Superior Value From EVs, Commercial Business, Connected Services Is Strategic Focus of Today’s ‘Delivering Ford+’ Capit...
May 26 2021 - 8:00AM
Business Wire
- Company to detail priority areas of Ford+ plan for growth and
value creation based on ‘always-on’ customer relationships and
leadership in electric vehicles, connected services
- Expects 40% of Ford global vehicle volume to be all-electric by
2030; raises planned electrification spending to $30+ billion by
2025, including development of IonBoost batteries
- Announces creation of Ford Pro vehicle services and
distribution business, fully dedicated to high productivity
requirements of commercial and government customers
Zero-emission electric vehicles and advanced connectivity are
transforming commercial and personal transportation, and Ford is
leading that revolution – with compelling services and platforms
based on cutting-edge electrical architectures and battery
technologies.
The company is applying innovation in those and other areas to
stand up Ford Pro, making Ford the first auto manufacturer with a
fully dedicated commercial vehicle services and distribution
business.
And the underlying Ford+ plan for growth promises always-on
benefits for customers – along with new ways for investors to think
about how they value the company.
Those are expected to be primary takeaways Wednesday when
Ford CEO Jim Farley and other senior leaders expand on the
company’s customer-focused strategic ambitions and actions in a
virtual meeting with financial analysts and other stakeholders.
The Ford event – themed “Delivering Ford+” – will open for
registration at 9:15 a.m. EDT today and will start promptly at 9:30
a.m., with access and supporting material at
shareholder.ford.com.
“I’m excited about what Ford+ means for our customers, who will
get new and better experiences by pairing our iconic, world-class
vehicles with connected technology that constantly gets better over
time,” said Farley. “We will deliver lower costs, stronger loyalty
and greater returns across all our customers.
“This is our biggest opportunity for growth and value creation
since Henry Ford started to scale the Model T, and we’re grabbing
it with both hands.”
Delivering Ford+
During the event, Farley will relate how Ford is breaking away
from the transactional, build-and-sell business model that has
typified the auto industry for decades. Instead, Ford+ is
characterized by close, enduring customer relationships – enabled
by the company’s foundational strengths, improving financial
performance, and capabilities and investments in disruptive
technologies.
At the core of those capabilities is Blue Oval Intelligence,
Ford’s next-generation, cloud-based platform for integrating
electrical, power distribution, computing and software systems in
connected Ford and Lincoln vehicles.
Presentations will detail where, why and how the company is
headed with fully electric vehicles, commercial solutions and
connected services – and how customers will benefit. CFO John
Lawler said Ford is allocating capital to those priority areas to
produce value for customers and shareholders.
“We’re fueling Ford+ by further strengthening our core
automotive operations and generating consistently healthy cash flow
that will fund growth and create value,” said Lawler.
The company expects to deliver an 8% adjusted EBIT (earnings
before interest and taxes) margin in 2023.1
Today’s event will address how Ford is:
Leading the Electrification
Revolution
- Accelerating investments and increasing planned total spending
on electrification, including battery development, to more than $30
billion by 2025 – while deriving efficiencies from Ford’s flexible
EV architecture and modular technologies.
- Anticipating 40% of Ford’s global vehicle volume to be fully
electric by 2030, including from:
- Mustang Mach-E, which is bringing new customers to Ford – 70%
of buyers, to date
- The F-150 Lightning, an all-electric version of the world’s
most popular pickup truck, which has amassed 70,000 customer
reservations since it was unveiled one week ago, and
- E-Transit commercial vans, which will be on the road later this
year.
- Investing in battery technology and equipping Ford to design,
engineer and manufacture its own batteries, with key developments
including:
- Creating Ford Ion Park, a global center of battery excellence
comprising more than 150 experts in battery chemistries, testing,
manufacturing and value-chain management who will boost battery
range and lower costs to customers and Ford
- Vertically integrating battery technology with an extensive
range of EV batteries – IonBoost lithium ion; IonBoost Pro lithium
iron phosphate for commercial vehicles; and long-range, low-cost
solid-state batteries based on Ford’s own engineering and know-how
from Solid Power, in which the company holds an equity stake,
and
- Forming a joint venture, BlueOvalSK, with SK Innovation to
manufacture battery cells and arrays at two plants in the U.S. for
future Ford and Lincoln vehicles.
Creating a Business Dedicated to
Commercial Customers
- Establishing Ford Pro, a global vehicle services and
distribution business within Ford devoted to commercial and
government customers, and led by Ted Cannis, who's been named CEO
and a corporate officer.
- Cannis has been head of Ford’s North America CV business and
previously managed the Team Edison EV development group.
- Providing customers with greater value and higher productivity
through:
- The industry’s most comprehensive and flexible range of
electric and internal-combustion commercial vehicles
- Digital and physical services that can help optimize and
maintain customer fleets
- Public, depot and employee home charging of EVs for the next
day’s work, and
- Bundled financing of vehicles, services and charging.
- Increasing the commercial market for hardware and adjacent and
new services that’s addressable by Ford – with anticipated company
revenue of $45 billion by 2025, up from $27 billion in 2019.
Connecting With Customers via Connected
Services
- Having about 1 million vehicles that are capable of receiving
over-the-air system updates on the road by the end of this year,
exceeding Tesla’s volume by July 2022, and scaling to 33 million
OTA-enabled Ford and Lincoln vehicles by 2028.
- Strengthening customer relationships with digitally enabled
tools like Ford Pass and Lincoln Way, online ordering, simplified
financing and renewal options, vehicle pick-up and delivery, and
mobile repairs.
