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Economy

Ford Pro’s Strategic Benefits from Reallocated EV Funds: Inside the Transformation

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Ford Reallocates Funds to Commercial Vehicle Business as EV Adoption Slows

Table of Contents

Dearborn, Michigan – Ford Motor Company is strategically redirecting financial resources from its Model e electric vehicle division towards its robust Ford Pro commercial vehicle and Super Duty truck business. This move comes amid a more gradual-than-anticipated uptake of electric vehicles, coupled with evolving regulatory conditions and supply chain challenges.

A Shift in Strategy: Prioritizing Current Strengths

A slower pace of electric vehicle acceptance-attributed to factors like high costs, limited charging infrastructure, and recent regulatory changes-has led to adjustments in product timelines and a reassessment of investment priorities. Ford’s Chief Executive Officer,Jim Farley,emphasized the company’s commitment to maximizing profits and accelerating its long-term business plan during a recent earnings call. Ford pro appears to be the key to achieving these goals.

“ford has essentially dominated the commercial fleet market for years,” noted Rhett Ricart, a dealer representing several brands in Columbus, Ohio.”But over the last five years, they’ve truly solidified their position by aggressively growing this segment while competitors have lagged.”

Investing in Service and Software

While Ford remains committed to electrification, the immediate focus is on bolstering its commercial offerings.A meaningful portion of the reallocated funds will be directed towards enhancing service capabilities and developing advanced software solutions. The company is rapidly expanding its network of Ford Pro Elite Centers-specialized service hubs catering to commercial customers-with approximately 70 locations now operational across over 20 markets as their launch in January 2023.

Ford Pro has also witnessed a near doubling of subscriptions among small and medium-sized businesses. A key objective is to increase the contribution of aftermarket services, including parts and software, to 20% of Pro’s operating profit, up from the current 17%.

matt Atkenson, Executive Director of Pro’s North American Sales and Operations, stated, “We provide comprehensive solutions for all types of customers. Combining this with the specialized uptime focus of Ford pro Elite service centers is how we maintain leadership.”

navigating Market Challenges

Despite the strategic shift, Ford faces challenges including stricter greenhouse gas emission regulations. However, CEO Farley indicated that a change in the product mix – favoring trucks and SUVs – could offset these concerns, particularly given recent adjustments to environmental regulations. The company is also addressing production capacity limitations by expanding Super Duty output at its Oakville Assembly Complex in Ontario,Canada,while navigating associated tariff complexities.

Here’s a look at Ford Pro’s financial performance compared to other segments:

Business Unit Q2 2025 Operating Profit
Ford Pro $2.3 Billion
ford Blue $2.6 billion
Model e -$1.3 Billion Loss

Did You Know? Approximately 750,000 Ford Pro subscriptions are currently active across more than 130,000 accounts.

Elite Service Centers and Customer Loyalty

Chris Fennema, Vice President of Grand Rapids-based Kent Companies, a specialty trade contractor, exemplifies the benefits of the Ford pro ecosystem. His company, a long-time Ford customer since 1957, operates a fleet of 180 vehicles, with 95% being Fords. Fennema highlighted the durability and longevity of Ford chassis and the superior service provided by dealerships like Fox Ford in Grand Rapids.

Fox Ford’s recent upgrade to an elite service center, including 24 service bays and extended hours, has significantly minimized downtime for Kent Companies. Investments like these, with over $2 billion contributed by North American dealers since 2022, are crucial to maintaining customer satisfaction and operational efficiency.

Pro Tip: Regularly scheduled maintenance and proactive repairs,facilitated by Ford Pro’s services,can significantly reduce fleet downtime and improve overall profitability.

The Competitive Landscape

General motors and Stellantis are also strengthening their commercial vehicle offerings through initiatives like GM Envolve and Ram professional. Both companies are actively expanding mobile service capabilities to enhance customer convenience. Ford’s emphasis, however, remains on integrating its complete portfolio-internal combustion engines, hybrids, and electric vehicles-to cater to diverse customer needs.

looking ahead, Ford plans to launch a low-cost electric vehicle platform in 2027, starting with a midsize truck, followed by an electric commercial van and full-size truck in 2028.

