The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are autos and auto parts manufacturers.

Fortune Sector Leaders: Motor Vehicles and Parts

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Ford

For the fifth year in a row, Ford is the largest U.S. automaker by sales; it brought in $158 billion in revenue last year. 
<ul> 
 	<li>Ford dealt with slowed production as shortages of computer chips and other parts affected its vehicle assembly lines. It still hit some key goals, including producing its 150,000th Mustang Mach-E in November 2022.</li> 
 	<li>In March 2023, Ford announced the establishment of a subsidiary known as Latitude AI to develop automated driving systems. Latitude’s engineers are slated to collaborate with a team that previously worked at Argo AI, a joint venture among Ford, Volkswagen, and others that had shut down months prior.</li> 
 	<li>Ford reported a $600 million loss in China in 2022, where stiff competition from rivals such as BYD has cut into its performance. In May 2023, Ford announced that it would scale back investments and reduce costs across its Chinese operations.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Ford

For the fifth year in a row, Ford is the top automaker on the Fortune 500; it brought in $158 billion in revenue last year. 
<ul> 
 	<li>Ford dealt with slowed production as shortages of computer chips and other parts affected its vehicle assembly lines. It still hit some key goals, including producing its 150,000th Mustang Mach-E in November 2022.</li> 
 	<li>In March 2023, Ford announced the establishment of a subsidiary known as Latitude AI to develop automated driving systems. Latitude’s engineers are slated to collaborate with a team that previously worked at Argo AI, a joint venture among Ford, Volkswagen, and others that had shut down months prior.</li> 
 	<li>Ford reported a $600 million loss in China in 2022, where stiff competition from rivals such as BYD has cut into its performance. In May 2023, Ford announced that it would scale back investments and reduce costs across its Chinese operations.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

World's Most Admired Companies

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Ford

After a difficult, pandemic-scarred 2020 marked by unit shutdowns, supply-chain issues, and a full-year loss in revenue, Ford Motor began slowly but steadily recovering in 2021. Revenue increased by 7.2%, and Ford’s total return to investors was 137.5% for the year. Even as it rebounded, Ford doubled down on an electric-vehicle future. It accelerated development of the Lightning F-150, an electric version of its bestselling pickup truck that analysts expect will be the first major EV pickup to hit the market when deliveries begin this year. The company is planning to invest as much as $20 billion in EV development over the next 10 years, and in March 2022 it announced that it would split into two units: Ford Model e, for EV manufacturing and development, and Ford Blue, for traditional internal combustion engine vehicles. Ford expects 50% of its global sales to come from EVs by 2030.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-047-Ford Motor

Ford’s global business was whacked by the pandemic, which forced plant closures, caused supply-chain backlogs, and reduced demand for new passenger vehicles. As a result, full-year revenues were down 19%, from $156 billion to $127 billion, and net income was negative $1.3 billion. North America and its credit division were Ford’s only profitable units; still, the company would have eked out a small profit overall were it not for a $1.5 billion pension charge. New CEO Jim Farley, who took the wheel at Dearborn in October 2020, will be banking big on the electric F-150 truck, announced in May 2021, to kick-start Ford’s EV program in earnest.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-21-Ford

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-031-Ford

Despite a $4.4 billion decline in revenues, Ford retains its position as America’s largest carmaker by revenue for a second consecutive year. The perennially strong performance of its F-series trucks is sustaining the company through an awkward transition in its passenger car lineup. In the next year, investors will be keeping an eye on market adoption of its electric Mustang Mach-E as well as the newly reborn Bronco SUV.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-012-Ford-Motor

Despite a $4.4 billion decline in revenues, Ford Motor Co. retains its position as America’s largest carmaker by revenue for a second consecutive year—the first time it has done so in the history of the Fortune 500. The perennially strong performance of its F-series trucks is sustaining the company through an awkward transition in its passenger car lineup. In the next year, we’ll be keeping an eye on market adoption of its electric Mustang Mach-E as well as the soon-to-be-announced rebirth of the Bronco SUV.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Change the World

