1
00:00:02,480 --> 00:00:10,400
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. I'm Hannah Elliott and

2
00:00:10,400 --> 00:00:11,080
Speaker 1: I'm Matt Miller.

3
00:00:11,240 --> 00:00:13,160
Speaker 2: This is Hot Pursuit.

4
00:00:17,800 --> 00:00:18,240
Speaker 3: This week.

5
00:00:18,280 --> 00:00:20,840
Speaker 1: Matt is in Detroit at the Detroit Auto Show, where

6
00:00:20,880 --> 00:00:24,520
Speaker 1: he just sat down with Ford CEO Jim Farley and

7
00:00:24,800 --> 00:00:29,360
Speaker 1: the CEO of Oracle Red Bull Racing, plus four time

8
00:00:29,720 --> 00:00:34,320
Speaker 1: world champion and Red Bull Racing driver Max Verstappen joins

9
00:00:34,400 --> 00:00:38,360
Speaker 1: us later on, and I'm working on a story about Tesla,

10
00:00:39,040 --> 00:00:42,560
Speaker 1: specifically why people are leaving Tesla, and here's the hint,

11
00:00:42,680 --> 00:00:47,120
Speaker 1: it's not just about Elon. First, let me tell you

12
00:00:47,159 --> 00:00:52,199
Speaker 1: about this Tesla story, which came to us really based

13
00:00:52,240 --> 00:00:57,000
Speaker 1: on the news that by D had finally surpassed Tesla

14
00:00:57,760 --> 00:01:01,240
Speaker 1: as the best selling EV maker in the world, which

15
00:01:01,280 --> 00:01:03,640
Speaker 1: is a really big deal. Tesla had such a long

16
00:01:03,680 --> 00:01:07,000
Speaker 1: head start. Let's not forget Tesla was making cars electric

17
00:01:07,000 --> 00:01:09,440
Speaker 1: cars as far back as twenty twelve and even before.

18
00:01:09,480 --> 00:01:12,360
Speaker 1: But really the Modelsque came out in twenty twelve, and

19
00:01:12,480 --> 00:01:16,760
Speaker 1: at that time, Tesla was really the only player in

20
00:01:16,800 --> 00:01:20,039
Speaker 1: the game, so to speak, for evs. Now, of course

21
00:01:20,120 --> 00:01:25,240
Speaker 1: there are basically every automaker has an electric vehicle option,

22
00:01:26,080 --> 00:01:31,080
Speaker 1: so it's interesting that now the head start has basically

23
00:01:31,120 --> 00:01:34,440
Speaker 1: worn off. Obviously, the Chinese automakers have really caught up

24
00:01:35,040 --> 00:01:38,280
Speaker 1: in terms of being able to make new cars fast, affordable,

25
00:01:38,440 --> 00:01:42,800
Speaker 1: and very well made, and that has really eaten Tesla's lunch.

26
00:01:42,880 --> 00:01:45,760
Speaker 1: But there are some other reasons too why, especially buyers

27
00:01:45,760 --> 00:01:50,080
Speaker 1: in America, are leaving Tesla. We've known that there have

28
00:01:50,160 --> 00:01:55,160
Speaker 1: been pools of buyers who have been uncomfortable with Elon

29
00:01:55,280 --> 00:01:59,200
Speaker 1: Musk and some of his political posturing, some of his

30
00:01:59,360 --> 00:02:03,080
Speaker 1: antiics of his workplace behavior, et cetera, et cetera. But

31
00:02:03,200 --> 00:02:07,800
Speaker 1: actually there's a bigger contingent of folks who were uncomfortable

32
00:02:07,800 --> 00:02:11,120
Speaker 1: with bull with him maybe, but actually kept onto their

33
00:02:11,160 --> 00:02:14,160
Speaker 1: cars until recently. And now we're seeing sort of a

34
00:02:14,160 --> 00:02:17,600
Speaker 1: gradual eroding of some of these buyers who are deciding

35
00:02:17,639 --> 00:02:20,960
Speaker 1: to go into other things, maybe a Rivian, maybe an

36
00:02:20,960 --> 00:02:24,000
Speaker 1: electric car from Porscha, maybe go back to a hybrid

37
00:02:24,080 --> 00:02:26,679
Speaker 1: or even a nice vehicle. So we'll have a lot

38
00:02:26,680 --> 00:02:30,040
Speaker 1: more on that next week. This week, Matt is reporting

39
00:02:30,040 --> 00:02:33,000
Speaker 1: from the Detroit Auto Show. He sat down with Ford

40
00:02:33,120 --> 00:02:37,520
Speaker 1: CEO Jim Farley and Oracle Red Bull Racing CEO Laurent Macase.

41
00:02:38,200 --> 00:02:41,000
Speaker 4: It's a pleasure gentlemen, I'm very excited as a.

42
00:02:40,919 --> 00:02:44,160
Speaker 3: Fan of the brand and the league.

43
00:02:44,240 --> 00:02:47,280
Speaker 4: And let me start Laurent with you, because you've said

44
00:02:47,960 --> 00:02:50,600
Speaker 4: that this is the steepest hill F one has ever

45
00:02:50,639 --> 00:02:53,639
Speaker 4: had to climb. New regulations this year are sweeping. It's

46
00:02:53,680 --> 00:02:57,560
Speaker 4: not just a tweak here and there. And you're starting

47
00:02:57,560 --> 00:03:01,320
Speaker 4: with the brand new partner with who is going to

48
00:03:01,360 --> 00:03:04,760
Speaker 4: build the engine with you as a collaboration. Why choose

49
00:03:04,800 --> 00:03:05,600
Speaker 4: Ford as a partner?

50
00:03:06,560 --> 00:03:09,200
Speaker 5: You know, at first, you're right, you know it's it's

51
00:03:09,240 --> 00:03:12,520
Speaker 5: the biggest regulation change probably in the history of Formula one,

52
00:03:12,600 --> 00:03:15,200
Speaker 5: at least in the modern history.

53
00:03:14,919 --> 00:03:15,520
Speaker 3: Of Formula One.