What impact will these strategic shifts have on the broader automotive industry? And how will Ford balance its commitment to electric vehicles with the immediate demand for its proven commercial offerings?

Understanding the Rise of Commercial Fleets

The commercial vehicle market is a crucial segment of the automotive industry, driven by the needs of businesses ranging from construction and logistics to delivery services. These fleets often prioritize reliability, durability, and total cost of ownership over luxury features. According to the American trucking Associations, in 2023, the trucking industry alone generated $800.4 billion in revenue, showcasing its significant economic impact. (Source: American trucking Associations) Ford’s focus on this segment reflects a broader industry trend toward prioritizing profitability and customer loyalty in a rapidly evolving automotive landscape.

Frequently Asked Questions about Ford Pro

  • What is Ford Pro? Ford Pro is Ford’s dedicated commercial vehicle and service division, focused on providing solutions for businesses and government fleets.
  • Why is Ford shifting focus to Ford Pro? Ford is responding to strong demand and profitability in the commercial vehicle sector,as well as slower-than-expected adoption of EVs.
  • What are Ford Pro Elite Centers? These are specialized service centers providing enhanced support and reduced downtime for commercial customers.
  • How is Ford Pro utilizing software? Software is being used to track vehicle performance, predict maintenance needs, and optimize fleet management.
  • Will Ford continue to invest in electric vehicles? Yes, Ford remains committed to electrification but is adjusting its timeline and approach.
  • What is the impact of recalls on Ford Pro’s sales? Recent recalls have presented challenges, but Ford is addressing quality issues and leveraging over-the-air software updates for efficient fixes.
  • How does Ford Pro compare to competitors like GM and Stellantis? Ford, GM, and Stellantis are all investing in their commercial vehicle offerings, focusing on service, technology, and expanding mobile repair capabilities.

Share your thoughts! What do you think about Ford’s strategic shift? Leave a comment below.

How does Ford Pro’s integrated ecosystem-vehicles, charging, software, and services-create a competitive advantage over rivals like Rivian, BrightDrop, and Mercedes-Benz Vans?

Ford Pro’s Strategic Benefits from Reallocated EV Funds: Inside the Transformation

The Shift in Strategy: Why Ford Pro is the Focus

In early 2024, ford made a meaningful announcement: a recalibration of its electric vehicle (EV) investment strategy. While consumer EV demand hadn’t entirely faltered, the pace was slower than initially projected.This led to a reduction in planned EV spending and a strategic redirection of funds towards Ford Pro, its commercial vehicle and services division. This wasn’t a retreat from electrification, but a calculated move to capitalize on a demonstrably stronger market – the commercial sector. This article dives deep into the benefits of this reallocation, examining how Ford Pro is poised to lead the charge in commercial vehicle electrification and connected services. Key terms driving this shift include commercial EVs, fleet management, Ford E-transit, and Ford Pro platform.

Understanding Ford Pro’s Core Value Proposition

Ford Pro isn’t simply about selling electric vans and trucks. It’s a holistic ecosystem designed to maximize uptime, reduce operating costs, and improve productivity for commercial customers. This ecosystem centers around four key pillars:

Vehicles: The core offering, currently headlined by the Ford E-Transit and the F-150 Lightning Pro. Future models are planned,leveraging the reallocated EV funds.

Charging Solutions: Ford Pro offers depot charging installations, software to manage charging schedules, and access to the BlueOval Charge Network. this addresses a major barrier to EV adoption for fleets – charging infrastructure.

Software & Data: This is where Ford Pro truly differentiates itself. The platform provides real-time vehicle data,predictive maintenance alerts,and telematics solutions for optimized fleet management.

Services: From financing and insurance to mobile service and extended warranties, Ford Pro aims to be a one-stop shop for commercial vehicle needs.

