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SONOMA, Calif. Selling vehicles is just the first step in Ford's plans to make money off its first electric delivery van that the automaker is rolling out this month.

Betweenplans to sell 150,000 electric Transit commercial vehicles annually from 2023 onward(after building fewer to sell the first year) and creating "charging depots"to help customers manage their fleets, the companys new Ford Pro group will generate $45 billion by 2025 and more after that, CEO Jim Farley said Tuesday at an elaborate unveiling of the E-Transit and Ford Pros strategy.

"Half our commercial-vehicle revenue could be software and services," Farley said as he announced a pilot program in which the Sonoma County Winegrowers association will test its EVs and services.

Already in production at the companys Kansas City assembly plant, the E-Transit builds on one of Fords hidden assets. Used for everything from delivery vans to flatbeds and farm trucks, the gasoline-powered Transit accounts for nearly half the lucrative business for medium-duty business vans in the U.S. Annual demand for the medium-duty business vans is about 330,000. Last-mile delivery vehicles like UPS and Amazon vans account for just 10% of Transit sales.

Ford Pro is one of the biggest bets weve made on a future of electric vehicles with data connections and other services, Farley said.

The E-Transit and Ford F-150 Lightning electric pickup coming later this year are the first vehicles offering the features Ford expects to add 11-digit numbers to its balance sheet.

Ford Pro boss Ted Cannis said the program, called Ford Pro Intelligence, will include:

The system can reduce the time vehicles are out for service 40% and cut a businesss total ownership costs 10%-20%, Cannis said.

Prices start at $43,295. Thats about $9,000-$10,000 more than gasoline-powered models, but the E-Transit qualifies for federal and local tax credits that can offset the additional cost.

The E-Transit shares its basic structure with the internal combustion Transit vans Ford sells around the world. The frame was reinforced to hold the 1,050-pound 68 kilowatt-hour lithium-ion battery. Despite the heavy battery, total vehicle weight only rose 600 poundsbecause of the elimination of the engine, gas tank, transmission, etc., Transit chief engineer Ray Eyles said.

The electric motor rides between the rear wheels, so the E-Transit has an independent rear suspension. The 9,500-pound gross vehicle weight van has the same cargo capacity as a gasoline Transit, because the battery and motor are below its floor.

Ford is building E-Transit vans with three roof heights, three lengths, in addition to chassis cab and cutaway versions that have a cab, but no body behind it.

The E-Transit van can go about 126 miles on a charge, considerably farther than what Fords research shows most owners currently go in a day.

Because the E-Transit is the same size as the gasoline van Fords been selling for years, businesses can swap tools, racks and other expensive custom parts from the old vans to EVs, saving money and making it easy for companies to dip a toe in the water by testing the EV in a single vehicle, then converting their fleet over time if they like it.

EVs should require much less maintenance than conventional vehicles because they dont have complicated engines and transmissions. That accounts for some of the savings at the heart of Fords pitch to businesses, but the company has big plans for the new services it will offer to help companies run and charge their fleets efficiently, Farley said.

In the pilot program testing both the E-Transit and Ford Pro services with the Sonoma County Winegrowers association,the growers will each get an E-Transit this year. Theyre considering F-150 Lightning electric pickups and may use Ford Pros software with other manufacturers vehicles they use.

Contact Mark Phelan at 313-222-6731 ormmphelan@freepress.com. Follow him on Twitter @mark_phelan. Read more on autos and sign up for our autos newsletter.

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Ford predicts it will make $45B from businesses using EV delivery vans, new services - Detroit Free Press

The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir

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BERLIN, Jan 25(Reuters) - Volkswagen's (VOWG_p.DE) software subsidiary Cariad and autos supplier Bosch are teaming up to develop software for automated driving to use in Volkswagen's cars, the companies said in a joint statement on Tuesday.

Using data from Volkswagen's fleet, the partners will develop so-called Level 2 autonomous driving software - enabling hands-free driving in cities, rural areas and on the motorway - as well as a Level 3 system that takes over all driving functions on the motorway.

They expect to implement Level 2 software in Volkswagen vehicles from 2023.

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After an undefined lead time, Bosch will take the technology to the outside market, its software chief Matthias Pillin said on a press call.

"Partnerships in software development are not unusual... once you have generated the relevant IP you can pursue your own paths," Cariad CEO Dirk Hilgenberg said.

The partnership is the second announced this year by the companies, which last week said they would set up a joint venture to equip battery cell factories with machinery. read more

They did not disclose how much they would invest in either deal.

Both Volkswagen and Bosch have bundled their software operations into single divisions to strengthen their offering in the face of competition primarily from Tesla (TSLA.O), as well as companies like Alphabet (GOOGL.O) increasingly venturing into the autos sector.

Volkswagen aims for Cariad to supply 60% of software in Volkswagen vehicles by 2025, up from 10% when the unit was founded in 2020.

But competition for talent is fierce, and the high upfront investment of developing software capabilities from scratch, when many carmakers also need funds for electrification and battery development, means some are forming partnerships.

Volkswagen has invested $2.6 billion in self-driving startup Argo AI, which is developing Level 4 vehicles - where the car can control most situations independently but drivers can request control - for shared fleets.