54
00:03:15,840 --> 00:03:18,560
Speaker 5: And it's also on that very same year that we

55
00:03:18,800 --> 00:03:22,360
Speaker 5: chose the let me say, crazy challenge to go and

56
00:03:22,360 --> 00:03:24,359
Speaker 5: build out our own poe in it. And if you

57
00:03:24,480 --> 00:03:27,400
Speaker 5: do that, you want to partner with the best. And

58
00:03:27,919 --> 00:03:31,280
Speaker 5: we are in a lucky positions where we have managed

59
00:03:31,320 --> 00:03:36,360
Speaker 5: to strike this strategic technical partnership with Ford in this

60
00:03:36,520 --> 00:03:40,480
Speaker 5: crazy advantage of building from absolutely zero our own point

61
00:03:40,520 --> 00:03:43,320
Speaker 5: in it and we go together in these new regulations.

62
00:03:43,600 --> 00:03:47,760
Speaker 4: Jim, for you, this must be exciting because you built

63
00:03:48,200 --> 00:03:52,600
Speaker 4: honestly a new legacy for Ford in terms of racing.

64
00:03:52,640 --> 00:03:54,160
Speaker 4: I mean on the one hand, you've got the new

65
00:03:54,200 --> 00:03:58,680
Speaker 4: industrialized America here. On the other hand, you're going back

66
00:03:58,720 --> 00:04:02,560
Speaker 4: to the mall with the hypercar in a couple of years.

67
00:04:02,560 --> 00:04:05,280
Speaker 2: You're essentially doing DFV two point zero. Right.

68
00:04:05,320 --> 00:04:08,640
Speaker 4: This is like the cause worth of old. Why do

69
00:04:08,720 --> 00:04:10,760
Speaker 4: you when you're talking to Bill Ford, when you're talking

70
00:04:10,800 --> 00:04:13,720
Speaker 4: to shareholders, how do you justify this, this spend and

71
00:04:13,760 --> 00:04:15,600
Speaker 4: this you know drive to go racing.

72
00:04:16,040 --> 00:04:16,760
Speaker 2: Well, a couple of things.

73
00:04:16,800 --> 00:04:20,640
Speaker 6: First of all, the tech transfer, Uh, this sport that

74
00:04:20,760 --> 00:04:24,360
Speaker 6: Laurent leads, this team that Laurent leads, you know, leader

75
00:04:24,360 --> 00:04:29,200
Speaker 6: and aerodynamics, predictive failure components and software, software control of

76
00:04:29,240 --> 00:04:32,760
Speaker 6: the hybrid system, high dis charge batteries. These are all

77
00:04:32,839 --> 00:04:35,760
Speaker 6: core capabilities that we need for the next five to

78
00:04:35,800 --> 00:04:38,640
Speaker 6: ten years as a company. So the tech transfer is

79
00:04:38,760 --> 00:04:42,600
Speaker 6: very relevant for us. Like maybe four valves or overhead

80
00:04:42,600 --> 00:04:45,600
Speaker 6: cams were in the sixties, you know, but the tech

81
00:04:45,600 --> 00:04:49,239
Speaker 6: transfer is totally different today. Formula one is complete digital

82
00:04:49,240 --> 00:04:52,160
Speaker 6: sport and that's where we're going as a company.

83
00:04:52,440 --> 00:04:57,840
Speaker 2: Number one. Number two is you know, racing, especially in the.

84
00:04:57,839 --> 00:05:02,040
Speaker 6: Offer all world gives us credit ability for customers that

85
00:05:02,120 --> 00:05:06,719
Speaker 6: the product they buy has real capability. That's been tested

86
00:05:06,760 --> 00:05:10,400
Speaker 6: in a way that a brand who doesn't race can't say.

87
00:05:10,800 --> 00:05:13,520
Speaker 2: And that's what portion Ferrari knew for a long time.

88
00:05:14,080 --> 00:05:17,839
Speaker 6: Especially for us in the off road world, this is

89
00:05:17,920 --> 00:05:23,039
Speaker 6: really important. Racing is a fundamental part of our company's

90
00:05:23,320 --> 00:05:29,039
Speaker 6: business because to beat all the great off road brands

91
00:05:29,200 --> 00:05:33,280
Speaker 6: and to establish ourselves now we're two x Cheep sales

92
00:05:33,320 --> 00:05:36,240
Speaker 6: in the US. To keep that going and keep growing

93
00:05:36,279 --> 00:05:40,600
Speaker 6: the off road brand. Off road racing into car Baha

94
00:05:40,760 --> 00:05:44,320
Speaker 6: is where our customers will say, Hey, that Forward has

95
00:05:44,360 --> 00:05:45,559
Speaker 6: the real deal.

96
00:05:45,720 --> 00:05:48,480
Speaker 2: It's the real deal. It's not a poser product.

97
00:05:49,520 --> 00:05:52,760
Speaker 6: So racing is integral into our credibility as a company.

98
00:05:53,160 --> 00:05:56,000
Speaker 4: And you've obviously got a deep, rich history there and

99
00:05:56,040 --> 00:06:01,600
Speaker 4: you're bringing your software and battery technology, those capabilities to

100
00:06:02,560 --> 00:06:05,359
Speaker 4: red Bull Racing. But for you, Ron, this is a

101
00:06:05,400 --> 00:06:07,640
Speaker 4: whole new thing right building the engine. I know you're

102
00:06:07,640 --> 00:06:09,679
Speaker 4: getting a lot of help fromport. What are they helping

103
00:06:09,680 --> 00:06:11,560
Speaker 4: you on the fuel side?

104
00:06:11,839 --> 00:06:14,719
Speaker 5: Looks that have been helping us on many different topics,

105
00:06:14,720 --> 00:06:17,120
Speaker 5: and at least of topics is expanding every day. But

106
00:06:17,200 --> 00:06:19,560
Speaker 5: let me give you a couple of practical examples.

107
00:06:20,960 --> 00:06:23,080
Speaker 2: Gym's team have unique.

