Conference operator Leila introduces the call, led by chief investor relations officer, who outlines the agenda featuring company leaders' insights on earnings, industrial progress, market dynamics, and financial guidance. Forward-looking statements and non-GAAP measures are noted, with upcoming IR engagements mentioned. A Q&A session follows, involving various executive officers.

Ford reports a record quarter with 50.5 billion in revenue and 2.6 billion in adjusted EBIT, attributing success to disciplined execution of the Ford Plus plan. The company highlights progress in cost reduction and quality improvement, anticipates favorable tariff policies, and prepares for a shift towards hybrid and electric vehicles. Despite challenges like the Novella's fire, Ford showcases swift recovery plans and a strategic focus on regional markets, digital solutions, and innovation to maintain competitive advantage.

A strategic overhaul in operations, including AI deployment, supplier negotiations, and facility modernization, has significantly reduced costs and improved efficiency, exemplified by enhanced CAD loading times and quality control through AI-powered cameras.

Ford Pro highlights its growth through a diverse vehicle lineup, service parts penetration, and software services. The company emphasizes its dealer network expansion, balanced revenue streams, and strategic partnerships, such as with Service Titan. Ford also discusses its market share growth, particularly in hybrid trucks and high-end trims, and its disciplined inventory management strategy.

Despite facing $700 million in tariffs, Ford achieved global revenue growth of over 9% in Q3, with adjusted EBIT flat at $2.6 billion. The company highlights its strong balance sheet, with $33 billion in cash and $54 billion in liquidity, and a commitment to disciplined capital allocation. Ford outlines a 2025 adjusted EBIT guidance of $6-$6.5 billion, considering mitigation strategies for tariffs and production disruptions. The summary underscores Ford's strategic focus on cost improvements, UAV platform development, and adapting to evolving market conditions, while maintaining a solid financial foundation and investment-grade rating.

Discussed recovery from Novelis Heart Mill shutdown, aiming for 50,000 unit recovery through additional shifts and speed increases. Novelis plans mill restart by late November, impacting Q4 production. Ford's capacity and aluminum availability will influence recovery.

Speakers discuss the ongoing impact of supply chain issues, particularly with semi components like diodes and transistors, emphasizing the need for quick resolutions to prevent fourth quarter production losses. Collaboration with administrations is highlighted, alongside efforts to maximize component buys, noting the run out dates are closely aligned with potential resolution timelines.

The dialogue discusses Tesla's significant year-over-year reduction in warranty expenses, highlighting improvements in initial quality and the expectation for further cost reductions in coverage and FSA costs. It also touches on the challenges of precisely forecasting FSA costs due to the large car park, while emphasizing the team's achievement in offsetting tariffs with lower warranty costs.

Discusses the robustness of industry pricing despite increased capacity, attributing stability to strong segment drivers and competitive product line freshness, reinforcing optimism for sustained price discipline.

The dialogue discusses the impact of new emissions regulations, highlighting cost savings from reduced credit purchases and revenue opportunities through optimized product mix. The company anticipates significant reductions in purchase obligations, potentially saving billions, and emphasizes the strategic importance of these factors in future financial guidance.

Discusses how excluding tariffs and novelis costs, the business has shown strong performance, with improvements in material costs, credit business, pricing, and volume, guiding towards a higher end of EBIT outlook despite initial guidance adjustments.

Discussion on how recent policy changes, specifically a $1 billion benefit from a proclamation, will affect tariffs and costs for the upcoming year, highlighting the offset of parts tariffs expense and the remaining impacts of steel, aluminum, and vehicle import tariffs.

Discussion focuses on the anticipated transformation of the Eev North America market, emphasizing the development of an affordable commuter vehicle designed for cost-efficiency and market competitiveness, aiming to centralize the future of the Ed market in the US.

Discussion on managing the impact of production and wholesale shifts on retail sales and customer experience, emphasizing sufficient stock to mitigate novel impacts in the fourth quarter.

Discussed Ford Credit's successful no-tier-up marketing program for F150, maintaining a strong balance sheet with low leverage and high cash balance. While subprime lending is a small part of the portfolio, there's potential for expansion to aid affordability and increase sales, considering the sustainability of current high-risk portfolio at 3%.

The dialogue explores the impact of vehicle mix optimization on Average Transaction Prices (ATPs) and the ability to pass these changes to consumers amidst affordability challenges. It also discusses the drivers behind improved pricing, particularly in retail and super duty vehicles, contrasting with weaker fleet pricing in van segments.

Ford Pro discusses its strategy to diversify its fleet business, shifting focus from traditional large corporations to small and medium businesses (SMBs), government, and daily rentals. This approach has led to a more balanced and diversified portfolio, reducing pricing risks and increasing service contributions to EBIT, aiming for 20% across all channels.

Discussion clarifies the financial impact of tariffs, noting Q4 expects a positive EBIT due to a $1 billion receivable. Concerns about stranded costs and EVOLs are addressed, suggesting future updates on costs and volume impacts will be provided post-Q4.

Discussed optimizing vehicle production mix following regulatory changes, emphasizing opportunities in hybrid models and off-road vehicles. Also, addressed guidance adjustments reflecting industry improvements and cost efficiencies.

Discussed the implications of tariff refunds and Novelis integration on Q4 financials and 2026 outlook, addressing concerns over declining revenues and explaining the expected billion-dollar EBIT boost from cost savings and regulatory relief.

The dialogue outlines strategic factors affecting the company's 2026 positioning, including tariff tailwinds, EPA compliance removal, cost savings, and investment headwinds in new launches and cycle plans, with more details to be shared in Q4 earnings.

Ford thanks its investors and analysts for their insights and support, acknowledging the impact of activist investors like Adam Jonas. The company emphasizes its commitment to addressing industry challenges, improving operations, and expanding through Ford Pro. Ford expresses confidence in its future growth and concludes the earnings call with gratitude for investor participation.