“The most material for Ford in the end is going to be changing our mix. We have high demand for our Pro and larger SUVs right now. We have high demand for some of our non-electrified powertrains and changing that mix is a multibillion-dollar opportunity in the next couple of years.”

In context

“you said you're going to scale back compliance credits by $1 billion, $1.5 billion. Did you mean purchases? Or is that what you are -- like what was -- what are you -- what were you planning to expense this year in the guidance and what are you planning to expense now? I know you did about $200 million last year. I'm just trying to think about how much of a profit tailwind that could be in 2016 and beyond. Sherry House: Yes. We're we've expensed about $200 million thus far. And I think you could think about that being a reasonable quarterly rate going forward, so not significant. James Duncan Farley: And on the credit side, it's very clear to us that the California situation has changed a lot, so we can descale our credit contracts and our purchases, that will be material for the company. The most material for Ford in the end is going to be changing our mix. We have high demand for our Pro and larger SUVs right now. We have high demand for some of our non-electrified powertrains and changing that mix is a multibillion-dollar opportunity in the next couple of years. So that's what's going to come through for the business. We just have to finalize the rule making, which probably won't happen until the end of the year. Operator: Your next question comes from Federico Morendi with Bank of America. Unidentified Analyst: Just wanted to touch upon the electrification initiatives. And I understand that now the regulation has changed and the overall environment in the U.S. has shifted. But I was wondering, how does Ford balances, the different commitments in the regions where it operates like the U.S., Europe and even China in terms of capital investments on the electrification portion of the business? James Duncan Farley: Yes. Thank you. We really see the pure EV market in the U.S. seems to us very clear. Small vehicles used for commuting and around town, s”