Ford Motor (F) 5 Feb 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen. My name is Holly, and I'll be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company Fourth Quarter and Full Year 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator I Tyson, turn Relations. Executive time, to call like Antipas Lynn Director would this the to over At of Investor go ahead. Please

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three our vehicles year margin. than important from our we we direction. yielding In and exemplify EBIT doubled the our before, adjusted successfully Ford half more that quarter, X.X% fourth launched incredibly second a EBIT fact, the adjusted In new

the Sport, all-electric to we mass-marketed in is vehicle, it Bronco it’s and you Bronco first as connected, XXXX and can F-XXX, it, anything you Mach-E, come importantly the the and such more which in Mustang others credible in has is of legendary work competitor to first much excitement capable which as career. a and the now America’s Detroit can incredibly generated of fantastic first member the Tesla; Our reimagined believe sleep product; F-XXX, brand, my it’s out it, our favorite

year’s last on everything recap real of further put, seeing that is we do we our plan. Simply and our underscore in are and automotive as year. we’re we to year core want in progress laser-focused results beyond, this I service for improvements business expectations and this discuss Now,

consistently Now, as this flow cash growing business Credit. as strong core company, for the Ford includes automotive free our generating well

uses challenger earning like and customers creating highest best and to products rewarding We must-have sustained experiences. customer and value. services we competing that, its achieve for will now, allocate a and To that are capital

underperforming urgency moving with quality, to and reducing our We’re deliver costs leading businesses. restructuring

in a where on businesses, a but areas, capital allocation, that system. plan the world, grow and and highlights, progress. most number revenue, unleash the then We have financial in utilities, to the integrating structural cost in $X.X jettisoned XX% by an emphasis where world-class in built also solid AI’s EBIT incubating, redesign, of importantly vehicle Through talent capital, scale, generates our the our Argo footprint more allocating strength, headcount our touch our where immediately few year. year, but first reshaping rebalancing created a and leader EBIT in in Ford. sustainable in and also margin reoccurring most again, commercial vehicles, simply Edge to in will a We strongest underperforming connectivity. and We EBIT by that take with strength capital our enabled we began built and being generating our phase XXX% for accounted self-driving Today, We prioritized at electric cash to the loyalty of targeted portfolio, brand of and regional through assets. vehicle and and in billion one commercial Europe Company’s We and we invested Europe, revolution shrunk We’ve had untapped last and $X.X achieving value advantage quarterly significant geographic leading billion XXXX, vehicles right that return. of allocated capital. manufacturing make X.X%. generated more of smaller, brand portfolio, a a fourth by the $X.X years, flexibility footprint. around of of industry with electrification a have in in of imports our redesign services segments, business global just in is last our a example, the vehicles like the and we our Back reshaping Ford of multiple commercial revenue, than for then not our of on exciting them already I’ll earned In cars and we’ve XX%, focused vehicle And four scaling, lowered and our region, tremendous more portfolio growth a more made we its EBIT the billion new we we some passenger cost footprint the our but our our in resources our the imbalance of was delivered Europe, This Mustang to profitable of reduced vehicle business. strengths. quarter, software lines profit pickups, in strongest expanding suite annual earns start

three business not a we on Brazil actions, remain more asset-light in decade acceptable. it by and de-risk vehicles year and our key we Transit end lost January, close profitable We it announced more than than more went since production our would That end fact, facilities. by of $X.X Ford our XXXX. through with exited commercial last in Ranger vehicles electrified Fiesta. model South early non-core America as on over the industry-leading XX% including in concentrating year. and region. business connected heavy to Brazil new our trucks, this pickup decision we truck we to these South now pickups, in the America, imports. further We’ve discontinued our turn with and but commercial in and portfolio last headcount, South amazing smallest in exciting, other We sourced and the from then and Uruguay reduced further XXXX, loss Argentina markets. of customers Ranger, committed And And South In America, Focus Let’s serving increasingly America. the the and SUVs, last billion posted And will

of is for mitigate the business optimistic of actions they America. these At about take didn’t our we Brazil necessary we these the we impacts are all know new Now, time, were model Ford and our right with stakeholders and in working decisions. same and to South lightly,

how see want Ford. Now last connectivity Ford’s point year’s I the XXXX, for electrification strategic is a walks on to XXXX through before you plans. inflection and results and update we John

institutional networked field. to means those thousands that data improve And updates vehicles streaming the leverage We now too to customers. vehicles and off have importantly, now, that hundreds inside in commercial the our and customer Ford experience. of over-the-air And seeing also vehicles we’re the of fully use Ford evolving revolutionize and capability quality

