Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

7627c2666eb254bd0d81b363528ef90a2dbf145aaf78d5287bcdca3b4f516fd9

8209667bc6921dc61d210961e2f8c039bd941df68fe131b8595cf13ecea2392a

Ford Motor Company is a global automotive leader, operating through three main customer-centered business segments: Ford Blue, Ford Model e, and Ford Pro. The company is renowned for engineering iconic gas-powered, hybrid, and electric vehicles, as well as providing comprehensive services and software for commercial customers **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**. Additionally, Ford offers financial services through Ford Motor Credit Company, enhancing customer loyalty and generating new revenue streams **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**.

1. **Ford Blue** - Engineers iconic gas-powered and hybrid vehicles, significantly contributing to the company's revenue and profitability **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**.
2. **Ford Pro** - Serves commercial customers with a comprehensive suite of vehicles, services, and software, achieving substantial growth in revenue and profitability **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**.
3. **Ford Model e** - Develops breakthrough electric vehicles (EVs) and related software, establishing itself as a leading EV brand in the U.S. with increasing shipments and sales **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**.
4. **Ford Motor Credit Company** - Provides financial services that support customer loyalty and create new revenue streams **[0001104659-24-040871_tm2318496-d4_def14a.htm:5]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:72]**.

17a21ba82a5241a2a7488c7a5225576cc1a7b39dd8539944057adf5ea050678d

| Business Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|
| Ford Blue (in millions) | **$25,100**  **[0000037996-23-000028_exhibit99tomay22023ford8.htm:0]**  | **$25,002**  **[0000037996-23-000050_f-20230630.htm:35]**  | **$25,587**  **[0000037996-23-000068_f-20230930.htm:36]**  | N/A | **$21,754**  **[0000037996-24-000075_f-20240331.htm:31]**  | **$26,700**  **[0000037996-24-000143_exhibit99tojuly242024for.htm:2]**  | **$26,200**  **[0000037996-24-000183_exhibit99tooctober282024.htm:2]**  |
| Ford Model e (in millions) | **$707**  **[0000037996-23-000029_f-20230331.htm:37]**  | **$1,834**  **[0000037996-23-000050_f-20230630.htm:35]**  | **$1,758**  **[0000037996-23-000068_f-20230930.htm:36]**  | N/A | **$115**  **[0000037996-24-000075_f-20240331.htm:31]**  | **$1,100**  **[0000037996-24-000143_exhibit99tojuly242024for.htm:2]**  | **$1,200**  **[0000037996-24-000183_exhibit99tooctober282024.htm:2]**  |
| Ford Pro (in millions) | **$13,200**  **[0000037996-23-000029_f-20230331.htm:38]**  | **$15,589**  **[0000037996-23-000050_f-20230630.htm:35]**  | **$13,829**  **[0000037996-23-000068_f-20230930.htm:36]**  | N/A | **$18,019**  **[0000037996-24-000075_f-20240331.htm:31]**  | **$17,000**  **[0000037996-24-000143_exhibit99tojuly242024for.htm:2]**  | **$15,700**  **[0000037996-24-000183_exhibit99tooctober282024.htm:2]**  |
| Ford Next (in millions) | N/A | N/A | **$1**  **[0000037996-23-000068_f-20230930.htm:36]**  | N/A | **$1**  **[0000037996-24-000075_f-20240331.htm:31]**  | N/A | N/A |
| Ford Credit (in millions) | N/A | **$2,527**  **[0000037996-23-000050_f-20230630.htm:35]**  | **$2,625**  **[0000037996-23-000068_f-20230930.htm:36]**  | N/A | **$2,887**  **[0000037996-24-000075_f-20240331.htm:31]**  | **$3,000**  **[0000037996-24-000144_f-20240630.htm:33]**  | N/A |

69556e6aca5c3361af535652b868141e0a6508083a134330f5e827582ebe7667

| Program Details           | Program 1          |
|---------------------------|--------------------|
| Approval Date             | December 2023  **[0000037996-24-000009_f-20231231.htm:72]**   |
| End Date/Duration         | N/A                |
| Total additional amount   | **53 million shares**  **[0000037996-24-000009_f-20231231.htm:72]**  |
| Remaining authorization   | **30,270,000 shares**  **[0000037996-24-000185_f-20240930.htm:74]**  |
| Details                   | Offset the dilutive effect of share-based compensation expected to be granted during 2024  **[0000037996-24-000009_f-20231231.htm:72]**  |

eefa98c75f636808d1d2a7cb95603646607425e0fc10c5f9830712c3b4f6c847

551e009be90ff316e0bd5db98842725452c77ed36712ec878e2934c4e3b495f5

1. Despite higher earnings, Ford's capital base has expanded such that returns haven't improved. How are you addressing the trajectory of structural costs, and what steps are you taking to improve returns on capital?  **[F_3394138_12]** 
2. With many traditional automakers investing billions in R&D to achieve affordable EVs at scale, why isn't Ford pursuing more partnerships to share costs and risks, especially given your focus on capital efficiency?  **[F_3394138_12]** 
3. Given the significant investment to add 100,000 units of Super Duty capacity in Canada, how confident are you that demand will sustain these high levels, and can you elaborate on the incremental margins and expected payback period for this investment?  **[F_3394138_13]** 
4. Ford Model e generated a loss of $1.1 billion in the quarter, and you are forecasting a full-year loss of $5 billion to $5.5 billion due to pricing pressures and investments. What specific actions are you taking to turn around Model e, and when do you anticipate reaching profitability in this segment?  **[F_3394138_6]** 
5. Considering that Ford's stock ranks near the bottom of the S&P on P/E ratio and the market hasn't reflected the company's transformation, why does the Board refuse to authorize a share buyback, and do you genuinely believe there are better uses of capital than returning it to shareholders?  **[F_3394138_9]** 

