Enabling Electrification: Insights from Ford Pro

What It Takes for Businesses and Cities to Adopt and Benefit from Electric Vehicles at Scale

A Ford F-150® Lightning® truck and Mustang® Mach-E® SUV parked next to each other.

One of the things I love about my job is getting out and talking to people who drive and rely on our vehicles—whether that means connecting with customers over their business challenges or, in this case, engaging with some of the brightest minds about technology as an enabler for business. A couple of weeks ago, I attended and spoke at MIT EmTech 2024. I felt deeply inspired after being surrounded by brilliant people focused on applying groundbreaking technology to build a better future.

We see electrified vehicles and the digital innovation that comes with them as one of those groundbreaking technologies. Accelerating the transition to electric vehicles is a hot topic, and for good reason.

As a commercial vehicle leader1 for decades and with three years of our first-generation electric vehicles in the market—Mustang® Mach-E® SUVs, E-Transit™ vans, and F-150® Lightning® trucks—Ford Pro™ is actively shaping the conversation by learning from the companies and communities implementing them.

During my “Productivity Electrified” fireside chat, I shared key insights from our journey with our business and government customers who are leading large-scale electrification today. We believe the commercial sector will continue to lead the electric vehicle revolution, much like businesses spearheaded the early adoption of computers. A lot can be applied from what we learn here to the early majority.

A woman leans against a charging E-Transit™ van while she looks at a tablet.

What Business Is Teaching Us

We’re proud to serve a diverse range of commercial customers—from construction and delivery companies to agriculture and municipalities—each with its unique needs and operational realities. The lessons we’ve learned from them can serve as a blueprint for decision-makers navigating an electrified future.

Commercial customers view vehicle acquisition through a different lens than personal buyers. While personal buyers may prioritize an emotional connection to a brand and aesthetics, businesses, public agencies, and organizations focus on their operational and practical needs, including  total cost of ownership (TCO) during the lifecycle of the vehicle and vehicle performance to get the job done.

Yet only 6% of fleet decision-makers and business owners surveyed have adapted their TCO calculations to account for electric vehicles,2 which means they are overlooking a compelling business case to go electric. Electric vehicles’ overall TCO is often lower due to lower fuel costs and lower scheduled maintenance costs. For example, scheduled maintenance costs for the E-Transit™ van are estimated to be 48% less than the average scheduled maintenance costs for a gas-powered 2024 Transit® van over 5 years/75,000 miles (whichever comes first).3

Our connected vehicle solutions validate these observations. Ford Pro™ Intelligence4 monitors and analyzes more than 1 billion datapoints from Ford commercial vehicles per day.5 One customer determined that his company saved nearly $6,500 per E-Transit van annually on fuel, service, and operating costs using our electric-vehicle-specific software, Ford Pro E-Telematics,6 for real-time data.

Incentives and tax breaks for vehicles and charging infrastructure can also help to lower upfront costs, an additional electrification “dollars and cents” benefit for businesses. Ford Pro electric vehicles potentially qualify for up to a $7,500 commercial tax credit through the Inflation Reduction Act.7 Customers can also receive up to a 30% tax credit (maximum of $100,000) on charging and alternative fuel equipment and installation costs.7

The Right Tool for the Job

Even as the adoption curve of electrification continues, our customers will still need gas, diesel, and hybrid vehicles for some time. Work takes many forms, and vehicles are important tools that must address the requirements of the job. Commercial electrification hinges on capability: Is the electric vehicle the right tool for the job? Requirements for heavy-duty towing and hauling may be better suited to other powertrains. That’s why we provide the choice of the right powertrain for the job—so we can serve all customers as they transition to electric vehicles over time.

Fortunately, rapid technological progress is constantly expanding potential use cases for electric vehicles. For example, wind turbine company Vestas, whose North American fleet consists of 1,800+ vehicles, initially struggled to find an electric vehicle spacious enough for technicians’ tools and powerful enough for rugged wind farm terrain. With the introduction of the F-150® Lightning® electric truck, Vestas found a solution—and has since integrated hundreds into its North American fleet, along with Ford Pro™ chargers.

Range is another common concern. However, our analysis of more than 2.5 million trips (totaling 30 million miles) using Ford Pro™ Telematics4 revealed that the average daily range for commercial vans in the United States is 74 miles—well within the estimated range of most electric vehicles.8

Two F-150® Lightning® trucks parked on a wind farm
Two F-150® Lightning® trucks parked on a wind farm

Navigating Charging

The shift from gas to electric vehicles requires a new approach to fueling, with a focus on maximizing vehicle uptime and prioritizing employee training. Here’s what we’re discovering and reporting about charging:

1. Educate business owners and their employees about charging.

Charging poses unique questions for both commercial and personal users, highlighting the need for a charging strategy for business owners and user education for their employees. For example, employees of Vermont utility provider Green Mountain Power needed charging education ranging from skipping their end-of-day “pump and park” routine to understanding the local charging infrastructure they could tap into. Similarly, the need for charging education was driven home for a California-based police chief when his deputies, unfamiliar with charger levels at a public station, ended up stranded on their way to a conference. 

