“For the year, we expect to earn about $11.5 billion in adjusted EBIT, up about 15% from 2021 with about a 10% increase in wholesales.”

In context

“higher borrowing costs. Let me now walk through our impairment of Argo. As Jim highlighted, it’s become clear that the technology required to achieve profitable commercialization of L4 autonomy at scale is going to take much longer than we previously expected. L2+ and L3 driver assist technologies have a larger addressable customer base, which will allow it to scale more quickly and profitably, and that’s going to provide accretive annuity-like revenue streams. During the third quarter, we made the strategic decision to shift our capital spending from the L4 technology being developed by Argo to internally develop L2+/L3 technology. And as a result, in the third quarter, we recorded a $2.7 billion noncash pretax impairment as a special item. Now, let me share with you our current outlook. For the year, we expect to earn about $11.5 billion in adjusted EBIT, up about 15% from 2021 with about a 10% increase in wholesales. We’re now projecting to generate adjusted free cash flow of $9.5 billion to $10 billion. Our year-over-year basis for our ‘22 adjusted EBIT target assumes significantly higher earnings in North America; aggregate profitability in the rest of the world; Ford Credit EBT at about $2.7 billion, with strong, though lower, auction values in the fourth quarter as the supply of new vehicles improves and higher borrowing costs; continued strong pent-up demand in orders for Ford’s newest products; continued strength in pricing; higher commodity and broad-based inflationary costs of about $9 billion; no further deterioration in supply chain; and continuation of a strong dollar. So finally, before getting to your questions, let me provide a quick update on our new financial reporting. Last quarter, w”