- Extending digital lifestyles by fully integrating best-in-class
technology from, e.g., Apple, Amazon, Google and Baidu.
- Speeding detection and resolution of quality issues using
connected data – helping to raise customer satisfaction and lower
warranty costs.
- Deploying distinctive connected functions like Ford’s
BlueCruise driver-assist technologies, new features and upgraded
software content, and EV charging to improve the user experience –
and capitalize on what is projected to be a $20 billion market for
such services by 2030.
1When Ford provides guidance for adjusted EBIT margin, it does
not provide guidance for the most comparable GAAP measure because,
as described in more detail in “Non-GAAP Financial Measures That
Supplement GAAP Measures” in Ford’s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q, the GAAP measure includes items
that are difficult to predict with reasonable certainty.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan. The company designs, manufactures, markets and
services a full line of Ford trucks, utility vehicles, and cars –
increasingly including electrified versions – and Lincoln luxury
vehicles; provides financial services through Ford Motor Credit
Company; and is pursuing leadership positions in electrification;
mobility solutions, including self-driving services; and connected
vehicle services. Ford employs approximately 186,000 people
worldwide. For more information regarding Ford, its products and
Ford Motor Credit Company, please visit corporate.ford.com.
Cautionary Note on Forward-Looking
Statements
Statements included or incorporated by reference herein may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on expectations, forecasts, and assumptions by
our management and involve a number of risks, uncertainties, and
other factors that could cause actual results to differ materially
from those stated, including, without limitation:
- Ford and Ford Credit’s financial condition and results of
operations have been and may continue to be adversely affected by
public health issues, including epidemics or pandemics such as
COVID-19;
- Ford is highly dependent on its suppliers to deliver components
in accordance with Ford’s production schedule, and a shortage of
key components, such as semiconductors, can disrupt Ford’s
production of vehicles;
- Ford’s long-term competitiveness depends on the successful
execution of its Plan;
- Ford’s vehicles could be affected by defects that result in
delays in new model launches, recall campaigns, or increased
warranty costs;
- Ford may not realize the anticipated benefits of existing or
pending strategic alliances, joint ventures, acquisitions,
divestitures, or new business strategies;
- Operational systems, security systems, and vehicles could be
affected by cyber incidents and other disruptions;
- Ford’s production, as well as Ford’s suppliers’ production,
could be disrupted by labor issues, natural or man-made disasters,
financial distress, production difficulties, or other factors;
- Ford’s ability to maintain a competitive cost structure could
be affected by labor or other constraints;
- Ford’s ability to attract and retain talented, diverse, and
highly skilled employees is critical to its success and
competitiveness;
- Ford’s new and existing products and mobility services are
subject to market acceptance and face significant competition from
existing and new entrants in the automotive and mobility
industries;
- Ford’s results are dependent on sales of larger, more
profitable vehicles, particularly in the United States;
- With a global footprint, Ford’s results could be adversely
affected by economic, geopolitical, protectionist trade policies,
or other events, including tariffs;
- Industry sales volume in any of Ford’s key markets can be
volatile and could decline if there is a financial crisis,
recession, or significant geopolitical event;
- Ford may face increased price competition or a reduction in
demand for its products resulting from industry excess capacity,
currency fluctuations, competitive actions, or other factors;
- Fluctuations in commodity prices, foreign currency exchange
rates, interest rates, and market value of Ford or Ford Credit’s
investments can have a significant effect on results;
- Ford and Ford Credit’s access to debt, securitization, or
derivative markets around the world at competitive rates or in
sufficient amounts could be affected by credit rating downgrades,
market volatility, market disruption, regulatory requirements, or
other factors;
- Ford’s receipt of government incentives could be subject to
reduction, termination, or clawback;
- Ford Credit could experience higher-than-expected credit
losses, lower-than-anticipated residual values, or
higher-than-expected return volumes for leased vehicles;
- Economic and demographic experience for pension and other
postretirement benefit plans (e.g., discount rates or investment
returns) could be worse than Ford has assumed;
- Pension and other postretirement liabilities could adversely
affect Ford’s liquidity and financial condition;
- Ford could experience unusual or significant litigation,
governmental investigations, or adverse publicity arising out of
alleged defects in products, perceived environmental impacts, or
otherwise;
- Ford may need to substantially modify its product plans to
comply with safety, emissions, fuel economy, autonomous vehicle,
and other regulations;
- Ford and Ford Credit could be affected by the continued
development of more stringent privacy, data use, and data
protection laws and regulations as well as consumers’ heightened
expectations to safeguard their personal information; and
- Ford Credit could be subject to new or increased credit
regulations, consumer protection regulations, or other
regulations.
We cannot be certain that any expectation, forecast, or
assumption made in preparing forward-looking statements will prove
accurate, or that any projection will be realized. It is to be
expected that there may be differences between projected and actual
results. Our forward-looking statements speak only as of the date
of their initial issuance, and we do not undertake any obligation
to update or revise publicly any forward-looking statement, whether
as a result of new information, future events, or otherwise. For
additional discussion, see “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2020, as
updated by subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210526005552/en/
Media T.R. Reid 1.313.319.6683
treid22@ford.com
Equity Investment Community Lynn
Antipas Tyson 1.914.485.1150 ltyson4@ford.com
Fixed Income Investment
Community Karen Rocoff 1.313.621.0965
krocoff@ford.com
Shareholder Inquiries
1.800.555.5259 or 1.313.845.8540 stockinf@ford.com
Ford Motor (NYSE:F)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From Apr 2023 to Apr 2024