is only interested in large fleets and not concerned at all about Main Street small businesses. Nobody in rural America is interested in EVs.

    And that’s what this is about. The first one was the north vs the south. 2.0 will be rural vs cities.

    Reply
  3. Bob

    My business rents the eTransit and Mach E. Both tough sells to anyone other than diehard e freaks or someone needing to check a box on their sustainability requirements. Both rent at a slightly higher rental rate compared to the ice equivalents which is compensated by us recharging the vehicle when needed during the rental for free.
    It’s all about…range anxiety and, where am I going to charge this that won’t take 14 hours, where I don’t have to leave my vehicle on the street with my $20k worth of tools.
    The proponents may put a show on by installing many more chargers than there are currently, but that mileage limit will be with us for a while, certainly not better by any measure by 2030, so good luck with your 70% goal.
    Get back to me when that does happen, I’ll be happy to join the movement, and I won’t expect someone else to subsidize my choice.

    Reply
    1. JDE

      100 miles for the E transit is quite concerning. also they have reduced carrying capacity so they really are only good for the Amazon Gig worker, yet they are pretty expensive comparatively.

      Reply

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