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Industry Rank

Previous Industry Rank

Overall Score

Strongest Dimension

Years on list

Previous rank

State

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Ford Motor, founded in 1903, was the second-largest automaker by revenue in the U.S. in 2024. It manufactures cars, trucks, and commercial vehicles, and owns the luxury car brand Lincoln. Ford entered the electric vehicle market in the late 1990s with its Ford Ranger EV and has since expanded its EV lineup to include the F-150 Lightning pickup truck, the Mustang Mach-E SUV, and E-Transit electric commercial van.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Ford Motor (F): Company Profile, Stock Price, News, Rankings

legacy

Ford Motor

ford motor

Good day, everyone. My name is Leila, and I will be your conference operator today. At this time, I would like to welcome you to the Ford Motor Company First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

If you would like to ask a question during this time, please click on the raise hand icon, which can be found on the black bar at the bottom of the webinar window. At this time, I would like to turn the call over to Lynn Antipas Tyson, Chief Investor Relations Officer.

Thank you, Leila. Welcome to Ford Motor Company's first quarter twenty twenty five earnings call. With me today are Jim Farley, President and CEO Sherry House, CFO and Kumar Galhotra, Chief Operating Officer. Joining us for Q and A will be John Lawler, Vice Chair Andrew Frick, President Ford Blue and Model E and Interim Head of Ford Pro Kathy O'Callaghan, CEO of Ford Credit and Steve Crowley, Chief Policy Officer and General Counsel. Today's discussion includes some non GAAP references.

These are reconciled to the most comparable U. GAAP measures in the appendix of our earnings deck. You can find the deck along with the rest of our earnings materials and other important content at shareholder.ford.com. Our discussion also includes forward looking statements about our expectations. Actual results may differ from those stated.

The most significant factors that could cause actual results to differ are included on page 20. Unless otherwise noted, all comparisons are year over year. Company EBIT, EPS and free cash flow are on an adjusted basis. Lastly, I want to call out two near term IR engagements. May 28, John Lallo will participate in a fireside chat in New York with Daniel Rosca at the Bernstein Annual Strategic Decisions Conference.

Sherry House will also attend. June 4, Sherry House will participate in a fireside chat in New York with Joe Spak at the UBS Auto and Auto Tech Conference. Now I'll turn the call over to Jim.

Thanks, Lynn, and thanks to all of you for joining. I gonna give you an update on the state of the business and on tariffs. Kumar is gonna take you through our cost and quality progress as well as some of our mitigation or tariffs. And then Sherry is gonna take you through the financial performance and guidance, and hopefully, we'll have plenty of time for q and a. Our underlying business continues to gain traction and perform well.

We beat our original expectation for the quarter. And before tariff related impacts, we are on track and within our original full year guidance range of $7,000,000,000 to $8,500,000,000 in EBIT. We had our best first quarter U. S. Pickup sales in over twenty years, and we delivered sequential share growth in our home market.

Additionally, we saw smooth execution of several major product launches in the quarter around the globe, and we continue to deliver progress against our cost and quality targets. On tariffs, Ford supports the administration's goal to strengthen The US economy by growing American manufacturing, and we also support a level playing field globally for domestic and foreign OEMs. We also appreciate the ongoing cooperation we've had with the administration. As America's largest auto manufacturer, our engagement with Washington is helping US Policymakers better understand how their proposed policy changes would impact our industry and, of course, our communities. Last year, we assembled over 300,000 more vehicles in The US than our closest competitor.

That includes a % of all our full size trucks. While some OEMs have open capacity in The US that will partially match our footprint advantage, they have to absorb higher costs, invest capital, and that will take time. It's not as simple as just assembling more vehicles in The US. OEMs must also balance customer affordability, which means the ability to import part parts tear free. Based on what we know now, our expectations of how certain details will resolve around tariffs, we've estimated the gross impact of tariffs for full year total company EBIT of $2,500,000,000 and a net impact of 1,500,000,000.0.

