Lone Star Electrification: City of Dallas Selects Ford Pro to Advance EV Charging Infrastructure

Rhea-AI Summary

The City of Dallas has signed a 10-year agreement with Ford Pro, the commercial division of Ford, to advance its electric vehicle (EV) charging infrastructure. This move aligns with Dallas' Climate Action Plan that aims to electrify the city's fleet by 2040. Ford Pro will provide the necessary hardware and smart charging software to ensure optimal performance and efficiency of the city's EV fleet. The initiative is expected to lower operational costs, reduce emissions, and improve air quality. The agreement will see the installation of Ford Pro chargers at various city worksites and the use of Ford Pro's integrated software to manage the EV charging infrastructure. Dallas Mayor Eric L. Johnson highlighted the significance of this milestone in the city's efforts to promote a cleaner environment.

Positive

• 10-year agreement with Ford Pro ensures long-term commitment.
• Integration of smart charging software optimizes fleet performance.
• Potential for reduced operational costs and energy savings.
• Supports Dallas' goal of fleet electrification by 2040.
• Improves air quality by reducing emissions.
• Ford Pro's comprehensive suite of solutions, including vehicles, charging, software, and services.

Negative

• Initial investment costs for EV infrastructure could be high.
• Potential challenges in scaling the infrastructure to meet future needs.
• Dependence on Ford Pro for both hardware and software may limit flexibility.
• Long-term success dependent on consistent funding and policy support.

Insights

Financial Analyst

Financial Analyst’s Perspective:

The agreement between the City of Dallas and Ford Pro for EV charging infrastructure is a significant move in the larger context of urban electrification and climate action.

From a short-term perspective, investors can expect an uptick in Ford’s revenue streams from the deployment of these solutions.

In the long-term, this partnership positions Ford Pro as a leader in the public sector EV infrastructure market, capitalizing on the growing trend of government fleet electrification. The move aligns with Ford's strategic shift towards a sustainable business model, which can strengthen the company's brand as a leader in the EV market.

Investors should note the potential risks associated with large governmental contracts, such as delays and budget overruns. However, the environmental and economic benefits of EV adoption make this a promising development.

Rating: 1 (Positive)

Tech Expert

Tech Expert’s Perspective:

The utilization of Ford Pro’s smart charging software is a key element in this agreement. This advanced software not only ensures optimal charging but also provides data analytics to help manage the fleet effectively. This can reduce downtime and improve operational efficiency, which is important for city operations.

One of the significant advantages of this software is its ability to predict where future charging infrastructure will be needed. This foresight can help the City of Dallas in planning and budgeting for future infrastructure, aligning with their 2040 electrification goal.

This technology showcases Ford Pro’s capability to deliver integrated solutions and demonstrates their innovation in the EV space, potentially attracting more similar contracts from other municipalities.

Rating: 1 (Positive)

Market Research Analyst

Market Research Analyst’s Perspective:

The decision by the City of Dallas reflects a broader trend in the public sector to adopt EVs and related infrastructure. This trend is driven by factors such as rising fuel costs, environmental regulations and the long-term cost benefits of EVs.

Ford Pro stands to benefit from this trend as more municipalities look to reduce their carbon footprint and operating costs. By providing an all-in-one solution, Ford Pro simplifies the process for its customers, which can be a strong selling point.

Investors should watch for similar announcements from other cities, as this could indicate a growing market for public sector EV infrastructure, which would be favorable for Ford's market position.

Rating: 1 (Positive)

• The City of Dallas accelerates its Climate Action Plan with its goal of electrifying the City’s fleet by 2040, signing a multi-year agreement with Ford Pro for EV charging infrastructure including hardware and smart charging software.

• Public sector customers are increasingly investing in electrified fleets and EV infrastructure as fuel and energy costs rise, seeking lower operational costs, increased uptime, and data to help optimize fleet operations.

• Ford Pro simplifies the path to electrification, providing businesses, government, and municipal customers of all sizes with a full suite of vehicles, charging, software, service, and financing solutions.

DALLAS--(BUSINESS WIRE)-- The City of Dallas—America’s fourth-largest metro area—selected Ford’s commercial division, Ford Pro™, to help move the City’s climate goals forward, aiming to improve air quality through electrifying the City’s vehicle fleet by 2040.

