Core Viewpoint - A devastating fire at Novelis' aluminum plant, a key supplier for Ford's F-150 pickup, is expected to impact the company's profits by up to $2 billion, overshadowing its previously strong financial performance [1][2]. Financial Performance - Ford's adjusted EBIT for the year is now projected to be between $6 billion and $6.5 billion, significantly down from the previous guidance of up to $7.5 billion, marking a 41% decrease from last year's $10.2 billion [1][2]. - Despite the Novelis incident, Ford's Q3 profits and sales exceeded Wall Street expectations, with adjusted earnings per share at $0.45, surpassing the analyst average of $0.36, and record sales of $50.5 billion, above the expected $43.7 billion [4]. Production Impact - The fire is expected to result in a production loss of approximately 100,000 vehicles this year, but the company plans to recover most of this loss by increasing F-series truck production by 50,000 units by 2026 [1][2]. - Ford plans to hire 1,000 employees at its Michigan and Kentucky plants to support the increased production [2]. Business Segments Performance - Ford Pro, which includes commercial vehicles and logistics services, reported nearly $2 billion in EBIT, an increase from $1.8 billion year-over-year [6]. - The traditional Ford Blue segment, covering internal combustion and hybrid models, achieved $1.5 billion in EBIT, slightly down from $1.6 billion in the previous year [7]. - The electric vehicle unit, Model e, reported a loss of $1.4 billion, widening from a $1.2 billion loss in the same period last year [7]. Tariff Impact - Ford's CFO indicated that the financial loss from tariffs is now expected to be $1 billion, down from a previous estimate of $2 billion, due to recent announcements regarding tariff policies [6].

Sales Performance - Ford's redesigned three-row Expedition SUV sold 8,724 units in August, representing a 53.7% increase year-over-year and the best sales performance in 21 years [1] - Year-to-date sales of the Expedition reached 61,022 units, marking a 13.1% increase compared to the same period in 2024 [1] - Overall, Ford's August sales increased by 3.9% compared to the same month last year [1] Market Trends - The Expedition accounted for approximately 5% of Ford's total sales in August, highlighting the company's reliance on large trucks and SUVs for profitability [2] - Despite the rise in electric vehicle (EV) sales, there remains strong consumer interest in traditional internal combustion engine vehicles like the Expedition [2] Electric Vehicle Segment - Ford experienced a 19.3% increase in EV sales in August compared to the same period last year, driven by consumer urgency to purchase before the expiration of federal tax credits [3] - Analysts predict a potential decline in EV sales at the end of the year as tax credits expire [3] - General Motors also reported record EV sales for August, indicating a competitive landscape in the EV market [3] Consumer Preferences - Ford's North America product communications director noted that while there is significant interest in EVs, families continue to prefer larger vehicles such as the Expedition [4]