Not only is cutting greenhouse gas emissions a key priority in the highly lucrative California market but consumer surveys show the public is concerned about extreme weather changes in the U.S. and globally.
"There's been a lot written about the electrification of our industry," Ford CEO Jim Farley said during a third quarter earnings call with analysts on Wednesday. "Ford's bet is different. We're betting on a full lineup of commercial electrified vehicles."
He previewed the van announcement during the call and the company released initial detail early Thursday with a promise of more in mid-November.
This latest news is a "milestone" in the company's $11.5 billion commitment to investing in electrification, Ford said in a news release.
The Ford Transit cargo vans saw a 12% spike in average transaction price to $43,275 during the third quarter, its highest in five years, according to Cox Automotive.
Demand helps drive higher prices.
A strategy for Ford, now, is transitioning buyers to all-electric.
"We're kind of in the first inning of this transition of the industry to a battery electric future," Farley said. "We're getting more and more excited about an electric future ... and our capital is following."
Ford doesn't want to be just one of many automakers transitioning into electrification, he said. "We want to lead the electric change. That's why we've committed to Paris (accord). That's why we're standing with California" on emissions policy.
More: Ford Motor Co. reports $2.4 billion net income in third quarter
More: Ford reveals plan for $700M plant, jobs at Rouge plus all-electric Ford F-150 secrets
California Gov. Gavin Newsom, who has publicly reached out to President Donald Trump for help with unprecedented wildfires attributed by scientists in part to climate change, has repeatedly praised Ford for its vision and commitment to sustainable design that transitions away from fossil fuels to improve air quality.
"Bill Ford gets it," Newsom said in mid-September.
The Democrat revealed a plan to phase out sales of new, gas-powered cars and trucks by 2035, though people could still own them and buy them used. California is such a huge market for car companies that their policies carry national influence. It's the nation's most populous state with nearly 40 million people.
"Cars don't need to pollute our air or melt our glaciers," Newsom tweeted Sept. 23. "Thank you @Ford for using your market power to build a cleaner, brighter future with California."
He retweeted a Farley post that said, "Fighting to Reduce Greenhouse Gas Emissions"
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