“We expect technology-related warranty costs to now normalize, as technology matures and we deploy that great OTA capability to address known issues.”

In context

“115% in the quarter. Our focus on software and physical service expands the moat for Pro, while helping our customers improve productivity and grow their business. Pro is on track for software and physical services to contribute 20% of our EBIT by 2026. On quality, we're making progress with our latest vehicles. Ford jumped 14 points in the latest J.D. Power's 2024 U.S. Initial Quality survey. We went from 23rd in the industry to ninth. Bronco Sport is now named the best small utility in initial quality, outperforming 18 competitors. Our launch in initial quality are leading indicators for warranty in the future and we expect to see benefits in the future. We did see warranty cost increase in 2Q, of course, tied to new technologies, FSAs and inflationary pressures for the cost of repair. We expect technology-related warranty costs to now normalize, as technology matures and we deploy that great OTA capability to address known issues. We are confident we are on the right trajectory with a very clear and non-negotiable mission at Ford to deliver best-in-class quality. I'll close with this. The remaking of Ford is not without growing pains, but is unlocking opportunity to serve our customers in growing ways we never thought possible. My confidence comes from the fact that we have built a world-class team, and we are executing a compelling strategy. No other company has Ford Pro. We intend to fully press that advantage. No company has a more compelling product lineup with an attractive mix of ICE and partially and fully electric options for both work and retail customers. We also know we have a lot to prove. We look forward to proving our EV strategy out. That has become more realistic and sharpened by the tough environme”