Advanced Energy United News

Business Insider: Forget the F-150 Lightning and Hummer EV. Ford and GM's real battle is for electric delivery vans

Written by Alexa St. John | Dec 11, 2022

Business Insider detailed the auto industry's pivot to electric, quoting Ryan Gallentine on changes in the commercial vehicle market. Read snippets below and the full article here.

As Ford and GM go head to head in the multi-billion-dollar pivot to electric propulsion, the balance of their rivalry may not hinge on high-profile rides like the F-150 Lightning and Hummer EV, but on the humble delivery van

While adoption in the consumer market creeps upward, the commercial space could be a surer bet in the near term, industry experts say.

"Public attention tends to focus quite a bit on the passenger vehicle market," said Ryan Gallentine, electrifying transportation policy director at Advanced Energy Economy. "But the electrification of the commercial vehicle market," he said, "I think is underappreciated."

Ford and GM know that, and they're racing to answer the growing demand from retail, ecommerce, and delivery giants looking to electrify their massive fleets. That demand could produce a $370 billion commercial EV market opportunity by 2030, per Guidehouse Insights...

"It's not surprising that this first-mile, last-mile is a growth sector for auto manufacturers," said Gallentine. "Obviously, the policy drivers here are big."

The commercial space has successfully combated many roadblocks to electrification, like fleet management, infrastructure, and cost of ownership. Now, government support through incentives has bolstered EV momentum, and as a result, companies looking for electric fleets will only ask for more...

"There are several startups playing in this space," Gallentine said. "It's, who's going to be fastest to market? Who's going to be able to get those business contracts signed soon enough?"

Read the full article here.