108
00:06:22,920 --> 00:06:28,800
Speaker 5: Advanced manufacturing capabilities that we use to produce some of

109
00:06:28,839 --> 00:06:31,440
Speaker 5: the most critical parts of our engine. And not only

110
00:06:31,440 --> 00:06:34,760
Speaker 5: is the able to manufacture this path for us, but

111
00:06:34,839 --> 00:06:37,560
Speaker 5: also they do it in less time than we will

112
00:06:37,600 --> 00:06:40,320
Speaker 5: do otherwise, and that gives us a crucial you know,

113
00:06:40,360 --> 00:06:43,320
Speaker 5: our businesses is the time to market business, equally the

114
00:06:43,360 --> 00:06:45,279
Speaker 5: time to raise business. And when we are able to

115
00:06:45,760 --> 00:06:49,600
Speaker 5: manufacture complex components in a short amount of time at

116
00:06:49,600 --> 00:06:52,480
Speaker 5: this incredible level of quality that we are looking for,

117
00:06:52,720 --> 00:06:55,400
Speaker 5: that's a key compet competitive advantage.

118
00:06:55,160 --> 00:06:57,640
Speaker 4: Especially since I think you've said you gave up some

119
00:06:57,680 --> 00:07:01,000
Speaker 4: time focused on last year's car, so you're in a

120
00:07:01,120 --> 00:07:03,960
Speaker 4: hurry to make sure that this year, this new car,

121
00:07:04,080 --> 00:07:07,360
Speaker 4: when Max gets in it in Bahrain, right, that it's

122
00:07:07,360 --> 00:07:09,680
Speaker 4: a winner and not a learning moment. How do you

123
00:07:10,120 --> 00:07:12,040
Speaker 4: make sure that you're winning straight out of the game.

124
00:07:12,600 --> 00:07:13,880
Speaker 5: You know you will have to be with us a

125
00:07:13,920 --> 00:07:18,160
Speaker 5: little bit the sky. The scale of the challenge is monumental.

126
00:07:19,320 --> 00:07:22,840
Speaker 5: We we we are starting. We have started to design

127
00:07:22,880 --> 00:07:24,840
Speaker 5: and build these engines in what was a field.

128
00:07:24,880 --> 00:07:25,120
Speaker 4: You know.

129
00:07:25,160 --> 00:07:28,120
Speaker 5: We we we've made the factory, We've bought the dino,

130
00:07:28,640 --> 00:07:32,200
Speaker 5: We've we've put together an unbelievable group of people and

131
00:07:32,280 --> 00:07:35,720
Speaker 5: group of partners such as GIM and Tys team, And

132
00:07:36,560 --> 00:07:40,280
Speaker 5: it will be foolish a knife to think that from

133
00:07:40,480 --> 00:07:42,800
Speaker 5: the first day you are going to be at the

134
00:07:42,800 --> 00:07:44,520
Speaker 5: same level than people that have been doing it for

135
00:07:44,640 --> 00:07:45,160
Speaker 5: nine years.

136
00:07:45,600 --> 00:07:47,480
Speaker 2: So bear with us.

137
00:07:48,160 --> 00:07:52,120
Speaker 5: It will it will give us a few sleepless nights,

138
00:07:52,160 --> 00:07:55,040
Speaker 5: It will give us a few headaches. We feel we

139
00:07:55,080 --> 00:07:58,239
Speaker 5: have the right people, the right tools, the right spirit

140
00:07:58,880 --> 00:08:02,360
Speaker 5: across what red means, on what fold means. We have

141
00:08:02,400 --> 00:08:04,600
Speaker 5: once really come out off up. But as the first

142
00:08:04,640 --> 00:08:07,680
Speaker 5: few months weeks via Foo the floodings, Jim, what can

143
00:08:07,720 --> 00:08:09,760
Speaker 5: you bring back from this?

144
00:08:11,080 --> 00:08:15,760
Speaker 4: I guess laboratory if you will, to the forward customer

145
00:08:15,760 --> 00:08:18,520
Speaker 4: here in America, because yesterday we saw figures from the

146
00:08:18,560 --> 00:08:20,960
Speaker 4: Bureau of Labor and Statistics that showed prices for the

147
00:08:21,000 --> 00:08:23,880
Speaker 4: average passenger car not Forward, but you know across the

148
00:08:23,880 --> 00:08:26,640
Speaker 4: industry are up more than five hundred dollars. Prices for

149
00:08:26,680 --> 00:08:29,520
Speaker 4: the average truck across the industry are up more than

150
00:08:29,560 --> 00:08:30,440
Speaker 4: one thousand dollars.

151
00:08:30,520 --> 00:08:31,920
Speaker 3: What can you bring back.

152
00:08:31,680 --> 00:08:34,679
Speaker 4: That you know puts value into those price increases?

153
00:08:35,480 --> 00:08:39,880
Speaker 6: Well, Matt, I think Lauren said it really well. If

154
00:08:40,559 --> 00:08:45,079
Speaker 6: there was an initial premise of what those transfer technologies

155
00:08:45,080 --> 00:08:47,720
Speaker 6: would be to help the company. But what we're learning

156
00:08:47,800 --> 00:08:50,560
Speaker 6: working with him over the last several years is actually

157
00:08:50,640 --> 00:08:54,439
Speaker 6: that list is growing and it's more diverse than we thought.

158
00:08:55,080 --> 00:08:55,679
Speaker 2: Of course, we.

159
00:08:55,640 --> 00:09:00,080
Speaker 6: Thought it was arrow and high discharge batteries for performance hybrids. Well,

160
00:09:00,120 --> 00:09:03,320
Speaker 6: now it turns out performance hybrids are really important for

161
00:09:03,360 --> 00:09:07,040
Speaker 6: the company. Twenty f one fifty is now hybrid sales.

162
00:09:07,640 --> 00:09:10,319
Speaker 6: People are buying it because of pro power on board, not.

163
00:09:10,280 --> 00:09:11,640
Speaker 2: Just because of efficiency.

164
00:09:12,160 --> 00:09:16,000
Speaker 6: And every day, honestly, the list of things that we

165
00:09:16,040 --> 00:09:19,560
Speaker 6: can take from the effort with Ur on his team

166
00:09:20,160 --> 00:09:23,360
Speaker 6: is the sport is so hard and the time pressure

167
00:09:23,440 --> 00:09:27,080
Speaker 6: is so high that list is getting longer every day.