(Photo: Business Wire)

Ford Pro and the City of Dallas entered a 10-year agreement to grow and manage EV charging infrastructure for the City’s fleet operations. As part of the agreement, the City of Dallas will install Ford Pro chargers at the City’s worksites and use Ford Pro smart charging software to customize and manage EV charging performance. Through the integrated software and hardware solution, Dallas can help ensure its fleet vehicles are charged optimally and ready for work when they need them.

In 2020, the City of Dallas approved a Comprehensive Environmental & Climate Action Plan (CECAP) that includes efforts to reduce carbon emissions, in part by installing EV chargers throughout the city and adding light duty EVs to the City’s fleet of 5,400 vehicles.

“The City of Dallas is committed to a clean, safe, and healthy environment, and we’re making great strides in our efforts to reduce emissions and improve air quality,” said Dallas Mayor Eric L. Johnson. “This agreement with Ford Pro marks a significant milestone and will help our city avoid energy waste and save money on energy costs. We look forward to building upon our work with Ford Pro to further scale EV charging infrastructure and electrify our fleet operations to continue to serve our great city now and in the future.”

“EV adoption is on the rise with state and local government fleets, and we’re proud to provide smart charging software and hardware to help electrify one of the Lone Star State's biggest cities in one of America’s biggest metro areas,” said Ford Pro CEO Ted Cannis. “The impact software can have on EV charging can be substantial, helping public agencies like the City of Dallas not only manage charging infrastructure today, but help determine where chargers may be needed in the future.”

A Growing Public Sector Trend

Four million vehicles are operated by state and local governments in the U.S.¹ The U.S. government has called for most federal vehicle purchases to be zero-emission vehicles by 2035,² a trend which many state and local governments may be likely to mirror.

Ford Pro Charging already has hundreds of local government customers. There’s an increasing trend of state and local governments not only adding EVs to their fleets, but also seeking high-quality EV chargers and smart charging software to manage it effectively. This shift may be driven in part by rising fuel costs, potentially lower operational costs provided by EVs and a match of good use cases for how municipal agencies use EVs.

A One-Stop Shop for Solutions

Ford Pro delivers an always-on, connected customer experience through a comprehensive suite of solutions including vehicles, charging, software, financing, and service for all commercial and government customers.

Ford is the leading global commercial vehicle brand and America’s best-selling line of commercial vehicles for 39 consecutive years,³ featuring BUILT FORD TOUGH^® commercial trucks and vans integrated with Ford Pro software and services.

This includes America’s best-selling electric truck, F-150^® Lightning^®;⁴ America’s best-selling electric van, E-Transit™;⁵ America’s best-selling line of all-electric commercial vehicles, Class 1-7 trucks and vans;⁶ America’s best-selling commercial van, Transit^®;⁷ and America’s best-selling trucks, F-Series, for 47 consecutive years.⁸

To learn more about the expanded suite of solutions from Ford Pro, visit FordPro.com.

¹State, County, and Municipal Vehicles, Highway Statistics 2022, Federal Highway Administration (https://www.fhwa.dot.gov/policyinformation/statistics/2022/mv7.cfm).
²Federal Vehicle Fleets: Observations on the Transition to Electric Vehicles, U.S. Government Accountability Office, October 2022 (https://www.gao.gov/products/gao-23-105635).
³Based 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.
⁴Based on 2023 CY industry-reported total sales.
⁵Based on 2023 CY industry-reported total sales.
⁶Based on S&P Global Mobility CY2023 US TIPNet Registrations, GVW Class 1. 7 electric vehicles excluding SUVs. TIPNet Registrations prior to 2010 do not include all GVW 1 and 2 vehicles.
⁷Based on total U.S. industry-reported sales (2023 CY).
⁸Based on 1977-2023 CY industry-reported total sales.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521979578/en/

Britta Farrow

206.999.7397

Bfarrow3@ford.com

Source: Ford Motor Company

FAQ

What is the duration of the agreement between the City of Dallas and Ford Pro?

The agreement between the City of Dallas and Ford Pro is for 10 years.

What are the goals of Dallas' Climate Action Plan related to EVs?

Dallas aims to electrify its vehicle fleet by 2040 as part of its Climate Action Plan.

How will Ford Pro contribute to Dallas' EV charging infrastructure?

Ford Pro will provide hardware and smart charging software to optimize the city's EV fleet performance.

What benefits are expected from the City of Dallas' agreement with Ford Pro?

The benefits include reduced operational costs, improved air quality, and lower emissions.

Where will the Ford Pro chargers be installed in Dallas?

Ford Pro chargers will be installed at various city worksites in Dallas.