Ford Motor (F) 24 Apr 242024 Q1 Earnings call transcript

Good day, everyone. My name is Gary, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. At this time, I would like to turn the call over to Lynn Antipas Tyson, Executive Director of Investor Relations. ahead. go Please

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is our services the physical third diversification the and and of for software area our The experiences customers. key completeness

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for either. trucks importantly electric #X sales we our we're our took match expectations. investment XXX,XXX customers. to lot. doing market remote brand our customers. No of and Since have now of And X,XXX that price learned over XX%. home all Intelligence and we our electric and match can year, launches over last We assembly customers' have spending. up software for That's ramp Pro we service capital that, years you that remote in next in subscriptions is their on Pro and Pro capital our vans We're great boy, And active years. What EVs requires than as for really learn continue and hard our for business over far? Well, for our spending electric a years and Ford moat and for demand, more markets Pro in plants and architectures it's the we several to Long adapt build. a last so battery advanced capacity to the many and copy. evolve short, performance to the know, match retiming It a did couple

that to billion billion being the We've discipline guided low expected probably we our about to $X on consistent $XX will profitability. a year, company. we're now end billion range. And $X this fact, of about In be very spend as on

XX We of to make first very our expect money one EVs in months, disciplined the that and is a process. every

going we important? on Power where platform board we the as We're where like by look a that connected a attractive at pretty from launch shorter when Pro will small and increasingly, we drive was more chemistry new of to urban vehicles And We'll choice. data months profitable Coast. Why customers, noticed can the more the to suburbs, in approachable. I'd the dropped simple. we're first our vehicles with those people when developed a importance car live but affordable crossover, we product, reduce tend affordable Mach-E, batteries distances and the our we affordable us the that where and is learned electric XXX%. affordability so to In more EV company? X delayed That's more XX%, example mainstream small partial our be we EV it's can vehicles, cars of we price believe advantage to customers, is not our great of is the is we of EV product, formats take good they EV it for XX where only vehicles, adopters. And new slower which in And substantially years, February, adoption that's importantly vehicles. And that compete in we, volume fact, can it to our vehicle. more way the and the growth we the a in X-row expensive vehicles vehicles, believe we the our West of battery the of lot on segments commercial went them innovate in that's fully we the great unique up in When say grow the these our on the Ford. A but well, bet bet of do everything for to on really affordable our our team what's we about Well, in to takes match customers, cost be will bet know fastest. the more do learning telling thing work last make more

volume business, We We've good the margins is been our contribution John. margins. XX approaching in Our and for will full XX%. It's our hybrids of We #X XXX,XXX growth big now be in the example. hybrids XX%. think in year a now hybrid is quarter grew the We're a in business time, first in With we're what U.S. units similar for the contribution of some what's that, internal our more for years. I'll are engine us turn first above it the combustion than exciting on over for hybrids margins than pure to advantage. And really

Jim. Thanks, Okay.

So becoming focused applying deliver our team adept at and and solid we Ford+ quarter. around more the the globe really strategy, is a did

have weighed companies of resilient more a progressively for industry's capital-efficient behaviors shedding and history. We and performance auto are higher-growth, of down transforming higher-margin, Ford legacy business. more the into most that We're valuation

of offering first customers global up strong quarter product drove powertrain X%. choice and billion, differentiated, is revenue freedom of lineup Our $XX

we Wholesales of Our than We each X%, XXXX by last quarter in revenue a expect grown you billion timing were be has billion in in with margin continued and $X.X double-click more new down F-XXX. that the to delivered the on years the see Ford X.X%, of Pro. Costs launch that growth X by were explained late you'll no but different. of if was billion, in EBIT products. including new adjusted $X.X Ford reflecting investments strength of up Pro, this, $X.X

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revenue in more Pro to delivered higher Ford XX.X%, Super we EBIT has XX% of and pricing. year-over-year XX% quarter since The reflecting re-segmented growth Super with increased business. segment increase than delivered richer and revenue a production, Transit each in a wholesales. margin $X on billion mix our increase Duty a doubled Duty net consistently

