Ford Pro launched as a separate commercial division for The Blue Oval some time ago, and since then, it has enjoyed tremendous success with high expectations for future revenue. Much of this revenue will come from fleet management software and connected vehicle technology, which also just so happen to help out in terms of customer retention. In its most recent sales report, The Blue Oval also noted that its Ford Pro customers have thus far embraced its subscription services, which is notable given how some similar offerings from other automakers haven’t gone over quite as well.
Ford Pro enjoyed a 64 percent year-over-year increase in paid software subscriptions in Q1, while higher-revenue services also posted strong gains. The number of mobile repair orders received by the dedicated entity from commercial customers and – subsequently – the quantity of vans on the road delivering those services more than doubled year-over-year, which bodes well for future growth in that area, to boot.
Overall, Ford Pro posted an increase of 18 percent in wholesales and 28 percent in revenue – bringing the latter total up to $13.2 billion last quarter alone. The commercial division enjoyed an EBIT (earnings before interest and taxes) of $1.4 billion – roughly three times higher than 2022 – and an EBIT margin of 10.3 percent.
On top of enjoying tremendous growth in terms of subscriptions, Ford Pro is also posting a rapid expansion in the number of vehicles it sells, with the Transit and E-Transit combining to take the title as the top commercial van not only in North America, but also Europe. Looking ahead, Ford expects its Pro division to continue to perform just as strongly, with a predicted EBIT of around $6 billion in 2023 – a number that would represent nearly double its strong 2022 performance.
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