It's still too early to fully understand our competitors' responses to these tariffs. It's also early to gauge the related market dynamics, including the potential industry wide supply chain disruptions and the impact of Ford's domestic manufacturing advantages. And as a result, we've decided to suspend our guidance. It's clear, however, that in this new environment in which automakers with the largest US footprint will have a big advantage, and boy, is that true for Ford. It puts us in the pole position, plus we have the largest value unlock even beyond that because of our improving cost and quality opportunities.

Thank you, Jim. Before I walk everyone through how we are managing the business during this evolving policy landscape, I wanna quickly highlight the progress we're making on cost and quality. Our industrial platform continues to deliver progress against our targets, and we remain on track to deliver $1,000,000,000 in net cost reductions this year, excluding the impact of changes in tariff policy. We're also closing our competitive cost gap and efficiently leveraging our US footprint as a competitive advantage. We're improving our production stability, and we're working to strengthen our supply base.

We are achieving all this by shifting our focus to the key process inputs, which in turn deliver the desired outputs. And those desired outputs, of course, are lower cost and better quality. Let me give you a few examples of what I mean by inputs in these processes. For example, we are doing thorough readiness assessments of every workstation in our assembly plants ahead of every launch. We are building a continuous pipeline of cost and quality improvement ideas.

So not only are we executing this quarter, we have a very clear pipeline for the next quarter and the quarter after that. We're doing regressed implant audits to prevent defects from reaching our customers. We have created a comprehensive system of leading metrics that provide us early warnings if any of these outputs are at risk. So here are the results. We're on track to deliver year over year warranty savings.

The warranty spikes during launch are now at industry leading levels. We are on track to deliver greater than 10% improvement in repairs per thousand, both for zero months in service and three months in service for 25 vehicles. Ford and Lincoln were the most improved brands in J. D. Power's twenty twenty five US vehicle dependability study.

During our launches in the first quarter, we lost zero vehicles versus our launch acceleration curves, and we deployed 9,500,000 OTAs in the first quarter to address customer concerns. We're not just improving cost and quality, the team is also in the trenches taking actions to minimize the impact of tariffs on our business. In fact, their actions lowered the potential first quarter financial impact by nearly 35%. Here are some of the key actions we took. Vehicles shipped to Canada from Mexico via The US are now transported on bonded carriers, so they aren't subject to US tariffs.

We've done the same for parts that merely pass through The United States. We are assessing where there are near term resourcing actions to increase US content in our vehicles. We have stopped exporting vehicles to China, but we do continue to leverage China as a vehicle export hub to regions like ASEAN, Australia, South America, and others where trade relations remain favorable. Looking ahead, even though nearly 80% of our parts that we use in The US are USMCA compliant, we are looking for opportunities where it makes sense to develop local supply chains. Relative to adding manufacturing capacity in The US, for Ford, this is a continuation, not a course correction.

Since 2020, we have invested $50,000,000,000 in manufacturing capacity, and we have a lot of investments in flight, including manufacturing and battery capacity in Tennessee, battery capacity in Kentucky and Michigan, and manufacturing capacity in Ohio. Thanks. Sherry, over to you.

Thank you, Kumar, and thank you to the team members supporting our first quarter product launches as well as those helping us mitigate the financial impact of tariffs. We are transforming Ford into a higher growth, higher margin, more capital efficient, and more durable business. This was evident in our first quarter results. We delivered 1,000,000,000 in EBIT, exceeding our expectation of roughly breakeven for the quarter, driven by the team's continued progress on cost and strong net pricing in North America. When excluding the nearly 200,000,000 impact of tariffs, this was our third consecutive quarter of year over year cost improvement.

You'll recall that during the first quarter, we had planned downtime at several plants, most notably Kentucky truck plant to support product launches in the rebalancing of US Dealer inventory. As expected, this resulted in lower wholesales, which were down 7%, in revenue of 41,000,000,000, which was down 5%. The product launches were successful. And in March, we launched new versions of the Expedition and Navigator in North America and an all electric version of Puma in Europe. We also began production of the new Ranger plug in hybrid EV, which goes on sale in Europe and Australia during the second quarter.

