Ford plans to acquire market share in the electric van market
The American car giant wants to occupy the niche between small cars and large trucks.
Ford Motor (NYSE: F) is creating a new niche for itself under new CEO Jim Farley by entering the electric vehicle market with an electric van.
The company recently unveiled the Ford E-Transit delivery van as part of Ford's plan to invest $ 11.5 billion in electric car manufacturing by 2022. Ford designed the vehicle for work and commercial buyers, which is a significant step in its operations and growth area under Farley's leadership. In a "Mad Money" interview with CNBC's Jim Cramer, Farley said the move is a big deal for the company because it will be different as Ford invests in commercial vehicles. He said Ford's bet is aiming to electrify 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 make the automaker more attractive to investors after years of depreciation under the leadership of its predecessor. Ford will launch the e-transit van expected for the end of 2021 as an electric vehicle.
He works for companies like United Parcel Service (NYSE: UPS), Amazon.com Inc. (Nasdaq: AMZN), and other companies that provide delivery and maintenance services. It will be an important vehicle for companies looking to convert their fleets from diesel and gasoline vehicles to electric vehicles. The Ford E-Transit Van will cost around $ 45 million when it arrives next year. Based in Dearborn, Michigan, the company expects to maintain its stronghold in the commercial vehicle market that it has dominated for years. It expects to be effective in helping the shift to electric vehicles that seek sustainable modes of transport. Farley said they sell over 0.5 million transit vehicles worldwide each year that the company plans to electrify.
He added that commercial customers are different from retail because they don't buy too much in range. Farley stated that Ford's electric vehicles would bring electrification to the construction site so that people could use the battery in e-transit to power the construction site.