Ford Looks to Software Revenues to Drive LCV Profits
Software defined vehicle revenues are expected to boost Ford’s earning power from its commercial truck and van products.
That’s the view of the chief financial officer of Ford Pro, Navin Kumar, who predicts these revenues will grow by $4,000-$5,000 per vehicle in the future, reports Reuters. Kumar said the revenues are expected to come from software- and data-driven fleet services, safety and security services, partial vehicle autonomy and insurance.
Speaking at a J P Morgan investor conference, he did not give a growth percentage forecast but said Ford’s ability to deliver and profit from those services will be enhanced in the middle of this decade when the company introduces its next-generation electric commercial vehicles with a digital “intelligence” platform. This could help the already profitable Ford Pro program meet some ambitious 2026 targets, he said, including doubling the percentage of connected vehicles to about 60% and tripling the percentage of vehicles with paid software to about 36%.
Ford Pro will continue to offer a full portfolio of powertrains including ICE, hybrid electric and BEVs, Kumar said. He added that Ford’s second-generation BEVs, including the successor to the F-150 Lightning pickup, will be more profitable in terms of their ability to generate additional software and services revenue. While refusing to say whether the current F-150 Lightening was profitable, Kumar said it was not “cost optimized”.
In Europe, he said Ford Pro expects to boost its commercial vehicle business with the arrival in autumn of a new Transit Custom van and the introduction next year of electric versions of the Transit Courier and Transit Custom.
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_ and Threads
