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Ted Cannis, Ford's global director of electrification, will speak at the Barclays 2019 Global Automotive Conference in New York on Thursday, Nov. 21 at 1:00pm EST

He's going to be talking about the Mustang Mach-E and Ford's big shift in to the EV market.

Hopefully there's some kind of hint or announcement about what's to come from Ford after the Mustang Mach-E. Maybe some info on the electric F-150 or a new EV.


DEARBORN, Mich., Nov. 14, 2019 – Ted Cannis, Ford Motor Company’s global director of electrification, will speak at the Barclays 2019 Global Automotive Conference in New York on Thursday, Nov. 21.

Cannis will describe how Ford is ambitiously redesigning its business across the value chain – incorporating customer requirements and positioning the company for long-term success in full battery electric vehicles.

He will explain how Ford’s all-new, all-electric Mustang Mach-E SUV – which is being unveiled to the world on Nov. 17 – uses innovations in connected vehicle technology, infotainment and charging infrastructure to deliver a surprising and superior customer experience.

Ford’s presentation at the Barclays event will begin at 1 p.m. EST and be followed by a question-and-answer session. Conference and webcast information is available at shareholder.ford.com.
 

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Better late than never, but here's the full transcript of the interview with Ted Cannis from the conference.

Company Participants

Ted Cannis - Director of Electrification

Conference Call Participants

Brian Johnson - Barclays

[Call Started Abruptly]… actually we're pleased very -- very pleased to have with us today Ted Cannis, Ford's Global Director of Electrification. Many of you know him from his prior stint heading IR, and he had numerous positions in Ford before and after that, including running significant operations in Europe and, I believe, South America and Turkey. Turkey is still part of Europe, sort of. Why don't we do the first two ARS questions, and Ted is going to take us through some of the things he has been working on, which we -- many of us saw on Monday and Sunday night. Are you currently on the stock? So 5% long, 5% underweight short, 89% not involved. Question number two. This is the bias before they hear you, Ted. And you recall these from your days in IR.

Ted Cannis

I do.

Brian Johnson

So 18% -- 23% positive, 68% somewhat negative or somewhat negative. So, we will see, we got work to do.

Ted Cannis

All right, ready to go?

Brian Johnson

Yes. So Ted's going to start with some slides running the electronics program.

Ted Cannis

Okay, everybody. Well, thanks very much. Haven't been on the other side. Just recently, I know how you feel. They're not a lot of IR guys goes to run the global electrification business, but you're going to see how that works. So, let's get into this a bit quickly. A couple of things. So you see in the company strategy, and apparently two-thirds of you don't like it, but that's okay.

My bet is sort of that middle bit, the customer-centric and passion for product, a winning portfolio, you've heard us focus on things like SUVs, not cars. And in this case, new propulsion, which could be electrification. It could be hydrogen, if hydrogen’s day ever approaches and other things. So we have been very clear, since the process for a couple years now that we're going to be investing over $11 billion in EVs by 2022. That's hybrids, plug-ins, and battery -- full battery electrics. And that is different than some of our competitors.

Part of that difference and I'll hit it now is, not everybody is ready to go full battery electric. Many of you are not ready to full battery electric, maybe you're afraid of range, maybe a whole bunch of other host of things. It really doesn't matter. Maybe you live in one of the apartment buildings here and there's nowhere to charge. We see opportunities by doing all of them. And if we're going to fix the climate problem in the planet, which we at our science says there is one then we need to do our part and that means more people with better fuel efficiency will matter. So we're going to meet them all day, electric, plug-in and full battery electric.

So let's now talk a bit about full battery electric. Why is it now, where we see it is a good time now? First, the cost is way down, but still expensive. So cell costs, so let's say, a focus electric to the Mustang Mach-E that we just launched, we're much lower costs now. And the amount of energy that you can pack in a small space is much higher than you could before.