XX XX% and drive competitive important this this XX% path this few quarter on revenue in past And and gross consistency, to XX% the came services, growth given Ford to software of margins over from the in addition, months, sticky stream Pro's the a glide In roughly years. EBIT recurring Ford physical reaching range. see, leverage. investments earnings in as tremendous segment's XX% can operating and breadth And of moats, the business. The the Pro's predictability, you and of results growth depth power generates demonstrate

pressure a as generated pricing $X.X significant than of e the costs to Model inventory loss XX%. Ford billion action levels. as we down took declined bring flat industry In quarter, wholesales offset more

with bringing on to crossover pricing For line example, premium a U.S. price in being in us Mustang at competition in Mach-E after we lowered by XX%, XXXX, the the segment. X-row up In see which higher X.X%. was roughly elasticity U.S., improved trends. segment, versus And the as the of total did sales Jim mentioned, we with retail jumped XX% mix EV an

grew profitable best-selling X.X our Tesla's competitive only significantly and across and Y. second The EBIT X.X%, of wholesales, is e-SUV, F-XXX continue points impacted to share vehicles international Ford in well we're increased. In market ramp operations EBIT that marketplace. and EV doing bottom the the We've and has to Blue, be and behind Mach-E more down, levels were was total X.X%, the and line was and inventory. by stock sales Our pace Model our the board. the revenue, margin reduced by production all

the get up products product hybrid XX% quarter ago. global planned benefit strong the as years our sales grow, continued hybrid Blue's remains and to we Ford portfolio in of

the hybrid up with year-over-year currently more is global points on X way. at products mix of X%, Our

including strategy XX%, with footprint. increased that's our exports to leverage Nautilus, China better Lincoln and asset-light consistent that Additionally,

below Ford generated the of EBT loss continued margin remains to our normalize In $XXX Credit million. historical performance financing and credit average. quarter, improved and

roughly have return to scores, normalize. continued XXX. lease continued a continue to auction on FICO as we strong as based declined exceed Importantly, values book see by high-quality which expected, to And rates XX%

with to of unlock plenty for There's huge we're to of beginning potential. of made by ahead and Ford+. work all Choice potential possible So the our customers that the fulfill Freedom stakeholders

However, we've capital and efficiency $X.X billion, $X.X are $XX adjusted we billion made expect range, company tracking strength the a is of underlying CapEx. toward our growth the billion the this business. Accordingly, outlook, undeniable. high would to of profitability, the record continue by to adjusted supported end We're $XX flow guidance and for be full and delivering to Ford. billion that EBIT cash and lower-than-planned our of free the business resilience far to We're raising so progress fortifying turning to sharpening and year of our

Our adjusted as the target landscape. us billion to range team this flow EV driving of with dollar to we free cash scrutinizing end CapEx We're CapEx tightening $X conversion XX% land could to our cash that the adjusts consistent XX%. We're billion at of is flow to dynamic every guidance revised our lower range. and $X the efficiencies believe

the XXXX outlook in flat U.S. and Our a higher assumes to both slightly Europe. for SAAR

is million by move Full all-new assumption supply the planning as spending higher through Industry industry demand driven a Ford for contributing to Pro. X%, year Our pricing of we're the is incentive XX Duty XX.X million demand roughly we perspective, better assuming market for normalizing. lower U.S. factors year. planning units. customer Super to From for

leading mix, by the to We outlook, change no from that's by top line launch $X to in pricing. to moderated of and EBIT billion, billion of expect strength new this and anticipates favorable continued to Pro by offset offset segment be continued growth our partially partially which $X growth our products. There's the Ford driven

and e, and And Blue, Model Credit's EBIT costs. As also and driven $X in billion product range loss about $X the offsetting market $X.X year-over-year. higher continued in for of expect billion, efficiencies by a and $X.X billion, labor $X vehicles, to we Ford be slightly pressure equation reflecting cost pricing EBT new to billion a expected, balanced to Ford investments billion up for of

performance Our right of the Ford+. footprint, products momentum this generation. positive quarter cash and driving of portfolio to continues the global Capital discipline demonstrate is consistent

and growth remain opportunities both see to focused continue improvements We delivering on cost. in and quality

that wraps your the our use the remarks, balance time address and prepared what's up to on we'll So of mind.

and up for you, please questions. open thank operator, the line So

today The Morgan with Stanley. first is question from Instructions] Adam [Operator Jonas

compliance EVs Bloomberg meet are question were for I got Jim. just X and for you X to John, saying needed John on regulations.