Now on to a few highlights from the segments. Ford Pro continues to be a real competitive advantage, and Ford Pro showed its resilience by delivering a solid quarter despite the planned downtime at Kentucky truck plant and a normalization in industry pricing in more commoditized areas, like delivery vans and daily rental. Demand for key products, like super duty chassis cabs and transit wagons, remains strong. In Europe, Pro grew its commercial brand leadership on the strength of transit custom and Ranger. And in North America, Pro is far and away the segment leader with over 40% share of The US class one to seven truck and van market.

Pro continues to serve its customers in the way that they wanna be served. In addition to adding new service elite base, mobile vans are driving growth in customer paid mobile repair orders, which are now 7% of all customer paid repair orders. On the software side, pros paid subscriptions, which deliver better than 50% gross margin, rose to 675,000, up 20% from a year ago. With outsized growth in higher value services like fleet telematics driving 40% growth in average revenue per unit. Ford Model e remains focused on improving gross margin and exercising capital discipline as our battery investments scale, and we deliver next generation products that will generate profitable future growth.

Model e continues to scale, and it more than doubled its first quarter wholesale volumes, driven by the recent launches of Explore, Capri, and Puma Jenny in Europe. Model e's US retail sales grew 15% in the quarter, enabled in part by the success of The US Ford Power Promise campaign, which provides customers a home charger in standard installation. The campaign is currently seeing an attach rate of 34%. Given the campaign's success, it is now being offered in Canada and in Europe. Ford Blue earned a modest profit, reflecting the expected volume decline in adverse exchange due to strengthening of The US Dollar that impacted key markets like Canada and Australia, offset partially by higher net pricing in North America.

Blue continues to benefit from disciplined revenue management across the portfolio along with cost reduction work that Kumar highlighted. Blue's international operations were once again collectively profitable. Iconic nameplates such as F Series and Bronco continue to lead their respective segments, and Bronco sales grew 35%. Blue continues to see growing customer demand for its hybrids. In fact, our hybrid mix of global sales increased 250 basis points.

Additionally, based on early sales data, the newly launched Expedition and Navigator have average transaction prices that are 1823% higher than the outgoing model respectively, and they are turning on dealer lots in less than nine days. Ford Credit delivered another solid quarter with EBT up significantly, reflecting its high quality book of business, higher financing margin, and higher net receivables. Also in the quarter, Ford Credit paid a 200,000,000 distribution to the automotive company. First quarter auction values increased 3% year over year and 4% sequentially, reflecting low used car availability. Ford Credit also continues to grow its active commercial lines of credit, making it a strategic asset for our Ford Pro customers.

Now on to cash flow and balance sheet. Free cash flow was a use of 1,500,000,000.0, more than explained by unfavorable timing differences, net spending, and changes in working capital. Our balance sheet is strong with over 27,000,000,000 in cash and over 45,000,000,000 in liquidity as of March 31. And in April, we renewed our $18,000,000,000 corporate credit facilities for another year. As we have said repeatedly, strong liquidity provides us with the flexibility to manage in this very dynamic environment, the capacity to make consistent shareholder distributions, and the optionality to invest in higher return growth opportunities that truly unlock value.

To that end, consistent with our commitment to return 40 to 50% of trailing free cash flow to shareholders, last week, we declared a regular second quarter dividend of 15¢ per share, payable on June 2 to shareholders of record on May 12. So let's turn to our 2025 outlook. I am pleased with the progress the team has made on cost and quality. You saw green shoots of this in the first quarter, and we are on track to deliver 1,000,000,000 in net cost improvement, excluding tariffs this year. Excluding the impact of tariffs, we are within our previous EBIT guidance range of 7,000,000,000 to 8 and a half billion dollars.

Based on what the company knows now and our expectation of how certain details and changes will be resolved related to tariffs, we estimate a gross adverse EBIT impact of 2,500,000,000.0 and a net adverse EBIT impact of about 1,500,000,000.0 for full year 2025. Given material tariff related near term risks and the potential range of outcomes, we are suspending guidance for full year 2025. These near term risks include, among other things, industry wide supply chain disruption impacting production, future or increased tariffs in The US, changes in the implementation of tariffs, including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market acts, and finally, policy uncertainties associated with tax and emissions policy. We will provide an update on guidance during the q two earnings call. Before we go to q and a, let me wrap with this.