cb8e6c370e38e6301b56b50e472d8f36f5d724c4e4ff64f35ade242abb27bec4

2bf0e752a6eb00cd5b7d9b1fad968adf96e25ab93453564a9d128895df647770

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Company Adjusted EBIT**: $10 billion to $12 billion  **[F_3394138_7]** .
  2. **Adjusted Free Cash Flow**: $7.5 billion to $8.5 billion  **[F_3394138_7]** .
  3. **Capital Expenditures (CapEx)**: $8 billion to $9 billion, focusing on the low end  **[F_3394138_7]** .
  4. **Ford Pro EBIT**: $9 billion to $10 billion  **[F_3394138_7]** .
  5. **Model e Losses**: $5 billion to $5.5 billion  **[F_3394138_7]** .
  6. **Ford Blue EBIT**: $6 billion to $6.5 billion  **[F_3394138_7]** .
  7. **Ford Credit EBT**: About $1.5 billion  **[F_3394138_7]** .
  8. **U.S. SAAR**: 16 million to 16.5 million units  **[F_3394138_7]** .
  9. **Industry Pricing**: Decrease by roughly 2%  **[F_3394138_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Company Adjusted EBIT**: $10 billion to $12 billion, tracking toward the high end  **[F_3380468_5]** .
  2. **Adjusted Free Cash Flow**: $6.5 billion to $7.5 billion  **[F_3380468_5]** .
  3. **CapEx**: $8 billion to $9 billion, expecting the lower end  **[F_3380468_5]** .
  4. **Ford Pro EBIT**: $8 billion to $9 billion  **[F_3380468_5]** .
  5. **Model e Loss**: $5 billion to $5 billion  **[F_3380468_5]** .
  6. **Ford Blue EBIT**: $7 billion to $7.5 billion  **[F_3380468_5]** .
  7. **Ford Credit EBT**: About $1.5 billion  **[F_3380468_5]** .
  8. **SAAR**: 16 million to 16.5 million units  **[F_3380468_5]** .
  9. **Industry Pricing**: Lower by roughly 2%  **[F_3380468_5]** .
  10. **Hybrid Sales Growth**: 40% growth  **[F_3380468_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBIT**: $10 billion to $12 billion  **[F_3372072_7]** .
  2. **Adjusted Free Cash Flow**: $6 billion to $7 billion  **[F_3372072_7]** .
  3. **Capital Expenditures**: $8 billion to $9.5 billion, with 40% for EVs  **[F_3372072_7]** .
  4. **Ford Pro EBIT**: $8 billion to $9 billion  **[F_3372072_7]** .
  5. **Model e Losses**: $5 billion to $5.5 billion  **[F_3372072_7]** .
  6. **Ford Blue EBIT**: $7 billion to $7.5 billion  **[F_3372072_7]** .
  7. **Ford Credit EBT**: About $1.5 billion  **[F_3372072_7]** .
  8. **U.S. SAAR**: 16 million to 16.5 million units  **[F_3372072_7]** .
  9. **Industry Pricing**: Lower by roughly 2%  **[F_3372072_7]** .
  10. **Cost Reduction Initiatives**: $2 billion benefit  **[F_3372072_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about Ford's guidance for Q3 2024. They only provide details up to Q2 2024.