In the past, if you look at a focus electric or the old plug-in fusion hybrid, you're using a lot of trunk space and passenger space to fill up the product with batteries. You don't need to do that anymore. You can give it back to the customer in ways they've never had it before. Easy offerings. They were a lot for a long time, let's say compliance science projects that were very green focused, or very expensive on the other end. There wasn't a whole range of choice for everybody's different use cases. That's going to change. Just across the industry alone that will grow with battery electric. Infrastructure, the charging wasn't there, a couple years back it wasn't there and it wasn't very fast. That's changing. And I think very well poorly understood is the education of the customer. This is one of the probably the biggest product. These -- to early adopt a new technology is a difficult thing. And when you depend on our technology too, your life, your work and other thing else, it’s a big decision and trying to break through that perception either real or not real is important. We did a survey earlier about a 1,000 people in the U.S., a 1,000 in Europe and 1,000 in China and things came back like 42% of people thought that full battery electrics need gas, they don’t. Many people in Europe, so another one, the hybrid vehicles need plugs, they don't. Two-thirds of people said I can't go on a long which was in the survey at three hours on a full battery electric that was 60% of the people, and 80% of the people said, well it doesn't work in extreme weather, and maybe that's because they are from New York or Boston or something they had jumper cables on time, and they remember their issue with the 12 volt.


It really don't matter where the perceptions comes from, this is what happens. But those things are changing. Right now these customers are super geographically concentrated, California, I just checked the latest number of penetration here in New York it was 0.65% year-to-date, which is nothing. So, that's not even early adoption. That is no adoption. So, this is what's going to change quickly. And when you look at our numbers, what we see around the world, we see the U.S. this is competitive nameplates, when I look at the business I got to fight through here, hundreds net new competitive nameplates by 2025 was our latest estimate and we are guessing about 8.5% full battery electric here, and you go, well, that's a lot. Even if it was half of that, it would be a lot versus today. Europe 150 nameplates, China 350, maybe 15% of the industry, maybe 14%, again it’s a lot and the government incentive play a huge role. The batteries are going where the incentives -- and the financial or non-financial, if it’s HOV lanes or financial state incentive or Norway’s state incentives, that's where the batteries and the vehicle.

So, from our standpoint that means a lot of new design and a ton of new marketing pushing products and names and nameplates. So, how do you break through that clutter? And that's what we are focused, not just putting a battery electric and I think another myth is all battery electrics are the same that's why I hear it’s easy and they’re all the same. Well, clearly it’s not easy as people are falling out of it and they’re not the same. Your choices on how much range and what kind of motors, and the electrical architecture that you put in to use those amps and trade-offs is very different by manufacturers, not to mention they’re heavy and the safety systems are important.

So, what are we doing in that kind of environment? So, our strategic approach focuses on building a real long-term success in this, on those four key points on the bottom of this slide, which I'm going to take you through. And this is when we did the F-150 prototype pool of the -- totaling 1.2 million pounds earlier this year, because the torque out of it and power of the battery electric is so strong. That was a lot of fun by the way. If you want to see it on YouTube or wherever, there it is. So, what's the key four things. When, we changed the strategy X-years ago in 2017, we said we would play to our strengths, pickup trucks, commercial vehicles, performance vehicles, utilities. The things that brought to the party where the customers are loyal, the margins are better and we can make the business work better.

Second, we said for a couple years now, we're going to build on iconic nameplates. Well, now you know what that means, it's going to be called a Mustang Mach-E is what we just launched. We're going to have an F-150 battery electric vehicle. No confusion required. If I say Mustang you say fun, fast, free performance. If I say F-150, you say is a built Ford tough. You know what it’s supposed to do as a customer and I know what to do to give you but I got to make it better. If I’m going to get you come from electric -- from petrol or oil to electric, I need -- I saw a lot of Europeans this week, sorry about that, but I need to give you a reason to come over. So I got to give you the performance and torque that you get in a vehicle. I got to give you more capability in the vehicle. I’ve got to give you new usable spaces. So that’s part of the strategy as well, is give you more.

We can talk more about leveraging scale and technology and business model innovation, also key parts of it, so that’s the strategy. And I say this because when I will take you through the Mustang Mach-E you’re going to see some of these points. It’s not like a random thing. This is what needs to happen, because everybody in this group is an early adaptor, it’s just starting. And then the early adaptors as you know are different kind of customer and these are much more tech savvy customer than your average person buying a vehicle. So, most importantly -- and remember that’s exciting and capable fully battery electric vehicles. That’s going to be the key for us.


