WEBVTT - Market Volatility, Supply Chain, And Electric Vehicles (Podcast) 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney. Alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day, we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.520 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.439 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:23.040 at Bloomberg dot com slash podcast. Let's turn to Omar Aguilar, 0:00:23.280 --> 0:00:25.919 CEO and ce IO Schwab Asset Management. Omar, thanks so 0:00:25.960 --> 0:00:28.400 much for joining us. I'm sure your phone is ringing 0:00:28.400 --> 0:00:30.760 off the hook with your Schwab clients saying what do 0:00:30.840 --> 0:00:33.320 I do in this market here? What are you telling 0:00:33.320 --> 0:00:37.560 Schwab clients? Good morning, Thanks for having me And um, 0:00:37.600 --> 0:00:40.199 you know we're we're telling clients to just take a 0:00:40.240 --> 0:00:42.080 deep breath and in a stay of the screen set 0:00:42.080 --> 0:00:45.400 a little bit. Um. It is is we have we 0:00:45.520 --> 0:00:49.120 have a market that went away from fundamentals to focus 0:00:49.120 --> 0:00:51.839 on mackero and right at this moment, it's really all 0:00:51.880 --> 0:00:56.000 about sentiment. Um. You know, we clearly see significant amount 0:00:56.000 --> 0:01:01.200 of client anxiety, UM, which is very understandable. Um about 0:01:01.280 --> 0:01:03.080 you know, what's going on in the market, what's going 0:01:03.120 --> 0:01:05.560 on in the economy, Um, you know, as you just 0:01:05.760 --> 0:01:08.000 laid out what they see on their house and there 0:01:08.000 --> 0:01:10.760 are gas prices anytime they go to the pump, anytime 0:01:10.800 --> 0:01:13.039 that they go out to a restaurant. You know, they 0:01:13.080 --> 0:01:16.600 clearly see that inflation numbers hitting them on their real 0:01:16.680 --> 0:01:19.280 pockets and then at the time at the same time 0:01:19.319 --> 0:01:21.920 they see everything that is going on overall. So you know, 0:01:22.000 --> 0:01:25.240 this is this is an area where we encourage clients 0:01:25.280 --> 0:01:27.759 to top three advisors to look at their strategy. And 0:01:27.959 --> 0:01:29.960 you know, there's a lot of strategies you can use 0:01:30.040 --> 0:01:32.880 to try to minimize any any inside is that you 0:01:32.920 --> 0:01:35.680 may have to do things that may not help you. So, UM. 0:01:35.720 --> 0:01:38.480 I heard Paul Tutor Jones the other day. I'm not 0:01:38.520 --> 0:01:40.600 sure if Critty will know who Paul Tutor Jones is, 0:01:40.640 --> 0:01:42.000 but to those of us who have been on the 0:01:42.040 --> 0:01:45.840 street for a few decades, he is an absolute legend. Right. 0:01:46.360 --> 0:01:49.760 He was saying capital preservation is his number one concern 0:01:49.880 --> 0:01:52.200 right now, which kind of freaked me out a little bit. 0:01:52.680 --> 0:01:58.680 I wonder, are your investors reallocating right now or rebalancing 0:01:59.160 --> 0:02:02.320 um in eiver of capital preservation rather than looking for 0:02:02.360 --> 0:02:05.800 any more games? Well where where where that you know, 0:02:05.880 --> 0:02:09.560 if you take a step back and you know, for 0:02:09.720 --> 0:02:12.440 any of the business and economic cycles that we have 0:02:12.560 --> 0:02:16.960 seen historically, we have clearly accelerated going through the last 0:02:17.000 --> 0:02:18.840 part of the cycle. A lot of that as a 0:02:18.919 --> 0:02:22.440 result of you know, the war in in Ukraine and 0:02:22.560 --> 0:02:25.880 also just the fact that the Federal Reserve has you know, 0:02:26.240 --> 0:02:29.520 probably been slow and reacting to what the inflation numbers 0:02:29.600 --> 0:02:31.760 were going even in the last year. So when you 0:02:31.800 --> 0:02:35.240 put that into perspective, um, you know, this is the 0:02:35.280 --> 0:02:37.640 part where you need to become defensive. This is the 0:02:37.680 --> 0:02:39.600 part where you need to start figure out how you 0:02:39.639 --> 0:02:42.519 increase your duration in your