168
00:09:27,120 --> 00:09:29,680
Speaker 6: I could give you a long list, and most of

169
00:09:29,720 --> 00:09:32,840
Speaker 6: the value that we're seeing on the tech transfer side

170
00:09:32,920 --> 00:09:34,760
Speaker 6: are things that we didn't even have on the list

171
00:09:34,800 --> 00:09:35,840
Speaker 6: when we started.

172
00:09:35,480 --> 00:09:36,559
Speaker 2: Four years ago.

173
00:09:36,920 --> 00:09:40,200
Speaker 6: It's a long list, But I would say that the

174
00:09:40,240 --> 00:09:45,240
Speaker 6: real signature is for me is really the software, the

175
00:09:45,280 --> 00:09:49,480
Speaker 6: control software for the hybrid system predictive failure components. These

176
00:09:49,520 --> 00:09:52,960
Speaker 6: are the essence of the new software defined vehicle globally

177
00:09:53,240 --> 00:09:56,000
Speaker 6: to beat China, and they are really good.

178
00:09:56,480 --> 00:09:59,000
Speaker 2: We need these capabilities from Formula one and we can

179
00:09:59,080 --> 00:10:00,440
Speaker 2: put them right into tra is it van.

180
00:10:01,480 --> 00:10:05,840
Speaker 6: He can help us with the you know, language models

181
00:10:06,080 --> 00:10:09,599
Speaker 6: and the logic of predictive failure for a component on

182
00:10:09,640 --> 00:10:12,000
Speaker 6: a Formula one race, where you can use that same

183
00:10:12,720 --> 00:10:16,880
Speaker 6: know how hopefully to help our customers in a transit

184
00:10:17,040 --> 00:10:19,040
Speaker 6: know that something's going to break way before it breaks.

185
00:10:20,000 --> 00:10:22,600
Speaker 6: And that's the same capability he has to deliver firmax.

186
00:10:23,600 --> 00:10:27,600
Speaker 6: This is really the cool part of Formula one. It

187
00:10:27,679 --> 00:10:31,880
Speaker 6: is such a high pressure, high tech sport that actually

188
00:10:31,960 --> 00:10:37,280
Speaker 6: the list of value, like lubrication, it's just going to.

189
00:10:37,320 --> 00:10:38,120
Speaker 2: Keep getting longer.

190
00:10:38,440 --> 00:10:41,480
Speaker 4: Laura, the President of the United States, was with Jim

191
00:10:41,480 --> 00:10:45,320
Speaker 4: a couple of days ago here touring their plants. As

192
00:10:46,200 --> 00:10:49,920
Speaker 4: the US turns more inward. It's interesting that you're participating

193
00:10:49,920 --> 00:10:54,000
Speaker 4: in this sort of global sport, right. We just learned

194
00:10:54,160 --> 00:10:57,760
Speaker 4: of new visa restrictions on people from many nations, including Brazil.

195
00:10:58,640 --> 00:11:02,560
Speaker 4: Do you find it harder to get people in to Miami,

196
00:11:02,640 --> 00:11:05,160
Speaker 4: to Las Vegas, to Austin. I know there have been

197
00:11:05,200 --> 00:11:07,040
Speaker 4: problems already holding up gear at the border.

198
00:11:08,400 --> 00:11:10,160
Speaker 5: Really, you know, it's it's not an issue today.

199
00:11:10,200 --> 00:11:11,480
Speaker 3: We are we are global sport.

200
00:11:11,559 --> 00:11:14,120
Speaker 5: As you have said, we are enjoying racing in pretty

201
00:11:14,160 --> 00:11:16,200
Speaker 5: much every part of the world or nearly every part

202
00:11:16,240 --> 00:11:21,439
Speaker 5: of the world. We have incredible logistic capabilities, which is

203
00:11:21,480 --> 00:11:24,640
Speaker 5: also some things that we have brunstorming and exchanging with

204
00:11:24,640 --> 00:11:27,560
Speaker 5: with with Jim and his team, and and and these

205
00:11:27,600 --> 00:11:32,319
Speaker 5: teams together with the help of Formula one, makes it very,

206
00:11:32,559 --> 00:11:34,760
Speaker 5: very smooth to go wrong. And we were back to

207
00:11:34,840 --> 00:11:39,200
Speaker 5: back races from the US to the opposite side of

208
00:11:39,200 --> 00:11:42,040
Speaker 5: the globe without without any issue. So you know, uh,

209
00:11:42,160 --> 00:11:44,520
Speaker 5: it's it's a privilege that the sport have as a

210
00:11:44,520 --> 00:11:47,000
Speaker 5: global spot to be able to move around very freely.

211
00:11:47,280 --> 00:11:50,200
Speaker 4: Jim, how are your discussions with President Trump? I know

212
00:11:50,280 --> 00:11:55,040
Speaker 4: that you have pointed out in the past that the

213
00:11:55,080 --> 00:11:57,439
Speaker 4: tariffs as they're set up now, as they're designed to

214
00:11:57,480 --> 00:12:00,480
Speaker 4: put you at a disadvantage to somebody, even an American

215
00:12:00,679 --> 00:12:04,800
Speaker 4: auto manufacturer that produces in South Korea or Japan for sure.

216
00:12:05,880 --> 00:12:07,840
Speaker 4: Have you had a chance talking to President Have you

217
00:12:07,880 --> 00:12:09,920
Speaker 4: made any progress in getting many carve outs.

218
00:12:10,080 --> 00:12:10,920
Speaker 2: We're really encouraged.

219
00:12:10,960 --> 00:12:13,600
Speaker 6: I mean, look, Ford is the most American car company.

220
00:12:13,679 --> 00:12:16,720
Speaker 6: We produce the most, most hourly workers, we export the most,

221
00:12:17,080 --> 00:12:19,400
Speaker 6: and so the administration has been great to work with.