Now it's Clean purchases not Can Air confirm on disclosed, or disclose Ford right? my that That's regulation. Ford you understanding penalties credit for ZEV does that? not

things, So me few it's that, us for that not compliant. clarify a let an Adam, not on is to option be

you ZEV or across pay can't If consistent you requirements, your the emissions you fines. don't with is sell, greenhouse What happens industry. can't your that's comply gas and

for OEMs rules. are that's So all OEMs. those under All

buy And that can credits credits, year. buy to sell at from or OEM. can end contract can the that XX-K so X fewer have. we really We EVs hybrids, will there's contract another we our of as in when do did we to we And and levers ICE, the we sell we disclose

those would I the profitability And cash highest company. say, weekly, are and flow highest we, working the monthly, across if for not levers And are those X so drive X levers. the optimize to to the

ICE need going and to to to So the optimize we're are to vehicles, profitability. continue sell going sell across the to EVs, we

and own, and the profitable, Now levers business capital on EV able then is important really it be we've and will to all accretive we positive. need its thing, to the Ford on to the make be Jim to stand return we'll most to get be as invested, said, the

I intended and So that's that's to what focused what on, today. earlier communicate we're

you did it? You you was What do so disclose disclose? -- But ZEV? did Okay. the

had Yes, purchase disclosed million. in of last commitments XX-K the year $XXX we we that

that will year? increase And this

anything there And quarter, the first as go lever as the year, the it's right we if through report we wasn't as it. to will optimizing, I said pull, In material. we're

I appreciate John. that,

Just my follow-up for Jim.

at Ford cap. double business okay. market can Pro be XXx entire worth is And that kicking Ford's butt, like EBIT,

incredible. it's that tens market the many this negative XXX aware, stock not the the this many, way, are business to of of folks die People rest anymore, would have PE Jim, but people business companies this business aware in billions. Seen is mean, multiple. ranks of your implying stock, are valued is is. another will secret XXX how kind think S&P on the be of good I I So a And your XXX business. Yet of out at

rationalize and can Now lowest explain but does Jim, value agree -- multiple it that leader the one you you of companies that that problem. I in because the seems for why understand a it that of know I your can you with company important world in address the any this industry. it, to don't me know organization, don't you as market is like you, Try

report that. lot It's e. not to pure-play -- EVs make It's the tremendous to A Look, being drag our of mentioned, that. we're And how to regional Thank to all, would a an OEMs Pro we're mean, as going Blue your like you by appreciate on had whole taking and We're first business transparent the do rolled be it John won't. It's do the and business. EVs, e. business with and but you, And We're transparency. if subsidize Model on huge about Pro. players. we thanks to We Adam. we it I very on EV Ford business. for to will understand wouldn't we transparent just progress for that and not committed up industry, of our different. have about we not on very We never even investors. going run unprofitable clear-eyed handle time not I we very

profitable return our are the wonder And drag years make now to everyone I the cost make right will now, be us EVs mentioned. And Adam, I it real and understand not for our ask going and be And good to that I sustainably shape. loud, we the for products. done demand, will be its profitable turning be I'm and terminal And as our subsidized business as sure to really come. the full proud should own if and business adjustments that encourage capital profitable cost the in is year, all of the most but we spending importantly, and a it understands flat gone everyone with -- I And We're we're believe on is a this as build e to that the the that has it the investors sure be point capital evidence and understanding Pro. out over next profitable. the to for this more not durable industry. Blue the on is And personally. value. the of think really not the know in Model will will many understand business, that profitability think I market EV you've to time. through business of questions work next leader in there. me understands very the our whole for main Thanks. I I'm cycle us is of company team resilience about Pro only of that but in our needs