bond portfolio. This is the 0:02:42.560 --> 0:02:46.000 part where you need to be very selective in the 0:02:46.080 --> 0:02:49.160 kind of issues that you have with cash flows, high 0:02:49.200 --> 0:02:52.959 quality areas that will allow you to protect your balance sheet. Now, 0:02:53.040 --> 0:02:56.359 the fact that capital preservation it is really a risk profile, 0:02:56.480 --> 0:02:59.520 and the risk profile doesn't necessarily meet the investment objectives 0:02:59.560 --> 0:03:02.200 of every investor. So when we encourage people to see 0:03:02.240 --> 0:03:05.160 is that well, if your objective it still is to grow, 0:03:05.520 --> 0:03:08.560 depending on what your situation is, you just need to 0:03:08.560 --> 0:03:11.679 figure out what is the right rebalancing strategy to maintain 0:03:11.720 --> 0:03:14.799 that risk profile that makes you feel comfortable for some people, 0:03:15.080 --> 0:03:17.360 you know, people that are close to retirement, people that 0:03:17.400 --> 0:03:20.720 are in retirement where capital preservation is their main objective. 0:03:21.040 --> 0:03:24.080 Clearly this is an opportunity to de risk, but it's 0:03:24.160 --> 0:03:28.880 not necessarily for every investor. So omar one of the 0:03:28.919 --> 0:03:31.280 pieces of chatter I've picked up on the last maybe 0:03:31.360 --> 0:03:33.960 day or two, it's just kind of where's the bottom 0:03:33.960 --> 0:03:35.800 in this thing? In the selling phase here? Do you 0:03:35.840 --> 0:03:38.360 even try to catch the bottom? Do you think about 0:03:38.680 --> 0:03:41.160 identifying the bottom? And if you do, what are some 0:03:41.200 --> 0:03:44.200 of the metrics you look at? Yes, Well, we encourage 0:03:44.280 --> 0:03:47.080 clients to you know, try to speculate. You know, the 0:03:47.200 --> 0:03:49.720 chances that you're going to find the bottom and actually 0:03:49.720 --> 0:03:53.000 be there are very very low. We always, um, you know, 0:03:53.080 --> 0:03:57.720 have these particular you encourage clients not to try to speculate. 0:03:57.920 --> 0:04:00.520 That's correct, not to try to speculate. We you know, 0:04:00.600 --> 0:04:04.720 market timing it's very very difficult, um And we have 0:04:04.880 --> 0:04:07.800 this phrase that we tell clients, you know, time in 0:04:07.880 --> 0:04:11.960 the market is better that timing the market. And what 0:04:12.120 --> 0:04:15.560 that means is that is staying invested and stay consistent 0:04:15.640 --> 0:04:18.760 with invested risk profile and the long term objectives is 0:04:18.800 --> 0:04:21.680 more important than trying to find, you know, the dips 0:04:21.720 --> 0:04:24.240 and the bottoms of the market and trying to figure 0:04:24.240 --> 0:04:26.960 out where it is now. That being said, markets like 0:04:27.040 --> 0:04:30.880 these provide opportunities for you know, tactless harvesting. This is 0:04:30.920 --> 0:04:35.440 an opportunity to reallocate within the rest tolerance of every client. 0:04:35.680 --> 0:04:38.400 And this is an opportunity just to find other opportunities 0:04:38.400 --> 0:04:40.680 that they may have not had in the past. All right, 0:04:41.160 --> 0:04:43.280 you know you know why sounds so smart man? You 0:04:43.320 --> 0:04:45.480 want to do PhD from Duke there and you can 0:04:45.560 --> 0:04:49.440 do it. Why, by the way, how much swab asset management? 0:04:49.520 --> 0:04:51.719 Just we got ten seconds here? What are you? What 0:04:51.760 --> 0:04:54.920 are you managing? What are the assets? We're close to 0:04:55.080 --> 0:04:59.000 seven six hundred and ninety billion dollars? Alright, couple sucks 0:04:59.000 --> 0:05:02.520 in the market change that is, oh Mar Aguilar CEO 0:05:02.600 --> 0:05:06.280 and c i O schwab Asset Management PhD from Duke. 0:05:06.400 --> 0:05:08.680 I will add giving us his thoughts on these markets. 0:05:08.720 --> 0:05:10.800 Here again a little bit of bounced back. We're definitely 0:05:10.839 --> 0:05:15.800 off our highest put some green on the screen today. 