Summary
- Ford CEO Jim Farley is not concerned about the potential loss of the federal tax credit for electric vehicles
- Concerns arise that Elon Musk could use his position to favor Tesla’s electric vehicles over the competition
- Ford is focusing on electrifying commercial fleets to boost sales, leveraging the success of its E-Transit van in Europe
- The company believes in the economic benefits of fleet electrification and is working with utilities to expand charging infrastructure
- Ford’s support for Trump’s inauguration fund could lead to potential backlash from both left-leaning and Trump-supporting fleet managers.
Article
Ford is not too worried about the federal tax credit for electric vehicles post-Trump presidency, as CEO Jim Farley believes Elon Musk’s influence on the incoming President will support favorable policies for electric vehicles. Ford’s donation of vehicles and money to the Trump inauguration fund, as well as its focus on electrifying commercial fleets, show their strategic moves in the industry. The company is emphasizing the business case for commercial fleet electrification, highlighting success stories such as a French delivery company experiencing an 80% decrease in fuel costs after switching to Ford’s E-Transit vans.
The commercial market is key for Ford to boost sales of electric vehicles, with plans to introduce the Lightning F-150 pickup truck and the Mustang Mach-E SUV to fleets. The availability of home charging is also essential for commercial fleets, with studies showing a preference for charging at home among individual electric vehicle owners. Ford is collaborating with utilities to expand public EV charging availability for commercial fleets, including partnerships with Xcel Energy and Southern Company.
Despite their commercial electric vehicle strategy, Ford’s support for Trump through vehicle donations and a cash contribution to the inauguration fund could lead to backlash. Trump’s recent support for the H-1B visa program has caused tension among his supporters, potentially affecting brands associated with him, like Ford. The company previously faced boycotts for its LGBT-friendly programs in 2005, and now may face repercussions from former Trump supporters who feel misled on immigration policies promised during the campaign.
The battle over immigration policy within Trump supporters has stirred up controversy, with many expressing regret over his positions on immigration. Trump’s alliance with Musk, who supports the H-1B visa program, has led to backlash from his base, which could impact companies like Ford that are associated with him. Ford’s focus on commercial fleet electrification and their reliance on the successful business case for electrifying fleets could help mitigate any potential fallout from its support for Trump. Despite the uncertainty post-Trump presidency, Ford is banking on commercial fleet electrification to drive sales in the coming years.
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