The Murphy John of next is Lynch. with Bank America question Merrill from

Or is a Toyota with mentioned lot about on basis. have sort you kind with, here? curious XXX,XXX marketing capacity demand towards Freedom to there's threat the there you of of about at near But least of up term, go a you more the tool Choice really from hybrids or is really of if is shifting the the time? I think losses very something share just ramp what think market garner coming you really an hybrids the -- lot a significantly fair this think can risk LTM effective. in the do But share really over sort you I'm competitive you think market to is on there. And to do Jim, them if in out as The hybrids that should reasonably of have capacity and step about to market of your this, be ability up great to side, it's I whole and market? as

we John, on of years we decisions very a capacity ago I'm made hybrid, lot several and did. thankful

said, time for just takes, to radically that long not to for you launching suppliers assembly capacity. capacity we're as to a constraint. now is up XX%. For example, F-XXX we increased the capacity And takes it that It's a it ramp

lineup. we're good the is today, at now a shape. the look there. we is hybrid decision incremental capacity the that look the almost that think material actually what our I to So now XXX,XXX margin if very intentional. And going hybrid to vehicles But all in cost be pervasive a we've you offer did in hybrid our the course, is That actually contribution across couple of premium for And our to has because ago which lineup, the more we're covering was on of of pricing publicly, couple important and maybe make years a cost, most of thing to we double hybrid going now to of we're ago. -- for that's made years really meaningful all development. And committed

of we competition our so That's in see and #X North We'll hybrid #X of in hybrid is the and U.S. time. sales #X than Honda. the business different in others. our America. don't lot And most for is are where hybrid But course, our Toyota capacity far Of trucks. We're that close business. a see is over

So about I growth? be XX% ago several have it I decisions be. could more we expansion. than feel our capacity It years made the we really think flexibility. good Will about And

from we starting of scratch. competitors Now lot our really A for be scale our have suppliers. will meaningful

comment service really like Pro. of commercial on lights kind might garner even the for of pent-up that structural demand, that. It as benefit a pent-up here you It side, both still on basis kind Pro, have is, there's that lot out sort like be talk that seems of if say just of there's of over shooting may seems wondering on and from well as a release though as what of a basis And or on of lot time. on you towards and fleet should the demand and more about follow-up said, market we just X just I sort unit opportunity which still a can government. potentially I'm a

true. Pro than about doubt fundamentally demand The no it. different It's on is retail. There's

are XX doing been I XG our roadworks Duty mean, these time. on Super in long build-out. ambulance refleeting. and a the X:X. customers increasing The the the which We're ambulance retail now average Our U.S., mean, years for Transits waiting infrastructure I is I are for they've market oversubscribed They're we're great. But not mean, fundamental not capacity, drivers. old. is all new

we say got capacity. So I could are wish expanding I right. but that we We didn't,

freshest have and lineup I think we had. that we've -- this never

So of double this we opportunity. kind have

Our lineup is fresh.

have choice. demand to years white-hot in X we can doing time, customers increase customers. supply saw everything our It's for shock. that most retail in kind very we're capacity of frustrating them. same our for the We during our we the the ago At And are

with The Brinkman question JPMorgan. is next from Ryan

historically I well lots the to on what up current billion that, to continue you to beyond close return of to down record, allocation, liquidity capital with $XX free FCF only I'd time, love in than $XX coming cash and the grow a being the get more obviously more same you've the including CapEx hand the of got to XX% course, want guess think. up, you thoughts to on some release, billion I further of shareholders. return. to there's to over that XX% half at to after implies despite you more intention your repeat available generate return you've flow of to of But cash targeting targeted. And

macro some here, driving what industry just thinking it might some to to conservatism more contingency or not be uncertainty other of. So for whether wanting optionality the preserve I'm or or curious relates

industry when the to you then I is EVs. like you And your last question, to all the the you'd this how quarters become think business feeling couple right? I've more towards on that now? allocation, spend you're more, in potentially of spend point caused to wanted want trying future? could you're just more by not of now, capital transition But want in about what to aggressive to So check conservative cause be to to focus seeing the seems to the sort needing in asked past EV improving less, what

so you. thank Yes,

our So said, have you of to as cash policy, we XX% free flow. stated XX%

strong. is sheet balance Our

at when that guidance Our we this about year up. this fact strong. the went the ended for We're cash position, $XX talked quarter we billion year our