How Reallocated Funds Fuel Ford Pro’s Growth

The funds redirected from consumer EV programs are being strategically invested in several key areas within Ford Pro:

  1. scaling E-Transit Production: Increased production capacity to meet growing demand for the electric van,a critical component of last-mile delivery solutions.
  2. Developing Next-Generation Commercial EVs: Accelerating the advancement of electric versions of larger commercial vehicles, like the transit and potentially heavier-duty trucks. This includes research into battery technology and powertrain optimization for commercial duty cycles.
  3. Expanding Charging Infrastructure: Investing in partnerships and infrastructure development to expand the availability of charging solutions for commercial fleets.
  4. Enhancing the Ford Pro platform: adding new features and functionalities to the software platform, including advanced data analytics, route optimization, and integration with third-party fleet management systems.
  5. Boosting Software Development Teams: Expanding the team dedicated to developing and maintaining the Ford Pro platform, ensuring continuous innovation and improvement.

The Benefits of a Commercial-Focused EV Strategy

focusing on commercial vehicles offers several distinct advantages:

Higher Utilization Rates: commercial vehicles typically log significantly more miles than personal vehicles, making the total cost of ownership (TCO) benefits of EVs – lower fuel and maintenance costs – more pronounced.

Predictable Duty Cycles: Commercial routes and usage patterns are often more predictable, simplifying charging infrastructure planning and optimizing energy management.

Fleet Purchasing Power: Businesses and government agencies frequently enough purchase vehicles in large quantities, providing Ford Pro with a stable and predictable revenue stream.

Stronger ROI on Software & Services: Commercial customers are more willing to pay for value-added services like fleet management software and predictive maintenance, boosting Ford Pro’s profitability.

Reduced Range Anxiety: Many commercial routes are fixed and relatively short, mitigating concerns about EV range limitations.

real-World Impact: Case Studies & Early Adopters

Several companies have already begun to realize the benefits of integrating Ford pro into their operations.

DHL Express: Deployed a significant fleet of Ford E-Transits in several major cities, reporting substantial reductions in emissions and operating costs.

National Grid: Utilizing Ford Pro’s telematics data to optimize fleet performance and reduce energy consumption.

Verizon: Integrating Ford Pro’s platform with its own fleet management systems to streamline operations and improve efficiency.

These early adopters demonstrate the tangible value proposition of Ford Pro, showcasing its ability to deliver real-world results for commercial customers.

The Competitive Landscape: Ford Pro vs. Rivals

Ford Pro isn’t operating in a vacuum. Key competitors include:

Rivian Commercial: Focused on electric delivery vans, notably for Amazon.

BrightDrop (GM): Offering electric vans and related services.

* Mercedes-Benz Vans: Expanding its electric van lineup.

However, Ford Pro’s established dealer network, comprehensive ecosystem, and strong brand recognition give it a significant competitive advantage. The reallocated EV funds further strengthen its position, allowing it to invest in innovation and expand its offerings.

Future Outlook: Ford Pro’s Long-Term Vision

Ford pro’s long-term vision extends beyond simply electrifying its vehicle lineup. The company aims to become a leading provider of integrated solutions for commercial vehicle operations, leveraging data and connectivity to transform the way businesses manage their fleets.This includes exploring new business models, such as

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Technology

Schaeffler Advances Electric Axis, Hybrid Technology, and Software for Future Mobility at IAA Mobility 2025

by Omar El Sayed - World Editor
written by Omar El Sayed - World Editor

Schaeffler Drives Innovation With New Hybrid, Autonomous, and Software Solutions

Table of Contents

Munich – Automotive and industrial supplier Schaeffler is poised to showcase a broad spectrum of advancements at IAA Mobility 2025, signaling a commitment to shaping the future of the automotive industry. The company’s focus centers on providing complete systems for hybrid vehicles, advancements in automated driving capabilities, and a new software-defined vehicle platform.

Expanding Hybrid Vehicle Solutions

Schaeffler is presenting solutions catering to diverse hybrid architectures, including plug-in, mild, and range-extended hybrid vehicles. A key development is a dedicated hybrid transmission integrating power electronics, cooling systems, a coupling, and a parking lock-an all-in-one unit designed for both full and plug-in hybrid applications in serial and parallel configurations. The company is also showcasing cutting-edge damper technologies and electromechanical camshaft adjusters for enhanced hybrid performance.