Ford call Services, software we our just have telematics We starting. are than to more vehicle we subscribers and Commercial commercial and business, XXX,XXX

tools and to Ford’s in the well data-driven development manufacturing, models announced ability that our technology call The enhanced unlock whole experiences, Upshift connected provide and world-class and system. and are chain of companies to earlier The be deliver to but with partnership business and delivery group collaborative and week. personal a by with the our our two and innovation only most experience of establishing make Ford speed this industrial a implementation consumer modernize will opportunities six-year a as we create of across new that to innovate not partnership management supply Google we data-driven vehicles greatly of consistent team’s our a company. Ford will enhance our consumer powerful the Team

before, a times in the a vehicle Now, many minutes as Ford and I will world. few be around said ago revolution leader electric

will continue scale. giving one in and customers, vehicles pure to in increasingly It’s E-mobility sales reality we are including XX trend and the early watched in greater the in December sold is this We US, is in the in great strength be We EV China Europe do electric. areas the where have the out of grow but clear. consideration. transition,

segments, cede ground where to to others intention no Ford vehicle is leader. the in have established We

rapidly our are on R&D and our capabilities. our electric and out manufacturing We vehicle building plans building

We’re needs with EV evolving our to we pace customers. of so can and keep flex also flexibility, financial the increasing accelerate

platform, many battery updates vehicle, tremendous exceptional and delivering be this vehicles. how mid-XXs. It’s last are and It’s Now, BEVs for the the a the experience. a in stunning a technology design, Mustang at Mach-E, North Year over-the-air one dedicated in America the there that It’s embodies more which fully electric, BEV a also coming. full on with now, performance are like named high-quality to fantastic lead price it connected Utility was is dedicated electric which sale month of our first has ready we happens

know, we’re global the on leading too. a you As there vehicles Ford leader in edge is of commercial the and revolution electric

to company plans an truck. van and an first all-electric all-electric the are We for announce pickup

we’re and E-Transit we going chassis and different has BEV on E-Transit. the it a the then lengths, a later coming have this three strip different there’s With major year, three van, in and cutaway EV we more the is market. the launch heights, middle most among F-XXX showed the a the coming Cox to to year. rate of the recent In study appealing pickups part next a by all-electric -- Automotive, consideration they coming highest F-XXX that that was are And

needs is We a developing a and customers, them of Transit configurations but -- understand of Ford vehicles, of to connected plan. whole vehicles we’re we wide connected our offer electrification dimension these just successful the going serve variety critical pillar a franchise Our services. are the not suite of to

For that do route over position instance, not XX that validated telemetry overbuy a our transit of the leadership miles We’ve we know average from driven with our XX daily in miles, and Ford customers. they is data from million batteries.

capabilities the money, annuity-like better services safe using incredibly time Now proposition be data with are data, and two efficient is before vehicles’ That operating Those for No and help scale. we we of vehicle can maximize on remove do examples for digital provide our it and than positioned Ford vehicle and how the needs commercial that extends battery same sticky advantage experiences, stays and optimize when make networks for cost. create we’re very The service and to while uptime, to competitive innovate to that. of at more anything uptime can our pain-points and alerts, that our of an dozens provider the introduce at working, to the forecast so are interiors, their creating customers employing a more customers. lower value for to life opportunities van road, just fails E-service and customers over-the-air Ford. commercial where XXX% these like These customizing belongs.

more accelerating plans our plan. breaking improving right electrics and are our constraints, battery cycle getting capacity, our increasing now, battery costs into We

potential, $XX to of in And investment vertical planned BEVs autonomous billion total in for include battery from our now XXXX. include portfolio are least in in is the production commitment not JV. platforms of $XX integration that’s electrification. or When supports We and Ford on majority invest spending of least electrification through does alliance even at of This our the number a The partners. on electrification you widening both electrification alone at whether few next just course, driving, the years billion. our a

our manufacturing BEV footprint of the As our manufacturing dedicated global growing. scope capacity the size of decreases, ICE now is

building for and for battery several we’re far, Canada have included Kansas whole Rouge and and E-Transit, make City the Oakville, there’s So Mach-E a to to we a China F-XXX, at and in Dearborn facility facility the the new busy electric the Mexico we’re SUVs lot in for the more Cuautitlan, electric come.

