WEBVTT - Ford CEO Jim Farley Joins the Show! 0:00:02.440 --> 0:00:09.280 Bloomberg Audio Studios, Podcasts, radio News. I'm Matt Miller and 0:00:09.320 --> 0:00:11.640 I'm Hannah Elliott and this is Hot Pursuit. 0:00:19.560 --> 0:00:21.880 We have an incredible guest. 0:00:21.960 --> 0:00:25.560 To honestly one of my favorite people in the industry 0:00:25.640 --> 0:00:27.960 to talk to. Yeah, he's a breath of fresh air. 0:00:28.000 --> 0:00:31.480 Absolutely say the same thing. And what a career he's 0:00:31.520 --> 0:00:34.760 had as well. I mean he bought a Mustang when 0:00:34.760 --> 0:00:37.720 he was like sixteen, drove it across country. His grandfather 0:00:37.800 --> 0:00:41.159 worked at Ford. He went for to really build his 0:00:41.280 --> 0:00:44.680 chops at Lexus and then I'm not sure if it 0:00:44.720 --> 0:00:47.040 was Bill or Alan Molalley who brought him over, but 0:00:48.200 --> 0:00:50.320 now is the CEO of that company, So you know 0:00:50.360 --> 0:00:51.160 who we're talking about. 0:00:51.360 --> 0:00:53.920 Jim Farley. Jim Farley, And I also have to say 0:00:53.920 --> 0:00:55.080 he's Chris Farley's cousin. 0:00:55.240 --> 0:00:56.160 That is also true. 0:00:56.240 --> 0:00:56.840 I just love that. 0:00:57.040 --> 0:00:59.760 And he's a real racer. He has his own podcast 0:00:59.800 --> 0:01:02.400 which I've been listening to for about a year now. 0:01:03.240 --> 0:01:05.440 This is like the two point zero version of his podcast, 0:01:05.880 --> 0:01:08.200 and I learned so much about him there. But I 0:01:08.280 --> 0:01:11.119 knew he raced because I'd seen him testing out cars 0:01:11.319 --> 0:01:14.360 in Dearborn and he talks about it as well's. 0:01:14.040 --> 0:01:16.679 I think he's a great driver, and he actually is 0:01:16.720 --> 0:01:19.120 a pretty humble guy, but he's a genius. 0:01:19.160 --> 0:01:19.399 All right. 0:01:19.440 --> 0:01:21.880 We've said too many good things about Jim. Yeah, yeah, yeah, 0:01:21.959 --> 0:01:22.759 let's get. 0:01:22.600 --> 0:01:25.000 Into the interview without any further ado. Let's kick it 0:01:25.040 --> 0:01:26.640 off with GTD because you guys have been doing so 0:01:26.760 --> 0:01:29.000 much with that. I mean, obviously you're pumped, and I 0:01:29.040 --> 0:01:31.160 see they've started selling him in France. I love the 0:01:31.160 --> 0:01:34.080 suspension window in the back. Tell me about that car. 0:01:34.280 --> 0:01:38.240 We just showed another version the production vehicle in France, 0:01:38.319 --> 0:01:41.280 and we went to the ring about a month ago 0:01:41.520 --> 0:01:44.959 just to see where we stand in terms of the 0:01:45.319 --> 0:01:49.920 vehicle's performance relative to the GT three RS. We're pretty 0:01:50.000 --> 0:01:53.720 much in the final throes of the engineering. We start 0:01:53.800 --> 0:01:56.760 production late this year early next year, depending on how 0:01:56.840 --> 0:02:01.120 the there's so many unique parts that you know, it's 0:02:01.280 --> 0:02:04.400 it's hard to predict exactly when you're ready to go 0:02:04.520 --> 0:02:08.799 to mass production. We have the transaxle and the suspensions 0:02:08.800 --> 0:02:11.920 system is very new, as you said, and we've never 0:02:12.080 --> 0:02:14.560 put that into a production vehicle, no one has really, 0:02:14.720 --> 0:02:18.840 So there's still some final development to be done on 0:02:18.919 --> 0:02:21.680 the chassis and but the team's working through that and 0:02:22.280 --> 0:02:24.640 you know, we're heading to production here in a matter 0:02:24.680 --> 0:02:25.160 of months. 