Ecolab Selects Ford Pro™ to Accelerate North American EV Fleet With Ford F-150 Lightning and Mustang Mach-E, Set to Reach 100% EV in California by 2025

Rhea-AI Summary

Ford Pro™ and Ecolab are collaborating to electrify Ecolab's North American sales and service fleet by 2030, starting with over 1,000 Ford F-150® Lightning® Pro trucks and Mustang® Mach-E® SUVs in California. The move is part of Ecolab's 2030 Impact Goals and net positive climate impacts. The partnership aims to save approximately $1,400 in annual fuel costs per 2023 Ford F-150 Lightning Pro truck. Ecolab plans to leverage Ford Pro's full suite of vehicles, charging, software, service, and financing solutions to streamline the path to electrification.

Insights

Market Research Analyst

The strategic partnership between Ford Pro and Ecolab is a significant development in the commercial EV market, highlighting the growing trend of fleet electrification. This collaboration is not just a procurement deal but a comprehensive engagement that includes vehicles, charging infrastructure, telematics software and service solutions. The decision by Ecolab to electrify its fleet with Ford Pro vehicles can be seen as a testament to the reliability and efficiency of Ford's EV offerings. As companies increasingly prioritize sustainability, such partnerships are likely to become more common, potentially leading to increased market share for Ford in the commercial EV space.

From a market perspective, this move could signal to investors that Ford is capable of capturing significant contracts in the burgeoning EV market, which may influence the company's stock performance positively. The potential cost savings for Ecolab, estimated at approximately $1,400 in annual fuel costs per vehicle, underscore the economic viability of transitioning to EVs, which could encourage other companies to follow suit. This could lead to a ripple effect, boosting demand for commercial EVs and associated services and thereby benefiting Ford's bottom line.

Financial Analyst

The financial implications of Ecolab's fleet electrification with Ford Pro vehicles are multifaceted. On one hand, the initial capital expenditure for acquiring over 1,000 electric vehicles (EVs) and setting up the necessary infrastructure is significant. However, the long-term operational cost reductions, particularly in fuel savings, paint a positive picture for Ecolab's expense management. The expected reduction in total cost of ownership over the life of the vehicles, when compared to internal combustion engine vehicles, is a critical factor for businesses considering the switch to EVs.

For Ford, this deal represents a substantial revenue opportunity and may lead to improved profit margins due to the scale of the fleet sale and the ongoing revenue from software and service solutions. Investors should monitor Ford's ability to scale its EV production and service offerings to meet the demands of such large-scale fleet conversions, as this could have significant implications for future earnings and stock performance.

Sustainability Expert

Ecolab's commitment to electrifying its fleet by 2030 is a robust step towards achieving its 2030 Impact Goals and net positive climate impacts. Transitioning to an all-electric fleet can substantially reduce greenhouse gas emissions, aligning with global efforts to mitigate climate change. The collaboration with Ford Pro also reflects the increasing role of private sector initiatives in driving sustainability and showcases how traditional business relationships can evolve to support environmental goals.

Moreover, the partnership demonstrates how sustainability initiatives can be integrated with economic benefits, challenging the notion that environmental responsibility comes at the expense of profitability. By leveraging Ford Pro's telematics software, Ecolab can optimize fleet operations, further enhancing the environmental benefits through improved vehicle performance and reduced idling times. This integration of sustainability and technology exemplifies the direction in which modern businesses are moving to achieve carbon neutrality while maintaining operational efficiency.

• Ford Pro™ will collaborate with Ecolab to electrify the global sustainability company’s North American sales and service fleet by 2030, beginning in California with more than 1,000 Ford F-150^® Lightning^® Pro trucks and Mustang^® Mach-E^® SUVs

• Fleet electrification is integral to Ecolab achieving its 2030 Impact Goals and net positive climate impacts, while improving fleet operation costs with Ford Pro, estimated to potentially save appx. $1,400 in annual fuel costs on every model year 2023 Ford F-150 Lightning Pro truck in its fleet¹

• Ford Pro helps commercial customers like Ecolab streamline the path to electrification with a full suite of vehicles, charging, software, service and financing solutions

DEARBORN, Mich. & ST. PAUL, Minn.--(BUSINESS WIRE)-- Ecolab—a global sustainability leader offering water, hygiene and infection prevention solutions—selected Ford Pro™, Ford’s commercial division, to accelerate the electrification of its sales and service fleet, targeting complete North American fleet electrification by 2030.

(Photo: Business Wire)

Ecolab’s and Ford’s business relationship, forged nearly 100 years ago, is expanding on the heels of a new commitment to create positive impacts, progress toward carbon neutrality and advance sustainable growth.

Electrification of Ecolab’s North American fleet begins in California with the conversion of its sales and service vehicles to EVs by 2025. Ecolab will purchase and deploy more than 1,000 Ford F-150® Lightning® Pro trucks and Mustang® Mach-E® SUVs, creating what is anticipated to be the largest all-electric sales and service fleet in California. Ford Pro offers a full suite of charging and telematics software that Ecolab will use to help the business maximize vehicle performance and fleet productivity.

The move to EVs is a crucial step in Ecolab’s efforts to achieve net-zero emissions globally by 2050.

“Ford and Ecolab have worked closely for almost 100 years, from water conservation at Ford now to electrification at Ecolab,” said Ted Cannis, Ford Pro CEO. “Together, we’re showing that sustainability is good for the bottom line and the environment.”

Ford and Ecolab have a business relationship dating back to 1925, including collaboration on reducing and reusing water in Ford manufacturing plants. Today, Ecolab operates more than 10,000 light-duty vehicles in its North American fleet, 95% of which are Ford vehicles. During the past decade, Ecolab has purchased more than 31,000 Ford vehicles.