Our underlying performance, excluding tariffs, is in line with our original targets. Our US footprint is a competitive advantage as the industry navigates the impact of tariffs, and our strong balance sheet provides flexibility to continue to invest in profitable growth while managing industry dynamics. Thank you. Back to you, operator.

We will now move to our question and answer session. If you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application. If you have joined by phone, please dial 9 on your keypad to raise your hand. When you are called on, please unmute your line and ask your question. Your first question comes from the line of Emmanuel Rosner with Wolfe Research.

Great. Thank you so much. I appreciate the color on tariff. I was hoping you can give us maybe a little bit more, and in particular, on the gross tariff headwinds. What goes into this 2 and a half million dollars?

Could you give us maybe buckets in terms of what it you know, how much is from complete vehicle, from parts, you know, anything else that's in there, And whether the 3.75% offsets that was announced by the Wisecast last week, is that having the gross headwinds? Is that considered as well in the gross headwinds? And then similar question for on the net, what are the offsets?

Yeah. Sure. So the 2 and a half billion in gross cost is based on what we know now and our expectations of how certain details and changes will be resolved relative to tariffs. For us, we're estimating that it's roughly half parts and half imported vehicles. We have assumed that we would get credit for The US content in our vehicles that are gonna be going over the border.

So that is already assumed in this 2,500,000,000.0. On the parts side, this is also inclusive of steel and aluminum. Now for steel and aluminum, that isn't just tariffs because, in fact, 85% of our steel is already purchased domestically in The US, and all of our sheet aluminum is purchased in The US. However, we do believe that there are pricing impacts that we will encounter. We have over 50% locked and hedged, but there are impacts, and that is included in our parts number.

Additionally, there are tariffs on some parts that we import to China. So we have certain powertrains that go into China today. So this is what is comprising the two and a half billion. And I think you had a question regarding the offsets. And the offsets, the three and three quarter percent is included in what we have come to with our 2,500,000,000.0 gross number.

And our net adverse EBIT impact is estimated at about 1,500,000,000 for the full year 2025, and that includes about $1,000,000,000 of offsetting recovery actions.

I was hoping you could give us a little more color on some of these offset actions. Is it price? Is it costs? What what's essentially assumed in this offset?

So the largest element of the offset is market equation optimization, and I'll let you know what I mean by that. But we do have some cost mitigation examples in there as well, such as, as we said in our prepared remarks, vehicles shipped to Canada from Mexico via The US are now transported on bonded carriers, so they aren't subject to US tariffs. And we're doing similar actions on parts as well. Now in the market equation optimization, to come up with the 1,000,000,000, we ran a range of market factor scenarios, segment by segment, channel by channel, vehicle by vehicle, inclusive of the competitive landscape. We varied inputs such as pricing, such as volume, such as SAR, and we've considered that there's certain segments, for instance, where we have a % of production in The US, like our full size pickup trucks, where competitors are much less than that.

So we've taken all of these competitive dynamics as well as these inputs into consideration and have ran a number of permutations. When we triangulate on that, it comes up with this 1,000,000,000 inclusive of some of the cost items that I mentioned.

Great. And then if I can have a follow-up on the on guidance. So you indicated that Ford is would have been on track, excluding tariff, for the initial EBIT guidance. Now obviously, q one was a stronger than expected performance, you know, to the tune of about a billion dollars versus your previous expectations. Are there any negative offsets elsewhere that would have left you where your initial guidance is, or are you just saying that you would have landed within the range?

Yeah. It's a very solid start, Manuel, our warranty, our negotiated parts purchase prices, as well as the build material simplification, and and frankly, very strong pricing for our new vehicles. But we have so much more in front of us with the year going on. It's, you know, we're not gonna give you any specifics within the range, but the team is off to a really great start. Obviously, our focus is on that execution for a fourth quarter in a row of year over year cost improvements, and the results will speak for themselves.

next question will come from the line of Dan Levy with Barclays. Please unmute and ask your question.