aac50ed21816748f1688f3e561d7ca657635e125cbd9abb6630c3d0ed000ac8f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| William Clay Ford, Jr.| Executive Chair and Chair of the Board        | September 2006     | William Clay Ford, Jr. has been serving as the Executive Chair and Chair of the Board at Ford Motor Company since September 2006. He has been a Director since 1988 and has held various management positions within the company  **[0000037996-24-000009_f-20231231.htm:70]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:45]** .          |
| James D. Farley, Jr.  | President and Chief Executive Officer         | October 1, 2020    | James D. Farley, Jr. was elected as the President and Chief Executive Officer of Ford Motor Company effective October 1, 2020. He took on the additional role of President, Ford Model e in March 2022  **[0001104659-24-040871_tm2318496-d4_def14a.htm:40]** **[0000037996-24-000009_f-20231231.htm:70]** .                                    |
| John Lawler           | Chief Financial Officer                       | October 2020       | John Lawler is the Chief Financial Officer of Ford Motor Company, a position he has held since October 2020  **[0000037996-24-000009_f-20231231.htm:70]** .                                                                                                                                |
| Ashwani ("Kumar") Galhotra | Chief Operating Officer                  | October 12, 2023   | Ashwani ("Kumar") Galhotra is the Chief Operating Officer at Ford Motor Company. He was elected to this position effective October 12, 2023  **[0000037996-23-000117_f-20231012.htm:0]** .                                                                                                |
| Michael Amend         | Chief Enterprise Technology Officer           | September 2021     | Michael Amend has been serving as the Chief Enterprise Technology Officer at Ford Motor Company since September 2021. Before joining Ford, he was the President of Online at Lowe's from 2018 to 2021  **[0000037996-24-000009_f-20231231.htm:70]** .                                       |
| Theodore Cannis       | CEO, Ford Pro and Ford Customer Service Division | September 2023  | Theodore Cannis served as the CEO of Ford Pro and Ford Customer Service Division. He began his role as CEO of Ford Pro in September 2023 and has been with Ford since 1989  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-24-000174_exhibit99toseptember1220.htm:1]** **[0000037996-24-000174_exhibit99toseptember1220.htm:0]** .                                                           |
| Steven P. Croley      | Chief Policy Officer and General Counsel      | July 2021          | Steven P. Croley has been serving as the Chief Policy Officer and General Counsel at Ford since July 2021. Before joining Ford, he was a partner in the Washington, D.C., office of Latham & Watkins  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-23-000012_f-20221231.htm:58]** .                                     |
| J. Doug Field         | Chief EV, Digital, and Design Officer         | October 2023       | J. Doug Field is the Chief EV, Digital, and Design Officer at Ford Motor Company. He joined Ford in October 2023  **[0000037996-24-000009_f-20231231.htm:70]** .                                                                                                                           |
| Andrew Frick          | President, Ford Blue                          | October 2023       | Andrew Frick is the President of Ford Blue, a position he has held since October 2023. He has been involved with Ford in various capacities, including serving as the interim leader for Ford Pro  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-24-000174_exhibit99toseptember1220.htm:0]** .                                        |
| Marin Gjaja           | Chief Operating Officer, Ford Model e         | September 2023     | Marin Gjaja is the Chief Operating Officer of Ford Model e, a position he has held since September 2023. Before this role, he served as the Chief Customer Officer for Ford Model e starting in March 2022  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-23-000012_f-20221231.htm:58]** .                               |
| Peter C. Stern        | President, Integrated Services                | August 2023        | Peter C. Stern joined Ford Motor Company as the President of Integrated Services in August 2023. Before joining Ford, he was Vice President of Services at Apple from 2016 to 2023  **[0000037996-24-000009_f-20231231.htm:70]** **[0001104659-24-040871_tm2318496-d4_def14a.htm:74]** .                                                       |
| Jennifer Waldo        | Chief People and Employee Experience Officer  | May 2022           | Jennifer Waldo is the Chief People and Employee Experience Officer at Ford Motor Company. She has held this position since May 2022. Prior to joining Ford, she was Vice President, People Business Partners at Apple  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-23-000012_f-20221231.htm:58]** .                    |
| Shengpo ("Sam") Wu    | President and Chief Executive Officer, Ford of China | March 2023    | Shengpo ("Sam") Wu is the President and Chief Executive Officer of Ford of China, a position he has held since March 2023. Before joining Ford, he was the Executive Vice President and President of Whirlpool Asia  **[0000037996-24-000009_f-20231231.htm:70]** .                         |
| Cathy O’Callaghan     | Controller                                    | June 2018          | Cathy O’Callaghan has been serving as the Controller at Ford Motor Company since June 2018. She is also the principal accounting officer for the company  **[0000037996-24-000009_f-20231231.htm:70]** **[0000037996-23-000012_f-20221231.htm:58]** .                                                                                  |
| Adriana Cisneros      | Director on the Board                         | July 11, 2024      | Adriana Cisneros was elected to the Board of Directors of Ford Motor Company on July 11, 2024. She serves on the Nominating and Governance Committee and the Sustainability, Innovation and Policy Committee of the Board  **[0000037996-24-000137_f-20240711.htm:1]** **[0000037996-24-000137_exhibit99toforddatedjuly.htm:0]** .                |
| Michael R. Amend      | Interim Leader of Ford Integrated Services    | N/A                | Michael R. Amend is currently serving as the Interim Leader of Ford Integrated Services at Ford Motor Company. He also holds the position of Chief Enterprise Technology Officer, a role he has been in since September 2021  **[0000037996-24-000189_f-20241030.htm:1]** **[0000037996-24-000009_f-20231231.htm:70]** .            |

053b00ff1488b16407e4e3ebaed1f83d6572a7f87818f698ed2d12603fc6e3a4

United States

Canada

United Kingdom

Germany

Mexico

All Other Countries

North America

South America

Europe

China (Including Taiwan)

International Markets Group

Middle East & Africa

Asia Pacific

Total Revenue

5d67b8b554c7ec46a41969ac209896ff29b166459f4da3f2b2f3e9801a0011da

**Annual guidance for FY 2024:**
- **Full Year Company Adjusted EBIT**: about $10B  **[F_3404210_5]**  (lowered from $10B to $12B  **[F_3394138_7]** )  
- **Adjusted Free Cash Flow**: $7.5B to $8.5B  **[F_3404210_5]**  (no change from $7.5B to $8.5B  **[F_3394138_7]** )  
- **Capital Expenditures (CapEx)**: $8B to $8.5B  **[F_3404210_5]**  (lowered from $8B to $9B  **[F_3394138_7]** )  
- **U.S. and Europe SAAR**: 16M to 16.5M  **[F_3404210_5]**  (no change from 16M to 16.5M  **[F_3394138_7]**  for the U.S. portion, Europe portion is new)  
- **Ford Pro EBITDA**: about $9B  **[F_3404210_5]**  (no prior guidance)  
- **Model e Loss**: about $5B  **[F_3404210_5]**  (lowered from $5B to $5.5B  **[F_3394138_7]** )  
- **Ford Blue EBIT**: $5B  **[F_3404210_5]**  (lowered from $6B to $6.5B  **[F_3394138_7]** )  
- **Ford Credit EBT**: about $1.6B  **[F_3404210_5]**  (raised from about $1.5B  **[F_3394138_7]** )  

