“These combined savings allow us to absorb about $1 billion higher commodity prices driven by inflation, and pressure on DRAM as well as incremental investment in support of our UEB platform, the ramp of Ford Energy, and cycle plan actions that will drive higher return growth in 2027 and beyond.”

In context

“$5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion. As we shift capital to higher return growth opportunities across our portfolio, including roughly $1.5 billion for Ford Energy. Our full-year outlook for the industry assumes a U.S. SAAR of 16 million to 16.5 million in flat industry pricing. Excluding Novelis, tailwinds and headwinds for Ford include positive market factors, including favorable mix associated with the sunset of low margin nameplates, and benefits from changes in the U.S. regulatory environment. Flat cost, which I would like to unpack further, we expect lower tariff costs of about $1 billion, reflecting a full year's worth of credit expansion. We also expect further material and warranty cost reductions building off our momentum in 2025. These combined savings allow us to absorb about $1 billion higher commodity prices driven by inflation, and pressure on DRAM as well as incremental investment in support of our UEB platform, the ramp of Ford Energy, and cycle plan actions that will drive higher return growth in 2027 and beyond. Additionally, we expect our high margin, software and physical services profit to grow by about 6.5%. Now let me frame Novelis for you. We expect year-over-year improvement of about $1 billion, which is back half weighted. This includes 1.5 to $2 billion of temporary costs, including tariffs, to ensure continuity in aluminum supply. These costs are not expected to be repeated in 2027. From a calendarization perspective, we expect our first quarter EBIT to be roughly flat sequentially. As we continue to work through the impact of Novelis. We expect to approach a more normalized EBIT in the second quarter with a plan to hit our underlying EBIT run rate level in the second half as volume stabilizes and our portfolio optimization takes hold. To help you better understand this calendarization,”