So let’s start with it, part of it is bringing these new customer experiences to life, got to have one, so cloud connected experiences, must-have software over-the-air updates, securely provided and at the determination of the customer, got to have new usable spaces that’s been liberated up by having the battery underneath and in the right spots, possibilities to do exportable power, all of that can be done in battery electric vehicles and you can amplify things people already like, you can make driving more fun if you chose to put in the batteries and the motors and the system to do it because there are some battery electrics that aren’t fun to drive. You can make design choices, you can do some great things with proportions, the powertrain obviously is quite, the cost of ownership in our case we’re a commercial company, we sell a lot of vans, 50% of van business in U.S., a lot of pickups, same in the Europe we do very well, focusing on the commercial customer who has telematics data and can do all their math to see how far they’re driving every day, they know they’re routes, power matched, and it’s a very easy cost of ownership problem. So, we got to get that done and obviously they have no gas. Absolutely people only think that’s one of their favorite thing, you can’t believe it if you never owned one but that’s what people like.

So, amplifying those great attributes that you already have, leveraging scale, so the new Mustang Mach-E is one of the five flexible architectures at Ford, it’s one of the five and that means it’s flexible, it could do more than the Mustang Mach-E, it’s got the battery in the middle, protected on the side rail, there are motors on the front and back so it can have rear-wheel drive or all-wheel drive in two versions. And this is part of the strategy that flexible architecture together scale, battery scale, sharing the same batteries across multiple lines and new ways so that you don’t have to rework it and you can get more scale and the negotiations with our friendly suppliers, in-sourcing motors and gear boxes and a lot more tech innovation throughout. How do you squeeze out every amp that you already have in the battery? That means a lot of decisions on, aerodynamics, weight trade-offs, on climate decisions in the cost, because you don’t have an engine any more providing heat. All of that has to be done in a new way and rethought to get every amp out of it, it’s kind of like you ever saw Apollo 13 where they’re trying to get every amp out that, that’s what we do.

So, we’re also getting scale from beyond what we’re doing, we have other platforms like the F-150 battery electric vehicle we’re going to use a all-alumin already light-weighted F-150 on mammoth scale. But we have other opportunities that creates scale where we don’t have it, so in Mahindra to do electric vehicles on in India, we can do with Mahindra, we’ve Volkswagen as you know we have an agreement to work on a number of projects and one of them is on battery electrics for Europe. They’re much smaller. For example, the Mustang Mach-E is 4.7 meters long and I think the ID3 is 4.2, 4.3, somewhere in there, more B-sized cars. And the Rivian products, a very different kind of product for a more high-end customer doing that kind of work. There's a lot of opportunity to get scale without jumping in to cover more of those usable segments. Another thing we're doing is we are rethinking. So when Hackett created team Edison in 2000 -- summer of 2017, he said look, we need to have a startup inside Ford. That's rethinking all parts of the business globally, not little pockets of this and that. And you're going to all co-locate in this refurbished factory in Detroit, and you're going to be read advanced manufacturing, marketing, sales, IT, software guys, you're going to have product development, design, the whole team. And you're going to rethink how we do the vehicles end-to-end to leverage this new capability. If not, you get the same design that you had before. And this is how we did the hoods before, that's how we're going to do the hood again.


We have to rethink everything. And the weight and other trade-offs are totally different, old rules of thumb math don't work. Everything we get out of that battery and e-drive to make it a great driving experience with a low center of gravity. Manufacturing for tomorrow and the assembly process is totally different. So if you’re on a body shop, it's the same and the paint is about the same, but assembly and line testing are very different. In this vehicle -- in these kind of vehicles, you can cut out 50% of the assembly for space. And it doesn't allow putting exhaust up, there isn't any.

So it's a lot simpler, but you have to rethink that process to get the most out and it's about 30% less assembly labor. So we're working through all the factory tomorrow and I have this living vehicle that’s electrical powered and giving us signals of how it's living through the line. Then we have to rethink the entire customer journey. If this is like you a tech savvy person who is on the edge and wants to lean into technology and lean into battery electric, they're doing like you do. They have a [NAP], they have a [Sonos], they have a ring. They're living a digital life. And they expect the purchase process to be digital. But it's a complex, not well understood decision, probably the most expensive when you do beside a house or a boat.