1db02eab7bff9f3a3b4bc7f2c6bea6ffd8699ec756afca70c31b85bc442e3bbd

9ca4ed5bb7542c1a09df0f5cb2f89090352c096d98feee8ee819b120ab94152c

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1946  **[0000037996-24-000009_f-20231231.htm:156]**    | Present  | Current auditor   |

26d57a18d00d63bd24d2bec20f6982f8892faa68f37ac056f4927368b168b8b8

1. **EV Strategy and Competition**  
   **Q:** Can Ford profitably make low-cost EVs without China's help?  
   **A:** Ford is developing its own low-cost EV components through its Skunkworks team, aiming to produce affordable EVs profitably without relying on Chinese platforms. They have a strategic partnership with CATL for battery technology but focus on designing breakthrough EV components that are better and cheaper, ensuring they remain competitive globally.

2. **Persistent Warranty Costs**  
   **Q:** What's causing ongoing warranty issues?  
   **A:** Ford faces warranty costs due to issues in older models, such as rear axle bolts in 2021 vehicles and oil pumps in 2016 models. While recent quality improvements are evident in better J.D. Power IQS scores, there's a lag before warranty costs decrease. Ford is enhancing testing protocols and utilizing over-the-air updates to detect and fix problems early, aiming to reduce future warranty expenses.

3. **Capital Allocation Strategy**  
   **Q:** Why not authorize a share buyback given stock value?  
   **A:** Ford believes investing capital in growth opportunities offers better returns than share buybacks. They are channeling funds into exciting ventures like Ford Pro, electric architectures, and service businesses, which have high-margin potential and significant growth prospects, rather than repurchasing shares.

4. **Ford Pro Pricing Sustainability**  
   **Q:** Is strong pricing in Ford Pro sustainable?  
   **A:** Strong demand and product freshness support sustained pricing in Ford Pro. Although some moderation is expected, the demand-supply imbalance remains favorable. About **60%** of Ford Pro's business is from fleet contracts negotiated annually, and early indications for the 2025 model year are positive. Investment in new products across the lineup enhances competitiveness and supports pricing.

5. **Electrification Amid Policy Shifts**  
   **Q:** How might elections impact Ford's EV strategy?  
   **A:** Ford's commitment to electrification remains firm irrespective of potential policy changes. Believing that competition from Chinese EV manufacturers will shape the industry, Ford is focused on being fully competitive globally. They emphasize manufacturing flexibility and offering customers choice, investing in both EVs and partial electrification solutions.

6. **Super Duty Capacity Expansion**  
   **Q:** Will demand absorb increased Super Duty capacity?  
   **A:** Ford is confident that increased Super Duty capacity will be absorbed by strong demand, particularly in the chassis segment, which comprises **25%** of Super Duty sales. With aging fleets in industries like infrastructure and emergency services, and a diverse multi-energy powertrain offering, Ford anticipates sustained demand for many years.

7. **Used Vehicle Residual Values**  
   **Q:** What's the outlook for used vehicle residuals?  
   **A:** Auction values are down **9%** year-over-year but have increased **3%** sequentially. While a continued decline in auction values is expected in the second half, constrained supply in the used market may support new vehicle pricing. Ford Credit is monitoring return rates and market trends closely.

07f99173996515acd6f18e395e92f0d993948746b2b16d0e6c3ffd6ba91d46da

- Total Revenue: $46.196 billion (+5% YoY)  **[0000037996-24-000185_f-20240930.htm:9]** **[0000037996-24-000185_f-20240930.htm:35]**   
- Operating Income (EBIT): **$88 million** (**-92%** YoY)  **[0000037996-24-000185_f-20240930.htm:2]** **[0000037996-24-000185_f-20240930.htm:5]** **[0000037996-24-000185_f-20240930.htm:9]**   
- Net Income: $896 million (-24% YoY)  **[0000037996-24-000185_f-20240930.htm:2]** **[0000037996-24-000185_f-20240930.htm:5]** **[0000037996-24-000185_f-20240930.htm:9]**   
- Diluted EPS: $0.22 (-27% YoY)  **[0000037996-24-000185_f-20240930.htm:2]** **[0000037996-24-000185_f-20240930.htm:5]** **[0000037996-24-000185_f-20240930.htm:9]**   
- Ford Blue: $26.238 billion (-24% YoY)  **[0000037996-24-000185_f-20240930.htm:9]** **[0000037996-24-000185_f-20240930.htm:35]**   
- Ford Model e: **$1.173 billion** (**-41%** YoY)  **[0000037996-24-000185_f-20240930.htm:9]** **[0000037996-24-000185_f-20240930.htm:35]**   
- Ford Pro: $15.655 billion (+13% YoY)  **[0000037996-24-000185_f-20240930.htm:9]** **[0000037996-24-000185_f-20240930.htm:35]**   
- Ford Credit: $3.127 billion (+19% YoY)  **[0000037996-24-000185_f-20240930.htm:9]** **[0000037996-24-000185_f-20240930.htm:35]**   

cbc2db5541854dba8a67a07082ee157d8e55e4f866bde6d60e48dd9f6c5c09ee

5fe6171292f12698721237f8c266973f2b00067015ceeeb245e2f3c82824f083

Wholesale Units for Ford Blue (thousands)