the look in to we we've that at allocation we the we're point make, yet. fruition, So growth not other transition rather but those look that if for accretive decisions opportunities industry, believe would when invest there it, to opportunities. And would said need need right to we'll we in always that at then come we now don't

we're as pay end consistently. as comfortable couple But plan, Ford+ the opportunities accretive ways accretive of think other range. And returning capital given at of look at, we're our been high those that then if that eventually, to aren't at on cash we're about transition. continuing our flow. out of with, the The cash allocate continue we're shareholders. the it's we execute we'll to this additional growth team XX% for at the years, to point, there, So in where talk a We'll at of position last to this we XX%, free

is Dossena from with next Wolfe The Research. question Bruno

on timing this the the I thinking of next-gen And with intermediate to can the trajectory the structural ask of wanted and us how in potential of losses the the associated understand depends to tell term, reaching launch vehicles. But business? the specifically I you're that in e about work breakeven you e. down in Model costs

Yes.

for reduced significantly. you know, being -- up On out, just take faster at et look out And on of guess, but cliche, able we -- The a don't the than keeps costs, we're it's I putting you the when take around well, vehicles it revenue let's So back taken far cost $X,XXX couple laser-focused Model year, I cost. last look are e, of we've in costs a the our the to over years, at Model e. second. all cost when the -- of structural as we're very what cetera. dropping Mach-E, we've as about the actually thoughtful we're And

line, standpoint. the these cost from of been the reductions out continuing to is business months, XX start going I industry, bottom on cost of every offsetting top significant some which a XX But of pricing continue we're the see see if we've near to a then line. in think had the to the down the so it's far, of don't And work you so to the last on cost march dollar across stabilizes those any could flow the term. just continuous and that we And probably savings reductions to driving

in it's So our control.

We margin we the said, out have Jim and second-gen need up to for dynamics cost that structure to we pushed That's to the take X-row for set we're because And out vehicles. SUV the cost know that. we be come competitiveness the of market equation what more the at out. understanding as We levels marching And our as towards. the expect. that cost we of we're

about businesses also you'll billion. warranty, when we And comments into Ford look $X relative Mach-E, on and if variable we close to costs Okay. see presumably peers? and these Pro, us some made costs the new up a compared beginning the your Blue pricing the variable are launches, $X.X see content at or pricing we pricing some savings. maybe cost you offset cost some to some see you material is give by that similar up to can to the and from in improvement billion if insight vein combustion, gap around On But for year-over-year, in

Yes.

the both Transit of related Ford product Duty the in as we're as the new well volumes Jim So this Europe you up for look all as costs across, that that, and for at we quarter mentioned. material is and increased the in costs cost Pro launches, Super launched manufacturing the our most that was bringing to

track of increase of as we the deliver cost material drove overhead. beginning the costs freight what most billion of year well costs, $X at manufacturing on the raw the in of that's to talked and cost as quarter. We're reductions So about the

you'll so our that's see you'll we year. second through And it the start to when results. gain to half of on really move see traction that start And quarterly as the

Michaeli The next question from Citi. with is Itay

for questions X me. Just

about hoping And forward think from months? going you're $X rest the I assuming year? over become think did talk of offset going allude responds mention the First, line you I next billion can release And should in the the volume back the e but for then maybe full to prices of we if was range? Model contribution maybe the margin you a e, back QX, press at outcome could to of an positive year EV the With the improving about end high these to Pro. costs what the help rest puts of Model and about EV the there cuts, top where can kind level is XX-plus to to a pressure. still price as year. And takes,

So let that. unpack me

expect or we're So for to the not projecting the come down. where we sharing year, cost

If pricing you quarter entered down XX%. that prices prices in to came assuming when competitive, recently the the quarter. remain XX% through we much happened down we would We e, mass They that. the Model look competition comes our year on take at had [indiscernible] to what about to went more it had down than as come and

as from cost able why So prices we're targeting seen this in up to through volumes we've chain. the margin been year we coming standpoint. all as Look, of e that's the move have haven't take a we and reduction leverage so out much dramatically, can towards contribution and keep driving we to spirit quite some down we positive can as that on cost Model

e term. definitely our work that intention So to in the is near Model on as we continue

demand really obviously, structured retail. deliveries. Pro, It's On like not actually is Pro on QX, necessarily traditional