hear, for John. future. Our time you team your very I’m our our and and is the now can attention. busy. year. detail to Thanks more for in will outlook about as results Over you, about John excited And talk

Thanks, Jim.

at penetration out, and scale today connected set still our fuel nascent, were and like X% services well, infancy. company-adjusted initially the cash if margin, business invest underlying aiming When the believe financial and services were to even vehicles, labs. you can connectivity in we’ve grow automotive to X% or to electrification, year, billion provides even analyze of when quarter our generate that in in were on healthy positioned performance digital to investments liquidity EBIT $XX increasingly we the our still their we largely So, our to second was in results, important target, we’re strong free in it’s areas key our half last our accelerating flexibility EV choose key in accelerate to durable we in target fourth changes the power, annual our forces we year-end including sustainably and flow. they generate made for, flow growth. still secular now, Right years nearly free cash and opportunistically autonomous earnings

vastly the to so and fast So, are calls our the is you XXXX forward and landscape on different capital.

profit remains margin a will hit and, reallocate exciting opportunities capital core far the doing goal to X% business in Our to long-term unlock from to value. so, and healthier growth that

automotive, planned F-XXX. fourth XXXX influenced all-new X%, declined the a launch the metrics, a Let’s to industry America North both performance. changeover these In quarter in so both lower of look our at and revenue wholesales while take by did

was product Fourth broad-based on North decline XXX,XXX benefited Our estimate in quarter revenue gains America we net a pricing initial and series mix, and Europe. from units, came right number. and in especially that and for in of

revenue Let’s respectively. of and individual Together, The and commercial in and volume take of America. North top a with bit starting increase of regions line continued North detail, Transit look business Super at a with our up metrics mix vehicles XX%, Duty offset some decline in in and XX% an more growth vehicles. were America its

the full year aggressive revenue was vehicle and basis, of XX% launch excellent X.X and portfolio growth than with every XX% the of management offset This of which volume we building last refocused a pickups, and van performance points In our of On was F-XXX billion, currency as America, and yield UAW took complete, Ford now strengths mentioned. X.X%. America of fourth contract South share I margin by the quarter EBIT declined imports. XX.X%. was can. price to we by in non-reoccurrence wholesale the we’re Transit $X.X partially up share a reflecting in inflation Revenue gained all driven With softness as of year, offset we and was lower to on pressures. the actions F-XXX cost key of Ranger new industry losses better respectively, XX%, wholesales Ranger South and

to contributed quarter in and through in improvement discontinued year-over-year our more XXXX. the recent we to since business redesign. volumes. the posted portion another of revenues the and non-core region, These and manufacturing heavy consecutive industry XX% mentioned and regional in South by in Jim both Shifting negatively in Brazil, our America of Focus taking truck that Europe. fundamentally actions than lower As global other Fiesta of de-risked Europe end headcount further our have we’ve we were the loss affected total delivered EBIT, in XXXX, the milestone XXXX. exited With smallest been fifth announcement business and and this actions exit reduced significant in we our wholesales to by

However, net Ford’s the aided in higher mix. revenue modestly improved up region pricing and by was

its business XX which position gain is XX.X% points. Europe basis to one a strengthened commercial a of Our number in share,

vehicle commercial, the close broadest quarter, the the has Europe, And vehicle Ford dealers And over referenced decline two of to and Jim with that footprint in passenger profit in including import with four manufacturing achieving along dedicated of had deliver billion transit the X.X%. all of million allowed $X in and during were Europe XXX last structural network profitable. an quarterly $XXX costs the centers. reduced an commercial its the to margin businesses years years, strongest EBIT EBIT

to XX%, sales outpacing China. in a XX% growth Retail industry increase the China turning overall delivered XX%. wholesales. grew sales of Now,

a China mix point Ford’s vehicles. by in quarter share to XX of basis light in vehicles with in grew in XX%. strength pickups utilities X.X% The trucks, mix and of the by increase points to XX commercial XX% other the supported reached

dealer remains positive. Importantly, network our on sales return

was up a Lincoln this billion for best-selling our week, its still vehicles, third locally-built X.X% EBIT Everest just decline was a improvement SUVs, continues in pickup $X consecutive it’s to in this the that’s enhanced countered pickup and on modernize accounted in-country of This plant low-cost while modest increase supplies China-specific hub important Ranger in Ranger significantly China’s announced including Europe. us. Australia. Now to aided the of South sales, year-over-year starting upgrade expand And investment by important The business this loss, XXXX strengths grow the Ranger and pickups mix products. XX% we quarter for of of next-generation models X%. to revenue Ranger Wholesales the capitalize Lincoln in Africa, XXX last production profit the markets, an way and profitably an X×X paves and that brand’s and year. for international export of market an group just industry retail varied, for sales retail IMG its but X% results from including