0:05:16.640 --> 0:05:18.440 I want to get to our next guest right away. 0:05:18.960 --> 0:05:23.039 Uh Matt Faster our chief strategy obviously for XPO Logistics, 0:05:23.320 --> 0:05:25.800 it's a publicly traded company on the New York socka Change. 0:05:25.920 --> 0:05:28.160 XPO is the ticker there. It's got about a six 0:05:28.200 --> 0:05:31.520 billion dollar market cap. Matt. One of the key issues 0:05:31.560 --> 0:05:34.239 that Matt Miller and I have been focused on keenly 0:05:34.320 --> 0:05:37.920 since the beginning of this pandemic from an economic perspective, 0:05:37.920 --> 0:05:41.440 has been the supply chain, the global supply chain challenges. 0:05:41.520 --> 0:05:43.839 And there's no company that I can think of that 0:05:43.920 --> 0:05:46.880 has a more broader view of the global supply chain 0:05:47.240 --> 0:05:49.600 than XPO Logistics. So, Matt, thanks so much for joining 0:05:49.680 --> 0:05:53.080 us here. I'd love to get your expert opinion on 0:05:53.160 --> 0:05:56.400 how we got here, i e. Supply chain problems that 0:05:56.440 --> 0:05:59.600 are impacting everybody, and how we get out of this thing. 0:06:01.160 --> 0:06:03.600 Thanks for having me really happy to be here, and 0:06:03.720 --> 0:06:06.599 especially happy to be here on a day after we 0:06:06.680 --> 0:06:11.160 reported strong results and a strong outlook. On your question 0:06:11.360 --> 0:06:14.360 as to how we got here from the supply chain perspective, 0:06:15.160 --> 0:06:18.320 think of it this way. First of all, in very 0:06:18.320 --> 0:06:22.600 early two thousand and twenty, we saw some initial disruption 0:06:22.880 --> 0:06:25.960 as the first round of COVID hit China and you 0:06:26.000 --> 0:06:29.640 had to slow down in UH import and export activity 0:06:30.160 --> 0:06:32.560 from China. We thought at the time that that was 0:06:32.600 --> 0:06:34.880 going to be the crux of the impact. Little did 0:06:34.920 --> 0:06:39.760 we know, obviously, in so many ways subsequent to that, uh, 0:06:39.800 --> 0:06:43.279 there was, as you know, virtually a halt in the 0:06:43.279 --> 0:06:47.719 global economy at a moment in time, after which you 0:06:47.800 --> 0:06:52.000 had a resumption of demand. Uh, and you had a 0:06:52.000 --> 0:06:54.600 lot of goods making their way into the United States 0:06:54.640 --> 0:06:59.559 and around the United States with finite capacity. And even 0:06:59.640 --> 0:07:02.760 in a normal demand environment, it's sort of the pick 0:07:02.839 --> 0:07:05.160 of the Python situation. You try to get an enormous 0:07:05.160 --> 0:07:09.320 amount of goods through a fixed amount of infrastructure. Now 0:07:09.640 --> 0:07:12.840 that infrastructure was even more constumed than it otherwise would 0:07:12.880 --> 0:07:16.080 have been, because during the pandemic, lots of providers of 0:07:16.160 --> 0:07:20.720 supply chain services pulled back on their orders of new equipment. 0:07:21.120 --> 0:07:24.880 Beyond that, obviously, you had fiscal stimulus, and there was 0:07:24.920 --> 0:07:28.280 a lot of money in people's hands. Moreover, they were 0:07:28.320 --> 0:07:31.000 spending a lot of that money on goods rather than services. 0:07:31.440 --> 0:07:34.480 So you had more goods than usual making their way 0:07:34.560 --> 0:07:38.680 through less infrastructure than usual, all at once. And then finally, 0:07:39.280 --> 0:07:41.840 as you know, whether you call it a great resignation 0:07:41.960 --> 0:07:45.440 or simply a labor shortage, there are fewer people to 0:07:45.520 --> 0:07:49.440 help perform those tasks, so there was less infrastructure, Uh, 0:07:49.480 --> 0:07:52.640 there was less labor to get the job done, there 0:07:52.680 --> 0:07:56.160 was more demand. There was obviously in that sense, a 0:07:56.200 --> 0:08:00.000 perfect storm. Now our role has been and remains helped 0:08:00.200 --> 0:08:04.680 people are customers and ultimately their customers navigate through that. 0:08:04.720 --> 0:08:06.920 And that's something that we've been able, thankfully to do. 0:08:07.240 --> 0:08:11.040 And obviously your services have been a huge demand. You 