Consistent emphasis on Ford Pro’s growth and profitability

Emphasized in all previous calls as a cornerstone for growth and profitability, consistently meeting or exceeding EBIT margin targets. " " " "

Continues to be a major focus in Q3 2024, with Ford Pro achieving an 11.6% margin and expanding high-margin revenue streams like software and services. " " "

Recurring topic across all calls, viewed as a key profitability driver.

Rising warranty costs and ongoing quality issues

Discussed each quarter (Q2, Q1, Q4) with ongoing efforts to improve quality, but costs remain elevated. " " "

Identified as a substantial headwind in Q3 2024, with Ford citing higher costs despite some quality improvements (e.g., OTA). " " "

Persistent issue; slight quality gains but rising warranty costs remain a concern.

Supply chain disruptions affecting high-margin models

Mentioned briefly in Q2 with constraints in Super Duty chassis; not specified in Q1; cited as stabilizing by Q4. " " "

In Q3 2024, supplier constraints impacted volume/mix for profitable vehicles in Ford Blue. "

Re-emerged in Q3 2024 after previous sporadic mentions.

Strong hybrid demand and expansion of hybrid capacity

Consistently noted in Q2, Q1, Q4 as a growing part of Ford’s powertrain strategy, with strong YOY increases each quarter. " " " "

Hybrid sales up 30%; Ford leads hybrid pickups with 80% share, plans wider hybrid rollout. " " "

Continual growth, especially in trucks, remains a bullish factor.

Model e’s losses, cost reductions, and uncertain profitability timeline

Also ran losses in Q2, Q1, Q4; Ford focused on cost rationalization, but profitability remains elusive. " " " "

Reported a $1.2B loss in Q3 2024; achieved $1B in cost improvements but timeline for profitability remains unclear. " " " "

Ongoing challenge, with heavy emphasis on cost cuts but no firm profit horizon.

Pricing pressures, changing consumer behavior, and margin impact

Repeated in Q2, Q1, Q4 as a key factor: shifting consumer preferences and pressure on transaction prices. " " "

Global price war and affordability issues affecting margins; Ford anticipates 2% industry-wide price decline but sees strong truck pricing. " " "

Consistent theme, reflecting market-wide shifts and EV competition.

Continued focus on cost reduction and capital efficiency

Regularly highlighted in Q2, Q1, Q4 with specific targets for manufacturing and material savings. " " " "

On track for $2B in cost cuts in 2024, with material, freight, and manufacturing under scrutiny. " " "

Steady priority, part of Ford’s broader restructuring goals.

Refreshed product lines driving demand (F-150, Super Duty, Ranger, Maverick)

Q2, Q1, Q4 all cited refreshed lineups as fueling sales, with ongoing order bank strength. " " " " " "

Strong demand noted for F-150, Ranger, Super Duty, and Maverick; key to Ford’s Q3 2024 North American performance. " " "

Consistent driver of volume and mix improvements.

Competitive challenges in the EV segment from Tesla and Chinese OEMs

Addressed in Q2, Q1, Q4 noting Tesla’s pricing moves and Chinese cost benchmarking. " " " " "

Global price war, cost advantages of Chinese OEMs, and Tesla’s Supercharger lead remain major challenges. " " " "

Ongoing concern, intensifying as EV pricing continues to fall.

Significant investments in EV development and manufacturing

Q2, Q1, Q4 reported large CapEx commitments, partnerships, and updated battery chemistries. " " "

Focused on next-generation vehicles and restructured battery plans; trimmed capacity 35% to align with market. " "

Continued investment, but timelines adjusted for cost and demand realities.

Production capacity expansions for profitable models

In Q2, Ford added 100k Super Duty capacity; Q1 expansions for Super Duty; Q4 expansions in hybrids. " " " "

No major new expansion announcements in Q3 2024; primarily focused on resolving supply constraints. " "

No new expansions this quarter; previously a focus for high-margin segments.

Increasing software and services revenue within Ford Pro

Q2, Q1, Q4 all reported subscription growth and high gross margins for Ford Pro Intelligence. " " " "

Subscriptions up 30% to 630K, fueling sticky, high-margin revenue; 13% of EBIT now from software/services. " "

Recurring growth, consistent software expansion strategy.

Potential policy and market shifts affecting EV adoption

Q2, Q1, Q4 highlighted possibility of regulation changes, slower mainstream adoption, and the need for flexible responses. " " " "

Global price war, compliance mandates, and slower-than-expected EV transition affect strategy. " " "

Continuing factor, influencing Ford’s production and pricing decisions.

Flexible ICE, hybrid, and EV strategy to adapt to market changes

Mentioned in Q2, Q1, Q4 as offering multiple propulsion avenues for varying consumer adoption rates. " " " "

Hybrid pickups remain a profitable bridge, EV capacity dialed back 35% to match demand; Ford states it leads ICE while expanding EV/hybrid. " " "

Consistent strategic approach, balancing ICE profitability with hybrid/EV investments.