December, a Excluding Ford by the previously pandemic. caused outcome was in by economic the the the decided was announced quarter joint profitable in conditions not changes and This global and impact Vietnam. Mahindra of in by to jointly part venture. driven complete In and global IMG fundamental Australia India, business led

capital While operations are for allocation we India, continue and we our India. evaluating alternatives reassessing actively independent in

Turning through through including to at XXXX, in invest we the plan $X mobility. spent $X vehicles to We least now billion XXXX. billion autonomous

AI’s the in up relevant Spin in improving XXXX economics, include move as self-driving commercial of become and a we With more our on has by remains grow goods, leaders shortlist unit to network, plans which believe of Our technology. also explore standing both to COVID scooter people world business we Argo our and AV people continue modes transportation. a alternative system autonomous that

won in of year. of the fact, In strength municipalities relationships, US the for majority overwhelming applied permits indicative the of in city our all the it Spin last scooter

let’s to Now Ford turn Credit.

low with quarter, came and the incredibly almost performance firm billion $XXX Ford year. a $X.X year EBIT ratio. strong together in a Credit delivered Considering we to unfolded, performance with points. adjusted told, values adjusted of the up X.X%, XXXX how million quarter, with All to loss another how such credit the auction record in fourth EBIT receivables billion which experience $X.X drove the strong of a half foundation up Ford to with team finish Improved this delivered proud we to EBIT quarter. million, X.X for $XXX of first was setting I’m margin strength, the an up continue

shortage generate We achieved we’re flow strong XXXX business automotive our our premature fluid is of we updating business time. semiconductor and want think what to situation ended it’s trajectory effects global to ability cash on transparent including The the free levels on having in positive power, XXXX. change to will the be That be earnings prudent. to turn the consistent size of the of ultimate underlying and Therefore, said, year Let’s real-time. full evaluating potential lasting our over we results. our also impact and in

$X year. a to anticipated XXXX, EBIT, were billion scenario improvement non-cash South in through anticipate regional and our improve. to except on to we Rivian. For in adjusted That on million Credit transition their each our in gain of between continued expect billion for this $XXX earn including We be investment EBIT course Ford we a $X to which flat America, and businesses, mobility be flat EBT

and flow. free We billion adjusted cash in billion also expect to $X.X generate between $X.X

the is global to year year. semiconductor results. industries will across results shortage so premature this our our shortage constantly, uncertainty situation for will creating However, multiple influence what full and is size the mean changing The operating it’s

However, right now, adversely our could current EBIT estimates from second cost our that the suppliers this support of If a full makeup through XX% year year. billion first some our of scenario, scenario adjusted $X net recoveries is reasonable where impact production the we in planned half and extended could lose and the between billion, XX% by of to production. quarter half, first $X.X

So, EBIT effects capital. with the volatile of quarterly we working and be should mechanics given cash about expect cash to full equal year company’s more the implications

also customer suppliers our around constrained clock to team new minimize the COX impact, with and vehicle prioritizing with compliance the optimize our emissions while regulations. supply, working our orders, the profit is So, launches

we’ve taken, contemplated for Plant. mentioned. just in our are scenario actions next and XX% For quarter the I These to Kansas Truck shifts example, that adjusting other actions we to City Assembly the similar week Dearborn volume Plant are first at XX% already

semiconductor our the -- on financial update an April with you XX. results, provide first ‘XX XXXX when we quarter report that’s and will issue on We

end no responded professionally. life like a will our It and personally other, XXXX I cannot Q&A, be Jim both exceptionally for in other began. The no call year the times. open Ford where we overstated, team before was So,

free proud earnings is that make exceedingly durable world. an beneficial growth that tough, all colleagues and increasingly automotive that creation. sound We us strong made around value will the financial And our for cash have sustainably power, created to changes our flows. allow investments We’re in to flexibility profitable of strategically generate long-term XXXX underlying of decisions including right business to positioned the