Hi, good evening. Thank you for taking the questions. I wanted to start first with question on volume and inventory. If you could maybe give us a sense of how you expect volume to play out in the coming months, in volumes, your own volumes given the different dynamics. And previously, you gave us some guidance on inventory that you were gonna get through your destocking by the middle of the year.

Are you looking at your inventory any differently now that it's considerably more valuable than what it was before given the tariff dynamics?

Yeah. Thank you, Dan. We've seen obviously a very strong industry performance through April, and the first half is running over 17,500,000.0 SAAR right now. So we are running a lot of scenarios on price and volume impacts. In our assumptions, we do expect industry pricing related to tariffs, at about 1% to 1.5% in the second half with full year pricing flat.

With that, we now expect the industry SAAR to run about 5,000,000 units lower than our original plan during the second half of the year, around 15,500,000 units. And the important thing around that is timing. If net pricing change changes come from reduced incentive spend, it could happen more immediately. In other scenarios, it come from top line pricing, which would be a little later this summer when inventory hits dealerships. And we're likely to see that probably happen around the June time period.

We're measured in our approach to pricing for tariffs and really inherent in your question. We believe our footprint advantage offers us added flexibility to the changing market dynamic. Our current inventory levels allow us to be more opportunistic in the market. And if we find an opportunity to go for share, we will if it's profitable. We left April with a 56, day supply in dealer stock and a 66 gross supply.

And we're we're looking, as Sherry mentioned earlier, we are looking at this vehicle line by vehicle line, segment by segment, taking into account not only tariffs, but also stock levels, macroeconomic environment, and and competitive pricing.

K. Great. Thank you. As a follow-up, Jim, I'd like to ask about your efforts in software defined vehicles. And specifically, was a media report out there that, FNV for your network architecture is getting scrapped.

So if you could just address what the the if if that confirm if that's correct. If the four plans are to develop your own or to partner with someone, and how should we think about the resource allocation toward this, what the saves could be given? I believe a lot of this was hitting in Model e.

Well, thank you for your question. Our strategy hasn't changed. It's a very significant save for capital efficiency. We simply merged our two forward zone electric architectures into one. This is very important for the company because our software is going faster than we expected, and the advanced electric architectures allow us to deliver software to the vehicles and customers in a more efficient way.

And we we were very ambitious with our advanced electric architectures applying to ICE vehicles, not just advanced electric architectures for EVs. So we brought that all together in f and b three. It's a great move for the company. Our zone electric architecture is now gonna be delivered on our CE one of Skunkworks product. And I think this is a major learning for the for the company that we could do it at a lower price point than f m v four as well.

This save also has a big impact on the cost of our future products, So all of our products will be more affordable now. In fact, we're targeting our next generation products to be cheaper than our current outgoing products, and a big factor of that is f m v three versus f m v four. And this will actually enhance our integrated services software revenue and profitability, this move.

Your next question will come from the line of Adam Jonas with Morgan Stanley. Please unmute and ask your question.

Hey, everybody. So Jim or Sherry, whoever wants to take this, in your estimation of the 1,500,000,000.0 net tariff headwind you referred to potential supply chain disruption, you didn't quantify it, but you you referred to potential as a part of the reason why you also withdrew the guidance. Are I I'm just asking very bluntly. Are you seeing any signs of distress or interruption in the supply chain following the volatility and the implementation of the import tariffs to date? Just curious that, like, as even even after the end of the quarter, is it still all clear, or are you seeing some some disruption?

Yeah. Adam, this is Kumar. Let me take that from a supply chain perspective. There's been so much volatility in the tariff policy, so that could cause disruption. I'll just give you a quick example.

The rare earth materials from China, for example. How they are imported, not just for us, but for the entire industry, excuse me, has become rather complicated over the last few weeks, and it could potentially it it would take only a few parts to potentially cause some disruption into our production. There are other other supply other uncertainty and associated tax and emission policy that could cause some disruption and, of course, the competitive response. So let's say we get disrupted and one of our competitors doesn't get disruptors disrupted or vice versa, that could obviously have an impact on on volume and pricing.