0:02:25.840 --> 0:02:27.160 Are you taking cards yet? 0:02:27.400 --> 0:02:30.880 We have applications pretty much the car sold out now 0:02:31.800 --> 0:02:36.320 based on the applications, we haven't told everyone exactly the 0:02:36.400 --> 0:02:37.799 final option pricing. 0:02:38.280 --> 0:02:40.440 We have some special. 0:02:40.120 --> 0:02:44.680 Versions that no one's seen before, and so you know 0:02:44.800 --> 0:02:47.400 that will ultimately kind of shake out with the orders, 0:02:47.480 --> 0:02:52.359 but we won't sell it until and and get the money, 0:02:52.440 --> 0:02:55.200 so to speak, until we're kind of in production. 0:02:55.440 --> 0:02:56.440 Are you going to be racing it? 0:02:56.480 --> 0:02:59.560 I mean, I know from listening to your podcast that 0:02:59.639 --> 0:03:02.359 you're a big fan of racing and you do a 0:03:02.400 --> 0:03:05.280 lot of racing yourself. Sure, I remember you testing out 0:03:05.280 --> 0:03:07.040 a Lola I think when I was with you in 0:03:07.080 --> 0:03:09.600 Detroita a few years back. Are you going to be 0:03:09.680 --> 0:03:10.760 racing this car yourself? 0:03:11.160 --> 0:03:13.640 Last weekend at midd Ohio, we had our first Mustang 0:03:13.720 --> 0:03:16.799 Challenge with twenty seven cars, and I raced a Tilingua 0:03:17.400 --> 0:03:21.359 themed dark Horse are there and I think the dark 0:03:21.400 --> 0:03:23.320 Horse are and the GT four. 0:03:23.400 --> 0:03:26.320 Kind of the right products for me. You know, if I. 0:03:26.400 --> 0:03:29.960 Race the GTD or GT three depending on the class, 0:03:29.960 --> 0:03:34.639 whether it's in WEC or SRO or IMSA, I think 0:03:34.639 --> 0:03:37.880 it's pretty expensive and you really need to be doing 0:03:37.960 --> 0:03:42.000 practice and testing pretty much all year round. I don't 0:03:42.040 --> 0:03:45.080 have the luxury of that, and at sixty two, I 0:03:45.160 --> 0:03:46.720 just don't think it's a good fit for me to 0:03:46.760 --> 0:03:49.760 be racing all over the world with my job. 0:03:49.840 --> 0:03:51.880 It just doesn't fit. The GT four. 0:03:52.560 --> 0:03:54.360 Just to explain a little bit, we set up for 0:03:54.400 --> 0:03:57.080 the first time in Ford's history, at least, a kind 0:03:57.120 --> 0:04:01.880 of pyramid of racing from We put about ten thousand 0:04:01.880 --> 0:04:06.160 people through our experienced schools around the country, uh, and 0:04:06.200 --> 0:04:09.600 then they can graduate to a track car, a Raptor track, 0:04:09.800 --> 0:04:14.040 a dark Horse track car, and then we have the 0:04:14.200 --> 0:04:18.120 dark Horse r that we're racing now in our same 0:04:18.200 --> 0:04:23.120 make series like Mazta Cup and Porsche Cup. And then 0:04:23.160 --> 0:04:26.920 we have the GT four beyond that, which is a 0:04:26.960 --> 0:04:31.479 you know, automatic gearbox or a sequential gearbox, and it's 0:04:31.560 --> 0:04:34.280 pretty different than the dork cars are the Doork course 0:04:34.360 --> 0:04:34.800 are is. 0:04:34.760 --> 0:04:36.000 A manual shift vehicle. 0:04:36.560 --> 0:04:41.719 And then we have the GT three slash GTD depending 0:04:41.760 --> 0:04:46.400 on the GTE PRO depending on the and all of 0:04:46.400 --> 0:04:49.760 that is within you know, the Mustang at the top 0:04:49.800 --> 0:04:53.240 of the pyramid. We also have Aussie supercars and we 0:04:53.400 --> 0:04:57.960 race Mustang Cobra R in a char and of course 0:04:58.000 --> 0:05:00.240 we have a NASCAR and lots of other series, but 0:05:01.160 --> 0:05:03.840 so we want to give people the opportunity to kind 0:05:03.880 --> 0:05:07.480 of move up in that try that triangle, that pyramid 0:05:08.400 --> 0:05:12.440 wherever they want. And the big thing is that we're 0:05:12.880 --> 0:05:15.840 selling the vehicles, so we're no longer racing as a 0:05:15.880 --> 0:05:21.120 factory company. We're creating the dark Horse rs and the 0:05:21.120 --> 0:05:24.040 GT fours and GT three's for other teams like this. 0:05:24.600 --> 0:05:26.760 As we speak. You know, the Proton team is in 0:05:26.839 --> 0:05:28.119 Lamar Racing. 