222
00:12:19,640 --> 00:12:23,080
Speaker 6: They always answer the phone, but there's a long list

223
00:12:23,120 --> 00:12:26,160
Speaker 6: of things we got to work through. I think we've

224
00:12:26,200 --> 00:12:28,920
Speaker 6: made progress on mitigating some of the tariffs, but we

225
00:12:28,960 --> 00:12:31,720
Speaker 6: have more work to do. For US, we have a

226
00:12:31,760 --> 00:12:33,560
Speaker 6: high exposure aluminum, for example.

227
00:12:34,920 --> 00:12:36,680
Speaker 2: The EPA changes are.

228
00:12:36,559 --> 00:12:41,120
Speaker 6: Really welcome, frankly, and we're seeing that play out really

229
00:12:41,120 --> 00:12:44,720
Speaker 6: in our business. Part of the reasons why our valuations

230
00:12:44,800 --> 00:12:48,040
Speaker 6: increasing is because people understand we can build more profitable

231
00:12:48,120 --> 00:12:50,559
Speaker 6: vehicles now and that's more employment in the US.

232
00:12:50,760 --> 00:12:51,720
Speaker 2: But there's a long list.

233
00:12:51,760 --> 00:12:55,559
Speaker 6: We got the USMCA coming up, very important negotiation for Ford.

234
00:12:56,000 --> 00:12:57,800
Speaker 2: We need to change USMCA.

235
00:12:58,080 --> 00:13:02,640
Speaker 6: But we built our entire vehicle business as an industry

236
00:13:02,679 --> 00:13:05,640
Speaker 6: between Canada, Mexico and the US. We have to get

237
00:13:05,640 --> 00:13:09,520
Speaker 6: this revised, but it will be very important. I think

238
00:13:09,760 --> 00:13:13,080
Speaker 6: continue to work with administration on tariffs, how we handle

239
00:13:13,160 --> 00:13:13,680
Speaker 6: the China.

240
00:13:14,440 --> 00:13:16,559
Speaker 2: You know, if you look at what's happening in Europe.

241
00:13:16,320 --> 00:13:18,960
Speaker 6: Right now in the UK, the Chinese are now quickly

242
00:13:18,960 --> 00:13:22,560
Speaker 6: almost ten percent of the marketplace and electric cars even higher.

243
00:13:23,080 --> 00:13:25,360
Speaker 6: They pose a lot of threat to labor locally.

244
00:13:25,640 --> 00:13:26,400
Speaker 2: They have huge.

245
00:13:26,200 --> 00:13:29,520
Speaker 6: Subsidies from the government that they're exporting. As a country,

246
00:13:29,760 --> 00:13:32,080
Speaker 6: we need to decide how what is a fair playing

247
00:13:32,120 --> 00:13:33,319
Speaker 6: field from a cost.

248
00:13:33,640 --> 00:13:36,480
Speaker 2: How do we handle you know, these vehicles.

249
00:13:36,480 --> 00:13:39,200
Speaker 6: If we're scared of a balloon, you can imagine a

250
00:13:39,200 --> 00:13:43,120
Speaker 6: car with ten cameras that can drive itself. You know,

251
00:13:43,160 --> 00:13:47,679
Speaker 6: these are incredibly sophisticated technologies. And when we deploy that

252
00:13:47,800 --> 00:13:50,439
Speaker 6: in China, it has to be approved by their defense

253
00:13:50,480 --> 00:13:54,240
Speaker 6: department because you know, those vehicles can be guided into

254
00:13:54,280 --> 00:13:55,200
Speaker 6: all sorts of things.

255
00:13:55,480 --> 00:13:57,520
Speaker 2: Well, we need the same. You know, we have a.

256
00:13:57,480 --> 00:14:00,280
Speaker 6: Good starting point for that philosophy of the its give

257
00:14:00,360 --> 00:14:01,280
Speaker 6: the vehicle.

258
00:14:01,320 --> 00:14:02,439
Speaker 2: The digital footprint.

259
00:14:02,840 --> 00:14:04,760
Speaker 6: Now we have to, you know, make sense of that

260
00:14:04,880 --> 00:14:08,240
Speaker 6: for the China threat. I know that the President talked

261
00:14:08,240 --> 00:14:10,720
Speaker 6: about that during his visit at the Economic Club.

262
00:14:10,760 --> 00:14:14,120
Speaker 2: How do we handle Chinese cars? Now? His personal opinion

263
00:14:14,280 --> 00:14:15,320
Speaker 2: was we should let.

264
00:14:15,240 --> 00:14:18,640
Speaker 6: Them into the US, but maybe, you know, I think

265
00:14:18,679 --> 00:14:19,480
Speaker 6: we need to work.

266
00:14:19,320 --> 00:14:23,120
Speaker 2: Through that as a as a company and as a country.

267
00:14:23,680 --> 00:14:24,800
Speaker 2: I think there's always a.

268
00:14:24,720 --> 00:14:27,320
Speaker 6: Lot of big topics for the car industry because it's

269
00:14:27,360 --> 00:14:29,520
Speaker 6: so important for our country.

270
00:14:29,800 --> 00:14:32,800
Speaker 4: Well, we'll be covering all of those here in Detroit

271
00:14:32,840 --> 00:14:35,040
Speaker 4: with you, Jim and you Laurent. Thank you so much

272
00:14:35,080 --> 00:14:35,680
Speaker 4: for joining us.

273
00:14:36,120 --> 00:14:38,120
Speaker 1: And that was Matt Millar coming to you from the

274
00:14:38,120 --> 00:14:41,920
Speaker 1: Detroit Auto Show. Coming up oracle. Red Bull Racing driver

275
00:14:42,120 --> 00:14:45,000
Speaker 1: Max Verstapan you might have heard of him, joins us.

276
00:14:45,400 --> 00:14:55,480
Speaker 1: I'm Hannah Elliott. This is Hot Pursuit. Welcome back to

277
00:14:55,560 --> 00:14:59,000
Speaker 1: Hot Pursuit. I am very excited for our next guest.

278
00:14:59,120 --> 00:15:03,040
Speaker 1: He needs no introduction from Red Bull Racing. Four time

279
00:15:03,320 --> 00:15:06,560
Speaker 1: F one world champion Max first happened. He spoke with

280
00:15:06,680 --> 00:15:07,360
Speaker 1: R Matt Miller.