Bosch and Daimler (DAIGn.DE) announced plans in 2017 to build a joint 'robo-taxi' automated driving fleet - but the partnership was cancelled in 2021, months after Daimler's CEO highlighted the high costs and risks involved.

Daimler wasthe first to secure regulatory approval for its hands-free driving system in December.

Volkswagen and Bosch do not yet have this approval, Hilgenberg said.

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Reporting by Victoria WalderseeEditing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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Volkswagen and Bosch team up on automated driving software - Reuters

Military OneSources MilTax suite of 100% free tax services is available to provide the military community with a remote option for receiving expert tax support and e-filing their 2021 taxes, the Defense Department announced today.

MilTax takes some of the stress out of filing taxes for service members and their immediate family, including spouses who may have experienced job loss, remote work, or changes in pay in 2021. A benefit from the Defense Department, MilTax includes free tax preparation and e-filing software developed specifically to address common military life scenarios, such as deployments, combat and training pay, housing and rentals, and multistate filing. The software walks users step-by-step through a series of questions to help them complete and file their federal return and up to three state tax forms.

Service members and spouses also have free access to MilTax consultants who are versed in recent changes to tax law and specially trained to know all the nuances of filing taxes in the military. They can help service members and their immediate families understand complex tax situations, such as tax forgiveness and refunds for surviving family members, extensions and deadlines, and much more, including COVID-19 pandemic-related tax changes.

Tax season can be particularly stressful for the military community because of the unique aspects of military life that can impact their tax returns, and the pandemic continues to amplify the need for easy, remote and reliable tax support, said Deputy Assistant Secretary of Defense for Military Community and Family Policy Patricia Patty Montes Barron. Service members and their families have filed more than 270,000 federal and state returns using MilTax. The Defense Department is pleased to once again offer this easy-to-use, secure and accurate tax service that was developed specifically for our service members and their families.

The MilTax tax preparation and e-filing software is available through Oct. 17, 2022. MilTax consultants are available year-round to answer questions.

For more information about the suite of MilTax services, call 800-342-9647 or start a live chat anytime to schedule an appointment to speak with a MilTax consultant or visit Military OneSource to get started filing your taxes.

About Military Community and Family Policy

Military Community and Family Policy is directly responsible for establishing and overseeing quality-of-life policies and programs that help our service members, their families, and survivors be well and mission-ready. Military OneSource is the gateway to programs and services that support the everyday needs of the 5.2 million service members and immediate family members of the military community. These Defense Department services can be accessed 24/7/365 around the world.

About Military OneSource

Military OneSource is a DoD-funded program that is both a call center and a website providing comprehensive information, resources and assistance on every aspect of military life. Service members and the families of active duty, National Guard and reserve (regardless of activation status), Coast Guard members when activated for the Navy, DoD expeditionary civilians, and survivors are eligible for Military OneSource services, which are available worldwide 24 hours a day, seven days a week, free to the user.

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Military OneSource Eases Tax Season Stress With Remote Tax Support Through MilTax - Department of Defense

If you're among the millions of Americans who rely on TurboTax to file their annual income taxes, you could be in for an unpleasant surprise this spring.

For the first time in years, Intuit-owned TurboTax is not part of the IRS Free File program. Free File is a partnership between the government and several tax prep services that allows people to draw up and, in some cases, submit their federal tax returns online for free. Though Free File is notoriously underutilized, it's typically stacked with name-brand offers from recognizable companies TurboTax included.

Until now.

TurboTax announced in a blog post last July that it was not renewing its role with IRS Free File due to its limitations and "conflicting demands from those outside the program" that leave it unable to continue participating while still delivering "all of the benefits that can help consumers make more money, save more, and invest for the future."

However, the company vowed not to give up on free tax filing options. TurboTax said it processed 17 million free tax filings last season; of that, only 3 million came through the Free File program.

"Moving forward, Intuit is committed to continuing to offer free tax preparation while accelerating innovation to address all of consumers financial problems," it added.

It's worth noting that TurboTax came under fire a few years ago for using code that hid its Free File page from Google results, as reported by ProPublica. It later changed the code.

Even though TurboTax has left the IRS Free File project, it does still have no-cost options. It is possible to file for free through TurboTax but there are a slew of requirements you must meet.

For example, TurboTax Free Edition, TurboTax Live Basic, and TurboTax Live Full Service Basic are all free right now if your return is simple. (TurboTax defines "simple" is defined as "Form 1040 only.") These cover W-2 income, limited interest and dividend income, the standard deduction, the earned income and child tax credits, and student loan deduction.

If your taxes are more complex, including items like unemployment income, stock sales or rental properties, you'll likely have to upgrade.

Assuming your situation is simple enough, you can file one federal and one state tax return without charge, but you have to move fast. TurboTax Live Full Service Basic in which a tax expert does your taxes for you is only free until Feb. 15. The free TurboTax Live Basic offer which comes with live, on-demand expert help lasts through March 31.

If you're fine to file DIY, the TurboTax Free Edition will be "available the entire season," according to a news release.