Wholesale Units for Ford Model e (thousands)

Wholesale Units for Ford Pro (thousands)

Loss-to-Receivables (basis points)

Auction Values (USD)

Securitized Funding as Percent of Total Debt (percent)

Financial Statement Leverage (ratio)

Number of U.S. Electric Vehicles Sold (units)

Number of U.S. Hybrid Vehicles Sold (units)

Number of U.S. Internal Combustion Vehicles Sold (units)

Total U.S. Vehicle Sales (units)

Number of U.S. Electric Vehicles Wholesaled (units)

Number of U.S. Hybrid Vehicles Wholesaled (units)

Number of U.S. Internal Combustion Vehicles Wholesaled (units)

Total U.S. Vehicle Wholesales (units)

c43d8a8eb590c24ea26d9afe33e4d9e1f3fb697efe3ccf99cc3932a1c0d44ed5

- **Ford Pro is exhibiting strong growth and profitability**, contributing a significant portion of the company's earnings and offering high-margin opportunities beyond vehicle sales, such as parts, services, and software.  **[F_3394138_9]**
- **Ford is implementing innovative design and development processes through its Skunkworks team**, focusing on cost-efficient production of affordable EVs, and aiming to match competitors like Tesla and Chinese OEMs in cost and efficiency.  **[F_3394138_12]** **[F_3394138_10]**
- **Strategic partnerships, such as with CATL for battery technology, are enabling Ford to secure competitive advantages in EV production without over-reliance on external platforms**, enhancing capital efficiency and maintaining control over core competencies.  **[F_3394138_10]**

b52f65072c39e7f65c7485cfb639eea849d9d1cddceb4c66464c562407d21a43

1. **EV Losses and Path to Profitability**  
   **Q:** When will Ford's EV business reach profitability?  
   **A:** Ford does not commit to a specific timing for positive EBIT in its EV business. The company anticipates **$5 billion to $5.5 billion** in losses for Model e in 2024 but plans to improve gross margin over time on Generation 1 vehicles. Ford aims to launch Generation 2 vehicles only when they can be profitable, focusing on capital and operating discipline to build a profitable EV business over time.  **[F_3372072_12]** ,  **[F_3372072_13]** ,  **[F_3372072_20]** 

2. **Ford Pro Margin Sustainability**  
   **Q:** How sustainable are Ford Pro's strong margins and earnings?  
   **A:** Ford believes the robust profitability of Ford Pro is sustainable due to durable demand drivers such as infrastructure investments, government projects, and manufacturing growth. The company is focusing on increasing attach rates of software and services, targeting **20%** of profitability from these areas. Upcoming product launches like Transit Custom and Ranger in Europe are expected to enhance performance further.  **[F_3372072_14]** 

3. **Cost-Cutting and Narrowing Cost Gap**  
   **Q:** How is Ford progressing on cost improvements to narrow its **$7 billion** disadvantage?  
   **A:** Ford is gaining traction in narrowing the cost gap, expecting **$2 billion** in efficiencies in 2024. Efforts include design changes to improve efficiency, removing low-value features, extensive benchmarking, and manufacturing improvements. Stabilization of the supply chain and reduced premium freight costs also contribute to cost reductions.  **[F_3372072_15]** ,  **[F_3372072_16]** 

4. **EV Demand Slowdown and Production Adjustments**  
   **Q:** How is Ford responding to the slowdown in EV demand and its impact on profitability?  
   **A:** Ford recognizes that mainstream EV customers are cautious due to cost of ownership calculations. The company leverages its flexible portfolio of hybrids, ICE, and EVs to meet customer demand, planning **40% growth** in hybrids. Ford believes it has the capacity and flexibility to adjust production without losing sales and possibly improving short-term profitability.  **[F_3372072_10]** 

5. **China Strategy and Partnerships**  
   **Q:** How can Ford work with Chinese partners to achieve EV objectives more efficiently?  
   **A:** Ford is adopting a low capital approach in China, leveraging partnerships with companies like Changan. The strategy focuses on profitable export businesses and utilizing partners' platforms for electrification. Ford is building a global capability team in China for digital experience, battery, and sensing technology to be used globally.  **[F_3372072_9]** 

6. **Dealer Relations and Strategy**  
   **Q:** What is Ford's message to dealers regarding EV transition and investments?  
   **A:** Ford is urging dealers to invest in Ford Pro, including brick-and-mortar facilities and remote service vans. The company emphasizes manufacturing flexibility between ICE, hybrids, and EVs and highlights progress on quality. Ford is pushing for enhanced customer experience through remote services and increased investment in customer service capabilities.  **[F_3372072_11]** 

e12cb44bb850521a7915222c543896583f8f89d9714a7399a32c33254d63a00b

1. **Warranty Costs**  
   **Q:** Are warranty issues now resolved?  
   **A:** Ford is seeing improvements in quality indicators, with the 2024 model year showing over **30% better performance** than 2021 and 2022 in the first three months in service.  **[F_3404210_8]**  However, it's too early to declare the all-clear on warranty issues, as older models may still present potential costs.  **[F_3404210_8]**  Ford is actively working to address these concerns and improve warranty costs.  **[F_3404210_8]** 

