Christopher French

Christopher French asked about the expected change in warranty run rate in North America and Europe from 2025 to 2026 following a significant H2 2025 charge. He also inquired about the CAFE opportunity, asking why management seemed unwilling to answer it, and a housekeeping question about restated profit bridge components for North America and Europe in H1 2025.

Answer

CEO Antonio Filosa clarified that the new CAFE regulation provides a major opportunity to improve mix, selling less PHEV and more ICE, specifically increasing V8 engine production by 100,000 units in 2026 for profit optimization in North America. CFO João Laranjo clarified that no restatement occurred for the profit bridge; differences arise from using H1, H2, or full-year average margins/FX for respective walks. For warranty, he referred to a detailed schedule provided on February 6th, suggesting to exclude EUR 500 million related to H1 from the H2 P&L booking for a good run rate.