For these reasons, we are seeing many businesses start their electrification journey with charging pilot projects to identify the best charging strategy for their business and introduce their fleet managers and drivers to how it will work.

2. Scale home charging.

Public charging isn’t a requirement for commercial electric vehicle owners. Nearly 80% of our commercial customers charge privately at their on-site depots or at home.9 Data from our first-generation electric vehicles suggests that in-home charging makes more sense for retail and commercial customers. DC fast charging is convenient for a quick top-off, but AC chargers are lower powered and typically lower cost, making them suitable for more convenient and more affordable overnight home charging when energy rates are the lowest. The 2024 E-Transit™ van can fully charge overnight on the 80A Ford Charge Station Pro.10

Enabling employees to charge their fleet vehicles at home, using convenient AC chargers, also sidesteps the need for expensive electrical and infrastructure upgrades at a work site.

3. Let software do the heavy lifting.

Electric vehicles, on their own, won’t perform at peak in all conditions. Ford Pro™ E-Telematics6 allows employers and drivers to precondition vehicles for maximum range performance, such as bringing the cabin and battery to optimal temperatures while still connected to the charger. Through the E-Telematics6 dashboard, employers can also manage real-time charge and range status, control when they charge to manage charging costs, and manage driver reimbursement for home charging.

For businesses that prefer to keep fleet vehicles on-site, depot charging technology, particularly smart charging software, is essential. By monitoring millions of data points per day to continuously improve the charging experience,11 Ford Pro Charging software acts as a charging manager. For example, it automatically schedules charging during off-peak hours, balances circuit loads, and even sends alerts when vehicles have been left unplugged. These capabilities help reduce expenses and streamline operations.

4. Use your resources.

We’ve learned that collaboration is required to help businesses make the most of electrification’s business value. That’s why we’re working closely with utility companies to assist customers with charging infrastructure planning and installation. We’re also developing incentive programs, such as our recent Smart Charging Bundle in Massachusetts, which offers complimentary commercial-grade Ford Pro Chargers to subscribers enrolled in the Massachusetts Clean Peak Energy Standard.

A row of E-Transit™ vans plugged into chargers
A row of E-Transit™ vans plugged into chargers
A worker reviews charge status data on the Ford Pro™ E-Telematics Dashboard on a mobile phone
A worker reviews charge status data on the Ford Pro™ E-Telematics Dashboard on a mobile phone

Sustaining this growth in the long term requires a commitment to continuous innovation. At Ford Pro, we’re working hand-in-hand with our customers, listening to their needs, and developing innovative solutions to accelerate electrification because it has real business value ready to be tapped.

Disclaimers:

1Based on S&P Global Mobility CY 1985–2023 U.S. TIPNet Registrations, excluding registrations to individuals. TIP Registrations prior to 2010 do not include all GVW 1 and 2 vehicles.

2Escalent, FAH 2022 Fleet Electrification Survey (September 2022).

3Scheduled maintenance costs based on recommended service schedule as published in the Owner’s Manual. Analysis reflects Ford Motor Company’s standard method for calculating scheduled maintenance cost, and reflects data available in 2024.

4Available on vehicles with embedded modem or equipped with approved plug-in device (PID). May require modem activation. Ford Telematics™ and Ford Data Services™ require a purchased subscription. Terms and conditions apply. Telematics service and features, and access to vehicle data, depend on subscription and compatible AT&T network availability. Evolving technology/cellular networks/vehicle capability may limit functionality and prevent operation of connected features.

5As of March 2024.

6Eligible (2022 and 2023 MY) vehicles receive a complimentary three-year trial of Ford Pro™ E-Telematics services, and eligible (2024 and 2025 MY) vehicles receive a one-year trial that begins on the new-vehicle warranty start date. Requires modem activation. Terms and conditions apply. Telematics service and features depend on compatible AT&T network availability. Evolving technology/cellular networks/vehicle capability may limit functionality and prevent operation of connected features. Annual service contract is required for E-Telematics service after trial. Call 1-833-811-3673 or go to fordpro.com to activate E-Telematics service.

7Please consult with your own tax or legal professional to determine eligibility, specific amount of incentives, or rebates available. The federal tax credit is a potential future tax savings. The amount of your tax savings will depend on your individual tax circumstances. Incentives and additional rebates are not within Ford’s control. This information does not constitute tax or legal advice. For additional information, go to https://www.afdc.energy.gov/laws/409.

8“Electric Vehicle Myths.” United States Environmental Protection Agency. Accessed Oct. 8, 2024. https://www.epa.gov/greenvehicles/electric-vehicle-myths

9Escalent (January 2023).

10Charge time based on manufacturer computer engineering simulations. The charging rate decreases as battery reaches full capacity. Your results may vary based on peak charging times and battery state of charge.

11Based on 2024 Q1 internal Ford data.