281
00:15:07,760 --> 00:15:08,080
Speaker 3: Max.

282
00:15:08,800 --> 00:15:11,560
Speaker 4: The second half of last season was about as exciting

283
00:15:11,640 --> 00:15:14,200
Speaker 4: as they get. You were at a one hundred and

284
00:15:14,240 --> 00:15:17,200
Speaker 4: four point deficit but ended up only missing out by

285
00:15:17,200 --> 00:15:18,640
Speaker 4: two points in the last race.

286
00:15:18,680 --> 00:15:21,000
Speaker 3: How did it feel to you? Take it raise race?

287
00:15:21,040 --> 00:15:23,120
Speaker 7: To be honest, you know, we had a bit of

288
00:15:23,120 --> 00:15:25,960
Speaker 7: a tough yeah, first alf A, you know, some good

289
00:15:26,000 --> 00:15:28,840
Speaker 7: moments and some bad moments and a bit of a yeah,

290
00:15:28,960 --> 00:15:31,880
Speaker 7: tough start. But second half is a lot more enjoyable.

291
00:15:32,800 --> 00:15:33,000
Speaker 3: Yeah.

292
00:15:33,040 --> 00:15:34,800
Speaker 7: Also on the team side, like you know, you you

293
00:15:34,880 --> 00:15:37,800
Speaker 7: start to feel more comfortable confident when.

294
00:15:37,640 --> 00:15:38,840
Speaker 3: Things are are going well.

295
00:15:38,880 --> 00:15:40,360
Speaker 7: Of course, even in the second half we had a

296
00:15:40,360 --> 00:15:45,640
Speaker 7: few tough races, but overall way more competitive and I

297
00:15:45,640 --> 00:15:48,400
Speaker 7: think it's always nicer to have to end the season

298
00:15:48,440 --> 00:15:48,760
Speaker 7: like that.

299
00:15:49,120 --> 00:15:51,240
Speaker 4: I mean, it was a great way to end, even

300
00:15:51,280 --> 00:15:55,480
Speaker 4: if you know you didn't win the Ultimate Championship, but

301
00:15:55,640 --> 00:15:58,840
Speaker 4: I can't imagine working that hard with that set of

302
00:15:58,880 --> 00:16:02,360
Speaker 4: tools and then having to switch to a completely new

303
00:16:02,440 --> 00:16:06,680
Speaker 4: set of tools this year in like this most serious

304
00:16:06,760 --> 00:16:08,640
Speaker 4: rule change that Formula One has had, at least in

305
00:16:08,680 --> 00:16:09,240
Speaker 4: my memory.

306
00:16:10,120 --> 00:16:12,240
Speaker 7: Yeah, but I mean you know that even heading into

307
00:16:12,280 --> 00:16:14,560
Speaker 7: that season, right, so it's not like it comes as

308
00:16:14,560 --> 00:16:17,920
Speaker 7: a shock. The team is prepared for that, and it's

309
00:16:17,960 --> 00:16:19,840
Speaker 7: also a bit of a new challenge. I mean, I

310
00:16:19,960 --> 00:16:22,720
Speaker 7: enjoyed the cars the last three years, but at the

311
00:16:22,720 --> 00:16:26,240
Speaker 7: same time, sometimes, yeah, it doesn't doesn't hurt to have

312
00:16:26,760 --> 00:16:30,200
Speaker 7: a bit of a change, yet it can also really

313
00:16:30,280 --> 00:16:33,200
Speaker 7: upset of course the grit you don't know, So yeah,

314
00:16:33,240 --> 00:16:34,560
Speaker 7: we'll see how that how that goes.

315
00:16:34,760 --> 00:16:36,240
Speaker 4: How do you think the rule changes are going to

316
00:16:36,320 --> 00:16:38,000
Speaker 4: benefit you as opposed to the rest.

317
00:16:37,800 --> 00:16:38,200
Speaker 2: Of the group.

318
00:16:38,960 --> 00:16:40,040
Speaker 3: I honestly have no idea.

319
00:16:40,200 --> 00:16:42,680
Speaker 7: I haven't even done that many laps in the simulator,

320
00:16:42,800 --> 00:16:45,520
Speaker 7: you know, So for me, I'll just see what happens

321
00:16:45,520 --> 00:16:47,280
Speaker 7: when I sit in the car. I think what is

322
00:16:47,320 --> 00:16:49,160
Speaker 7: always very important as the driver is that you can

323
00:16:49,200 --> 00:16:53,800
Speaker 7: adapt quickly to the situation that you're in, if that

324
00:16:53,920 --> 00:16:55,360
Speaker 7: is on the current card that you've known for a

325
00:16:55,360 --> 00:16:58,520
Speaker 7: long time or a completely new car. You just need

326
00:16:58,560 --> 00:17:00,960
Speaker 7: to be able to, Yeah, adopt quickly. We learned quickly

327
00:17:01,000 --> 00:17:03,320
Speaker 7: as well, because the cars will evolve I think also

328
00:17:03,400 --> 00:17:03,880
Speaker 7: very quickly.

329
00:17:03,960 --> 00:17:07,320
Speaker 3: But yeah, I'm not too stressed about that, to be honest.

330
00:17:07,400 --> 00:17:09,639
Speaker 4: I mean Red Bull is seen as the most at

331
00:17:09,720 --> 00:17:12,320
Speaker 4: least the most technologically advanced team in the world, and

332
00:17:12,359 --> 00:17:15,120
Speaker 4: now you have Ford as a partner. I don't think

333
00:17:15,160 --> 00:17:19,240
Speaker 4: any ceo automotive CEO cares about racing more than Jim Farley.

334
00:17:19,720 --> 00:17:21,200
Speaker 4: What does it mean to you working with Ford?

335
00:17:21,480 --> 00:17:22,040
Speaker 3: Yeah, it's great.