0:08:11.160 --> 0:08:15.440 just as you said, published results that beat estimates and 0:08:15.520 --> 0:08:19.040 you raised your outlook as well for the full year. 0:08:19.920 --> 0:08:25.600 Given that UM, you have a really good view of UM, 0:08:25.760 --> 0:08:30.880 the US economy, the global economy. How do you see UM, 0:08:30.960 --> 0:08:32.960 how do you see it developing right now? I mean, 0:08:32.960 --> 0:08:36.400 obviously for XPO the picture looks great because the industry 0:08:36.400 --> 0:08:38.080 that you're in, the area that you're in is in 0:08:38.360 --> 0:08:41.720 is in huge demand. What about for the broader economy, 0:08:41.800 --> 0:08:46.600 do you see a slowdown this year? There are cross winds, 0:08:46.920 --> 0:08:49.920 for sure. There are a number of macro factors to 0:08:50.040 --> 0:08:53.120 consider and for them to keep their eye on. The 0:08:53.240 --> 0:08:58.760 said has obviously been has started the process of raising rates. 0:08:58.800 --> 0:09:02.400 That's been an in partner sponse to an inflationary environment. 0:09:02.440 --> 0:09:06.440 That's something we need to watch. There obviously is a 0:09:06.480 --> 0:09:09.840 war in Ukraine, and that's something that we need to watch. 0:09:09.920 --> 0:09:14.040 The Our European business has actually performed quite well. We're 0:09:14.040 --> 0:09:17.720 primarily in the western part of Europe, UK, France, and Spain. 0:09:18.160 --> 0:09:20.800 Organic revenue growth in that part of the world accelerated 0:09:20.800 --> 0:09:24.000 for US in the first quarter versus the fourth quarter. 0:09:24.480 --> 0:09:27.840 And then in China, obviously there have been COVID related 0:09:27.880 --> 0:09:32.280 lockdowns that has led to UH some suspension or slow 0:09:32.360 --> 0:09:34.840 down in the amount of freight making its way to 0:09:34.960 --> 0:09:39.200 our shores from China. Obviously, something we're watching very carefully. 0:09:39.240 --> 0:09:42.720 To our view is that once those lockdowns ease, you'll 0:09:42.720 --> 0:09:45.480 see a flood of freight and certainly nothing like what 0:09:45.520 --> 0:09:47.320 you saw in two thousand twenty that we spoke about 0:09:47.360 --> 0:09:51.040 a moment ago, but potentially some retightening of the truckload 0:09:51.080 --> 0:09:55.000 markets and other transportation markets. So definitely some cross winds 0:09:55.000 --> 0:09:58.199 and things to watch. But if if our business is 0:09:58.240 --> 0:10:01.640 a gauge of what we're seeing in truck brokerage, where 0:10:01.400 --> 0:10:06.400 we were helped arrange truckload transportation UH for for many 0:10:06.400 --> 0:10:09.120 many of the largest shippers in the country and the 0:10:09.160 --> 0:10:11.880 world in the first In the first quarter, our load 0:10:11.880 --> 0:10:15.560 growth was our volume growth has the sixth consecutive quarter 0:10:16.960 --> 0:10:20.400 growth or more. And in April our volume growth was 0:10:20.520 --> 0:10:23.000 quite strong. Our growth and revenue per day, and our 0:10:23.080 --> 0:10:26.360 less than truckload business in April a bit stronger than 0:10:26.800 --> 0:10:29.400 And you really focused the business, right, I mean you 0:10:29.440 --> 0:10:32.520 were for years, for a couple of decades at least 0:10:32.520 --> 0:10:36.920 at Goldman sachs Um and you came in to run XPO. 0:10:37.679 --> 0:10:40.959 Just give us the shorthand version of what you've done 0:10:41.520 --> 0:10:48.000 to to focus m this logistics business. Well, well, well, uh, my, my, my, 0:10:48.000 --> 0:10:50.720 my boss. Brad Jacobs is our chairman, CEO and founders, 0:10:50.720 --> 0:10:53.640 so he runs XPO. I'm the chief strategy officer, So 0:10:54.280 --> 0:10:56.360 I want to put myself in my place, if you will, 0:10:56.760 --> 0:10:59.200 about what we've what we've done, what we've done collectively. 