Ford has big goals for software sales to small business truck fleets

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Ford CEO Jim Farley has urged investors to think of Ford Pro's bundle of software and vehicle sales, not Tesla, as the 'future of the automotive industry.'

"People will sit in a vehicle for an hour or two," said Del Underwood, vice president for purchasing and fleets for the company. Now, technicians get a text message instructing them to either turn off their trucks or move to the next assignment.unit, Ford Pro, which has placed a big bet on software-related services. Ford Pro hopes selling connected-vehicle services such as driver monitoring systems to small and medium sized fleet operators will help generate as much as $1.

Farley has forecast Ford Pro pre-tax profits at $8 billion to $9 billion this year. He has promised investors Pro can earn fatter margins than its consumer businesses, partly due to services and maintenance business driven by telematics connections to vehicles and data. Ford Pro Chief Ted Cannis told investors last May that software subscriptions could bring in $2,000 a vehicle in revenue per year, and by adding on services such asFord uses telematics connections to prompt commercial vehicle owners to get parts replaced before they break. Boosting the rate of service subscriptions by one percentage point can"add about $30 million of incremental EBIT to the business," Ford Pro Chief Financial Officer Navin Kumar said last month.

That in turn convinced Fize to accelerate the move to an all-electric fleet, taking advantage of Quebec's relatively stable power rates.

 

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