Thanks, Kumar. And just, as a follow-up, in previous calls, when Ford has talked about its AI strategy, it included an emphasis on automation robotics. I'm curious how your thinking on automation has evolved given the pressures to onshore more manufacturing. And, specifically, has your team explored humanoid robotics with your tech partners as many of your more tech forward automotive competition both in The US and in China are doing? Thanks.

So, Adam Kumar again. Humanoid, let me answer that part of the question first. Not directly. Obviously, we're not working on on that directly. But in our manufacturing system, we are working with several partners to on some very specific, projects, that can do AI and save us substantial amounts of cost.

So we're deploying AI in our PD system. For example, a lot of the time, we take surrogate parts and then design, manually design a lot of those parts with AI. We're we are automating the design process to take a bunch of weeks out of the PD system. I I'll share an example with you. We have a Boston Dynamics dog in our supply, in our Spain Valencia plant.

That's where the the the experiment started, it has it literally has sensors on it that can see, hear, feel the vibration, smell any leaks of oil, etcetera. It just literally walks around the plant all day long and has changed how we do our preventive maintenance because it can see and hear and and look for air states well before a human being could. So we have processes like that going through quality, through manufacturing, and through PD using AI that are overall improving our our efficiency in all those areas.

Thanks, Kumar. Maybe Lynn will let you, use the dog and see if see if it gets along with with her dogs. But I'm not sure we can talk about that offline. Thanks. Your

next question will come from the line of Joseph Spak with UBS.

Sherri, you did mention that it looks like you'll be able to give guidance again with second quarter earnings. But you also started off by saying there's a lot of near term uncertainty as it relates to tariffs, the economy, SAAR pricing, etcetera. So what really are you looking for here over the coming months to give you confidence to be able to, you know, put the guidance and outlook back in? Like, what what do you expect to know that you don't know today?

Well, first off, I just wanna clarify my comments relative to q two. We'll provide an update at that point with the best information that we have at that time. I just wanted to set the expectation that we would be back talking at that point in time. There's there's, you know, a number of things that we are working through. Really, it's the policy issues that that we had alluded to, the clarification of how some of these are landing, as well as some uncertainty associated with tax and emission policy, how the customer is going to react.

This is gonna be very key for us. As we move into the second half of the year, we see how do they react to this potential increase in pricing that may result from these tariffs costs that the that the competitors and and us are are encountering. And then just, you know, really just that whole competitive dynamic and how the competition reacts as well. These are the key items.

Okay. Thank you. Sorry for misinterpreting that. And then, Jim, look, I know I know as we've sort of already gone over in this call, there's there's some outstanding issues on on on tariff and trade, but we are it does seem like we're beyond the the nadir, if you will, on on uncertainty. But there are other regulations and policies that it seems are gonna be tackled like emissions.

Yes. So I'm wondering how you're viewing that as as it as it relates to some of your powertrain investment. Like, what does it mean for, you know, the the next gen project and modeling more broadly? Like, you've you've clearly taken a lot of costs out of E and done a lot of work on the next gen, but, ultimately, you need volume. So how how are you viewing that as part of the strategy?

Yeah. We we see the next, iteration. And as you said, terror tariffs haven't played out. You know, we we have to see the retaliatory part of of tariffs. Good good examples.

Canada, I think we we got to a good output right now with Canada. We'll we'll see how that how that works out. But, you know, to your point about, you know, PTC is very important to us. The production tax credit and IRA, very critical decision for their reconciliation and upcoming tax legislation in The United States. I think we're very close to it.

I think we've been incredibly we put a lot of effort into raising awareness of how critical this is for the states in the Midwest where all this manufacturing investment that Sherry mentioned is going in. Obviously, the IRA consumer credits tax for EV purchases will be very substantial upcoming policy effort, but that will also be balanced with the 27 and beyond c o two requirements for the EPA as well as the California waiver. And and I think those will be offsetting. We we don't know how it's gonna look right now, but that would be a second area I would say would be very meaningful in addition to tariffs. And I think I think there's quite a bit policy around the globe on emissions that will play out for a company like Ford that is global.

