1 00:00:00,040 --> 00:00:02,520 Speaker 1: I'm really pleased to welcome for pro ceo Ted Cannis 2 00:00:02,560 --> 00:00:04,360 Speaker 1: and Ted wonderful to have you in the studio and 3 00:00:04,400 --> 00:00:06,600 Speaker 1: just answer that first we've got to go micro into 4 00:00:06,640 --> 00:00:08,959 Speaker 1: the detailing business. But the macro picture today, when GDP 5 00:00:09,039 --> 00:00:11,360 Speaker 1: isn't as strong as expected, when jobs perhaps are not 6 00:00:11,400 --> 00:00:15,239 Speaker 1: growing quite an anticipated amount that we had seen, are 7 00:00:15,280 --> 00:00:18,560 Speaker 1: people wanting to update, electrify, invest in their businesses. 8 00:00:19,400 --> 00:00:20,200 Speaker 2: Absolutely. 9 00:00:20,280 --> 00:00:22,520 Speaker 3: What we're seeing, Caroline is what we said a second 10 00:00:22,600 --> 00:00:25,280 Speaker 3: quarter is there is still three years of pent up 11 00:00:25,320 --> 00:00:30,440 Speaker 3: demand for the vehicles internal combustion and battery electric doing 12 00:00:30,520 --> 00:00:33,280 Speaker 3: all that supply chain problems that we had, and so 13 00:00:33,760 --> 00:00:36,720 Speaker 3: we see customers for super duties and transit's both North 14 00:00:36,760 --> 00:00:40,720 Speaker 3: America and Europe looking for vehicles. My biggest challenge with 15 00:00:40,760 --> 00:00:43,840 Speaker 3: most of my customers, Hey, customers, is can I get more? 16 00:00:44,240 --> 00:00:47,040 Speaker 1: Oh interesting? Okay, So you'll trying to marry up the 17 00:00:47,040 --> 00:00:50,640 Speaker 1: supply demand equation at the moment I'm interested in into Ultimately, Therefore, 18 00:00:50,640 --> 00:00:52,680 Speaker 1: how you're sending us oude apart? What is it that 19 00:00:52,880 --> 00:00:54,920 Speaker 1: makes them go yes for pro over anything else. 20 00:00:55,440 --> 00:00:58,200 Speaker 3: Well, so we have this amazing backbone of the business 21 00:00:58,200 --> 00:01:00,000 Speaker 3: that we have all these commercial work trucks that we 22 00:01:00,120 --> 00:01:02,600 Speaker 3: do for North American Europe. We're a number one in 23 00:01:02,640 --> 00:01:04,679 Speaker 3: Europe for eight years in a row. We have forty 24 00:01:04,720 --> 00:01:07,080 Speaker 3: percent of the commercial and government share for full sized 25 00:01:07,080 --> 00:01:07,800 Speaker 3: trucks and vans. 26 00:01:08,160 --> 00:01:09,199 Speaker 2: We're the big guy. 27 00:01:09,840 --> 00:01:12,440 Speaker 3: And what we're doing now is expanding in not just 28 00:01:12,560 --> 00:01:14,600 Speaker 3: vehicles in a connected world. 29 00:01:14,600 --> 00:01:16,920 Speaker 2: It's vehicles, software. 30 00:01:16,600 --> 00:01:21,200 Speaker 3: Service, charging, financing, netting that all together so that we 31 00:01:21,319 --> 00:01:24,560 Speaker 3: have this amazing business, a one stop shop for our customers. 32 00:01:24,600 --> 00:01:25,840 Speaker 2: Just the easy button. 33 00:01:26,680 --> 00:01:28,520 Speaker 4: Had said, it's good to catch up. You know, I 34 00:01:28,560 --> 00:01:32,319 Speaker 4: actually find the commercial business fascinating because you're not just 35 00:01:32,400 --> 00:01:35,880 Speaker 4: selling a vehicle that happens to be electric. You're kind 36 00:01:35,880 --> 00:01:39,200 Speaker 4: of packaging it up. You mentioned your footprint in Europe. 37 00:01:39,200 --> 00:01:41,880 Speaker 4: I just wondered if you had a better sense now 38 00:01:42,280 --> 00:01:44,800 Speaker 4: of why that EV adoption is slower here in the 39 00:01:44,920 --> 00:01:48,760 Speaker 4: US visa the Europe and indeed China well ed. 40 00:01:48,760 --> 00:01:51,160 Speaker 3: When you and I were first talking electric vehicles years ago, 41 00:01:51,200 --> 00:01:52,960 Speaker 3: and we're getting ready to get the lightning and other 42 00:01:53,040 --> 00:01:55,280 Speaker 3: products that we weren't even had launch at the time. 43 00:01:55,880 --> 00:01:58,040 Speaker 3: You know, America was a bit further behind. Cost of 44 00:01:58,040 --> 00:02:00,400 Speaker 3: fuel in Europe was very high, and there was already 45 00:02:00,440 --> 00:02:03,160 Speaker 3: a lot of pressure to look for other solutions, and 46 00:02:03,400 --> 00:02:05,760 