Ford Motor Co. or Ford, a leading American automobile company, has confirmed that it would start launching an all-electric version of its Transit cargo van by next year as per the plan previously announced.
The company earlier had announced its $11.5 billion investment on “vehicle electrification” by 2022 and started making a partnership with Rivian, a Michigan-based electric vehicles (EVs) start-up to pursue a mass scale production.
Ford’s Sales of Commercial Vehicles
Among the EVs manufacturing giants, Ford has been leading in the production of commercial vehicles including Cargo van as new competitors such as Rivian entered into the industry. In January 2020, Ford announced that it would produce an electric luxury SUV for its Lincoln luxury brand with the help of its partner, Rivian.
The electric truck manufacturing startup, Rivian had earlier entered a deal with another investor, Amazon.com Inc. (Amazon) to supply 100,000 all-electric vans for the e-commerce service giant last year.
Commercial vehicles such as the Transit vans have been a major source of Ford’s revenue and the company is known for America’s best-selling commercial van brand for 41 years. According to Ford, the company has witnessed a 33% increase in the sales growth of trucks and vans since 2015 and expected that to continue citing the rapid transformation in the online shopping and the delivery services of the e-commerce service providers.
Jim Farley, recently appointed as the chief operating officer of Ford, said in a statement, “Commercial vehicles are a critical component to our big bet on electrification.” Farley added, “As leaders in this space, we are accelerating our plans to create solutions that help businesses run better, starting with our all-electric Transit and F-150.”
All-Electric Transit Van
The all-electric Transit van, according to Ford, will be manufactured in the US on the contrary of what the United Auto Workers Union said last year. Without providing much information on the production of the vehicles, the Union said that Ford’s all-electric van would be produced at a Company’s plant in Missouri.
Initially, Ford is introducing its all-electric version of the cargo van to North America. According to Ford, “the electric version of the Transit, which is currently available in gasoline- and diesel-powered versions, will be available in the United States and Canada in 2021.” As per the announcement made previously, the company expected to start launching the electric version of Transit vans in the European market next year.
Expecting the sale of electric vehicles to make up 8% of all sales in the United States by 2025, Farley said, “The world is heading toward electrified products and fleet customers are asking for them now… We know their vehicles operate as a connected mobile business and their technology needs are different than retail customers.”
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