Core Viewpoint - Ford is shifting its electric vehicle (EV) strategy towards affordability, moving away from high-priced models to a new platform designed for lower-cost EVs, which could significantly alter its position in the EV market if successful [1][3][21]. Group 1: New Strategy and Product Launch - The new strategy is centered around the Ford Universal EV Platform, which will support a range of lower-cost electric models, starting with a midsize electric pickup priced around $30,000, with production set to begin in 2027 [3][11]. - This initiative is backed by a $5 billion investment aimed at creating nearly 4,000 jobs at the Louisville Assembly Complex in Kentucky [3][11]. - Ford's CEO, Jim Farley, has referred to this affordable EV push as the company's next "Model T moment," indicating its potential significance in the automotive industry [4]. Group 2: Production Efficiency and Cost Management - The new platform aims to streamline production by reducing parts by 20%, fasteners by 25%, and plant workstations by 40%, which will cut assembly times by approximately 15% [5]. - The focus on lithium iron phosphate (LFP) batteries, which will be produced in the U.S., is expected to lower costs and enhance vehicle interior space [4][11]. Group 3: Challenges and Market Position - Ford's EV division has incurred approximately $12 billion in losses over the past two and a half years, including $2.17 billion in the first half of this year [7][11]. - In contrast, General Motors has adopted a more gradual approach to EV production, resulting in higher sales figures and a broader range of electric models [8]. - Chinese competitor BYD has surpassed Ford in EV sales, emphasizing the need for Ford to adapt its strategy to remain competitive [9][13]. Group 4: Financial Implications and Market Outlook - Ford has faced additional financial pressures from costly recalls and repairs in its gasoline-powered lineup, which have impacted profits [10][12]. - The company has absorbed $800 million in tariff-related costs in the second quarter alone, with expectations of a net $2 billion tariff hit for 2025 [12]. - Despite these challenges, Ford's Pro division continues to perform well, and hybrid sales are on the rise, providing some stability [14]. Group 5: Investment Considerations - Ford's stock has increased by around 10% over the past year, but it still lags behind the industry average [17]. - The company trades at a forward price-to-earnings ratio of 0.27, which is below the industry average, indicating potential value for investors [18]. - The success of Ford's new EV strategy will be crucial for its long-term profitability and market position, with a focus on proving the economics of its affordable EV program before further scaling [21][22].

Report Industry Investment Rating - Not provided in the given content. Core Viewpoints of the Report - Despite a 25 - 30pt increase in VNKRLEs year - to - date, the valuation is still undemanding with upside potential due to SZ Metro's support and Vanke's manageable offshore debt maturities, so the buy recommendation on VNKRLEs is maintained [8]. - The recommendation on YLLGSP is changed to neutral from buy because of its unappealing valuation, although Yanlord is still considered a survivor in the sector [10]. - China's macro - policy is shifting towards economic rebalancing, focusing on boosting household consumption and addressing supply - side competition. The policy implementation window may open in 4Q25, and it may positively impact bond yields, RMB exchange rates, and Chinese stocks [14]. Summary by Relevant Catalogs Trading Desk Comments - Yesterday, in KR, LGENSO 26 - 35s tightened 6 - 12bps after LG Energy signed a USD4.3bn battery supply contract with Tesla. In Chinese IGs, CNOOC/JD 39 - 50s long - end was 0.4 - 0.7pt lower. ZHOSHK 28 tightened 8bps. In financials, MIZUHO/SUMIBK Float 30 - 31s tightened 1bp. In insurance, NSINTW 34 and SHIKON 35 widened. Some AT1s and perpetual bonds rose. In HK, new bonds like LIFUNG 29 and LASUDE/LIHHK 26 increased. In Chinese properties, Yanlord repurchased USD46.65mn of YLLGSP, VNKRLE 27 - 29s decreased, and Vanke got a new loan from SZ Metro [1]. - This morning, LGENSO 27 - 35s widened 2 - 3bps, ZHOSHK 28 tightened 1bp, BBLTB 34 - 40s tightened 2 - 5bps. New CNH CB 30/35/55 were 0.1 - 0.3pt lower. VNKRLE 27 - 29s were 0.3 - 0.4pt lower [2]. Outside Properties - EHICAR 26/27 were up 0.4 - 1.2pts, 1.7 - 2.8pts higher week - to - date. In SE Asia, ADSEZ 27 - 31s were up 0.1 - 0.2pt, and other Adani complex bonds had a 0.1pt decrease to 0.2pt increase. VLLPM 29 lowered 0.8pt [3]. CNH Space - New CNH CCAMCL 29/30 were 0.2 - 0.6pts lower. New CNH TEMASE 30/35/55 and CHMEDA 30/35 closed 0.1 - 0.6pt lower. KCGZIG priced a 3yr CNH1.4bn bond at par. There were two - way interests in some CNH and USD new issues. SPICPD Perp was up 0.1pt [4]. Last Trading Day's Top Movers - Top performers included GWFOOD 3.258 10/29/30 with a 2.5pt increase and EHICAR 7 09/21/26 with a 1.2pt increase. Top underperformers included JMUDIV 6.9 05/30/27 with a 1.3pt decrease and MTRC 5 1/4 04/01/55 with a 1.0pt decrease [5]. Macro News Recap - On Wednesday, S&P was down 0.12%, Dow was down 0.38%, and Nasdaq was up 0.15%. The US Fed kept the benchmark interest rate unchanged. US Jul '25 ADP Non - farm employment was + 104k, higher than expected. US 2Q25 GDP was + 3.0% qoq, higher than expected. Trump mentioned a possible tariff on India, and UST yield was higher [6]. Desk Analyst Comments - Vanke obtained a secured loan of up to RMB869mn from SZ Metro with a 2.34% funding cost. Cumulatively, SZ Metro has provided RMB22.7bn in loans, about 59% unsecured. VNKRLE 3.975 11/09/27 and VNKRLE 3 1/2 11/12/29 are trading at YTM of 13.8% and 11.6% respectively [8]. - Yanlord further repurchased USD46.65mn of YLLGSP 5 1/8 05/20/26, reducing the outstanding amount to USD379.66mn. It had previous repurchases in Apr '25 and early Jul '25. YLLGSP is trading at a YTM of 5.2% [10]. China Policy - The Politburo meeting signals a shift towards economic rebalancing, focusing on boosting consumption and reducing supply - side competition. China may boost consumption through multiple measures and address supply - side issues by eliminating local protectionism, etc. The policy implementation window may open in 4Q25 [14]. Offshore Asia New Issues - No new offshore Asia issues were priced today. There is a pipeline issue from Chengdu & Europe Industrial Zone with a 3 - year tenor, a 7.3% pricing, and an unrated status [22][23]. News and Market Color - Yesterday, 66 credit bonds were issued in onshore primary issuances with an amount of RMB38bn. Month - to - date, 2,033 credit bonds were issued, raising RMB2,110bn, a 12.8% yoy increase [25]. - There are various corporate news, such as Moody's outlook revision for AAC Technologies, HSBC's subsidiary NPL change, JD's acquisition plan, etc. [25].