Published - May 22nd, 2023 @ 4:19 PM (GMT+2 )

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During today's momentous Capital Markets event, key leaders from Ford will be providing updates on the company’s ambitious strategy which includes financial targets and key performance indicators (KPIs) for three major global business sectors.

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The Capital Markets event today unveils Ford's future strategy involving financial targets and KPIs for three main business segments.

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The reports will outline how Ford aims to achieve an adjusted EBIT margin of 10% by 2026. These margin targets will also align with the company's three distinct business segments: Ford Blue, Ford Model e, and Ford Pro.

Another exciting announcement from Ford will concern new definitive agreements for battery raw materials. These agreements further solidify Ford's capacity to manufacture two million electric vehicles (EVs) by the end of 2026 and continue to expand beyond this milestone.
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The financial guidance for the full year 2023 is estimated to be between $9 billion and $11 billion in adjusted EBIT and approximately $6 billion in adjusted free cash flow.

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Jim Farley, Ford's CEO, emphasized that the company is reinventing itself by focusing on customer-centric business segments to increase capital efficiency, decrease cyclicality, and generate strong free cash flow and sustainable growth.

The three distinct business segments at the heart of Ford's strategy are Ford Blue, Ford Model e, and Ford Pro, each focusing on different areas.

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The company's three distinct business segments include Ford Blue, which boasts a portfolio of traditional gas and hybrid vehicles, including popular models like F-150, Ranger trucks, and Bronco SUVs. Ford Model e, an innovative wing within Ford, is focused on creating cutting-edge electric vehicles and advanced digital platforms and software.

Ford Pro, often referred to as Ford's "secret weapon," is aimed at helping commercial customers reduce vehicle ownership costs and revolutionize their businesses with a superior lineup of specialized gas, hybrid, and electric vehicles.

With their focus on customer satisfaction, each of these business segments aims to provide superior services and experiences tailored to the unique needs of their customers.

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The event will feature presentations by key Ford executives, including Kumar Galhotra of Ford Blue; Doug Field and Lisa Drake of Ford Model e; and Ted Cannis of Ford Pro. Together, they will outline Ford's strategy to increase its global market appeal and bring in a more diverse, younger clientele.

Ford remains committed to improving its product mix, leading the high-volume electric vehicle market, and expanding its commercial business through Ford Pro. With its customer-centric approach, Ford is looking forward to transforming the automotive industry and providing shareholders with substantial returns.

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Ford Model e targets a production capacity of two million EVs by the end of 2026, with plans to achieve a total company adjusted EBIT margin of 10% in 2026.

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As for the Ford Model e, the company has ambitious plans to achieve a production capacity of two million EVs by the end of 2026. Additionally, the company aims for a total company adjusted EBIT margin of 10% in 2026, with Ford Blue, Ford Pro, and Ford Model e targeting low double-digits, mid-teens, and 8% EBIT margins, respectively.

Ford's vision of disciplined capital allocation is core to the Ford+ plan. The company intends to generate an adjusted return on invested capital of about 20% over the plan period and distribute 40% to 50% of adjusted free cash flow to shareholders.

Ford aims to transform the automotive industry through customer-centricity, increasing its market appeal and share value.

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Ford has shifted its capital use over the years from restructuring global operations to growth funding, including investments in new vehicle derivatives, vertical integration of battery plants and raw materials, and software and service capabilities to boost customer productivity.

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