“For Ford, we expect this will be partially offset by top-line growth from upcoming launches.”

In context

“fects, possible duty drawbacks and so on. Other potential changes in policies such as changes to the consumer tax credit, or CTC, commercial and production tax credits, or PTC, would also be harmful. However, the impacts of such changes are much smaller for Ford in 2025 than later years. For example, PTC will become a more meaningful benefit for us later this year with the launch of our BOSK battery factory. And for the longer term '27 and beyond, changes to these programs would be very material. Hence, we continue to stay in close contact with the administration to support a strong auto sector into the future. Our full year outlook assumes headwinds related to market factors. We're planning for lower industry pricing of roughly 2%, driven by higher incentive spending throughout the year. For Ford, we expect this will be partially offset by top-line growth from upcoming launches. We expect these headwinds to be partially offset by about $1 billion of net cost reductions, primarily coming from lower warranty expense and material cost. Our team is aggressively working to deliver more than $1 billion, which would likely lift us to the higher end of our guidance range. And we expect the majority of these savings to occur in the second half of the year. From a calendarization perspective, we expect our first quarter adjusted EBIT to be roughly breakeven. This sequential decline in EBIT versus the fourth quarter of 2024 is more than explained by a reduction in wholesales and unfavorable mix, including the impact of launch activity at major US assembly plants, including Kentucky Truck and Michigan Assembly Plants. Our plans to utilize Oakville for our next major truck la”