“Since then, our product portfolio has exceeded our expectations, delivering favorable market factors, including mix through the first nine months of the year, and we expect this trend to continue in the fourth quarter.”

In context

“er net pricing. Hybrid sales up 30% in the quarter continue to shine and our global hybrid mix is still on pace to approach 9% by year-end, up over 2 points year-over-year with more products on the way. Ford Credit generated EBT of $544 million, up $186 million year-over-year, driven by an improvement in financing margin and higher receivables. Auction values declined 1%, and lease return rates continue to normalize from historic lows. We continue to originate a high-quality book with US retail and lease FICO scores again exceeding 750 for the quarter. Our exposure to EV residual risk is low, with EVs representing less than 10% of our lease portfolio in the US. So, let's turn to our outlook. When we began the year, we expected full year company-adjusted EBIT of $10 billion to $12 billion. Since then, our product portfolio has exceeded our expectations, delivering favorable market factors, including mix through the first nine months of the year, and we expect this trend to continue in the fourth quarter. This speaks to the strength of our key nameplates and the resilience of our commercial business at Ford Pro. We are also on track to deliver $2 billion of cost efficiencies within our industrial platform, offsetting expected higher labor and product refresh costs for the year. However, two gating factors keep us from a record adjusted EBIT this year, higher-than-expected warranty costs and the impact of inflation at our JV Ford Otosan in Turkey, which increases the material cost of transit vans sold in Europe. While inflationary pressures in Turkey is outside of our control, increased warranty costs are within our control. We now expect full year company-adjusted EBIT of about $10 billion, which includes lower-than-planned volume in the second half for Ford Pro and Ford Blue due to suppli”