And volume our with are QX, at we of the reasons of lot it's it's the So we shutdowns. globally other why in we you a look fleetail. are strong lot of -- some business later -- quite quarter cyclical the pricing contractual for There doing be lot in strong delivery in of first lands. including of this of a and of customers, all large first of second puts We'll have the how business in rest as for still locking we our quarter year, accurate the have a as result our we'll revisit even that when There guidance just our the delivery We're feel a because the kind with agreements have in well the comfortable given launches. and looking in Pro, see corporate quarter, quarter. the is year. really Ford at takes. But to a pricing fleetail going fleets bit

headwinds a tailwinds So on on going we're learn or more whether lot Pro. there's quarter this to

next question UBS. is The from Joseph with Spak

Super all the the Mustang there. I you and and the start, and to F-XXX some appreciate as commentary about first launches well Duty talked Jim, on as improvement of

of coming other this launches others. some got year, big Explorer you've and I number mentioned, think a up you As later

and So seen ramp-up launches careful? we've will new was more some And that learned a these we year? -- in slower that the of you for should cautious lesson than the later is go expect historically

a look look lead we standards lot goes our would solve really where also the Ford different but area of didn't customers to of this believe, company, system kind differently, benefits I term And that real taking kinds to and work spending an requires launches. to say our longer-term now maybe we're we're the seeing problems, durability, Kumar do now to I into industry, to industrial It to. under testing to has learned. time lessons which is of new on and which approach in long our long-term

more to the not for and new measured with we're this company change approach to going have We team very term. solving We is up. so for launches. And approach think physical these our right in approach problem more the the testing, time lot significant long for launches do our some more coming midterm a

in a [ wave, ] we North going and mentioned, super and And as the Explorer are volume have that. Europe, launching which in of in we derivatives have one-ton building both China, which to new profitable. America. X the is We we're Transit call Wave Aviator you And higher-end high be for

can in China. go I on on. have the mean, I Bronco We and

and Sport than models Bronco have coming We freshened Maverick more even a and that.

quarter all like us to thing given it And that our we may sure it make that the more stock-end some plans that may have time. on for right quality. take may, company So quarter in we to do complexity, ends, even it's mean X, some important actually

based out that on a works We'll bit how lumpy. earnings may So new see this approach. little be our

or back It's hybrid you pointed limited. Honda. Okay. And is then hybrid conversation than the portfolio as different because your much just Toyota out, to pretty

fit rest X trying power mentioned. only how like on like about make of think hybrids? the think are now. scaling real new have sort there for it you models? more of you -- to be it really portfolio, should to Is you to right hybrids made as existing and that Or have we I the But that need taking plants fit investments it

good a It's question.

current internal engines Ranger. I say taking the have engineering to adding Look We That's fit it's the had we Everest, the an combustion had We and at platform. So Bronco. candidate. the mostly, TX our obvious components the would that. so hybrid new doing

have full-size We SUVs, our candidate.

And platform. I think we're Explorer the have We lucky.

We have the right engines.

go have may them of to combustion a Some cycle. an cycle to engine normal from

spending that in have system the capacities and already from made components the this that -- in to have up We hybrid, that's torque year. devices the we've investment in some do hybrid the do we our but the decision our to like splitting transmissions, our plan

modest shape. investments, it in side the would really kind mostly say I I investment capacity think some require engineering capacity. we're does and new and in in It inventing doesn't good powertrains. But some engineering. involve wholesale of

is The Langan Fargo. next from Colin Wells with question

weak you're in think pretty bit a It pickup of optimistic but inventories reports showing QX, I demand, about data there's high. media sounds pretty was look that like some the pricing

pricing And So maybe And year, of risks where models the these that rest the coming do market? of you for you seeing I should inventory the really for where the out? now in any some got are of you end? some see then XXXXs guess,

Yes.

the we knew we of launch. built the we saw So pickups into is year of what we of here came us the first up as U.S. stock into end last as this year in for coming out in you the were quarter

why quarter. saw then to 'XX the saw coming quarter we top the selling line stocks down. So that's And stay majority competitors trucks, year our those the you in that had we model we of 'XX were built with of And competitive models. down some throughout first pickup

model the quarter. higher 'XX through had incentives sell year we the So to longer