So you want someone to help you along the way. And that is where the dealers come in, both on the sales side and also on the service side, which is critical. And I’ll get to it in a minute. And then ongoing the process is new with cloud connected when you opt in like you do for your phone or something else. If I want to give you product and performance enhancements, or if I want to give you upgrades to the products early on before there's an issue, if your car is leaning to the left, why do I have to sell all cars that you don't need to get their wheel alignment done. I just want to fix yours.

That process with the reinvention of data coming off the car is key. And then we don't have a charging grid for petrol vehicles or in this case gasoline ago, again, and we have to work with a grid, quite a few of these on small part of the -- localized part of the grid, it puts a lot of demand pressure on the grid. We have a lot of projects with the grid right now. So a complete end-to-end and as the customer goes through that journey, and that data comes off the cars which are now cloud connected with over-the-air updates and full modems, then the company can learn and make it better to maximize operation and all the conditions that you have. This is what has to be reengineered. And this is what we've been doing the last two and a half years.

So let me tell you a bit about the Mustang Mach-E customer and then I can have Brian ask all his difficult questions. Mustang Mach-E, lover of the new, different kind of thing. People have really been leaning into SUVs. And from our data, performance customers are the most interested in electric because they see the capabilities. Combine that with the Mustang name as I mentioned fun, fast freedom. What we started to do is we took out all our filters that we had previously used for battered electrics, this had started as a compliant vehicle, picture a kind of [nav], tall, focus that goes through 300 mile range. Yes, it would have been electric and it would have been 300 miles, but it wouldn't have been awesome.

So this is different. We stripped out all those what you trade-off design for greenness, and we took all those filters out. And we just said, hey here's some interesting people cutting through our data around the world. They were leaning in tech and they were more progressive and they like new design and they happen to like battery electric, more interest in battery electric, more kids at home, more SUVs and we found and we really focus that work on that. So let's talk what it looks like.


So there it is, a new speed in the stable. We love the 2-door Coupe. Most of us in Florida had one. It's part of the thing. Everybody wants to protect the 2-door Coupe. That's not going away, many more to come. The new one the Mach-E on the right is what it is. That is a 4.7 meter and the space in the back, totally disguised, the guys did this amazing stamp piece, where you usually have a roof extrusion that's in black that disguises space 6‘3” guy, you’re probably 6‘2”?

Brian Johnson

6, 5‘11”

Ted Cannis

Easy, easy in the back, and you know that. Was it ....

Brian Johnson

Client’s disclosure under [6 to 8].

Ted Cannis

Brian, if you work in the Ford, you'd be a midget. Okay. Here's the next one. Intuitive, adaptive, fast and connected. Here's the thing. It's no good just to have an awesome battery electric vehicle if it's going to be a tech savvy customer. So we reinvented everything on this. We've gone to China and saw big the displays gone and what they were doing with cloud connected. This begins to know you with machine learning, it adapts to you. It has no back, back, back, back.

It has a couple of layers so you can get to your stuff quickly, it integrates Carplay and Android Auto with auto plug. But if you use our cloud connected navigation with live traffic and have no more SD cards that gives it as well and shows you all the charge locations and whether they're being used if that's -- if they are Wi-Fi enabled. It's a totally new thing. This is going to be an amazing difference. And when we did the work, that knob there you see is actually bonded onto the glass. It's really cool. When we did the work with a lot of this human-centric design we do now, the people said no, no, I want a knob, I wanted to go to 11, I don't want to be hunting around. So it has a knob and climates are on the screen, but they're permanently there. They also said no I need a cluster in front of me, I want something, I don't want to keep leaning back and over. I want my basic information that’s under the wheel, my speed, my charging and things like that.

We did the whole interior to take a lot of the queues for Mustang. And then we also -- we wanted to make it SUV. So this thing is going to handle great in the rain, it's going to be great in the snow, it’s by far the best handling SUV we've ever done at Ford. The center of gravity is low and because it’s nearly 50-50 balance, it works great. The all-wheel drive because it's electronic, all-wheel drive and not mechanical, you can switch the forces back and forth without it being conducted and move them back. So you can adjust on-the-fly, and it's got that SUV space, but it's all hidden, because it's got this flat floor, because there's no tunnel and it's got a big space in the back that's all available. And like I said that black lining basically hides about 2 plus inches of extra room there to give it that sweet Mustang lines. And of course it's got a front trunk. What can you do with that, you can put a cooler, you can put a carry-on bag, it's water resistant, it has a drain. So you can put stinking food like curry or pizza that's what I don't like it in the car. Or you can put dirty boots, you can wash it out, because there’s drain in the bottom, or like Ron, our CPE, who is a big Michigan fan, tailgating. That's what he wants. Ice stuff for your beverage of choice.