In a move towards sustainable fuels, Schaeffler has developed a flex fuel sensor capable of accurately measuring ethanol content and fuel temperature, paving the way for wider adoption of decarbonized fuels. According to the U.S. Department of Energy, biofuels could displace approximately 25% of gasoline and diesel fuel by 2030.

Steering Towards autonomous Driving

Acknowledging the increasing prevalence of automated driving,Schaeffler is actively developing technologies for both Level 3 (partial automation) and Level 4 (high automation) vehicles. Projections estimate that 10% of vehicles will operate at Level 4 and 15% at Level 3 by 2035.The company is addressing this shift with advanced damper and steering systems, notably introducing new steer-by-wire solutions.

The Hand wheel Actuator (HWA) is a standout innovation, integrating force feedback utilizing a magnetorheological brake and an optimized Brushless DC (BLDC) motor. This system aims to deliver a refined steering experience while minimizing the use of materials like copper and rare earth elements, and even facilitating alternative operational concepts such as joystick control.

Software-Defined Vehicle Platform

recognizing the growing importance of software in modern vehicles, Schaeffler is introducing an electrical/electronic (e/e) platform. This platform consists of a Master Control Unit (MCU) and a Zone Controller Unit (ZCU), designed to centralize vehicle functions within a software-defined architecture.

Component Function
Zone Controller Unit (ZCU) Connects, controls, and supplies power to control units, sensors, and actuators within a specific vehicle zone.
Master Control Unit (MCU) Processes data related to driving strategy, charging, thermal management, energy management, and by-wire systems; meets ASIL-D safety standards.

Did You Know? ASIL-D represents the highest level of Automotive Safety integrity Level, ensuring stringent safety requirements are met in critical vehicle systems.

Schaeffler’s Press Conference Details

Schaeffler will hold a press conference on September 8, 2025, from 10:20 AM to 10:40 AM (CEST) at Stand B40, Hall B3 of IAA Mobility Munich. The conference will feature presentations by Klaus Rosenfeld (CEO), Matthias Zink (Powertrain & Chassis), and Thomas Stierle (E-Mobility), and will also be available via livestream.

Pro Tip: Following industry press conferences like Schaeffler’s can provide valuable insights into emerging trends and future technology roadmaps.

Looking Ahead: The Future of Automotive Technology

Schaeffler’s presentation at IAA Mobility underscores the accelerating conversion of the automotive industry. The company’s strategic positioning as a systems supplier-ranging from electric axles to hybrid transmissions and software solutions-highlights its ambition to be a key partner for automotive manufacturers. The challenge for Schaeffler, as with manny technology providers, will be to successfully translate these technological demonstrations into scalable, mass-market production solutions.

Frequently Asked Questions About Schaeffler’s Innovations

  • What is steer-by-wire technology? Steer-by-wire replaces the customary mechanical linkage between the steering wheel and the wheels with an electronic system, offering greater flexibility and control.
  • What are the benefits of a hybrid transmission? Hybrid transmissions improve fuel efficiency and reduce emissions by combining the benefits of internal combustion engines and electric motors.
  • What is the role of the Master Control Unit (MCU)? The MCU serves as the central processing unit for critical vehicle functions, ensuring safe and efficient operation.
  • How does Schaeffler contribute to sustainable fuels? Schaeffler’s flex fuel sensor enables the use of decarbonized fuels, like ethanol blends, promoting a more sustainable automotive ecosystem.
  • What is the ASIL-D safety standard? ASIL-D is the highest level of automotive safety integrity, ensuring the robustness and reliability of safety-critical systems.

What are your thoughts on the future of automated driving?

How vital do you think software integration will be for the next generation of vehicles?

Share this article and join the conversation!

What specific advancements in Schaeffler’s electric axle designs enable support for higher voltage systems (800V and beyond)?

