Ford is investing big in electrification, but those efforts aren’t just limited to the retail side of the business – rather, The Blue Oval also has high hopes for converting commercial customers to electric vehicles. However, as one might imagine, there are some key, distinct differences between retail customers and prospective fleet EV buyers, as Ford Pro CEO Ted Cannis outlined at the recent Evercore Utility Conference.
“Retail customer, they’re buying on a might. You know, why do you have a seven-seater vehicle? You only have one kid? Oh, you know, we might take the soccer team to practice and visit grandpa with a load,” Cannis said. “So, have you ever used seven seats? No. Nope, never used it. Have you ever towed anything? No, but just in case, I bought it. That does not happen in the commercial world. None of you are doing things just in case. You got to have it and that’s it. A plumber in Michigan who’s got customers in a neighborhood isn’t going, I wonder if I should go to Chicago and drive all day to get a client over there. It’s a completely different business model and a completely different conversation.”
While Ford has faced its fair share of success on the retail side of the business – its all-electric vehicles have remained in high demand and short supply, after all – CEO Jim Farley previously noted that the automaker is facing even higher demand from its commercial customers. Regardless, both of these kinds of customers are buying EVs for very different reasons, as one might imagine.
Cannis previously stated that FoMoCo isn’t pushing its fleet customers to purchase EVs, and will continue making and selling ICE alternatives for the foreseeable future. However, Ford’s fleet EV buyers are finding new tax credits brought forth by the Inflation Reduction Act of 2022 to be quite financially appealing.
We’ll have more on Ford’s EV push soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
Comments
Unfortunately, manipulation of the tax code is a key driver of commercial owners seeking EVs (and private owners too). The federal racket never stops. They keep using the tax code to control behavior. If you give me a $15k rebate on a vehicle that is $5k more expensive, then I’ll net the $10k. Who wouldn’t take that deal, all things being equal?
Where’s the Fair Tax when you need it?
LoL “Fair Tax” was a gimmick dreamed up by ultra rich who will pay even less of a fair share than they do now.
Want runaway oligarchy in the USA? Instead of returning to Eisenhower era marginal tax rates, do “Fair Tax”.
How is 50% of the population paying 0% “fair?” They need to pay their fair share and stop freeloading. Deadbeats.
Were it not for tax code hanky panky, electrics and hybrids would be little more than curiosities. Curiosities in the vein of that ONE Simca in the elementary school parking lot full of VWs in 1962. The one or two Citroens among the Peugeots and Volvos in the faculty parking lot at UCLA that same year.
Let electrics and hybrids stand on their own in the marketplace and see how they do I don’t oppose either technology, but at the same time, I am not one to see either stand or fall on the backs of the taxpayers. Same thing when General Motors next goes to Uncle Sam to bail them out (and they will). The answer should be “no”.
In rural Alberta Electric Vehicle’s are a no go. For Example I pay I pay 6.7c per kw hr. for 450kw the Rate is $31.01, I the have to start adding all the extra power FEE’S distribution charge $89.25, Transmission Charge $22.12, pool aloc $1.05, rate riders$7.80, so my billing is over $150. and I have the bare minimum power usage. Can’t afford to plug a car in!