“Ecolab’s history is rich with collaboration between like-minded companies committed to sustainable business growth,” said Christophe Beck, chairman and CEO of Ecolab. “Ford and Ecolab have worked together for nearly a century, most recently to help conserve water and energy while improving business performance. This next phase of our relationship will help us move quickly and at scale with the goal of improving profits through renewable energy and EV solutions for the betterment of our employees, business and the environment.”

Sustainability is at the heart of both Ford’s and Ecolab’s operations and their shared commitment to carbon neutrality no later than 2050.

Leveraging water conservation practice and technology—and with support from collaborators like Ecolab—Ford has reduced water usage in its manufacturing, supporting freshwater availability in local communities. Ford has saved more than 186 billion gallons of water since 2000 toward its aspiration to only use fresh water for human consumption.

Major Business and Environmental Benefits

In going electric, Ecolab estimates that it can lower overall costs, with internal financial models forecasting a lower total cost of ownership over the life of the vehicles compared to ICE vehicles. Ecolab can potentially save roughly 50% in annual fuel costs per 2023 F-150 Lightning Pro truck, a savings of approximately $1,400 in fuel per vehicle each year.¹ Once vehicles are deployed, Ecolab plans to use Ford Pro productivity software and service solutions to manage and maintain its California fleet.

Ford Pro productivity software and service solutions have been shown to help optimize fleet operations. In a Ford Pro survey of Sonoma County Winegrowers, respondents estimated that, on average, they could reduce their idling hours by 49%, their time spent tracking maintenance schedules by 37% and their time spent tracking fuel usage by 58% with a solution like Ford Pro Telematics.² In the same survey, Sonoma County Winegrowers estimated they could reduce their service downtime by about 20% using Mobile Service.³

Ford is a leading global commercial vehicle brand and has been America’s best-selling line of commercial vehicles for 38 consecutive years.⁴ Ford Pro drives productivity solutions for business through a comprehensive solution of vehicles, charging, software, financing and service.

¹Based on standard fuel price and vehicle usage assumptions. Estimated savings of $1,404 based on 15,000 miles per year, EPA-est. rating of 19.3 mpg combined average for new gas-powered trucks, Q1 2023 average gasoline cost $3.383/gallon, residential electricity cost of $0.1574/kWh (https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a), an F-150^® Lightning^® Platinum truck with an EPA-estimated electricity consumption rate of 51.87 kWh/100 miles (weighted 43% city/57% highway) and all charging carried out at home. Actual savings will vary with conditions such as external elements, vehicle maintenance, fuel price fluctuations, charging habits and lithium-ion battery age and state of health.

²Internal Survey, Sonoma Fleet Solutions Survey (April 2023). Available on vehicles with embedded modem or equipped with approved plug-in device (PID). May require modem activation. Ford Telematics and Ford Data Services require a purchased subscription. Terms and conditions apply. Telematics service and features and access to vehicle data depend on subscription and compatible AT&T network availability. Evolving technology/cellular networks/vehicle capability may limit functionality and prevent operation of connected features.

³Internal Survey, Sonoma Fleet Solutions Survey (April 2023). Available at select locations. Services and mileage limits vary by participating dealer. See dealer for details.

⁴Based on S&P Global Mobility CY1985-2022 U.S. TIPNet registrations excluding registrations to individuals. TIP registrations prior to 2010 do not include all GVW 1 and 2 vehicles.

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines always-on digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford is pursuing mobility solutions through Ford Next, and provides financial services through Ford Motor Credit Company. Ford employs about 173,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.

About Ecolab

A trusted partner for millions of customers, Ecolab (NYSE: ECL) is a global sustainability leader offering water, hygiene and infection prevention solutions and services that protect people and the resources vital to life. Building on a century of innovation, Ecolab has annual sales of $14 billion, employs more than 47,000 associates and operates in more than 170 countries around the world. The company delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, maintain clean and safe environments and optimize water and energy use. Ecolab’s innovative solutions improve operational efficiencies and sustainability for customers in the food, healthcare, life sciences, hospitality and industrial markets. www.ecolab.com

Follow us on LinkedIn @Ecolab, Twitter @Ecolab, Instagram @Ecolab_Inc and Facebook @Ecolab.

For news releases, related materials and high-resolution photos and video, visit www.media.ford.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130316959/en/

Elizabeth Kraft

313.300.4625

Ekraft12@ford.com

Kyle Kapustka

612.708.4304

MediaRelations@Ecolab.com

Source: Ford Motor Company

FAQ

What is the collaboration between Ford Pro and Ecolab about?

Ford Pro and Ecolab are collaborating to electrify Ecolab's North American sales and service fleet by 2030, starting with over 1,000 Ford F-150® Lightning® Pro trucks and Mustang® Mach-E® SUVs in California.

What are the financial benefits of the collaboration for Ecolab?

Ecolab estimates that it can save approximately $1,400 in annual fuel costs per 2023 Ford F-150 Lightning Pro truck, potentially lowering overall costs and forecasting a lower total cost of ownership over the life of the vehicles compared to ICE vehicles.

How does Ford Pro plan to help Ecolab streamline the path to electrification?

Ford Pro offers a full suite of vehicles, charging, software, service, and financing solutions to help commercial customers like Ecolab streamline the path to electrification.

What is the goal of Ecolab's fleet electrification?

The goal of Ecolab's fleet electrification is to achieve its 2030 Impact Goals and net positive climate impacts, while improving fleet operation costs.

What is the estimated number of Ford F-150 Lightning Pro trucks and Mustang Mach-E SUVs that Ecolab plans to purchase and deploy?

Ecolab plans to purchase and deploy more than 1,000 Ford F-150 Lightning Pro trucks and Mustang Mach-E SUVs, creating what is anticipated to be the largest all-electric sales and service fleet in California.