Ford Motor is carving a unique lane as the automaker goes after the electric vehicle market, newly installed CEO Jim Farley told CNBC’s Jim Cramer Thursday.
Earlier that day the company announced a new all-electric van targeting business customers, as part of its $11.5 billion investment in electric vehicles through 2022.
“This is a big deal for us because what makes us different is we are investing in commercial vehicles,” he said in the “Mad Money” interview. “Ford’s bet is to electrify our commercial vehicles. We’re 50% of the market in the U.S. for commercials.”
It’s part of Farley’s plan to transform the company and boost attractiveness on Wall Street after years of declining value under his predecessor. The E-Transit, slated to deliver in late 2021, will be marketed as an electric work van for companies like Amazon, United Parcel Service and other firms that provide delivery and maintenance services.
Ford unveiled its new all-electric Transit van on Nov. 12, 2020.
Ford wants to keep a stronghold on the commercial vehicle market, which the Dearborn, Michigan-based automobile manufacturer has led in for decades, as businesses move toward ditching gasoline and diesel vehicles for EVs.
Ford commanded a 57% share of the North American vehicle market in the third quarter, according to its earnings report.
“We sell over a half million Transits a year around the globe, and we’re going to electrify it,” said Farley, whose lineage with the company dates back to when his grandfather got his start in a Michigan plant in 1916.
“The commercial customer is really different than retail. They don’t overbuy on range,” he added. “Our electric vehicles are going to bring electrification to the job site so people will be able to use that battery in the E-transit to power the job site.”
Ford shares, however, tumbled during the session along with the broader market Thursday. The stock fell 1.44% to $8.21 per share.
Shares remain down double digits so far this year.