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CLAIM #24039 · Ford Motor Company (F) · 2024Q4 earnings call · Feb 5, 2025 · due Dec 31, 2025

We want to grow that to 20%.

Jim Farley · CEO

PENDING
graded after results covering Dec 31, 2025 are reported

In context

have -- you're starting to introduce more EVs into the Pro business. So, that does tamper profitability slightly. I wouldn't say that it's a large percentage of the mix yet, but that is growing. And so, our ability to continue to bring costs down, commensurate with the introduction of the EVs coming in, is one of the areas where we're really focused for this year. So, costs we think is going to be largely neutral, maybe slightly better. We're expecting material cost efficiencies and some lower product costs and potentially lower warranty costs as well due to some of the initiatives that I mentioned earlier. Jim Farley: To give you some context about the changing revenue mix for Pro, in the fourth quarter, we got actually up to about 13% of our Pro business profitability was from services. We want to grow that to 20%. And as you implied in your question, the vehicle side is always going to be super important and the pricing within that is going to be a super important driver for our profitability. What gives us optimism about the Pro business on the vehicle side is the freshness of our product. We have a brand-new F-Series, a brand-new Super Duty, a brand-new 1-ton Transit in Europe. We have the freshest lineup on our vehicles that we have ever had. The competitors may react to that, and we'll see how that plays out in the market. But what we're also really focused on is getting that 13% higher. Those margins on the vehicle repair side of 35%, on the software side, they're up to like 50%, 60%. So, that's really our opportunity to derisk the company's profile. Mark Delaney: Thanks for that. My other que

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SEC filings for F · Claim quote is verbatim from the 2024Q4 earnings call.