Ford unveils new EV van for its for-profit business

Ford Motor expects that its new all-electric transit van will help it move into commercial vans as new and long-time rivals enter the emerging market.

Unveiled by Ford on Thursday morning, the vehicle is designed for commercial and work buyers – a large part of its business and a key area under development by new Ford CEO Jim Farley.

“In general, our commercial business is the key to the company,” Ted Keynes, Ford North America’s general manager of commercial business, told CNBC. “We targeted customers who have to do real work.”

E-transit is expected to arrive later this year. It is expected to be part of a new part of the all-electric work van used for delivery, maintenance and other services by Amazon, United Parcel Service and other professionals who want to change their fleet from gasoline or diesel to electric.

The new van is part of Ford’s plan to invest 11.5 billion in electric vehicles by 2022. Commercial vehicles accounted for 57% of the North American market in the third quarter of this year, according to the company.

Unlike the current dealer van market, Ford is defending its market share from traditional rivals such as Mercedes-Benz and General Motors, as well as new EV companies such as Workhorse and Revion. Amazon has already placed 1,800 pre-orders of 100,000 all-electric vans and Mercedes-Benz from Rivian.

Ford has “a lot of demand” for all-electric commercial vehicles, Canis said. The automaker on Tuesday announced plans to increase production of its next all-electric F-150 pickup by 50%. It declined to make specific product announcements.

Adoption will move very quickly, “Canis said. Ford expects the global electric van market to grow to 1.1 million vehicles by 2030.

E-Transit will start at less than 45 45,000 – about 10,000 10,000 more than Ford’s current gasoline-powered models. It will come in eight configurations including three roof ights height and three lengths as well as “chassis cab” and “cutway” models that allow companies to enter the van more easily.

Canis said the extra cost would be offset “very quickly even with today’s low fuel prices”. Ford expects an estimated 40% reduction in maintenance costs on its current gas-powered vans, as well as additional productivity from fuel fill-ups.

Canis declined to give a specific timeline for payback, citing, among other factors, the difference by model, region and type of business.

The approximate range of e-transit (it can run a number of miles on a single charge), according to Ford, is 126 miles for the smallest version of the van. It is much lower than current gasoline powered models but in line with other declared electric vans. Ford declined to release an estimated range for the big M for Dello, which would probably be lower.

According to Canis, Ford adjusted the range of vans with its capacity. He said Ford has found many current commercial van owners with an average of 74 miles per day.

“They don’t always drive. They have many fixed and local routes,” he said. “They’re hanging on to customers during the day.”

The van is expected to be capable of 266 horsepower and 317 lb-ft of torque. The vehicle charging time for the extra range varies depending on the charging power and method – from a few hours to a range of about 30 miles in 10 hours of typical residential power outlets for dedicated fast chargers.

Ford said the 4G LTE offers a range of “Connected Solutions” for data subscriptions and connectivity in e-transit to help commercial vehicle customers manage fleet efficiency and optimize optimization. It will also offer the next onboard generator like the 2021 Ford F-150 pickup.

“We’re doubling down on software and digital services to help our fleet grow customers and run their businesses more efficiently,” Furley said in a release.