Speaker 3: what we're seeing now and actually in both regions, is 47 00:02:05,840 --> 00:02:09,560 Speaker 3: it's just good business total cost of ownership, up time, 48 00:02:09,880 --> 00:02:13,200 Speaker 3: productivity solutions. They can save money on fuel, they can 49 00:02:13,200 --> 00:02:16,639 Speaker 3: save money on repairs. It's a great solutions for many 50 00:02:16,639 --> 00:02:19,680 Speaker 3: customers in both regions. And that's what we're seeing, and 51 00:02:19,760 --> 00:02:22,079 Speaker 3: that's why we upped a lot of our production demand 52 00:02:22,200 --> 00:02:24,840 Speaker 3: for lightning here in North America. And it's getting the 53 00:02:24,960 --> 00:02:27,239 Speaker 3: right tool for the job, whether that's a van or 54 00:02:27,280 --> 00:02:28,640 Speaker 3: a pickup truck to do the work. 55 00:02:30,320 --> 00:02:34,559 Speaker 4: Jim Farley, the Ford CEO, is taught it's about the consumer, 56 00:02:35,520 --> 00:02:38,120 Speaker 4: you know, sort of rejecting higher prices for evs. Do 57 00:02:38,200 --> 00:02:40,880 Speaker 4: you see that from your commercial and fleet customers as well? 58 00:02:41,080 --> 00:02:43,640 Speaker 4: On the pricing issue. 59 00:02:43,040 --> 00:02:45,720 Speaker 3: I'd say we will carefully manage the pricing as we 60 00:02:46,040 --> 00:02:48,560 Speaker 3: increase the supply of vehicles now that we're going to 61 00:02:48,600 --> 00:02:50,440 Speaker 3: the extra shifts that we put on and lightning and 62 00:02:50,480 --> 00:02:51,720 Speaker 3: have the battery capacity. 63 00:02:52,200 --> 00:02:54,120 Speaker 2: So a lot of it is just education. 64 00:02:54,320 --> 00:02:58,200 Speaker 3: I think in the commercial space, the decision process is longer. 65 00:02:58,200 --> 00:03:00,560 Speaker 3: In a company, this is a big investment, like in 66 00:03:00,639 --> 00:03:04,240 Speaker 3: facilities or equipment. They're used to making investments with making 67 00:03:04,280 --> 00:03:07,520 Speaker 3: the equations get an Excel spreadsheet out, and that learning 68 00:03:07,560 --> 00:03:09,880 Speaker 3: process is taking longer, and then you would the stack 69 00:03:09,960 --> 00:03:14,840 Speaker 3: on applying for incentives utility infrastructure that's required. This turns 70 00:03:14,840 --> 00:03:18,040 Speaker 3: into a longer process than moves through the cycle, and 71 00:03:18,080 --> 00:03:20,000 Speaker 3: that's what we're helping a lot of our customers and 72 00:03:20,040 --> 00:03:22,880 Speaker 3: frankly our dealers as they work with so many new customers. 73 00:03:23,720 --> 00:03:26,960 Speaker 4: You know, I've been out in some vineyards and wineries 74 00:03:27,040 --> 00:03:28,680 Speaker 4: very near to where I am now ted and they 75 00:03:28,800 --> 00:03:31,200 Speaker 4: demonstrated to me not just that they run the F 76 00:03:31,200 --> 00:03:34,400 Speaker 4: one fifty lightning between point A and point B, but 77 00:03:34,720 --> 00:03:37,840 Speaker 4: they're using your data and software offering to kind of 78 00:03:37,880 --> 00:03:41,640 Speaker 4: optimize that route everything from like getting down to the 79 00:03:41,640 --> 00:03:46,200 Speaker 4: most efficient mile they can drive. Peter Stern's just joined Forward, 80 00:03:46,240 --> 00:03:48,960 Speaker 4: longtime Apple exec. I just wondered if you could tell 81 00:03:49,040 --> 00:03:51,960 Speaker 4: us why that move came and what kind of impact 82 00:03:52,040 --> 00:03:54,800 Speaker 4: he will have on improving that software offering. 83 00:03:55,600 --> 00:03:59,400 Speaker 3: I think this is corridor the whole Forward plus plan. 84 00:04:00,000 --> 00:04:02,880 Speaker 3: We're all talking about electrification on all the time, but 85 00:04:03,480 --> 00:04:07,400 Speaker 3: the real secret is the software defined vehicles and connected vehicles, 86 00:04:07,720 --> 00:04:09,320 Speaker 3: digital and physical services. 87 00:04:09,680 --> 00:04:11,240 Speaker 2: That is the big change. 