On February 15, Ford CEO Jim Farley advised Wall Street to shift their focus away from Tesla’s Full Self-Driving (FSD) systems and concentrate on Ford’s thriving “Pro” fleet business.
Speaking at a Wolfe Research conference, Farley emphasized that the future of the automotive industry lies in exploring Ford “Pro”, which boasts half a million subscribers and a robust 50% gross margin.
Ford ‘Pro’ encompasses established fleet and commercial operations, along with newly developed telematics, logistics, and connected services catering to diverse business clients, from small-town tradespeople to multinational corporations. The unit’s pretax earnings are projected to reach $8 billion to $9 billion this year, surpassing estimated losses in the Model E EV business and earnings projections for the traditional “Blue” business.
Ford anticipates revenue from telematics and non-traditional subscription services to reach $2,000 per vehicle year, or around $167 per month, by the upcoming years. Farley reiterated Ford “Pro’s” potential, highlighting its pivotal role in the company’s future.
Ford is adjusting its EV spending, including domestic battery production, due to slower-than-expected consumer adoption and significant losses on current models. Despite this, Farley highlighted fleet customers’ faster-than-anticipated adoption of all-electric vehicles.
As part of the “Ford+” restructuring, the “Pro” operations, led by Ted Cannis, play a crucial role. Ford is developing next-gen EVs, aiming for profitability within a year of launch. Farley emphasized the success and potential of the “Pro” business within the company’s strategic plan.