0:05:28.520 --> 0:05:30.120 Are you going to Lamar this weekend? 0:05:30.200 --> 0:05:32.560 Jim Bill's Bill's covering it. 0:05:32.640 --> 0:05:35.800 I'm going up to northern Michigan dirt biking with my daughter's, 0:05:36.160 --> 0:05:39.080 my two daughters, so and I promised him I do that, 0:05:39.240 --> 0:05:44.360 and so Bill and I try to cover marquee races 0:05:44.440 --> 0:05:45.960 like that. But this will be the first time that 0:05:46.080 --> 0:05:50.200 Mustang's at Lamar in the GT class, so it's pretty exciting. 0:05:50.240 --> 0:05:53.920 I think we qualify third, but qualifying doesn't matter much 0:05:53.920 --> 0:05:56.640 in Lamar. I raced last year my GT forty at 0:05:56.680 --> 0:06:00.159 Lamar Classic, and a year before I finished second my 0:06:00.240 --> 0:06:03.279 GT forty, So I've raced the law several times in 0:06:03.320 --> 0:06:06.600 the vintage stuff, but I'm really focused on GT four 0:06:07.520 --> 0:06:11.000 and dark Horse are and and that's a little intimidating 0:06:11.040 --> 0:06:13.479 because we are customer. We build the race cars for 0:06:13.560 --> 0:06:17.680 other people, not forward and sell them. And you know, 0:06:17.720 --> 0:06:19.920 it's probably not a good idea to race a lot 0:06:19.960 --> 0:06:20.839 with my customers. 0:06:21.920 --> 0:06:26.240 You don't want to beat them or but or like 0:06:26.320 --> 0:06:30.240 at midd Ohio we had a few little dense and dings. 0:06:30.680 --> 0:06:32.680 Yeah, that's that's normal, that's expected. 0:06:33.080 --> 0:06:35.400 But but Jim, you guys are doing are you doing 0:06:35.440 --> 0:06:39.360 a lot more of supplying cars to race teams because 0:06:39.360 --> 0:06:42.640 you're also in the Bronco you have the dr which 0:06:43.160 --> 0:06:44.880 I'm fast before. 0:06:45.040 --> 0:06:48.440 Yeah, we never did anything before. We always raced ourselves. 0:06:48.880 --> 0:06:51.760 This is the first time we really I think I 0:06:51.800 --> 0:06:54.839 explained about a year ago. We changed our strategy and 0:06:55.000 --> 0:06:57.200 this is all new for us. And we started on 0:06:57.240 --> 0:06:59.360 the off road side. You know, there's no Porsche of 0:06:59.360 --> 0:07:02.440 off roads, so we really believe that forward with Raptor 0:07:02.440 --> 0:07:05.760 and Bronco, we can be a global brand for off road. 0:07:05.680 --> 0:07:08.120 Performance and on the on road. 0:07:08.160 --> 0:07:11.240 We want to use Mustang in that pyramid to kind 0:07:11.240 --> 0:07:15.440 of you know, make racing sustainable and a business tied 0:07:15.480 --> 0:07:18.520 to these derivatives like GTD at the top of Mustang 0:07:18.920 --> 0:07:22.520 and build out the Mustang brand on the off road side. 0:07:22.520 --> 0:07:26.160 That's really the biggest, the biggest impact on our business. 0:07:26.240 --> 0:07:28.600 Raptor is like ten percent of a global prime. I mean, 0:07:28.640 --> 0:07:32.160 it's a very profitable vehicle. We now have Tremor below it. 0:07:32.840 --> 0:07:36.480 We have Raptor on Bronco Ranger and F one fifty. 0:07:36.520 --> 0:07:39.440 Now we also have Raptor R So we're starting to 0:07:39.440 --> 0:07:44.680 develop different derivatives of Raptor and that's just the beginning. 