Ford News: FORD+ Capital Market Day and Ford Pro Services In Focus!

[G. David Felt]

In the 21st century, Ford is leading the revolution with Zero-emission electric vehicles, advanced connectivity in transforming commercial and personal transportation by using platforms based on cutting-edge electrical architectures and battery technologies with compelling services.

Delivering FORD+ is how Ford Motor Company is breaking away from the typified auto industry of decades past of the typical build and sell transactional business model and embracing foundational strengths based on improved financial performance, capabilities and investments in disruptive technologies. 

At the core of the Ford Motor Company is the following strengths with Blue Oval Intelligence, Ford's next-generation, cloud-based platform for integrating electrical, power distribution, computing and software systems in 21st century Ford and Lincoln vehicles.

Ford stated they expect to deliver an 8% adjusted EBIT (earnings before interest and taxes) margin in 2023 fiscal year and this will power strengthening core automotive operations due to healthy cash flow that will fund growth and create value.

Ford Key Electrification Revolution leadership:

• Accelerating investments and increasing planned total spending on electrification, including battery development, to more than $30 billion by 2025 – while deriving efficiencies from Ford’s flexible EV architecture and modular technologies.
• Anticipating 40% of Ford’s global vehicle volume to be fully electric by 2030, including from:
  • Mustang Mach-E, which is bringing new customers to Ford – 70% of buyers, to date
  • The F-150 Lightning, an all-electric version of the world’s most popular pickup truck, which has amassed 70,000 customer reservations since it was unveiled one week ago, and
  • E-Transit commercial vans, which will be on the road later this year.
• Investing in battery technology and equipping Ford to design, engineer and manufacture its own batteries, with key developments including:
  • Creating Ford Ion Park, a global center of battery excellence comprising more than 150 experts in battery chemistries, testing, manufacturing and value-chain management who will boost battery range and lower costs to customers and Ford
  • Vertically integrating battery technology with an extensive range of EV batteries – IonBoost lithium ion; IonBoost Pro lithium iron phosphate for commercial vehicles; and long-range, low-cost solid-state batteries based on Ford’s own engineering and know-how from Solid Power, in which the company holds an equity stake, and
  • Forming a joint venture, BlueOvalSK, with SK Innovation to manufacture battery cells and arrays at two plants in the U.S. for future Ford and Lincoln vehicles.

Business Dedicated to Commercial Customers:

• Establishing Ford Pro, a global vehicle services and distribution business within Ford devoted to commercial and government customers, and led by Ted Cannis, who’s been named CEO and a corporate officer.
  • Cannis has been head of Ford’s North America CV business and previously managed the Team Edison EV development group.
• Providing customers with greater value and higher productivity through:
  • The industry’s most comprehensive and flexible range of electric and internal-combustion commercial vehicles
  • Digital and physical services that can help optimize and maintain customer fleets
  • Public, depot and employee home charging of EVs for the next day’s work, and
  • Bundled financing of vehicles, services and charging.
• Increasing the commercial market for hardware and adjacent and new services that’s addressable by Ford – with anticipated company revenue of $45 billion by 2025, up from $27 billion in 2019.

• Ford Pro will integrate, digitize and simplify transportation with capabilities spanning:

  • Ford Pro Vehicles – including Ford’s broad lineup of combustion-engine and hybrid commercial vehicles and, soon, all-electric versions of the company’s industry-leading vans and full-size pickup trucks developed for commercial use
  • Ford Pro Charging – hardware and software solutions for public, depot and overnight home charging of EVs so they’re ready to work again the next day
  • ·Ford Pro Intelligence – digital services, with distinct features integrated in their vehicles that enable customers to better manage and maintain their fleets
  • Ford Pro Services Elite – expanding Ford’s strong network of CV centers by adding 120 dedicated, large-bay service hubs across the United States with extended hours and rapid turnaround, plus introducing 1,200 mobile service vehicles by 2025 to meet customers where they are, save them money and get them back in business, and
  • Ford Pro FinSimple – bundled financing for vehicles, services and EV charging.

Ford is dedicating a Separate business unit to the drive for superior customer service in the commercial sector be it at one of Fords service centers in an office space or out in the field.

FORD+ is showing how Ford Motor has moved forward with Connecting with Customers via Connected Services:

• Having about 1 million vehicles that are capable of receiving over-the-air system updates on the road by the end of this year, exceeding Tesla’s volume by July 2022, and scaling to
  33 million OTA-enabled Ford and Lincoln vehicles by 2028.
• Strengthening customer relationships with digitally enabled tools like Ford Pass and Lincoln Way, online ordering, simplified financing and renewal options, vehicle pick-up and delivery, and mobile repairs.
• Extending digital lifestyles by fully integrating best-in-class technology from, e.g., Apple, Amazon, Google and Baidu.
• Speeding detection and resolution of quality issues using connected data – helping to raise customer satisfaction and lower warranty costs.
• Deploying distinctive connected functions like Ford’s BlueCruise driver-assist technologies, new features and upgraded software content, and EV charging to improve the user experience – and capitalize on what is projected to be a $20 billion market for such services by 2030.

FORD+ day highlighted a few things that will happen the $45 Billion investment for BEVs. 

1. IonBoost will be the Ford Brand for their Lithium-ion and eventual solid state batteries with Ford expecting to cut battery costs by 40% by mid-decade.
2. Blue Oval Intelligence will all in-vehicle technology stacked with streaming services from Apple, Amazon, Google and Baidu.
3. Ford has confirmed two dedicated EV Platforms
   1. Full-size EV platform will handle the F-150 Lightning and future trucks / SUVs.
   2. VW MEB platform will be used for Mid-size, Compact and Sub-Compact EVs.

 

While some analysts have stated Ford is trailing in the electrification race, Ford CEO Jim Farley disagrees pointing out the successful and currently sold out Mustang Mach-E crossover, the E-Transit van and the F-150 Lighting truck all in production in 2021 with deliveries starting late 2021.

Ford's marketing of the Mach-E is the starting point of the new revolution at Ford from Photoshoots to digital media as Ford informs and shows why the future is electric.

Ford also has additional plans for the platform that the Mustang Mach-E is built on as they talk about a much more diverse portfolio of auto's filling in every choice consumers want with all sorts of variations in Ford Trucks, SUVs and Cars. It would seem a Ford Bronco electric version could be an option soon.

Leading the market with the Mach-E and now the F-150 Lightning that can fullfill every commercial and especially consumer need, Ford is projecting great stock / company growth this decade.

Superior Value From EVs, Commercial Business, Connected Services Is Strategic Focus of Today’s ‘Delivering Ford+’ Capital Markets Day | Ford Media Center

New ‘Ford Pro’ Vehicle Services and Distribution Business Redefining Transportation Value for Commercial Customers | Ford Media Center

Ford Motor Company - 2021 Capital Markets Day

Ford boosts EV spending, outlines 2030 sales targets, shares near 5-year high | Reuters

EXCLUSIVE Ford follows GM, VW with two new dedicated EV platforms by 2025 -sources | Reuters

 

 

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