336
00:17:22,040 --> 00:17:25,240
Speaker 7: There's a great opportunity as well. I'm just excited, you know,

337
00:17:25,320 --> 00:17:27,639
Speaker 7: to get started. There's a massive heritage as well, you

338
00:17:27,680 --> 00:17:31,520
Speaker 7: know in racing as well. So yeah, I think everyone

339
00:17:31,600 --> 00:17:34,240
Speaker 7: is just now just very keen to get started.

340
00:17:34,400 --> 00:17:34,600
Speaker 2: Yeah.

341
00:17:34,640 --> 00:17:38,000
Speaker 4: I think like of the former winners that have been

342
00:17:38,000 --> 00:17:43,280
Speaker 4: powered by Ford, Jim Clark, Hill, fit A Poldy, I mean,

343
00:17:44,640 --> 00:17:48,160
Speaker 4: Jackie Stewart, Like, it's just such an illustrious list. It's

344
00:17:48,160 --> 00:17:51,760
Speaker 4: almost like you're gonna do DFV two point zero with

345
00:17:51,880 --> 00:17:53,359
Speaker 4: this new team.

346
00:17:53,280 --> 00:17:53,760
Speaker 3: Let's see.

347
00:17:53,880 --> 00:17:56,240
Speaker 7: I mean, yeah, we hope, of course to have a

348
00:17:56,280 --> 00:17:59,320
Speaker 7: lot of success, but it's impossible to know The only

349
00:17:59,359 --> 00:18:00,920
Speaker 7: thing that I do know is that everyone is giving

350
00:18:00,960 --> 00:18:01,639
Speaker 7: it everything they have.

351
00:18:01,840 --> 00:18:04,080
Speaker 4: What do you think about the development. We've heard that

352
00:18:04,200 --> 00:18:06,720
Speaker 4: maybe you have a bit found a bit of an

353
00:18:06,840 --> 00:18:12,639
Speaker 4: edge with compression variable compression. I guess there's going to

354
00:18:12,680 --> 00:18:15,240
Speaker 4: be a meeting on January second about how this will

355
00:18:15,280 --> 00:18:17,679
Speaker 4: work for you and Mercedes. Do you feel like you

356
00:18:17,720 --> 00:18:18,240
Speaker 4: have an edge?

357
00:18:19,200 --> 00:18:20,159
Speaker 3: It's impossible to know.

358
00:18:20,359 --> 00:18:22,520
Speaker 7: I mean, everyone is just trying everything they can. And

359
00:18:22,520 --> 00:18:25,159
Speaker 7: from our side, and especially for my side, I mean

360
00:18:25,160 --> 00:18:26,280
Speaker 7: I have to focus on the driving.

361
00:18:26,280 --> 00:18:27,440
Speaker 3: You know, I'm not there to be.

362
00:18:27,440 --> 00:18:31,280
Speaker 7: The engine technician and we'll explain everything in detail to you.

363
00:18:31,800 --> 00:18:33,439
Speaker 7: And at the end of the day, it's also something

364
00:18:33,440 --> 00:18:36,399
Speaker 7: between the FIA and the car manufacturers to or the

365
00:18:36,440 --> 00:18:40,800
Speaker 7: engine manufacturers to to sort out. And I drive the

366
00:18:40,880 --> 00:18:42,720
Speaker 7: car and I trust that from our side, you know,

367
00:18:42,800 --> 00:18:44,919
Speaker 7: we we always try to do our very best to

368
00:18:44,920 --> 00:18:47,520
Speaker 7: get the most performance out of the engine.

369
00:18:47,560 --> 00:18:50,600
Speaker 4: Are you excited to have more nimble a smaller, more

370
00:18:50,680 --> 00:18:53,160
Speaker 4: nimble car? Is that more exciting for you because it'll

371
00:18:53,160 --> 00:18:55,159
Speaker 4: be easier I guess in that instance to pass.

372
00:18:57,080 --> 00:18:59,680
Speaker 7: I mean, it's a bit too soon to be able

373
00:18:59,720 --> 00:19:01,480
Speaker 7: to say that that it will be easier to pass

374
00:19:01,520 --> 00:19:04,600
Speaker 7: I have no idea, so you know, everything is still unknown,

375
00:19:04,680 --> 00:19:07,840
Speaker 7: you know. So the cars I think look a bit nicer,

376
00:19:07,920 --> 00:19:11,399
Speaker 7: you know, when they're a bit smaller and not as wide.

377
00:19:11,840 --> 00:19:13,960
Speaker 7: But yeah, once we get on track then it's a

378
00:19:13,960 --> 00:19:16,080
Speaker 7: bit easier to get a bit of an understanding of

379
00:19:16,240 --> 00:19:17,959
Speaker 7: what is all happening and going on.

380
00:19:18,920 --> 00:19:21,679
Speaker 4: Let's talk about your career outside of F one. I

381
00:19:21,680 --> 00:19:23,760
Speaker 4: can hear the sims going over there, and I know

382
00:19:23,800 --> 00:19:27,280
Speaker 4: you're deep into that with Redline. So what are you

383
00:19:27,320 --> 00:19:30,600
Speaker 4: most interested in outside of racing on the track, which

384
00:19:30,600 --> 00:19:32,679
Speaker 4: I'm sure is your main focus almost all the time,

385
00:19:33,040 --> 00:19:36,240
Speaker 4: but in any spare time that you have, you mean.

386
00:19:36,160 --> 00:19:37,720
Speaker 3: Outside of like sim racing and stuff.

387
00:19:41,280 --> 00:19:44,600
Speaker 7: It's of course we want to win whatever we compete in, right,

388
00:19:45,400 --> 00:19:48,320
Speaker 7: I want to try and help young drivers, young people

389
00:19:48,320 --> 00:19:50,719
Speaker 7: that don't have the opportunities also in real life, you know,

390
00:19:50,760 --> 00:19:52,920
Speaker 7: to have an opportunity to actually then become a real

391
00:19:53,040 --> 00:19:53,639
Speaker 7: racing driver.

392
00:19:54,080 --> 00:19:56,080
Speaker 3: That all starts of course in the simulator.