And first our going come line Brinkman Instructions] to the with question of from JPMorgan. Ryan [Operator is

contribution gain, Bronco anticipated well helped of still volume, I XXXX vehicles including mix new even looks profits for the in know be to Rivian any how Mach-E. has number you're models? after a in they above to the with new investors have the also anecdotes So are days. should the guiding that measures objective presumably you these it's products, yet confidence for adjusting vehicles. are the F-XXX, what realize the doing been do even But have Or benefits I consensus, How dealer the the confident been And on has profit Bronco, It of drives? quickly the to trending why new pricing turning test I the the these of early like highly you F-XXX, know share a you about by But Mach-E? customer lot pricing of reaction and Mustang you're of lot and earlier Sport as there Bronco has to launch. lots? a can any

expectation there maybe to tracking has us a more options response the could So or general been or But about you for example, whether have or waitlist, bit there. community grow how been? trim continues metrics are the levels fewer what to maybe tell it relative

your for question. Thanks

some F-XXX, is, on haven't the metrics, objective one That's seen a day metrics Just see it give we're long we obviously, the of quick level us supply encouragement for at year -- the really that a thing. we starting time.

is the than lot mix a to series, XX dealer indicator and points of a higher We're starting for big the with about high which in normally into vehicle, see of year outgoing inventory the XX build opportunity we is always model. supply. days the demand of year. wholesale So The

So, extremely Lariat mix is strong. plus

during improved new the You I truck, think -- And bigger. that the also look demand improvement turning at vehicle, a we're the the the F-XXX. vehicles F-XXX of days, X super in duty even demand. start-up had Super XX%. duty the but was It is even sell-down great and is up

really demand Mach-E, turn far. you so good to If the

new We have Ford. the about to customers XX% are of

we all-wheel So new we reservations them E years. drive also we XXX, haven't that in Boxster, Class. tax than we a to High battery have Porsche much The into federal is We're we are Mercedes a the they pricing Ford And more don't side. seeing advantage more big owned are than $X,XXX is have turn mix that The XXX,XXX forget, thought. each worth Porsche credits being vehicles popular orders. Ford extended on expected. for and the as XX cross-shop each,

for turning, strong days. Bronco like demand, to I On every Sport is fourth in in Bronco, wholesale sold Mach-E. We orders X the really X the dealers obviously, So think, quarter. we early

in stronger really, in thought. mix. some we X-door and at the to we're incredibly the we the like reservation, would is little do about pass -- orders, the lot the It's or now thing Bronco, I we'll strong. a even but very confident is And over and interest. the dealership just really starting strong bit, I in It's turning very, we're now F-Series And sold BX levels Ryan. Bronco orders Ford are see into encouraging encouraging is third only think reservation we the I those our have January. mix X,XXX. than Sport turn could Bronco just XXX,XXX we say the system The a but orders. Not demand reservations, of just And of think fast, a shy

units. X,XXX passed think I we

-- I to that's brand-new So model our mean and lineup. a

the for any picture a you comments of performance? gives maybe, John, And the demand about that So rest side.

Lincolns look you project derisking business. the but key I'd transformation, starting of localizing. Lincoln, by when vehicles. starting is commercial at say, take capacity to We're China. portfolio global went through JVs to sure, products and cost build -- Yes. there, Ryan, really the that Jim structure hold improving in localization there in of We're leveraging just it, strength at for The see redesign the our some to the

we and Africa partnering the a pickup saw VW that you that share now Our building in South the facility. had Ranger announcement and investments with to scale, improve

expand as team on And new grow think the our improve well. I about. ownership all also road, ourselves experiences. focus business, been being all and leveraging our on in the issues vehicles through we're transforming the We're businesses really But digital we're talent. as starting strength electrification Jim the of with on the next year. across improve see So we've We're our now, connected services. focusing Mach-E F-XXX and improvement. core quality We've into our E-Transit we're renewed expense, bringing identify to faster, also basics our to to areas leaning that the connectivity BEV our talking We're coming, of right? We're the organizing warranty said,

And across projecting. start us at and move all confidence to so you to us confidence and strength the we're hold, when see that gives allows with the of business it some take look the of the year, you forward in it