Schaeffler Advances Electric Axis, Hybrid Technology, and Software for Future Mobility at IAA Mobility 2025

Pioneering Electric Drive Solutions

Schaeffler is showcasing significant advancements in electric mobility at IAA Mobility 2025, focusing on its core competencies in electric axles, hybrid powertrains, and the crucial role of automotive software. the company’s presence highlights a strategic shift towards providing extensive systems for the future of transportation, moving beyond traditional component supply. This commitment is particularly relevant as the automotive industry accelerates its transition to electric and hybrid vehicles.

The Next Generation Electric Axle

Schaeffler’s latest electric axle designs are engineered for increased efficiency, power density, and scalability. Key features include:

Enhanced Power Output: New designs support higher voltage systems (800V and beyond) enabling faster charging and increased range for electric vehicles (evs).

Integrated Thermal Management: Advanced cooling systems optimize performance and extend component lifespan, crucial for high-performance electric drivetrains.

Modular Architecture: A modular approach allows for customization to fit a wide range of vehicle platforms,from compact city cars to larger SUVs and light commercial vehicles.this versatility is a key differentiator in the rapidly evolving EV market.

Reduced Weight: Utilizing lightweight materials and optimized designs, Schaeffler is reducing the overall weight of the electric axle, contributing to improved vehicle efficiency.

Hybrid Powertrain Innovations: Bridging the Gap

Recognizing the continued importance of hybrid vehicles as a transitional technology, Schaeffler is presenting advancements in its hybrid powertrain solutions. These innovations aim to maximize efficiency and reduce emissions while offering a cost-effective pathway to electrification.

P2 and P3 Hybrid Modules: Schaeffler’s P2 and P3 hybrid modules offer flexible integration options for various vehicle architectures. These modules combine an electric motor, transmission, and power electronics into a compact unit.

Highly Integrated Hybrid Systems: Focus on integrating the electric motor directly into the transmission, maximizing efficiency and minimizing packaging space.

Advanced Clutch Technology: New clutch designs improve shift quality and efficiency in hybrid powertrains, enhancing the driving experience.

48V Technology Expansion: Schaeffler is expanding its portfolio of 48V hybrid solutions, offering a cost-effective entry point to electrification for a wider range of vehicles.

Software-Defined Mobility: The Core enabler

Schaeffler emphasizes that automotive software is no longer just a supporting element but a core enabler of future mobility. The company is investing heavily in developing software solutions that optimize the performance and functionality of its hardware components.

Drive-by-Wire Systems: Schaeffler is developing advanced drive-by-wire systems that enhance vehicle control and safety.

predictive Maintenance Algorithms: utilizing data analytics and machine learning, Schaeffler’s software can predict potential component failures, enabling proactive maintenance and reducing downtime.

over-the-Air (OTA) Updates: Software updates delivered over-the-air allow for continuous improvement and feature enhancements throughout the vehicle’s lifecycle.

Vehicle Dynamics Control: Complex software algorithms optimize vehicle handling and stability, enhancing the driving experience.

Functional safety (FuSa): Schaeffler prioritizes functional safety in its software growth, ensuring the reliability and safety of its systems.

Schaeffler’s Response to Industry Challenges

recent announcements regarding Schaeffler’s restructuring and job cuts (as reported by Fränkischer Tag https://www.fraenkischertag.de/lokales/hoechstadt-herzogenaurach/wirtschaft/stellenabbau-schaeffler-herzogenaurach-neue-details-bekannt-art-470965) underscore the need for strategic adaptation in the automotive supply chain. The company’s focus on high-growth areas like electric mobility and software solutions is a direct response to these challenges, aiming to secure its position as a leading technology partner for the automotive industry.The restructuring is intended to streamline operations and focus resources on these key areas.

Benefits of Schaeffler’s Technologies

Increased Vehicle Range: Optimized electric drive systems and efficient hybrid powertrains contribute to extended driving ranges.

Reduced Emissions: Electrification and hybridization technologies significantly reduce greenhouse gas emissions.

Enhanced Performance: advanced software and hardware solutions deliver improved vehicle performance and handling.