0:10:59.200 --> 0:11:04.400 I appreciate the motion, um, what we've done collectively of 0:11:04.520 --> 0:11:08.360 late to your point, we have refocused the business we 0:11:08.960 --> 0:11:12.920 used to operate within XPO, a supply chain or contract 0:11:12.920 --> 0:11:17.720 logistics business offering warehousing and distribution services also for many 0:11:17.720 --> 0:11:19.880 of the largest companies in the world. We spun that 0:11:19.960 --> 0:11:23.800 company off as g XO last August. They've had a 0:11:23.880 --> 0:11:26.680 very good run. They reported their numbers last week. That 0:11:26.720 --> 0:11:31.280 was a very successful spin, and we are further focusing 0:11:31.280 --> 0:11:35.839 our business. We recently divested our intermodal operation. We sold 0:11:35.880 --> 0:11:39.600 that in March. We've indicated that we planned to divest 0:11:39.679 --> 0:11:43.560 our European transportation operation, the business I spoke about a 0:11:43.559 --> 0:11:46.840 moment ago, and and then also in the fourth quarter, 0:11:47.440 --> 0:11:51.720 we plan on divesting our tech enabled brokera services platform 0:11:51.800 --> 0:11:54.640 into a separate public company, which will leave the remain 0:11:54.720 --> 0:11:57.960 COO if you will, XPO as an lt L enterprise 0:11:58.000 --> 0:12:01.520 and then the brokerage business as a separate public company. 0:12:01.559 --> 0:12:03.800 And what what we what we found through g x 0:12:03.840 --> 0:12:06.199 O and what we expect to find when we complete 0:12:06.200 --> 0:12:08.720 the spin, is that these companies each will be better 0:12:08.760 --> 0:12:11.600 fit for their purposes of serving their customers and able 0:12:11.600 --> 0:12:15.480 to engage in many decisions that are precisely specified to 0:12:15.679 --> 0:12:18.600 their business missions, and we think will be quite successful. 0:12:18.800 --> 0:12:20.959 About thirty seconds left, I love to get your best 0:12:21.200 --> 0:12:24.360 guests as to when these supply chain issues will become 0:12:24.360 --> 0:12:29.800 more normalized. Uh. We think that it's gonna stay tight 0:12:30.520 --> 0:12:34.760 for a while. We think that disruption will persist for 0:12:34.800 --> 0:12:38.320 a while. We think that things actually might tighten up 0:12:38.360 --> 0:12:40.680 a bit more. Again, as I said in the second half, 0:12:40.720 --> 0:12:44.080 if it has great flow resumes from China. Uh. We 0:12:44.160 --> 0:12:46.839 we are there to help our customers. Were there last 0:12:46.920 --> 0:12:49.200 Christmas to help people get their gifts under their trees. 0:12:49.200 --> 0:12:51.760 Were there to help our industrial customers I get their 0:12:51.800 --> 0:12:54.600 equipment out there, and and and I think next year 0:12:54.760 --> 0:12:57.400 you could see some normalization. But I think the value 0:12:57.400 --> 0:13:01.640 of outsourced transportation advice answer this says, has been proven 0:13:01.679 --> 0:13:03.640 to show and that should endure. All Right, good stuff, 0:13:03.679 --> 0:13:08.200 Matt Fassler, chief strategy officer for XPO Logistics Logistics, giving 0:13:08.240 --> 0:13:11.760 us the latest on the supply chain issues still out there. 0:13:14.720 --> 0:13:18.520 If I were to choose a diesel, a big diesel engine, 0:13:19.240 --> 0:13:22.000 I would definitely go with the power stroke. Ford has 0:13:22.120 --> 0:13:24.840 a six point seven Leader power stroke. It's only available 0:13:24.840 --> 0:13:27.040 in the super duty trucks. I wish they sold it 0:13:27.120 --> 0:13:31.040 in the half tons, but it puts out more than 0:13:31.200 --> 0:13:38.920 a thousand pound feet of torque pound feet unbelievable torque figures. Now. 0:13:38.920 --> 0:13:42.360 I know Greg Jarrett because he was stuck in some 0:13:42.400 --> 0:13:46.200 oil field fires during the First Persian UH, during the 0:13:46.240 --> 0:13:49.760 First Golf War. UM is allergic diesel. He's gonna be 0:13:49.920 --> 0:13:54.120 very happy when they start putting out electric pickup trucks 0:13:54.160 --> 0:13:56.240 for a long time we thought Teslas was going to 0:13:56.320 --> 0:13:58.840 make a cyber truck. I'm not sure if that's really 0:13:58.880 --> 0:14:02.600 still happening. I've started to see some Rivyan's um on 0:14:02.640 --> 0:14:06.160 the street. Uh there, you