Ford (NYSE: F) Shares Are in Focus Today as the Company Unveils the New 2022 E-Transit Van
Ford (NYSE:F), the U.S. automaker trying to make its mark in the EV sphere, is on the radar of investors today as the company gears up to unveil the new 2022 E-Transit van.
As per the details revealed today, the Ford 2022 E-Transit Van will be available in three configurations – Chassis Cab, Cutaway, and Cargo Van models. Expected to be launched in late 2021, the van features an integrated battery setup to maximize cargo space. Moreover, Ford has selected its Kansas City Assembly Plant in order to build the new EV.
— Ford Motor Company (@Ford) November 12, 2020
Ford revealed at the dedicated virtual event today that the E-Transit Van will have a range of 126 miles. Ford used telematics data, gleaned from 30 million miles of unique trips, to determine that the average daily range of a commercial van is 74 miles. This means that the E-Transit will have a range that exceeds this average use case by 70 percent. Ford is aiming for a payload capacity of 3,800 pounds for the cargo vans and 4,290 pounds for cutaways. The vehicle will be powered by an under-the-floor 67 kWh battery pack that would be sealed in an insulated case. It also features a heavy-duty independent suspension system along with a rear-wheel drive. Ford will also offer an ecosystem of supercharging solutions for these vans, consisting of over 13,500 public chargers as well as DC fast charging services that can add a 30-mile range in 10 minutes. Moreover, E-Transit will also offer a 2.4-kW ProPower on-board system to power electric tools.
As far as the telematics are concerned, the Fordpass Connect telematics will provide a trove of real-time data, including route optimization services. Its SYNC 4 interface will allow drivers to find chargers on the move. The van will start retailing at around $45,000.
You can watch the entire virtual event here:
We wrote in a post earlier this week that Ford seems to be compensating for its initial lack of alacrity vis-à-vis electric cars by expediting its synchronized EV push. On the 10th of November, the company revealed key details regarding its $11.5 billion global electrification plan. Out of this sizable fiscal pie, Ford will invest around $3.2 billion in its American manufacturing facilities.
Ford’s Kansas City Assembly Plant will play an instrumental role in building the all-electric Ford F-150 truck that was revealed back in September 2020 after having faced a hefty delay. The company has already invested $300 million in the Kansas facility for the electric F-150. However, the truck’s final assembly will take place at the new $700 million Rouge Electric Vehicle Center in Dearborn, Michigan. As a refresher, the electric F-150 will include dual electric motors, designed to deliver more horsepower and torque than any conventional F-150 available today. It will also feature a giant front truck as an additional cargo space. In a crucial insight, Ford noted on the 10th of November that it has increased its initial production plans by around 50 percent in light of the healthy demand for the electric F-150.
Capping Ford’s current electric plans, the Mustang Mach-E will start arriving at dealerships next month. Manufactured in Cuautitlan, Mexico, the EV offers electric all-wheel drive, with front and rear motors distributing power to each axle independently. The Mach-E offers an EPA range of 230 miles and will start retailing at $42,895 (before the application of federal tax credits).
Just yesterday, UBS took a positive view of Ford’s pivot toward EVs, noting:
"Although the $100m investment into production of an EV platform is small, we believe the manufacturing of the E Transit out of its Kansas City facility will enable the OEM to leverage elements of existing production from the OEM's ICE Transit van produced out of the same location. This could prove to be a strategic cost-saving measure from Ford, due to significant CapEx required to retool for electrification."
Ford shares are down over 1 percent currently. Year to date, the stock has registered a loss of around 12 percent.