0:07:45.000 --> 0:07:49.320 And we also have the off road rodeo and a 0:07:49.440 --> 0:07:52.080 Raptor experience that you can buy when you buy your Raptor, 0:07:52.120 --> 0:07:55.120 you just you just go to the school and then 0:07:55.160 --> 0:07:58.720 we'll have a similar pyramid for off road. Probably the 0:07:58.760 --> 0:08:02.680 middle part won't be race and maybe more social activities 0:08:02.720 --> 0:08:07.760 and more club stuff like like bmwgs, you know, more experiences. 0:08:08.040 --> 0:08:10.680 But both off road and on road, we were following 0:08:10.680 --> 0:08:11.560 the same formula. 0:08:11.960 --> 0:08:15.040 Jim, you mentioned earlier. You mentioned manual and I'm just 0:08:15.080 --> 0:08:19.000 so curious how vital you think a manual transmission still 0:08:19.080 --> 0:08:23.680 is at Ford and specifically in Mustang, especially in light 0:08:23.760 --> 0:08:26.200 of you know, with the nine to eleven hybrid not 0:08:26.360 --> 0:08:31.800 having a manual option is what is Ford's philosophy on 0:08:31.880 --> 0:08:32.960 the manual transmission. 0:08:33.600 --> 0:08:37.480 Our belief is that each car company has its own 0:08:37.600 --> 0:08:40.679 unique DNA, and ours is a V eight manual and 0:08:40.720 --> 0:08:43.839 a coup And part of the reasons why we did 0:08:43.880 --> 0:08:47.439 the makey is because we could stay in that category 0:08:47.559 --> 0:08:50.599 and offer a V eight and offer a manual. I 0:08:50.880 --> 0:08:54.480 don't think Porsche should have all the fun and I think, 0:08:54.559 --> 0:08:57.000 you know, they're kind of the establishment now and we 0:08:57.040 --> 0:09:01.760 could be the disruptor, and so we're trying to learn as. 0:09:01.720 --> 0:09:02.440 Much as we can. 0:09:02.559 --> 0:09:07.520 I've always admired Masta and Porsche, and I think that 0:09:08.400 --> 0:09:11.280 Ford can do the same thing and kind of what 0:09:11.400 --> 0:09:13.920 We globalized a Mustang a couple of years ago, and 0:09:14.160 --> 0:09:16.480 some of our biggest dealers are in Australian, in Sweden, 0:09:16.559 --> 0:09:20.080 not in the US. Interesting Mustang is now the best 0:09:20.080 --> 0:09:21.480 selling sports coup in the world. 0:09:21.559 --> 0:09:22.880 We don't really talk about it. 0:09:23.480 --> 0:09:25.240 Well we talk about it, Yeah, we talk about it. 0:09:25.280 --> 0:09:28.840 And I think Matt needs like a Mustang raptor can 0:09:28.920 --> 0:09:30.200 we combine the two things. 0:09:30.200 --> 0:09:31.760 Well, I have to say I was in a Lamborghini 0:09:32.360 --> 0:09:34.920 Hurrican Strato a couple weeks ago and it was so 0:09:35.080 --> 0:09:37.560 much fun and not just for off road, but for 0:09:37.600 --> 0:09:38.600 commuting in New York. 0:09:38.760 --> 0:09:39.959 It'd be great to have a Mustang. 0:09:39.960 --> 0:09:41.960 It was just a little bit lifted with off road 0:09:42.000 --> 0:09:43.120 tires and a stick. 0:09:43.760 --> 0:09:44.720 Do you think it would sell? 0:09:45.240 --> 0:09:45.680 I don't know. 0:09:46.000 --> 0:09:49.040 I mean I would people like me would buy one. 0:09:49.120 --> 0:09:50.839 But do you think it wouldn't sell? 0:09:51.200 --> 0:09:52.160 What would you call it? 0:09:52.400 --> 0:09:56.320 Well, there's been at least an internet buzz for a 0:09:56.400 --> 0:09:58.800 Mustang Raptor for a long time, a raptor version of 0:09:58.840 --> 0:09:59.440 the Mustang. 0:10:00.080 --> 0:10:01.720 I don't know what I would call it. 0:10:02.360 --> 0:10:04.400 I would just call it the Mustang Raptor. 