“We also expect costs to be flat as we offset higher labor and product cost with efficiencies.”

In context

“e assuming a $2 billion benefit from cost reduction initiatives that offset higher labor and product refresh costs. Within the segments, we expect Ford Pro's strength will continue unabated. With continued strong demand for our leading products, we are targeting EBIT between $8 billion to $9 billion, driven by continued growth and favorable mix, partially offset by moderated pricing. For Model E, we expect losses to widen to a range of $5 billion to $5.5 billion, driven by continued pricing pressure and investments in our next-generation vehicles. We expect our first-generation vehicles to improve their profits throughout the year. Ford Blue, EBIT to be about equal to last year at $7 billion to $7.5 billion, reflecting a balanced market equation, including the impact of our all-new F-150. We also expect costs to be flat as we offset higher labor and product cost with efficiencies. And we expect Ford Credit's EBT to be up slightly year-over-year to about $1.5 billion. Now taking a step back, our performance last year reflects the positive momentum of our Ford+ plan. Capital discipline is driving the right global footprint, portfolio of products and consistent cash generation. We continue to see growth opportunities and remain focused on delivering improvements in both quality and cost. Now that wraps our prepared remarks. We'll use the balance of the time to address what's on your mind. Thank you. Operator, please open up the line for questions. Operator: We will now begin the question-and-answer session. [Operator Instructions] Our first question today is from Adam Jonas with Morgan Stanley. Please go ahead. Adam Jonas: Hi, everybody. Jim, I want to talk to you abo”