88 00:04:11,400 --> 00:04:14,200 Speaker 3: So when you have a vehicle that's signaling a repair 89 00:04:14,240 --> 00:04:16,359 Speaker 3: that needs to be made, you can pre order the 90 00:04:16,400 --> 00:04:19,720 Speaker 3: part schedule at the dealership. Link all that together, like 91 00:04:19,760 --> 00:04:22,640 Speaker 3: you're seeing in so many cases where software can bribe 92 00:04:22,760 --> 00:04:26,800 Speaker 3: more convenient, more productive solutions for the customers. Peter is 93 00:04:26,800 --> 00:04:29,839 Speaker 3: a specialist in that space. He's been doing subscription services 94 00:04:30,160 --> 00:04:33,120 Speaker 3: at large volume at Apple with that kind of science 95 00:04:33,160 --> 00:04:35,880 Speaker 3: that he's seen of where and how to change the 96 00:04:35,920 --> 00:04:38,960 Speaker 3: experience for the customers in a very positive way. And 97 00:04:39,000 --> 00:04:41,039 Speaker 3: he's going to come lend us that experience both on 98 00:04:41,080 --> 00:04:43,800 Speaker 3: the pro side, but in our other software defined businesses, 99 00:04:43,800 --> 00:04:46,440 Speaker 3: for example Blue Crews, where you can have hands free 100 00:04:46,480 --> 00:04:49,640 Speaker 3: driving on the highways in the Blue Crew zones, which 101 00:04:49,839 --> 00:04:52,320 Speaker 3: also in the future will be appealing to commercial customers. 102 00:04:52,440 --> 00:04:55,160 Speaker 3: Imagine a customer who can get his time. 103 00:04:54,960 --> 00:04:57,640 Speaker 2: Back on the highway. Time is just a huge value 104 00:04:57,640 --> 00:04:58,920 Speaker 2: oreor in traffic. 105 00:04:58,560 --> 00:05:01,440 Speaker 3: Coming in the London on the end twenty five's stuck 106 00:05:01,440 --> 00:05:04,000 Speaker 3: in those miles and miles of cues. It's a great 107 00:05:04,080 --> 00:05:06,320 Speaker 3: thing to not have to be hand the hands on wheel. 108 00:05:06,320 --> 00:05:07,040 Speaker 3: You could do something else. 109 00:05:07,120 --> 00:05:08,800 Speaker 1: You know, a couple of people you're talking to you 110 00:05:08,800 --> 00:05:11,440 Speaker 1: who understand the m twenty five trials and tribulations I'm 111 00:05:11,600 --> 00:05:14,440 Speaker 1: interested in, Though you talked about the supply demand dynamic, 112 00:05:14,480 --> 00:05:17,040 Speaker 1: the fact that sort of may your headache is getting 113 00:05:17,120 --> 00:05:20,440 Speaker 1: enough vehicles into your client's hands. How much more of 114 00:05:20,440 --> 00:05:22,360 Speaker 1: a headache is that when you're still trying to negotiate 115 00:05:22,400 --> 00:05:25,160 Speaker 1: with workers, particularly with the United Auto Workers. I mean, 116 00:05:25,240 --> 00:05:27,400 Speaker 1: how is that going to your bit of the business. 117 00:05:28,080 --> 00:05:29,760 Speaker 3: Well, I think the main thing for us is, you know, 118 00:05:30,080 --> 00:05:32,480 Speaker 3: the workers are our team. We're all one team. And 119 00:05:32,720 --> 00:05:34,360 Speaker 3: you know, one of the things we're proud of is 120 00:05:34,400 --> 00:05:36,480 Speaker 3: we build more vehicles in America than anybody else. 121 00:05:36,839 --> 00:05:38,640 Speaker 2: We employ more hour league guys. 122 00:05:38,400 --> 00:05:41,120 Speaker 3: In than anybody else, we export more than anybody else. 123 00:05:41,160 --> 00:05:43,400 Speaker 3: So it's a team that's doing these and we're happy 124 00:05:43,440 --> 00:05:45,760 Speaker 3: to produce all these f series of vans and pickups 125 00:05:45,760 --> 00:05:48,840 Speaker 3: in the US. So when we look at that, it's 126 00:05:49,200 --> 00:05:51,680 Speaker 3: going to go through that process. Now, this is a 127 00:05:51,720 --> 00:05:54,200 Speaker 3: normal negotiation. I'm not in the heads and throws, but 128 00:05:54,279 --> 00:05:55,920 Speaker 3: I can say I was in Kansas City this week. 129 00:05:55,960 --> 00:05:58,080 Speaker 3: I'm visiting our team there because we'd just gone to 130 00:05:58,120 --> 00:06:01,080 Speaker 3: three shifts on trends earlier this year because the demand 131 00:06:01,200 --> 00:06:02,120 Speaker 3: is so strong. 132 00:06:03,520 --> 00:06:06,240 Speaker 4: For pro Ceo take Cannis. We always talk about evs 133 00:06:06,240 --> 00:06:08,920 Speaker 4: in the context of the consumer, and we don't talk 134 00:06:08,960 --> 00:06:12,400 Speaker 4: as much about these small and large businesses buying up fleets. 135 00:06:12,440 --> 00:06:14,119 Speaker 4: Thank you so much for your time.