know, a hundred thousand dollar vehicles, 0:14:06.160 --> 0:14:08.720 and they're not really what you think of that work truck, 0:14:09.120 --> 0:14:12.079 you know, although TfL did um use one on on 0:14:12.080 --> 0:14:14.320 on a farm for a little bit. Um. I think 0:14:14.360 --> 0:14:17.240 most people are waiting for Ford to put out the 0:14:17.360 --> 0:14:21.640 F one fifty Lightning. Obviously, the F one fifty or 0:14:21.640 --> 0:14:25.640 the series pickup truck is like the best selling nameplate 0:14:25.800 --> 0:14:30.360 of all not just trucks but cars in the US 0:14:30.440 --> 0:14:33.640 and has been for at least forty years. I'm gonna 0:14:33.680 --> 0:14:38.080 say that's not a joke. Um. Americans by by their 0:14:38.160 --> 0:14:41.120 F Series trucks and absolutely love him. Jason Turnbull joins 0:14:41.240 --> 0:14:44.360 us right now. He is the marketing manager for the 0:14:44.440 --> 0:14:48.400 Lightning and he's been working at Forward for uh the 0:14:48.440 --> 0:14:50.280 better half of the better end of a decade, I 0:14:50.280 --> 0:14:52.600 should say a little more. I think what thirteen years? Jason, 0:14:53.360 --> 0:14:55.840 great to have you on the program. Tell us when 0:14:55.920 --> 0:14:59.200 we're gonna actually see this truck. I'm so worried that 0:14:59.320 --> 0:15:03.680 it's gonna be like, um, you know, not until because 0:15:04.200 --> 0:15:08.240 the chip shortage and the supply chain issues are are 0:15:08.280 --> 0:15:12.760 making us wait for all these automotive products. Well, thank you, 0:15:12.960 --> 0:15:16.000 thank you for having me. Yeah. So that as the Lightning, 0:15:16.120 --> 0:15:21.160 It's are all electric, all electric basic pickup truck. And 0:15:21.200 --> 0:15:23.680 the greatest thing is we announced it two years ago, 0:15:24.280 --> 0:15:27.960 we revealed it a year ago, and starting this month, 0:15:28.160 --> 0:15:32.080 we're actually starting customer deliveries. So it's a real product 0:15:32.200 --> 0:15:36.600 under UNDERT dollars and we're really excited about it this alright. 0:15:36.640 --> 0:15:38.960 So I knew, like Mike Lavine is a buddy of 0:15:39.000 --> 0:15:41.320 mine over at Forward and he gets to test the 0:15:41.360 --> 0:15:44.120 coolest all the new products, you know, and I see 0:15:44.160 --> 0:15:47.320 pictures of him taking the Lightning out to like Moab 0:15:47.720 --> 0:15:50.760 or on the Baja or whatever. But I didn't know 0:15:50.840 --> 0:15:53.240 that real people we're gonna start, So people are going 0:15:53.320 --> 0:15:55.920 to start taking deliveries. What's the weight list? Though? If 0:15:55.920 --> 0:15:59.680 I put my order in today for a Lightning, when 0:16:00.040 --> 0:16:02.520 am I gonna be likely to go pick it up 0:16:02.560 --> 0:16:06.040 from my from my four dealer. Yeah. So when we 0:16:06.080 --> 0:16:11.040 revealed last May, we took reservations and last December we 0:16:11.120 --> 0:16:14.120 hit two hundred thousand reservations. We just had to shut 0:16:14.160 --> 0:16:17.120 off our reservation system because now our goal is to 0:16:17.640 --> 0:16:21.240 fulfill and convert those all the orders. So if you 0:16:21.240 --> 0:16:23.720 don't have to have a have a resonance right now, 0:16:24.320 --> 0:16:27.760 you're really gonna wait probably about eighteen months before that 0:16:27.800 --> 0:16:30.280 you can place in order for a lightning because we're 0:16:30.360 --> 0:16:33.720 later focused on getting them out the door to the 0:16:33.760 --> 0:16:36.800 current customers that have ordered. Jason, I think you just 0:16:36.840 --> 0:16:39.920 answered my question because you know, it's one thing to 0:16:40.000 --> 0:16:44.120 drive around a Tesla around Coupertino, California. It's another thing 0:16:44.160 --> 0:16:47.000 to go on my big ranch out in the middle 0:16:47.040 --> 0:16:49.280 of Arizona where I have to do some real work 0:16:49.320 --> 0:16:53.360 with a pickup truck and convert that to electric. Are 0:16:53.680 --> 0:16:56.600 Ford f one fifty buyers are are they ready to 0:16:56.600 --> 0:17:00.560 go electric? So this is a key benefit of definitely 0:17:00.600 --> 0:17:03.680 like me as we are attracting a broad range of customers. 