2. **Cost Competitiveness Gap**  
   **Q:** How is Ford narrowing the $7B cost gap with competitors?  
   **A:** Despite efforts, Ford's cost gap against competitors has not closed.  **[F_3404210_17]**  While they've reduced costs, competitors are also cutting expenses, keeping the gap steady.  **[F_3404210_17]**  Ford recognizes the need to accelerate cost reductions, particularly in warranty, material, manufacturing, and structural costs, to outrun competitors in cost efficiency.  **[F_3404210_17]** 

3. **Full-Year Outlook Revision**  
   **Q:** What caused the $1B cut in the full-year outlook?  
   **A:** The $1B downward revision is due to several factors, including supplier constraints affecting production of Ford's most profitable vehicles, some lost production from a hurricane, and productivity issues with a supplier.  **[F_3404210_11]**  These factors are impacting volume and mix, particularly in the Ford Blue segment.  **[F_3404210_11]** 

4. **Pricing Expectations**  
   **Q:** How is pricing expected to change going forward?  
   **A:** Ford acknowledges increasing pricing pressures, especially towards the end of the quarter and into Q4.  **[F_3404210_9]**  While top-line pricing has been strong, there is uncertainty about how deeply competitors might discount due to inventory issues.  **[F_3404210_9]**  The company plans to manage inventories back to a **50 to 60 days** run rate next year.  **[F_3404210_9]** 

5. **Cost Reduction Program**  
   **Q:** What's the progress on the $2B cost reduction plan?  
   **A:** Most of the **$2B** in cost reductions have been achieved in the first three quarters, with some savings still to come in Q4.  **[F_3404210_16]**  These reductions were largely from design changes made with the model year launch.  **[F_3404210_16]**  Ford acknowledges significant opportunities for further cost improvements and plans to provide more guidance in the Q4 earnings.  **[F_3404210_16]** 

6. **Chinese Competition Impact**  
   **Q:** How is Chinese competition affecting Ford's global sales?  
   **A:** Chinese competitors are impacting markets like Europe and the rest of Asia.  **[F_3404210_10]**  In Europe, the passenger car market has been affected, but Ford mainly competes in the commercial Pro business, where Chinese presence is limited.  **[F_3404210_10]**  Ford's Ranger and Transit products remain strong globally, and the company is well-positioned against Chinese competitors in key segments.  **[F_3404210_10]** 

7. **Skunkworks EV Project**  
   **Q:** What cost achievements have been made in the Skunkworks EV?  
   **A:** Ford has radically simplified the vehicle design, achieving significant cost reductions.  **[F_3404210_18]**  By simplifying components and engaging suppliers earlier in the process, they've verified design and cost for about **60% of the bill of materials**.  **[F_3404210_18]**  The focus has been on competitive LFP batteries and simplifying EV components like inverters, gearboxes, and motors.  **[F_3404210_18]** 

8. **Shareholder Distribution Strategy**  
   **Q:** Will Ford adjust its dividend or shareholder distributions?  
   **A:** Ford is committed to a **40% to 50%** payout of free cash flow but currently deems it prudent to retain cash given economic uncertainties.  **[F_3404210_13]**  The company reviews this strategy every quarter and may adjust if risks diminish significantly.  **[F_3404210_13]**  Ford also considers potential strategic investments, particularly in Pro services, which may influence cash allocation decisions.  **[F_3404210_14]** 

9. **Ford+ Strategy and EV Transition**  
   **Q:** How is the slower EV transition affecting Ford's medium-term targets?  
   **A:** The slower uptake of EVs has been a challenge, but Ford has adjusted by focusing on second-generation EV products with improved cost and manufacturability.  **[F_3404210_12]**  The popularity of hybrids, especially in trucks, presents a significant revenue opportunity.  **[F_3404210_12]**  Ford remains focused on cost improvements, quality, and leveraging its strengths in Pro services and software capabilities.  **[F_3404210_12]** 

10. **European CO2 Compliance**  
    **Q:** Will Ford meet European CO2 compliance requirements?  
    **A:** Ford is committed to compliance and is expanding its lineup with electric and combustion options, including new electric vans.  **[F_3404210_15]**  The company is also considering heavy-duty compliance and offers multi-energy strategies to meet varying customer needs.  **[F_3404210_15]** 

11. **Pro EBIT Margins**  
    **Q:** Why did Pro EBIT margins decline this quarter?  
    **A:** Pro EBIT margins fell to **11.6%** in the quarter due to seasonality, including zero rental business and plant shutdowns impacting production.  **[F_3404210_6]**  Despite these factors, demand for Super Duty and Transit remains strong, pricing holds up, and Ford is confident in mid-teens EBIT margins over the longer term.  **[F_3404210_6]** 

