2019 (01-14 -20) Version 1.0 6:00pm Jim Farley Chief Operating Officer February 26, 2020 All-Electric Mustang Mach-E
Priorities: “Fix, Accelerate, Grow” Initiatives FIX Launch | Quality | Cost | Sales & Marketing ACCELERATE Connectivity | Commercial Vehicle Business | Customer Service (FCSD) Affordable Vehicle Portfolio | BEV Commercial Vehicle | GROW Autonomous Vehicles Intense Focus On Delivering Improvements Across The Enterprise 2
Fix: Four Priority Areas Defined And Detailed WARRANTY & LAUNCH SALES & COST QUALITY PERFORMANCE MARKETING Improve customer Deliver operational Reduce material, Drive demand experience and excellence logistics and labor creation and address cost costs yield management 3
Accelerate: Connectivity Internal Ford Vehicles Customer Value Commercial Connected Experience Creation Solutions Connectivity Reduced costs Expanded New sticky across vehicle including warranty, services and business portfolio material and opportunities for upgrades improve logistics experience over the fleet management and other life of the vehicle commercial vehicle applications 4
Accelerate: Ford Commercial Vehicles Business EUROPE’S AMERICA’S EU20 Total Truck & Van Sales U.S. Fleet Truck & Van Sales BEST-SELLING BEST-SELLING 33% 21% COMMERCIAL LINE OF VEHICLE BRAND COMMERCIAL 424K FOR 349k VEHICLES FOR 276K 208K 5 YEARS 35 YEARS 2015 2019 2015 2019 Product Strengths Drive Commercial Vehicles Leadership; Potential To Expand Business Opportunity / Addressable Market 5
Accelerate: Commercial Vehicles Business Choice • Focus on maximizing + productivity for business Convenience + customers – right tool for Value the right job • Maximize vehicle uptime through dedicated Commercial Vehicle Insights from Enhanced Service Centers Advanced Customer Analytics Experience • Leverage advanced analytics to provide insights into vehicle Commercial Customer usage – address customer pain points and lower total Grow Lifecycle cost of ownership Transaction Volume 6
Grow: Battery Electric Vehicles Charging Infrastructure ICE | HYBRID | BEV BEV F-SERIES / Product Software MACH-E / Range Service TRANSIT Partnerships 7
Grow: Our AV Business Overview And Points Of Differentiation Business Model: Enhanced • The AV Business Customer Experience Overview looks at more than just the product • The overall system and ecosystem is also Insights from Choice, reviewed as a means for Advanced Convenience, Owned and developing a business Analytics Value Operated Fleet based on operations, services and experiences Grow Customer Base and Trip Volume 8
Global Redesign: Fix, Accelerate, Grow North America • “Return to 10” – margin target • Product portfolio transformation underway – disciplined capital allocation focused North America on key products; 75% refresh completed by 2020 profitable and • Fitness actions improve execution and competitiveness over Plan Europe driving improved • Fundamental redesign and restructuring of European business business results • Business focused on three distinct business groups – commercial vehicles, passenger vehicles (with full range of electrified options) and iconic imports • Product compliance plan delivers 2020 - 2021 CO 2 targets Redesigning China overseas • Immediate focus on re-establishing solid business fundamentals and restoring confidence of our customers and dealers operations to • Dealer health and profitability key priority • Launching 30+ new products by 2021; localization of key products underway compete South America long-term • Business redesign underway – evaluating long-term strategy • De-risked, more asset-light business model • Closed São Bernardo, exited medium / heavy truck, discontinued unprofitable vehicle lines and reduced headcount by over 40% International Markets Group • Newest business unit focused on ~100 highest growth markets • New JV with Mahindra in India; potential to leverage in other emerging markets • Restructured Russia JV to focus on higher return commercial vehicles 9
Key Ford Alliances Deliver Strategic Benefits Positions Ford as a ‘partner of Leading Leader in Light Commercial Scale in India with opportunity to choice’ for future opportunities; Vehicles, #2 in Medium Pickup Positions leverage in emerging markets combines Ford's experience and Trucks Rivian's innovation $ Low cost engineering optimized for Shared investment, leading scale in Shared investment and increased Scale Benefits India and emerging markets, with areas of collaboration sourcing scale in select areas lower investment Joint program enables access to Joint program increases funding for Local teams with emerging market Tech & Capability technology and capabilities: next-gen technology and product mindset, market appropriate Access connected vehicle, electrical enhancements engineering standards architecture Growth In Additional potential for Collaborations in EV, AV; larger Adds potential partners to AV collaboration in emerging market Ventures base for future services discussions mobility solutions Ford Alliances Deliver Strategic Benefits Targeted In Key Segments And Markets 10
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