0:17:03.720 --> 0:17:07.640 So from that traditional truck customer, it is gonna tow 0:17:07.720 --> 0:17:10.600 and haul just like your current gas du towes up 0:17:10.600 --> 0:17:14.199 to ten thousand pounds, halls over two thousand pounds. It 0:17:14.240 --> 0:17:19.040 will have three range, so it will do the bill 0:17:19.160 --> 0:17:22.359 as well as it passed all their ability capability is 0:17:22.400 --> 0:17:24.840 built for tough and at the same time as we 0:17:24.840 --> 0:17:27.600 were attracting new to e V and new to Ford 0:17:27.600 --> 0:17:30.040 customers that really want that technology to do. So we 0:17:30.080 --> 0:17:34.240 have that hands free blue cruise highway driving. We have 0:17:34.280 --> 0:17:37.480 onboard scales that actually measures what's in your pickup bed. 0:17:37.800 --> 0:17:40.639 So this product can do all the work stuff and 0:17:40.640 --> 0:17:44.080 then also is loaded with advanced technology. For me, the 0:17:44.119 --> 0:17:47.320 coolest thing is you can power your house. So here 0:17:47.320 --> 0:17:49.000 in the Northeast we have a lot of storms that 0:17:49.080 --> 0:17:52.000 knock out power. If you have this thing parked in 0:17:52.040 --> 0:17:55.120 your garage and it's charged, you can use it as 0:17:55.240 --> 0:17:58.639 as use it as a generator. UM. I still have 0:17:58.840 --> 0:18:02.320 range anxiety though, Jason, and I'm wondering, was there ever 0:18:02.480 --> 0:18:06.800 any thought, even you know, as a as a dealer 0:18:06.920 --> 0:18:11.400 add on to offer like a diesel generator to put 0:18:11.440 --> 0:18:13.880 in the bed so that I don't have to worry 0:18:13.920 --> 0:18:17.960 about getting to a charging station. Yeah. So when we're 0:18:17.960 --> 0:18:20.639 developing the product, it was all about efficiency. So the 0:18:20.720 --> 0:18:24.240 way that we package the battery and kind of how 0:18:24.240 --> 0:18:27.240 it's within the frame rails and how it's a parallel system, 0:18:27.320 --> 0:18:30.439 it is the most efficient. UM And what we found 0:18:30.560 --> 0:18:34.640 is for customers, over of them charge at home. So 0:18:34.760 --> 0:18:38.520 for the most part, you know they can they drive 0:18:38.640 --> 0:18:41.439 less than that three miles rains a day when you 0:18:41.480 --> 0:18:45.200 go on a road trip. That's where EV infrastructure is critical. 0:18:45.400 --> 0:18:48.240 And we really believe that as we grow the footprint, 0:18:48.359 --> 0:18:51.239 it will meet our customers needs. So how quickly can 0:18:51.280 --> 0:18:54.080 you grow the footprint? I mean, um, you know, I 0:18:54.160 --> 0:18:56.240 live in the great state of Ohio. I'm from there, 0:18:56.320 --> 0:18:59.440 thank God, and uh, but I live way out here 0:18:59.560 --> 0:19:02.160 in New York, and so I try and get back 0:19:02.200 --> 0:19:04.879 as much as possible. That's like a six mile trip. 0:19:04.920 --> 0:19:08.960 I would have to I probably realistically charge up twice 0:19:09.440 --> 0:19:12.320 on the way back. And I'm driving through like legit 0:19:12.440 --> 0:19:15.960 flyover country like I go when you when I go 0:19:16.080 --> 0:19:19.600 through Pennsylvania. Yeah, exactly. Happy Valley is like the only 0:19:19.680 --> 0:19:23.480 sign of life for six hours. How am I going 0:19:23.520 --> 0:19:27.520 to charge this thing on the way home to Granville? Yeah. 0:19:27.560 --> 0:19:29.720 The key thing at Forward is we realize, you know, 0:19:29.760 --> 0:19:32.640 we're not the experts in basically e V basically charging. 0:19:32.720 --> 0:19:35.520 So what we're doing is we're partnering with all the 0:19:35.640 --> 0:19:42.520 major UM charging station so Electry America EV go green lots, 0:19:42.840 --> 0:19:45.920 so to our customer is in our ford past app 0:19:46.320 --> 0:19:50.639 it just kind of looked like Ford foard charges for 0:19:50.880 --> 0:19:53.240 charging stations and you can be folly lead the driveway. 