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world

Global Undersea Cable Wars: The Hybrid Battlefield Beneath the Sea For the content: Podcasts often delve into the intriguing world of undersea submarine cables, exploring their critical role in global communications and the complexities of their protect

by Omar El Sayed - World Editor
written by Omar El Sayed - World Editor

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Underwater Warfare: Attacks on Submarine cables Threaten Global Internet

Table of Contents

Several incidents of damage to submarine Cables, particularly in the Baltic sea, have sparked alarm, raising questions about the security of the global internet infrastructure. These Cables, vital for international data transmission, are increasingly vulnerable to both accidental damage and intentional attacks.

The critical Role of Submarine Cables

The vast majority of international data, including financial transactions, communications, and internet traffic, travels through a network of underwater Cables spanning the globe. These Cables are ofen thousands of miles long, and their physical location makes them susceptible to disruption. Experts have stated that the current geopolitical climate is exacerbating these risks.

According to a report by The Atlantic Council, the number of incidents involving damage to Submarine Cables has been on the rise in recent years, prompting increased scrutiny from governments and cybersecurity experts.

Recent Incidents and Potential actors

Recent disruptions have been concentrated in the baltic Sea region, though Cables worldwide are continuously at risk. Investigations are underway to determine the cause and perpetrators of these incidents, with speculation pointing towards state-sponsored actors engaged in hybrid warfare, as well as potential acts of sabotage. Carlos del Castillo, a technology journalist, notes the strategic importance of these Cables and the potential consequences of widespread outages.

Jesús Núñez, a co-director at the Institute of Studies on Conflicts and Humanitarian Action, suggests that these attacks represent a new front in geopolitical competition, perhaps intended to destabilize nations or disrupt critical infrastructure. The intricate layout of these Cables, developed during a period of unipolar dominance, no longer adequately reflects the current geopolitical landscape.

Understanding the Vulnerabilities

The physical protection of Submarine Cables varies considerably. While some sections are buried beneath the seabed, many are laid exposed, making them relatively easy targets for sabotage. The sheer scale of the network also makes comprehensive monitoring and protection extremely challenging.

Vulnerability Mitigation Strategies
Physical Damage (accidental or deliberate) Burial of Cables, Increased Patrolling, Enhanced Monitoring
Cyberattacks Encryption, Redundancy, Improved Cybersecurity Protocols
Geopolitical Risks International Cooperation, Diplomatic Efforts, Diversification of Cable Routes

Did you Know? Approximately 99% of international data transfer relies on Submarine Cables.

Pro Tip: Regularly backing up critical data is essential to mitigate the impact of potential internet disruptions.

The Future of Submarine Cable Security

Addressing the vulnerabilities of Submarine Cables requires a multi-faceted approach, including increased investment in physical protection, enhanced cybersecurity measures, and greater international cooperation. Diversifying cable routes and developing more resilient infrastructure are also crucial steps.

The ongoing conflict in Ukraine has highlighted the importance of protecting critical infrastructure, and Submarine Cables are now recognized as a key strategic asset. As geopolitical tensions continue to rise, the threat to these vital networks is likely to persist.

Frequently Asked Questions About Submarine Cables

  • What are Submarine Cables? They are underwater Cables used to transmit telecommunications data across oceans and seas.
  • Why are Submarine cables important? They carry the vast majority of global internet traffic, enabling international interaction and commerce.
  • Are Submarine Cables vulnerable to attack? Yes, they are vulnerable to both accidental damage from ships and deliberate attacks from state and non-state actors.
  • What is being done to protect Submarine Cables? Efforts include burial of Cables, increased monitoring, and international cooperation to address security threats.
  • Could damage to Submarine Cables cause a global internet outage? While a complete outage is unlikely,critically important damage could cause widespread disruptions to internet access and connectivity.
  • What is hybrid warfare in relation to Submarine Cables? Hybrid warfare involves a combination of conventional and unconventional tactics, including attacks on critical infrastructure like Submarine Cables, to achieve strategic objectives.

What preventative measures do you think are most important for safeguarding these crucial underwater networks? How would a prolonged internet disruption impact your daily life?

Share your thoughts in the comments below!

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