So there's what the interior looks like, modern re-front if you would. I think we're going to try to play one thing from our Idris Elba's commercial just to get a feel of how it looks and moves. Idris by the way his dad worked 25 years at Ford and he worked too.

[Audio/Video Presentation]

Zero to 60, so if you guys happen go on and see the Ford Ferrari movie, which Ford was not involved in, and I happen to seen yesterday with the Mustang Club of California, this GT is zero to 60 in mid three second range that puts the same as like a Ferrari Portofino, that's fast. And that torque is available instantly.


I can tell you right now when we opened up the reservations 9:30 Eastern Time on Sunday night, these are flying out the door and they happen to be a lot of them in Grabber Blue. And because we did the first time, we've never ever done these $500 refundable deposits, they are flying. The first edition is flying as well. And I think also people are worried that they won't get the $7,500 federal tax credit that Ford has and certain other manufacturers do not have. So this is going phenomenally well and we will release some numbers later, not today.

And what's also important is 300 mile range. People are worried, it’s got up to 300 mile range. You can transit home up to 32 miles an hour if you get the Ford-connected wall box and up to 22 miles an hour if you get the free Ford charger that comes with it. You can access the Ford charging network. We’ve put a whole bunch of charging companies together, one easy pass in your Ford Pass app and you can get to over 12,000, it's now 12,500 chargers and on the fast charging you can charge up to 47 miles in 10 minutes. That's fast. For people who want to use and enjoy a performance vehicle, you need the option and by streaming these together with Greenlots and Electrify America, putting a whole roaming package on it, make it easy to find them in your car and on your phone. We've made it easy.

You can monitor your charging anywhere, what is status at home, on charge, preset the climate of the vehicle, everything else you want. And most importantly, you can enjoy peace of mind. 95% of the service of a vehicle handled at all our 3,000 Ford dealers, like your windshield wiper, something happens or whatever, we have 9,500 EV technicians already because Ford sold over 800,000 electrified vehicles which people don't know. Where you get most parts and 95% of the parts the next day over 2,000 dealers that will be EV certified, that's up almost I think double but don't quote me on that. And we've got all the collision centers. So you're not -- I won't have my vehicle available just because there's some like secrete difficult charge process to fix vehicles is not the case.

So reservations are out there, some of you could qualify, that’s a refundable thing. And these are the kind of products that we have available. Right now they start in 2020 at the end of the year. The GT is available in spring of next year, all the pricing information is on it, we've never done that before, made all that available so that you can order and we really wanted it both for customer reasons and company reasons, you pick the colors that you want.

Brian Johnson

Okay. Why don’t you leave that chart up just so we see the model on it?

Ted Cannis

Yes.

Question-and-Answer Session

Q - Brian Johnson


Okay. I was going to ask you about the specs, but you did a good job of covering that. I mean, is there any …?

Ted Cannis

Well, since you can't read it in those, maybe they don't know. 44,000 is where it starts. The premium edition that's out, that will come at the end of the year, next year it starts at about 50,000. And the GT starts at 60,000 and there's a performance version on the GT as well, before the federal tax credit. Now obviously, we've said and you probably don’t know this, I don't think we've released this publicly but so far we've used up 119,000 of our federal tax credit up to that 200,000 units and that includes bevs and the plug-ins. And as you know we have the Aviator plug-in coming out now, the Corsair plug-in coming out now and soon the Escape plug-in. So they will go quickly.

Brian Johnson

Right. So that's both good and bad, the bad is you may write at 200 relative quickly, the good is it creates call to action.

Ted Cannis

Yes. It's definitely call to action and we also said we can only build 50,000 globally the first year. We're battery limited. We got too -- the product became too good and now we need to find some more.


Brian Johnson

And in terms of the performance is that the same as the GT, I mean what's the fastest one and doesn't exist yet or …?