But I would say we're encouraged by the level of engagement with Ford, with all lawmakers, and and the administration. They want for a company like Ford that bet on America to win in in this next era of the automotive industry that increasingly looks like a regional business. And I think we feel that as long as we do our jobs to engage the key decision makers in in all the policy areas around the world, that Ford will, you know, emerge as as one of the companies that is in, you know, in in really great shape relative to its competition and for the customers. I think our you know, the PTC, though, I would just say, is an outsized impact for us and for the industry.

Our next question will come from the line of John Murphy with Bank of America. Please go ahead.

Good evening, everybody. Jim, my question here, there's a lot of focus on the cost and direct impact of tariffs, but not necessarily enough or at least in my opinion, enough focus on the indirect, you know, impact and the potential for you to take market share, you know, the potential for demand. You know, construction goes up dramatically in The US. You see reshoring for a lot of products, particularly the f one fifty and the Super Duties, as well as the rise in used vehicle pricing, which is very helpful to FMCC. So maybe you can just take a few minutes and kinda talk about, you know, those those potentials because they're not they don't sound like they're calculating sort of the the the net impact because you guys are doing sort of just the the scientific math, not necessarily into second and third derivative, you know, potential impacts here.

Yeah. The governor on that, whether it goes, you know, slow or fast, is always gonna be the competitors, as Sherry said. And and as she said, we've looked literally in every segment who our cross shop competitor is, the nameplate, where are they built, what kind of tariff exposure they have, what kind of pricing they've had in the past, what are differences on pricing. And we also looked at the timing of when they would make pricing decisions and when that inventory would be in

dealerships given their supply chain. Because all all all the importers have different supply chains. And we feel very comfortable that we've made a very reasonable call embedded in that 1,500,000,000.0 net. But there is no doubt that Ford, given our manufacturing footprint, has the opportunity that few companies have. We don't wanna get ahead of ourselves, but we have the freshest lineup we've ever had in North America.

The f one fifty is new. Super Duty is brand new. We have all new full size SUVs. Many of our competitors import into those segments. You know, we have a new Explorer.

I mean, a lot of our utilities are new as well, and they're very well positioned competitively. And also, our inventory is in good shape. And that's why we didn't wait, John. As soon as this happened, we went to our new promotion campaign for employee pricing. It is it has really shrunk our stock in our dealerships, as Andrew said, and we are gaining share.

The share gain in April was even higher than March. So we continue to see a wind at our back. People really like the employee message employee pricing message, and you can expect Ford to be very aggressive in the market. It gives us optionality on those upside scenarios. But at this point, for financial planning, we thought we'd just, you know, go do our homework, be very reasoned in our approach, and no doubt about it, we're investing in marketing with that mentality of an opportunity.

And then just a quick second question on on pricing. I I think you guys were saying, you know, net price for the industry up one to one and a half percent in the second half of the year, and that might dent demand down to 15.5%. That seems like a pretty high price elasticity of demand, particularly given all the pent up demand that's out there. So I'm just curious if I heard that correctly and how you guys are coming up with that number because that sounds pretty punitive as well.

Thanks, John. It's Andrew. Just to follow-up to the previous statement that I made on it. We really are looking at the run rates, not only so with the assumption of the one into one and a half and full year pricing flat, we also see some element of payback scenario from what we've seen in the first half of the the year as well as we've run up. So that was also factored into what we think the run rate will be against the the $15.05.

And that we you know, that's just based on our modeling that we've done, as Jim said, kinda segment by segment, but also in terms of how each seg each one of those segments, performs against the elasticity of the pricing that we assumed.

And that pure light, not with medium and heavy. Is that correct?

Is that that's a pure light vehicle SAR estimate, not not including medium and heavy. Is that correct?

We, John, we see customers, you know, doing what they can to afford a new vehicle. I mean, Kathy's seen eighty four month financing increases the share of our offer on the financing side. Natural level, we're, you know, well within the bounds of of the industry, but, you know, customers are doing what they need to to adjust for their payments.

Ford Motor (F) Q1 2025 Earnings Call Transcript

Company Participants