393
00:19:57,320 --> 00:20:00,280
Speaker 7: And yes, it's just very exciting to see the young

394
00:20:00,320 --> 00:20:02,960
Speaker 7: guys that you know, started what sixteen maybe in the

395
00:20:03,000 --> 00:20:04,159
Speaker 7: team and see them.

396
00:20:04,040 --> 00:20:07,199
Speaker 3: Grow as well over the years with the potential to

397
00:20:07,320 --> 00:20:09,120
Speaker 3: you know, maybe get a real, real.

398
00:20:08,960 --> 00:20:12,000
Speaker 7: Life drive which we have done last season with one

399
00:20:12,000 --> 00:20:13,800
Speaker 7: of the sim drivers, and you know, he's doing a

400
00:20:13,840 --> 00:20:16,600
Speaker 7: really good job and it's just, yeah, really nice to see.

401
00:20:16,400 --> 00:20:18,359
Speaker 3: How that is all like progressing.

402
00:20:18,680 --> 00:20:20,840
Speaker 4: Do you think about that as a progression? I mean,

403
00:20:20,920 --> 00:20:23,680
Speaker 4: do you have, for example, a certain number of championships

404
00:20:23,680 --> 00:20:25,320
Speaker 4: in mind that you want to win before you can

405
00:20:25,359 --> 00:20:27,840
Speaker 4: walk away? Or are you still going to be starting

406
00:20:27,920 --> 00:20:30,600
Speaker 4: races at you know, Alonzo's like forty four years old.

407
00:20:30,800 --> 00:20:32,880
Speaker 4: Can you see that as a future for yourself.

408
00:20:32,920 --> 00:20:35,400
Speaker 7: It's all honestly, like, it's just I don't really think

409
00:20:35,400 --> 00:20:37,199
Speaker 7: about it too much. I think it's more important to

410
00:20:37,359 --> 00:20:39,399
Speaker 7: just try and enjoy it. You know, it's on the

411
00:20:39,480 --> 00:20:42,399
Speaker 7: enjoyment is there, then it's also easier to rock up

412
00:20:42,440 --> 00:20:46,920
Speaker 7: and really demand everything from yourself. And so far, I'm

413
00:20:46,960 --> 00:20:48,960
Speaker 7: still you know, having that feeling.

414
00:20:49,119 --> 00:20:51,640
Speaker 4: You seem to be enjoying a little bit of GT racing,

415
00:20:51,960 --> 00:20:54,359
Speaker 4: maybe ready to do a little bit of endurance racing.

416
00:20:54,400 --> 00:20:55,360
Speaker 3: I hear you're signed.

417
00:20:55,160 --> 00:20:56,639
Speaker 4: Up for the twenty four hours of Nurburg.

418
00:20:57,680 --> 00:20:59,920
Speaker 3: Well about that, there's still nothing confirmed yet.

419
00:21:00,040 --> 00:21:02,879
Speaker 7: I mean the plan would be nice, you know, if

420
00:21:03,080 --> 00:21:05,919
Speaker 7: that's possible, but it's also very you know very hectic

421
00:21:06,119 --> 00:21:08,760
Speaker 7: first few months now in Formula one, so we have

422
00:21:08,840 --> 00:21:11,240
Speaker 7: to wait and see that. It's definitely my goal, you know,

423
00:21:11,240 --> 00:21:13,120
Speaker 7: I want to do twenty five races and I want

424
00:21:13,160 --> 00:21:16,439
Speaker 7: to do endurance and of course having started with GT three.

425
00:21:16,359 --> 00:21:19,040
Speaker 3: Racing as well with the team. Yeah, that's definitely the

426
00:21:19,800 --> 00:21:20,440
Speaker 3: future plan.

427
00:21:20,800 --> 00:21:23,920
Speaker 4: Are you just aiming for an outright win of Lamar

428
00:21:24,200 --> 00:21:26,720
Speaker 4: or do you think about, for example, the triple Crown?

429
00:21:26,880 --> 00:21:28,679
Speaker 4: Is that something that enters the picture.

430
00:21:29,600 --> 00:21:31,720
Speaker 3: Triple Crown? Not so much for me personally.

431
00:21:33,000 --> 00:21:35,080
Speaker 7: Yeah, I would love to do Lamar and actually if

432
00:21:35,080 --> 00:21:36,640
Speaker 7: you do it, you want you want to try.

433
00:21:36,440 --> 00:21:36,840
Speaker 3: And win it.

434
00:21:37,320 --> 00:21:40,040
Speaker 1: Our thanks to four time F one world champion. Have

435
00:21:40,119 --> 00:21:42,959
Speaker 1: I said it enough? Matts Verstapp and of course our

436
00:21:43,000 --> 00:21:45,600
Speaker 1: own Matt Miller that does it. For this week's show,

437
00:21:45,720 --> 00:21:49,320
Speaker 1: Remember to follow and subscribe to Hot Pursuit on Apple,

438
00:21:49,480 --> 00:21:53,040
Speaker 1: Spotify and anywhere else you listen. You can also send

439
00:21:53,119 --> 00:21:55,600
Speaker 1: us your comments. We'd love to hear from you. Email

440
00:21:55,760 --> 00:22:00,359
Speaker 1: us at hot Pursuit at Bloomberg dot net, and you

441
00:22:00,359 --> 00:22:02,679
Speaker 1: can check out my columns and stories on Bloomberg dot

442
00:22:02,760 --> 00:22:07,480
Speaker 1: com and the Bloomberg Business app. Go there for car reviews, events, stories,

443
00:22:07,640 --> 00:22:11,040
Speaker 1: trends future pieces that you won't find anywhere else. We

444
00:22:11,160 --> 00:22:13,160
Speaker 1: take so much pride in the work we do, trying

445
00:22:13,200 --> 00:22:16,480
Speaker 1: to help you to know how to spend your time,

446
00:22:16,600 --> 00:22:19,520
Speaker 1: your energy, your money. Find it all at Bloomberg dot com.

447
00:22:19,520 --> 00:22:24,040
Speaker 1: Slash pursuits, slash autos. I'm Hannah Elliott and this is

448
00:22:24,119 --> 00:22:24,760
Speaker 1: hot Pursuit