Ford Transit Cargo Van

Ford Transit Cargo Van

This could be BIG news for fans of trucks and SUVs.

A couple of weeks ago, duringĀ Ford's annual Investor Day presentation, the topic of electrification was brought up and Ford's top brass had some answers that are intriguing.

According to Ford, electric vehicles (BEVS and PHEVs) are expensive to make, so Ford's strategy will be to focus on already-profitable segments so that the automaker's EVs aren't money losers for the company.

CEO Mark Fields stated:

"We want to become a top player in electrified solutions, and I call it moving from a compliance mind-set to one of leading where we can win, such as with our commercial vehicles."

But it's these statement from Ford product chief Raj Nair that really caught our attention:

"Trucks, commercial vehicles, sport-utilities, and performance vehicles are all parts of the market where Ford has a strong position, and where it currently generates big profit margins. Those are the segments where Ford will focus its electrification efforts, on the theory that those customers are most likely to buy into Ford's innovations -- and are most willing to pay for them."

"In other words, rather than building an electric vehicle just to satisfy regulatory requirements (what Fields meant by "compliance mind-set"), Ford is planning to bring electric drivetrains to market in ways that will make customers feel they add significant value."

"Think about a plug-in hybrid Ford pickup that can summon its electric motors' immense torque to start a heavy load moving, or an SUV with an electric motor at each wheel that can adjust its traction on the fly in slippery conditions, or a plug-in hybrid Mustang that runs on electric batteries in normal driving -- but that instantly starts its powerful gasoline V8 when you floor it. Or a fleet of electric commercial delivery vans that operate quietly and don't ever need fuel, just a nightly recharge."

Sure sounds interesting to us and electrification in these segments in rare still today, so we're intrigue by Ford's approach.

Source: Motley Fool