12. **Model e EBIT Trajectory**  
    **Q:** How will Model e EBIT improve next year?  
    **A:** Ford expects improved EBIT trajectory in Model e due to scaling EV business in Europe, cost reductions, and maximizing production tax credits starting mid-next year.  **[F_3404210_7]**  While pricing pressures exist, especially in Europe, Ford's new EV products and cost-down efforts are expected to drive better profitability.  **[F_3404210_7]** 

fcc32d27d4382270f5722a4dd6a478d118a7daf52c9188af1ca605a93dd3c66a

- **Ford's hybrid vehicles, such as the F-150 hybrid, have higher margins than their highest-volume gas versions due to strong customer demand and pricing power, leading to increased profitability.**  **[F_3362619_9]**
- **Ford remains committed to achieving an 8% EBIT margin on their second-generation EVs by 2026 by focusing on cost reduction through vertical integration, battery efficiency, and scaling manufacturing processes.**  **[F_3362619_14]**
- **Ford Pro continues to see strong demand with a robust order bank, indicating future revenue growth and strong performance in this segment.**  **[F_3362619_17]**

36a6c6a5930884a28640c97bbcd61801e2f0293a2c4c9eb9b71a9d92d9e3a740

- **Ford Pro's profitability is driven by durable demand** from infrastructure projects, government spending, 5G rollout, and onshoring manufacturing. Increasing attach rates for high-margin software and services are further enhancing profitability.  **[F_3372072_14]**
- **Ford's strong position in hybrid vehicles**, with a planned **40% growth** in HEV sales and expectations that **25%** of F-150 sales will be hybrids, positions the company well to meet customer demand and maintain profitability during the EV transition.  **[F_3372072_10]**
- **Ford is achieving substantial cost savings**, targeting **$2 billion** in efficiencies through manufacturing improvements, design reductions, and supply chain optimizations, which will strengthen profitability.  **[F_3372072_19]** **[F_3372072_13]** **[F_3372072_16]**

01a3673194fd08bdb29662c94a73c192e237a930f8d838b60d5d72f1bcc048e0

1. **EV Division Losses and Profitability Outlook**  
   **Q:** Can you discuss Model e's losses and path to profitability?  
   **A:** Ford is laser-focused on reducing costs in Model e, having cut over **$5,000** from Mach-E's cost, but revenue declines have outpaced these savings due to significant price reductions needed to remain competitive. The company is working to drive every dollar of cost out and aims to achieve contribution margin positivity, but falling EV prices make this challenging. Ford delayed the launch of its 3-row SUV to reduce costs further and meet expected margin levels.  **[F_3380468_10]** **[F_3380468_11]** 

2. **Capital Allocation Plans and Dividend Policy**  
   **Q:** Why is Ford conservative with capital allocation despite strong cash?  
   **A:** Ford maintains a policy to return **40% to 50%** of free cash flow to shareholders but currently prioritizes investing in accretive growth opportunities during the industry's transition to EVs. The company is comfortable with its strong cash position of about **$25 billion** this quarter and will consider additional shareholder returns if growth opportunities don't materialize.  **[F_3380468_9]** 

3. **Ford Pro Division's Profitability and Sustainability**  
   **Q:** How sustainable is Ford Pro's strong performance?  
   **A:** Ford Pro is performing exceptionally well, with oversubscribed products like the new Super Duty (demand exceeding supply by **2:1**). The company believes Pro's profitability is durable for many years due to fundamental drivers like infrastructure projects and pent-up fleet demand. Ford is expanding capacity to meet this robust demand.  **[F_3380468_7]** **[F_3380468_8]** 

4. **Pricing Pressures in EVs and Combustion Vehicles**  
   **Q:** How are falling EV prices impacting Ford's margins?  
   **A:** EV prices have dropped more than expected, with Ford reducing prices by up to **17%** to stay competitive. This rapid price decline has challenged the company's ability to match cost reductions with revenue declines, impacting margins. Ford expects EV prices to stabilize but is preparing for continued pressure by focusing on cost reductions and affordable EV offerings.  **[F_3380468_11]** **[F_3380468_14]** 

5. **Hybrid Vehicle Strategy and Capacity**  
   **Q:** Can Ford meet increasing hybrid demand?  
   **A:** Ford has significantly increased hybrid capacity, with F-150 hybrid production expanded to **25%** of mix and overall hybrid capacity nearly doubling to **400,000 units** compared to a few years ago. The company plans to offer hybrid options across all models, mostly by adapting existing engines, requiring modest investments. Ford is confident in meeting hybrid demand without significant new investments.  **[F_3380468_8]** **[F_3380468_12]** **[F_3380468_15]** 

6. **Impact of New Model Launches on Earnings**  
   **Q:** Will new launch timing affect Ford's earnings?  
   **A:** Ford is taking a more measured approach to new model launches to improve quality, which may cause earnings to be a bit lumpy. The cautious rollout of models like the F-150 and upcoming vehicles like Explorer and Aviator is factored into guidance. The company believes this approach benefits customers and the business in the long term.  **[F_3380468_12]** **[F_3380468_20]** 

7. **Regulatory Compliance and ZEV Credit Purchases**  
   **Q:** Does Ford disclose ZEV credit purchases?  
   **A:** Ford confirms that they disclose ZEV credit purchase commitments; last year, they disclosed **$700 million** in their 10-K. In the first quarter, there wasn't anything material, but they will report future purchases if they are the right lever to optimize compliance and profitability.  **[F_3380468_6]** 