Ted Cannis

So the GT, which comes in spring is going to have the fastest, one of the version has mid-3.5 seconds. But if you take the premium one, an all-wheel drive it’s mid-5 seconds, which is equivalent to a Porsche Macan and almost around where Porsche Macan Turbo is. So really fast and because the power is instance it’s going to be a lot of fun.

Brian Johnson

Okay. And just going through some of the key features, your batteries, I think you got me what you can confirm or not confirm, it's been reported in the press, pouch cylinders from -- pouch design from [indiscernible], is that correct? Are you doing the pack? Are they doing the pack?

Ted Cannis

So the pouches are from LG Chem. And we're doing pouch cells ourselves. One of the reason we did this was this is designed for manufacturing versus thousand, thousands of cells as you know less complexity of the good thing. This is less than 400 cells in the larger pack. So the thermo cooling and heating is very good on pouch cells and the space operation is very good on pouch cells. So with all those factors combined and we've been using lithium-ion cells since 2012, we were one of the very first and so far, so that's -- we bring in the cells, but we make the pack.

Brian Johnson

And one of the things in the blogs devoted to EVs have been -- and I've done the same calculation, you look at the kilometers per kilowatt hour and it looks like you're in the 7-ish range, Tesla is in the mid-5 range. So do you want to comment on, I mean, A, is that directionally, right? And B, are there different -- B, do you have a different design considerations, whether it’s safety, durability? And C, doing a lot of consumer researches, really a number that only the kind of EV geeks of the geeks care about?

Ted Cannis

I think there's a lot of that because consumers have a lot more to worry about. So maybe in the industry -- I'm not going to say I'll provide you some other answers.

Brian Johnson

That's quite similar, we set the base HP for...

Ted Cannis

For a long time we tried to sell cars on fuel economy only, that doesn't work. So this car is about so emotion and excitement and as a total package of what you can do more, it's an SUV. So that means it's taller and heavier, because it's got more carrier space it puts more pressure on the tire patch as well. So that rolling resistance is different. So all of those facts are how many kilometers you can get, and the whole installed, because there's no standard in the industry of installed versus usable. So that creates all sorts of confusion in that. But we think we're going to be fully competitive for an SUV, and it's not best-in-class.

Brian Johnson

And in terms of the other features beyond electric, can you give us a sense, first of all, vis-à-vis OTA and connectivity, how different is -- just the user interface, how different is this from your typical Ford Sync, A? B, with this project Edison software team, did you use kind of Silicon Valley directly or indirectly, they do it or the traditional infotainment supply base and just a lot of those features you don't have to be electric to have OTA integrated infotainment screen or is this going to rollout broader for the Ford?

Ted Cannis

Yes, so a couple of things. On the software side, we -- the team that did this was a combination of that -- recreated the whole experience with many rounds of customer loops back in -- in beginning of 2018, was a combination of our user experience guys, our design guys and our guys who do coding for the HMI. And it was a combination of those 15 people that came over the...

Brian Johnson

[Guys, yes].

Ted Cannis


They were all on the team. It’s not I didn't know that they were related. So yes so there’s all on the team, and they did the work together, and then there's a huge production team. And when Ford added a lot more resources, we brought on a lot of the BlackBerry team a few years back, you might remember. So we do all of this coding in-house, which makes it very affordable and very fast. And because it's a new back-end architecture that allows much better natural language, this cloud-based information on traffic and nav and everything else. But it also is HTML interface on the front. So it's a website interface which makes much faster development and change times as well.

So, in the car end-to-end, we have almost everything is over-the-air update capable on the modules going forward.

Brian Johnson

That's been a subject because I've heard some criticism that will once a shift is done, you'll have to go back to your dealers, so could you maybe comment on that? And what are you planning? What's currently planned to be over OTA and what could be OTA?

Ted Cannis

Everything is planned to be OTA as required. So for sure your HMI will be doing improvements all the time. And obviously you want to load other information again where consumers can send the data off the car to improve the car. But it's everything. So the vehicle can improve all the time. That's where we are in the world now.

Brian Johnson

And just give us a sense, with over in the Corktown project Edison, how has really the development of this both the teamwork, the cross-functional your ability to draw upon Ford but not be bogged down by Ford different from the typical Ford vehicle launch?

