Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 05:30 pm ET

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Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

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Executive
James P. Hackett

America and Europe, as well as mark-to-market gains in corporate other, and another strong performance by Ford Credit. And year-to-date EBIT for automotive, it was up 10%, and company-adjusted EBIT increased 6%.

Please turn to Page 5. At the highest level, our global redesign is about making choices to transform Ford into a more fit and competitive company. Simply put, we are absolutely committed to improving execution and addressing underperformance throughout the company. I will walk you through our business region by region. In our North American business, amidst an intensified competitive environment, we are in the middle of an extensive product renewal. Reminding you that we are significantly refreshing and growing our SUV portfolio, introducing models like the completely redesigned Ford Explorer and Escape, and our all-new Lincoln Aviator and Corsair. I'm pleased to say that we are approaching now full production on the new Explorer and Aviator.

This product renewal comes as we also phase out our most traditional sedan silhouettes. Now again, our intent isn't to give up customers in that sedan segment; rather, to enhance their view of Ford's potential to please them in even a better vehicle. We also plan to protect and expand our leadership in pickups and commercial vehicles. Look for a new Super Duty pickup in the coming months, and our all-new F-150 next year.

In a few weeks we're introducing a battery electric vehicle that is designed from the ground up, to offer stunning performance, gorgeous design and an incredible customer experience that is fully connected and updatable over time. We also have big plans for the long-awaited rebirth of the Bronco franchise, so Ford is expanding in the battery electric vehicles and rugged off-road SUVs, challenging brands that have had those two growth areas to themselves for long enough. In total, I remind you that we're in the process of replacing 75% of our North American lineup by volume, by the end of 2020, dramatically improving the freshness and appeal of our portfolio.

The Ford team in Europe is making rapid strides in restructuring the business. We have reset our revenue and cost base and are rationalizing our product portfolio. Europe is now focusing on three business groups. A strong and growing commercial vehicle business, a smaller and more profitable passenger vehicle business, and a niche portfolio of profitable and brand-enhancing imported vehicles. So going forward, you will see us redeploy capital to build on our position as Europe's number one commercial vehicle brand. In addition, our country-specific product plans have us on track to deliver against the new European 2021 CO2 targets without penalties or fines, using new hybrid and electric propulsion choices.

We're clearly not satisfied with our standing China, and the team is working exhaustively to return to profitable growth in this important market. We're working to stabilize the business, and are now launching new products that are tailored to the needs of Chinese customers. At the same time, we are attacking costs, reinvigorating our dealer network,