8. **Cost Reduction Initiatives in Manufacturing**  
   **Q:** What progress is there on the $2B cost reduction plan?  
   **A:** Ford is on track to deliver **$2 billion** in cost reductions in manufacturing, material costs, freight, and overhead, with most savings expected in the second half of the year. The company is making progress in design changes, manufacturing efficiencies, and supply chain improvements, aiming to reduce costs while improving quality.  **[F_3380468_11]** **[F_3380468_21]** 

9. **Pickup Truck Demand and Pricing**  
   **Q:** How is pickup truck demand and pricing holding up?  
   **A:** Ford sees strong demand for its pickups, with new models like the '24 F-150 turning in about **7 days**. Earlier high inventories were due to building up '23 models before the launch, but incentives are decreasing, and average transaction prices are increasing with the new model mix. Ford acknowledges potential industry-wide pricing pressures but feels advantaged due to its fresh lineup.  **[F_3380468_13]** **[F_3380468_15]** 

10. **Battery Raw Material Cost Reductions**  
    **Q:** Will lower lithium prices reduce battery costs?  
    **A:** Ford expects reductions in lithium prices to benefit battery costs in line with contract structures. However, the most significant cost leverage will come from shifting to new battery chemistries with less expensive materials, which Ford sees on the horizon and is adjusting launch timing to capitalize on.  **[F_3380468_14]** **[F_3380468_18]** 

c3dd186a482a2639309fbcc9628507b7db964c0cfe642e71aea2a643d74ef820

- **Ford Pro delivered $3 billion EBIT in Q1 2024**, matching its total profits from two years ago, demonstrating strong growth and resilience in this segment.  **[F_3380468_7]**
- Ford has a **strong product lineup**, including the **Maverick**, which is "pretty much alone in the segment" and is "one of our fastest-growing vehicles", and the **new F-150 with a hybrid option** turning over quickly, positioning Ford advantageously in the market.  **[F_3380468_16]**
- Ford is making significant progress in **reducing costs in its EV business (Model e)**, having reduced the cost of the **Mach-E by over $5,000 per vehicle**, and is focused on driving towards contribution margin positive.  **[F_3380468_11]**

ced0875274fd185771f8846a36e661817be5b6407ac966832c50a08d9fa9c330

- **Model e is experiencing significant losses due to pricing pressure and declining revenues outpacing cost reductions, with a loss of $1.3 billion reported in the quarter.**  **[F_3380468_4]** ,  **[F_3380468_12]**
- **Delays in vehicle launches to improve quality are causing production issues, such as the F-150 refresh pushing 60,000 units to the next quarter, potentially impacting Ford Blue's profitability and causing lumpy earnings.**  **[F_3380468_20]** ,  **[F_3380468_14]**
- **Concerns about the profitability of the EV business are negatively affecting Ford's valuation, with analysts highlighting the company's low P/E multiple and the EV business being a drag on overall valuation.**  **[F_3380468_7]**

7d9c63730b7d8e431476f17cf667cd500b08864d53bd6b7af8f14321d5297d8b

- Despite higher earnings, **Ford's capital base has expanded significantly**, so **returns have not improved**, raising concerns about capital efficiency and structural costs not decreasing in the near term.  **[F_3394138_12]**
- **Ford is not returning capital to shareholders via share buybacks**, with the Board refusing to authorize them, indicating potential concerns about immediate shareholder value and suggesting better uses of capital that may not immediately boost shareholder returns.  **[F_3394138_9]**
- There is uncertainty about the sustainability of pricing strength in the Ford Pro segment, with expectations that **"we expect, as we move into the '25 model year, that there will be some of the top line coming off, and that's in our guidance"**, implying potential risks to future revenues and margins as pricing may decline.  **[F_3394138_15]**

b33e8c1d8f644b174a5cf22fc8a901cca450e6c5d28c255d962e51dbe6b8aefa

- **Operational inefficiencies and quality issues are increasing warranty costs significantly; the company reported a $1.2 billion year-over-year increase in warranty expenses, with $900 million attributed to quality issues.**  **[F_3362619_11]**
- **Delays and uncertainties in EV investment due to lower-than-expected demand; Ford is pushing out about $12 billion of EV spending and adjusting future capacity to better match demand, raising concerns about achieving targeted EV profitability.**  **[F_3362619_8]** **[F_3362619_14]**
- **Supply chain constraints and decreased volumes in profitable segments like Ford Pro; there was a decrease in Ford Pro volume due to supplier constraints and seasonality, affecting margins and growth prospects.**  **[F_3362619_17]**

3e61402f560b43f203058b04809f92cad68b937d2075b3b7f6102d16d0f4ded4

- **Ford's EV segment, Model e, is projected to incur increased losses of $5 to $5.5 billion in 2024**, up from a loss of $4.7 billion in 2023, with no clear timeline for achieving profitability.  **[F_3372072_13]**
- **Slowing EV demand and customers switching back to ICE and hybrid vehicles are challenging Ford's EV strategy.** Reports indicate that customers are trading in EVs for ICE and hybrids, and fleet customers like Hertz are reducing EV orders.  **[F_3372072_10]**
- **Cost reductions are slow to materialize; costs remained a significant drag in 2023**, including in the fourth quarter. Although Ford targets **$2 billion** in cost reductions in 2024, there is uncertainty about the timing and effectiveness of these efforts.  **[F_3372072_17]** **[F_3372072_16]**

e413c6c511e448da7e56ad318125f8e042f93c970cefe0d618cd15dfb92f1c70

Ford Motor Co (F)

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