Ted Cannis

So I -- this was a challenging thing to put the Mustang badge on a vehicle like this. As you can imagine, it's an SUV, like there would have been a long discussion, it's electric. So to make it to do those things required a whole new process, a start of a corporate sponsorship from the very top with content and frankly the name didn't go on until Bill and Jim said it was okay. And that means it could perform like a Mustang.

And to change this whole system, charging and a lot of it we use a lot of this human-centric design process, design thinking that Jim Hackett brought, so we did a lot of work with customers, with low fidelity prototypes early on like that Sync or like phone, consoles and how we did the front trunk, many things.

Brian Johnson

We’ve avoided to talk about Tesla until now, you've alluded to it but just like, how would you compare this to what may or may not be coming with the Model Y, if you're sitting in the showroom?

Ted Cannis

I mean, we got -- we think we got a lot of opportunity, because the Mustang brand alone is -- it cuts through the clutter right away. We think the styling and the proportions and its total package of software capabilities in a vehicle, the way we laid out the space and the way it's so exciting, plus, it's massive support of the massive dealer network that we have and this charging system that allows you to keep together all the different charging companies, which is very difficult if you own one today, you know you have to go get many different cards, one place to pay, we think we've made it really easy. So I think we're in great shape.

Brian Johnson

And in terms of service, I mean you probably have statistics. Typical buyer would be how many Ford dealers in his or her radius?

Ted Cannis

Since we have more branded dealers than anybody else, a lot. There's a Ford dealer near you no matter where you live in the U.S..

Brian Johnson

And in terms of just a broader EV strategy, just maybe very quickly. What are the models to look forward to in the U.S. rough cut timing where you've talked about electric F-150? And then just maybe very high level, you alluded to the Volkswagen partnership, what's the EV strategy in Europe? And is your team involved? Or is that Volkswagen working with Ford Europe?


Ted Cannis

No, so obviously, because the Volkswagen thing spans a lot of different teams, commercial vehicles, autonomous and electric, so we're like involved in all the electric partnerships, it’s kind of a total system strategy. So even the Mahindra discussions and Rivian as well. So here we've announced that obviously we're going to have the F-150 battery electric. This vehicle will ship both the U.S. and Europe at the same time next year. And then we also have with the Volkswagen guys in 2023, the first vehicle off that platform with them. We've also announced in Europe we will have a two ton transit van again leaning into the icons that we have. So we got a lot more work coming on this besides that.

Brian Johnson

And when is the timing of transit van, roughly?

Ted Cannis

We haven't said.

Brian Johnson

Okay.

Ted Cannis

Not so far off.

Brian Johnson

Okay. Let's pull up a couple of ARS questions. Now back to your old job.

Ted Cannis

Old jobs, so 2 jobs ago. Sell-side consensus 1.35 too high, too low, about right. It's more input for [Vitali] and [Jeff] and [Glen]. So still -- some people think it's about right, some people think it could go down. PE multiple next question. And then I will get your reaction to this, because you were in this job but also kind of 5x to 5x to 6x to 7x to 8x. It's not loss on us that the other American EV player or one of the other players trades at umpteen times, earnings, more price to sales. GM is probably -- we were discussing earlier kind of 5x to 6x, but things to do. So I mean, one perception for the low multiple for the U.S. OEMs is the EV threat. So, when you think about your job, running IR and you think about the current multiple, which is still around 7 remains GM.

Brian Johnson

How do you think what you're doing now fits into where the multiples should be on Ford Motor Co?

Ted Cannis

I think our part role in it, if you're looking at growth, risks and returns, our role is where's the growth and are we improving the returns on the electrification business? Are we creating demand so that the margins are better and less of a challenge for the business as we make this transition? And we think by focusing on these real strengths that we have where the customer base is so strong and if we make awesome products, and we're going to have more announcements, apparently later tonight, but with even on that one with 42 years of history on this vehicle, it's going to be we've always played the best never rest. We're going to lead and if there's a little bit more enthusiasm in the battery electric pickup space, I'm delighted. We've got an F-150 hybrid coming shortly. We got a full battery electric coming shortly. And we know tough trucks, we build trucks for real people that really work and they actually need their trucks to be working every single day all the time. So we think this couldn't get any better.

Brian Johnson

So thank you very much, Ted.

Ted Cannis

Thanks a lot.
 
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