0:19:53.640 --> 0:19:56.600 You can plug in your address, your destination and it 0:19:56.600 --> 0:19:59.720 will automatically tell you what's the most efficient route and 0:20:00.000 --> 0:20:02.320 here to charge. So our goal is to be, which 0:20:02.320 --> 0:20:05.000 we are right now, the largest EV network because we 0:20:05.160 --> 0:20:08.240 partner with all the charting stations, you know, instead of 0:20:08.280 --> 0:20:13.560 going alone. So Jason, as you you know, ramp up 0:20:13.560 --> 0:20:17.040 your manufacturing gis a sense of supply chain challenges that 0:20:17.119 --> 0:20:19.159 you guys are feeling. Here can you get all the 0:20:19.200 --> 0:20:22.040 chips you need for these evs and and plus the 0:20:22.080 --> 0:20:25.239 old ice. Yeah, So what I can say is, you know, 0:20:26.080 --> 0:20:29.840 a macro kind of impact in the industry is is 0:20:29.840 --> 0:20:32.280 the tip short at Ford? You know, we're managing that 0:20:32.359 --> 0:20:35.919 as best we can. And lightning is a key product launched, 0:20:35.960 --> 0:20:40.359 so we're prioritizing. So we're laser focused on having a 0:20:40.640 --> 0:20:45.280 on time on track and a quality lawn for lightning Pacifically, dude, 0:20:45.280 --> 0:20:49.760 that's two laser focused, two times you've focus. This is 0:20:49.760 --> 0:20:52.040 an old phrase that Alan mollally brought to the Ford 0:20:52.080 --> 0:20:55.159 Motor Company back in the day. I like it. I 0:20:55.240 --> 0:20:57.240 like it. I'm sure you get points for it. Farley 0:20:57.280 --> 0:21:00.320 Will Farley will allow it. By the way, Jim is 0:21:00.320 --> 0:21:02.600 a good friend of mine, and I'm sure he won't 0:21:02.640 --> 0:21:06.240 mind you sharing just with us, just with me and Paul, 0:21:07.359 --> 0:21:10.480 some of your secret plans. I've been driving the Broncho 0:21:10.600 --> 0:21:13.560 around for the last week and it is a ton 0:21:13.640 --> 0:21:16.639 of fun. I gotta say, I'm super impressed by the 0:21:16.640 --> 0:21:18.959 two point seven leader V six in there, and I 0:21:19.000 --> 0:21:22.560 hate V six is traditionally. I think it's the most 0:21:22.600 --> 0:21:25.640 boring if you're gonna choose an engine, obviously a V eight, right, 0:21:25.720 --> 0:21:28.000 but at least an in line six. They went with 0:21:28.040 --> 0:21:29.719 a V on this and I thought, oh no. But 0:21:29.840 --> 0:21:33.480 it's so fast and it's so responsive, so I'm blown away. 0:21:34.160 --> 0:21:37.400 My question, though, is, Jason, when do you go electric? 0:21:37.600 --> 0:21:39.560 I don't know why you didn't introduce the Bronco as 0:21:39.560 --> 0:21:41.919 an electric vehicle in the first place. How long do 0:21:41.960 --> 0:21:43.879 we have to wait for, at the very least, a 0:21:43.960 --> 0:21:48.199 hybrid Bronco. Yeah, so I I can't count on that, 0:21:48.280 --> 0:21:51.000 But what I can tell you is Ford strategies. We're 0:21:51.040 --> 0:21:53.479 not just saying we're going electric everything, because we know 0:21:53.560 --> 0:21:58.240 a sucy in in the oment. There's different usage cases, 0:21:58.280 --> 0:22:02.760 so someone's gonna tow heavyweight long distances frequently a dis 0:22:03.440 --> 0:22:08.000 or guest engine will work. Obviously, Bronco is a blasted 0:22:08.119 --> 0:22:11.080 drive currently, and we're always looking at kind of feature 0:22:11.119 --> 0:22:15.920 plans electrified, so stay tuned in the future. All right, Jason, 0:22:15.920 --> 0:22:19.200 thanks so much for joining us. Jason Turnbull their marketing manager, 0:22:20.119 --> 0:22:23.360 clearly doing an excellent job talking about the F one 0:22:23.359 --> 0:22:25.959 fifty Lightning. We're pumped to see that come out. I'm 0:22:26.000 --> 0:22:28.200 also pumped to see an electric Broncho. It's got to happen. 0:22:28.200 --> 0:22:30.720 I heard the Broncos is awesome. Dude, It's so much fun. 0:22:30.960 --> 0:22:33.760 I've been driving it back and forth to Westchester. I 0:22:33.840 --> 0:22:36.679 dropped the top yesterday the sun was out. I'm like 0:22:36.760 --> 0:22:41.440