“The F-150 now, a hybrid, is up 40% year over year, and we think the new F-150 new hybrid will be 20% mix, and it may be the best-selling hybrid in the United States.”

In context

“hn Lawler: There’s added costs as you’d expect for the battery and the motors, etc. But if you look at – let’s just take F-Series, for example. If you take the hybrid on average, they have a higher margin than our highest-volume gas versions because of the mix and what we have in the vehicle and the pricing we can get for the hybrid technology and the fuel efficiency that comes along with that. And one of the things we learned about hybrid, because we’re executing very differently than our first-gen hybrids, is we have Pro power on board. We have a lot of other attributes that people are willing to pay for, like F-150 powering a jobsite or your house as back up energy. That’s another advantage of having those batteries that maybe some of our competitors haven’t had the same pricing power. The F-150 now, a hybrid, is up 40% year over year, and we think the new F-150 new hybrid will be 20% mix, and it may be the best-selling hybrid in the United States. So, our hybrid strategy is a little different than our competitors because the work cycle for our products are different, but hybrid has a really big place. We’re trying to challenge ourselves, Adam, to execute hybrids, so they do more than just propel the vehicle for pricing power. Adam Jonas: Thanks, Jim. Thanks, John. Operator: The next question is from John Murphy with Bank of America. Please go ahead. John Murphy: Good afternoon, guys. Just a first question, Jim, on warranty and an accelerated – sort of headwind, on a year-over-year basis, accelerated a bit in the quarter. But if I look at the full-year numbers, even if we added back this – I think it’s Slide 32. If we added back the 1.7 billion on warranty to the 9.4 billion in EBIT you’ve done year to date, you’d already even be in”