X that dealers F-XXXs You turning 'XX now at about are They're in and see days. our selling.

up the because look year transaction prices you is as going see, average coming our down at of You'll the data, incentive and 'XX our spend are mix. that

of part [indiscernible] it big And what -- such big a in it it a that's on because we're moved was pickup us moving for trucks. was So player,

for out I emphasize, brand there's much don't the a that we shock of to want one a think just Maverick. in has a there pretty Maverick. segment, and still our vehicles. alone supply That's It's I in are fastest-growing

We have John said, turning an all-new really hybrid fast. option, F-XXX with a as

Pro side that's We on oversubscribed have Ranger. a the and Super brand-new Duty X:X, have we a

we're for that and unicorn some So say sense who is I there is risk a is aged Ford think advantaged people in yes, big, in would product. of a a the risk. And we're the have bit But situation. particularly I

March And ending what in about high inventory data of the showing to... down the is levels? coming I kind of XXs up, some think

basis, an down Yes, and dealer considerably, you Yes. if is overall us on at look mid-XXs. come day our supply that's

Maverick we effort, or Duty, that. and retail. quality now really good We're supply are very F-XXX came few because stock with like for in have down the the Super on like few XX-day we 'XXs. the And had completely But I something Rangers. stock in quite a launch shape. stocks is out think of

Yes.

you've So that's and at the supply, got good look to dealer in a place. day

pricing is guess, What And this is holding color pricing. of of because year-over-year? on comps in tough sort just I the with point? as little at maybe are a I how guidance embedded industry launches follow-up, your a some think sequentially And up,

Yes.

remained about had where pretty across expect been go from talking first But supply have that the across First pressure well, look from where back consumer comes you the X% when as supply coming it demand. really had quarter see And to keep at we now well down, as held were and shocks very a QX disposable interest up industry, of pricing planning we to insurance monthly you have and COVID, pre to XX% then And COVID, with to perspective. perspective, and that should pricing about pricing also as consumers industry robust. But standpoint, was we and assume factor we have Many folks payment that the the expect now -- what would it of at saw up rates it income. it And that's that's in And right industry. pricing negative in that we the prices pre again, imbalance From affordability normalized, rates. between up, have back hasn't. maintenance gone looking XX% gone a rates, about an we the into quarter pretty affordability to though it affordability. QX. we

the think And going industry. of that for you if prices say, you're so be that take a the come consumer, back we off together, we couple towards about or have are to affordability so across when going to to points range okay, then of affordability, all

half how so planned. year. it that's And think and then as what and And see we'll we second QX where with that we that's we of about runs the go this have through

next The question with RBC. is from Tom Narayan

guys' prices we've Jim, those is we Tesla, going pricing reduce could GM, going some keep opposite EVs lessen. OEMs EV earnings that I confident the you heard losses from like to make the to it on if this environment you from as But EV really your would and go just yesterday, then lower. drops are in guess, losses cheaper of EV only trying that down? how is are commentary like that the seems seems It happening. stabilized, heard prices

marketplace What going and the look be well a right, looked supply. pay EV when prices premium. was are normalizing, it, we're So not finding to and to what is But price. a long with at willing -- And you we're customers started, early was that's that majority EV higher they pay that when seeing. craze adopters like with are willing it demand being were to early that in clear the our the it's was it

relatively hybrid. And have going of their choice, proposition a it's going for way for an gas and going all consumer consistent a be around And value EV engine prices a is either we duty a or choices ICE pricing the propulsion, that to are to is or diesel or them, EVs think for to of where works the and a either across be what so traditional to [indiscernible] propulsion normalize model have that cycle, electric you're customer going make the to will on vehicles. I you're choice there's a business electric unless based eventually, prices that's of rational gas value the that it's how imbalance come capacity to don't of an find we're to to the below and will building have the that think marketplace. for that. And so well vehicles that against pushing demand curve, But players end much it. on going