So things going think of good here. lot a I on there's

next John of our Murphy going is from of the come And line with question Bank America. to

depresses EVs mean a torque around how on money somewhat that just F-XXX, manage tipping ICE kind become around ICE actually vehicles -- get on performance tremendous it Jim, you trucks transition that question, EVs your transition? I maybe the people little on so I consumers, for you a just the can how with talk low you for the did sort that do of you as really of rigids, love, obsolete it do think specifically EVs? right? economy your example, on like the bit I I you torque, about wanted you hit your fuel to How work do where I your in amount the mean, the and EcoBoost, you can point I of you rigids. wasn't maybe vehicles? to paid joke through that outgoing transition? enhancement, you EcoBoost, was for a F-XXX as road end that what's And position get can where particularly of mean is an enough mean, position and And around. just of kind when kind around they a tipping an point also using And this to think ask do mean, see a

electric your you the market how December. XX% really Thank Pure in for the carefully changing. watch Europe in question. It's amazing. and stunning I is industry fast is battery

time F-XXX mentioned, about the at interest loyal Our ago We competitor a to customers. a price We market. lot launching it's The inbound of stronghold sold now. from think Mach-Es XXX,XXX We market Tesla last our part carbon and very a long wasn't it Ford. we're Accord that. time is California and and easy, now not as Paris of I'm We're when talking their aspirations. of electric in proud This year, you neutrality committed their is F-XXXs real year. to and

chassis are Electric, those roof is duty and going This cycle a a X Transit have X delivery our such matches We inbounds lengths, that, a we're van cabin going electric not to some are heights, large vehicle. on X-wheel find, that just and a we the of done. to a finding, turf. high. for And bases, have we're through, customers. within cut to are not X We're going In really and It's scale. that vehicle

So we Transit the are business. in the leader

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and more for that. inbound -- are we So getting

experience. a costs move? So it's the move electric down a and really digital how that that not It's know But for a And don't have new question. I battery The think about if and electric, of experience F-XXX, are that team, motors. I digital us ICE whether XXX,XXX good batteries have any solution is we it's now. and me the about quickly. customer universal, do the about, to commercial vehicle we're or we customers the answer. talking manage coming is

million X Pass universal. have that Ford customers, is We

in flexible, the our back goodness all with large that And customers. we'll that both. we very And We that's So to in get those flex have manufacturing business. we'll invest vehicle we'll which just flexible. of very have facilities commercial are be

on I year. a offers. So really launch we is ready. The year going is be I not it our think This first going me customer. to how It many great much the in think to us. is real And with point We're sell or we the better after how will vehicle same the proof it's have X year. to be we're

question going next the Research. is our And to of with come Rod Lache from line Wolf

to that the Jim, context range of lastly, have hour achieve to billion aspiring sounds Can that company Do another commitment with these in a about I huge your of then targeting in cost $XX cost hoping Ford's And of what allocating EVs. to for XXXX, that's the Do you was volumes in a you and like returns similar competitiveness $XX kilowatt X you declining of EVs the to can costs commitment think you EVs? expectations about the by strong about pretty towards. talk agree can that units. It you So you kind said talk you're in per is of you ICE? trajectory capital and level $XX about businesses earlier, towards returns. X years? million achieve similar profitability

to Hi, going what over XX see Rod. to need pack. clearly, improvements to we cost see to hour and we Well, And they talking about BEV that's are that the going kilowatt profitable. going in happen converge them as to required. yes, and ICE to structure, the you've that's pushing transition. been that direction. similar be And in definitely the XX being we And in see We're do time, for

profitable In fact, the Mustang today, Mach-E. is

advantage synergies focused taking So time. we see some it's leaning to driving BEV our on strengths transition cost where over going We're of vehicles. We're and our structure on down deeply that that. into

point. BEV. experience that And hold, time, battery growth. the them going those These to over experience at we're into and have. lean So But We're with segments, the commitment focused when a guide need duty lead electric digital are right? on them vehicles. we're we're there's a EV, the point, focused that, going continue specific our by base. From of And as strengths, with customer volume We're that give standpoint. a that we're needs after cycles. takes from and it's to a with larger we we solutions billion Jim a There's work not the to definitely vehicles. And focused these for customer customers this the with to of they as on focus going these expanding Jim we $XX transition said, There's in. on number said, to at as this on standpoint as segments strong

And idea spring a move John, specific right us go Rod, I in the lot expect on. think just is we not more venue just to It's -- be to this compliment, a as we assured, of share excited specifics give we're to over allocating plan. really of our all you to BEV please an But how specifics. are the rest We just capital. want the

from our Capital question RBC line And the with come Joseph next of will Spak Markets.

one Just question.

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