Ford CEO Farley on Supplier Fire, Tariff Impact and EVs

Production & Supply Chain - Aluminum plant fire is expected to impact approximately 100,000 units, but there's potential for improvement [2] - The aluminum plant issue will cause a re-timing of wholesale, with an estimated $15 billion to $25 billion impact this year, but a recovery of at least $1 billion is expected next year [2] Tariffs & Policy - Tariffs have been reduced by $1 billion due to policy changes, benefiting Ford as America's largest auto producer [4] - A 25% tariff on imported heavy and medium-duty trucks benefits Ford, as they produce 100% of their Super Duty trucks in the US, while competitors import them [5] - Ford produces 80%-85% of what it sells in the U S within the U S, exceeding domestic competitors, leading to tariff moderation [7] Market Trends & Consumer Behavior - Affordability is a primary concern for dealers and consumers, with extended financing terms (7-8 years) and increased repossessions observed by third-party finance companies [10] - Demand for high-end and off-road vehicles (Mustang, Bronco, Raptor) is strong and profitable for Ford [14] - The affordable EV market in the U S is considered robust, leading to investment in a $30,000 affordable EV [21] EV Strategy & Supply Chain - The EV market is dynamic, with Ford adapting to changes, while Europe is 80% all-electric, and China is making progress [20] - Ford is diversifying its supply chain for rare earth minerals, seeking American and EFTA country sources [24] - Battery process raw materials and mature node semiconductors are critical for Ford and U S manufacturing, with concerns about China's dominance [23][25]