Superior Value From EVs, Commercial Business, Connected Services Is Strategic Focus of Today’s ‘Delivering Ford+’ Capital Markets Day
- 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
Fordglobal 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
FordPro vehicle services and distribution business, fully dedicated to high productivity requirements of commercial and government customers
The company is applying innovation in those and other areas to stand up
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
“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
During the event, Farley will relate how
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
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
“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
Leading the Electrification Revolution
Accelerating investments and increasing planned total spending on electrification, including battery development, to more than
$30 billionby 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.
- Mustang Mach-E, which is bringing new customers to
Investing in battery technology and equipping
Fordto design, engineer and manufacture its own batteries, with key developments including:
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 Fordand Lincolnvehicles.
Creating a Business Dedicated to Commercial Customers
FordPro, a global vehicle services and distribution business within Forddevoted 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 billionby 2025, up from $27 billionin 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 Fordand Lincolnvehicles by 2028.
Strengthening customer relationships with digitally enabled tools like
Ford Passand 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,
- 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 billionmarket for such services by 2030.
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:
Fordand FordCredit’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;
Fordis 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;
Fordmay 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;
Fordmay 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
Fordor FordCredit’s investments can have a significant effect on results;
Fordand FordCredit’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;
FordCredit 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
- Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;
Fordcould experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;
Fordmay need to substantially modify its product plans to comply with safety, emissions, fuel economy, autonomous vehicle, and other regulations;
Fordand FordCredit 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
FordCredit 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