to market. at can a first we small don't relatively huge We software this platforms to launch Explorer vehicle crossover. mentioned you launched as our it's expect, Cologne, volume but small I SUV the vehicles can times, that vehicles a we're several be for great lot X-row U.S. in of sell in that in our And year lose so services. on Europe software certainly having that learning It's see with opening that see have our us $XX,XXX volume to. is in want that is believe used profitable they to compliance of most the opportunity our lot We and Protiviti We Ford. And BlueCruise of our affordable for cycle their brands be to Pro platform product. What's next those and a what all and of money, new $XX,XXX will probably for really for a we they will be an exciting in

starting we're really more year. new Explorer affordable in excited about with so vehicle this And Europe that lineup,

something you is your since maybe us raw here like could XXXX. is remind XX% that as the down we mat lithium a how Could follow-up, this And costs, work? contracts help just battery have in maybe there's peak benefits battery on given -- mats there's actually in we've think and benefits you from still the that actually come, see how some contracts could year. work I later some to getting other heard raw OEMs of better,

no seeing thing. the different. we're Yes, We're same

definitely cost cascade still of our depending see the will would business, on be raw on and taking our easing is I It's the of that and of biggest kind going say into leverage materials, out nickel the some of great contracts. things. battery that them those the to to

lot that of around most get to the launch materials new chemistries them. that Ford. that. advantage right our to strategically expensive thing the we think important a to have corner in And And see is timing take I less we're changing at

is Picariello Exane. BNP Our final Paribas with question today from James

point to you the Just year more $X year's I hyperfocus profit improved back on the quality. launch in question is, slate [indiscernible] last I risk this regarding launch launch, impact F-XXX launches. question we on in strike. My the Is from units heavy result Jim, at already XX,XXX the from is getting Ford Super guide Ford excluding is believe, material model refresh volumes? expected a this there from some this into it already slowdown mentioned range from lower Duty Pro the pushed. know mainly here? Joe's lost of saw Blue's delivered any factored Is or billion quarter a

already It's factored in.

the also expecting should still you to range? for start be Model we volume the for can modest Can $XX,XXX in. the finished you growth Model e? the year e the And $XX,XXX full to -- factored ASP then slow in Already how unpack quarter just year, in just given implied

Yes.

Europe. We at as e, difficult selling with math, average expect launch of the the of high single-digit in the look you Model the mentioned, because quarter. Explorer, price Jim the with growth the When in primarily it's

a few we down, down, pricing stock. units we saw prices competitive the too. quite the industry come in So our took in we And had as

units about prices the of that and to had stock there. So down all equally, million $XXX was we then impact take in of

the for need you the on in, to do at based in add want quarter. for math revenue to wholesales if look the you when quarter $XXX the tenth the Model you e, of million that So

you Maybe given how my first answered. question doesn't count,

progress manufacturing share second in be initiatives? on know billion to the And the half can initiatives to assessment there you that not you're year, $X half versus any are clean date? through? high-level cost going on on the quarter-to-quarter, a material timing to stand savings willing those showing are first this What give just but on I out bridge color in really numbers for Just

Yes.

vehicles encouraged half. to are progress half. And I'm towards be So in the the changes. the the second to new we're around really bring we platform model them the as changes the and of are and online second trying going making half we design majority implemented year industrial second as by get in design changeover those Kumar be that the

working I've by So that's through. to tremendous the Ford X design area reductions where on come They're teams. seen those progress

we're increases based that we contract have year The seeing other area that, to the in efficiencies on help as and this progress we last working and is drive they're to signed all team year. manufacturing, Bryce the his

So is And side in as culture. and We've better the there. She's I'm got with the tools a chain well. really both areas, seeing systems We're shoots processes. green working collaboratively supply the more supply on changing doing nice Liz job and base.

and what is And between team all leading Bryce timed Liz, confident we're and doing, but year, the with green of half. so towards across areas $X in on we're the billion Kumar industrial the X those this shoots, mostly platform seeing the second

and cost priorities team us as same quality important And that take improve time. for at one to most the the is of out a

the we not to and example, improve to just at that in windows we to intentional. have the where the have industrial that, do both the I improve team to And because on our costs our emphasize side, trying we're to So quality same be design design want time, specific very for changes make protect can and system. quality. do

This Thank First Earnings Motor for you Company Ford concludes XXXX participation. the your Quarter Conference Call.

now may disconnect. You