The deadline for most Americans to file their taxes this year is April 18.

Improve your potential refund amount - Prepare and file your federal income tax return using tax preparation software

Tax preparation software companies like TurboTax will help improve your earning potential.

TurboTax isn't the only service to drop out of IRS Free File recently. H&R Block left the project in 2020.

Even so, IRS Free File is still plugging along. If your adjusted gross income is $73,000 or less, you're eligible for free guided tax prep from options like Tax Slayer, FileYourTaxes.com and TaxAct. If your income exceeds that, you qualify for free fillable forms (but you'll have to actually file them on your own).

Experts generally recommend starting your taxes early so as to avoid software snafus, refund delays and identity thieves. If you're not opting for IRS Free File, there's also a financial reason to avoid procrastinating: Tax prep fees tend to rise the closer Tax Day gets.

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Getting Your Tax Refund May Take Way Longer Than Usual This Year

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Can You File Taxes for Free With TurboTax? It's Especially Complicated This Year - Money

Ford CEO Jim Farley poses with the all-electric Ford F-150 Lightning pickup truck during the unveiling at the company's world headquarters in Dearborn, Michigan, U.S., May 19, 2021. REUTERS/Rebecca Cook/File Photo

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DETROIT, Jan 25 (Reuters) - Ford Motor Co (F.N) Chief Executive Jim Farley won applause from Wall Street by increasing the production target for the automaker's electric F-150 to 150,000 a year, more than three times the original number.

Now, Farley wants investors and commercial vehicle customers to pay more attention to the software and services Ford wants to sell with those trucks, as well as to the company's electric Transit vans and its portfolio of combustion engine commercial vehicles.

At an event in Sonoma, California, this week, Farley and other Ford executives are rolling out more details of their Ford Pro commercial vehicle strategy - and setting ambitious goals.

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"This is a first move by Ford to really start to scale and commit serious resources to digital software and services-based revenue," Farley told Reuters.

Ford Pro is a standalone unit created last May to focus exclusively on commercial and government customers.

Ford has set a goal to increase Ford Pro's annual revenue to $45 billion by 2025, up 67% from 2019. Farley said Ford Pro is paving the way for Ford to expand digital service offerings to retail customers.

The U.S. and European commercial vehicle markets are fragmented, Farley said. Ford can use its position as the leading commercial vehicle brand in the United States and Europe to be a leader in pulling the pieces together as commercial fleets go electric.

"We are the Tesla of this industry," he said.

Ford Pro, which will house the Dearborn, Michigan, automaker's commercial vehicle operations, is now ramping up a commercial electric vehicle charging business using software and workers who came on board when Ford bought charging startup Electriphi in June 2021.

Ford Pro also has a partnership with Silicon Valley enterprise software power Salesforce.com Inc (CRM.N) to develop software to digitize billing and other paperwork for contractors and other businesses that deploy people to jobs where the vehicle also serves as office space.

Ford Pro Chief Executive Ted Cannis said in an interview the unit has 125,000 active accounts, and a 40% share of the U.S. commercial van and pickup markets. Startups such as Rivian Automotive Inc (RIVN.O) and established rivals such as General Motors Co (GM.N) and its new BrightDrop van unit are aiming for big customers such as FedEx Corp (FDX.N) or Amazon.com Inc as golden tickets to vehicle-based service businesses.

With Ford's stable of small and medium-sized business customers, "I've got 125,000 golden tickets," Cannis said.

TREPIDATION OVER EVs

Ford has tried before to expand higher-margin service businesses to augment its traditional manufacturing business, which do well to crack 10% pretax margins in good years. In the early 2000s, Ford acquired a repair services chain and auto salvage yards in an attempt to capture revenue from a larger chunk of the life cycle of a vehicle. Those diversifications were abandoned.

Ford's new service strategy will have to overcome efforts by rivals that are also racing to sell electric vans and trucks to commercial vehicle fleets. Individual pieces of Ford Pro's service business, such as fleet charging, will face competition from companies such as ChargePoint (CHPT.N) that already offer such services.

Rhett Ricart, whose Ohio-based Ricart Automotive Group is a major Ford commercial vehicle dealer, said Ford executives have "done their homework" on Ford Pro. Now, he said, the automaker must deliver electric vehicles that do not leave business customers stranded.

"Those vehicles have got to be flawless. People will have trepidation. They know what they've got with internal combustion engines. They know where to get gasoline," Ricart said.

Farley and Ford executives said connected vehicle technology - including telematics systems that give Ford a pipeline to receive data from its vehicles - give the company a firmer foundation for recurring revenue, subscription services as well as increased repair business driven by software that tells fleet owners when it is time for vehicle maintenance.

Ford can analyze how many miles vehicles in a fleet drive, and where they are parked, to design hardware and software that allow for recharging at a central depot, or at a worker's home, or both, said Muffi Ghadiali, former CEO of Electriphi and now head of the Ford Pro electric vehicle charging business.

"Because of telematics we can give them a very precise plan based on how the fleets operate," he said.

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Reporting by Joe White in DetroitEditing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Originally posted here:
Ford aims to be the Tesla of connected commercial vehicles - Reuters