0:10:04.480 --> 0:10:06.559 With a Bronco, you just called it the Raptor, right, So. 0:10:07.200 --> 0:10:09.760 Yeah, yeah, so you know this. 0:10:10.320 --> 0:10:13.200 Anyways, I'm not going to make any future announcements on 0:10:13.280 --> 0:10:14.240 products at the show. 0:10:14.320 --> 0:10:16.360 But the triangles were overlap. 0:10:16.840 --> 0:10:17.400 That's not a no. 0:10:18.160 --> 0:10:22.840 That's not a no no, not noing, not a yes. 0:10:22.920 --> 0:10:24.320 That's why I was asking about the name. 0:10:24.920 --> 0:10:27.360 Well, yeah, I liked there. For a while. 0:10:27.400 --> 0:10:31.280 There was a wart Hog name floating around, which I 0:10:31.280 --> 0:10:35.080 thought was such a cool idea for the Bronco. In 0:10:35.360 --> 0:10:37.840 the Bronco, you can get a manual, at least you could. 0:10:37.840 --> 0:10:40.040 A buddy mine bought one in Colorado with the two 0:10:40.080 --> 0:10:43.280 point three. Is there ever going to be the chance 0:10:43.320 --> 0:10:46.000 of a bigger motor with a manual transmissioner with a 0:10:46.000 --> 0:10:48.719 Bronco or is that just you didn't think the take 0:10:48.760 --> 0:10:49.840 rate was going to be high enough. 0:10:50.320 --> 0:10:51.720 It's not so much the take rate. 0:10:51.760 --> 0:10:54.000 I mean, we're not doing it on a Mustang for 0:10:54.080 --> 0:10:56.760 the take grade or the sales. It's more for that 0:10:56.880 --> 0:11:00.360 people really love it or really passionate about that experience, 0:11:00.440 --> 0:11:03.320 Like I am, like billis we like shifting our car? 0:11:03.679 --> 0:11:06.600 You know, I love to the GT three touring. I 0:11:06.600 --> 0:11:09.960 thought it was a really good move by Portie, and 0:11:11.160 --> 0:11:15.160 you know, we really like so we're really looking at 0:11:15.200 --> 0:11:18.319 it more as an image thing and as an experienced 0:11:18.320 --> 0:11:21.800 thing that the company gets it more than you know, 0:11:22.400 --> 0:11:24.520 we could sell or not on a Bronco. We were 0:11:24.559 --> 0:11:27.720 really committed to an affordable Bronco and doing a two door. 0:11:27.760 --> 0:11:29.360 We didn't have to do a two door. We would 0:11:29.400 --> 0:11:32.200 sell all the Broncos we we had if we had 0:11:32.200 --> 0:11:33.800 a four door. But we did a two door, and 0:11:33.840 --> 0:11:37.280 we did a steel wheel Bronco and we did a manual. 0:11:37.360 --> 0:11:41.600 For that reason, the platform for Bronco is a ranger 0:11:41.640 --> 0:11:45.160 platform and it's very difficult for us to develop a 0:11:45.240 --> 0:11:48.040 high power engine with the manual transmission. We have a 0:11:48.080 --> 0:11:50.320 long history and there's a lot of great supplies like 0:11:50.360 --> 0:11:53.760 Tremic on the manual on the manual side from us Stang, 0:11:53.840 --> 0:11:56.800 but there's not as many. There's really no suppliers, so 0:11:56.840 --> 0:11:59.640 we have to do it ourselves and that requires a 0:11:59.640 --> 0:12:03.400 lot of engineering right now. You know, for Bronco, we're 0:12:03.400 --> 0:12:06.360 building out our derivatives and we have more to come, 0:12:06.400 --> 0:12:09.600 which you'll see. And I think the priority is, you know, 0:12:09.640 --> 0:12:13.679 more like a commercial vehicle or a high end luxury Bronco, 0:12:13.840 --> 0:12:16.760 which a lot of customers are asking for. That that's 0:12:16.840 --> 0:12:20.359 probably a higher priority for us from an image standpoint. 0:12:20.440 --> 0:12:23.319 I will preface this next question by saying the Bronco 0:12:23.480 --> 0:12:25.800 was one of the first turbocharge V six. 0:12:25.840 --> 0:12:28.280 As I drove where I was like, I like this. 0:12:28.480 --> 0:12:31.320 It really works and the and the car feels light 0:12:31.440 --> 0:12:34.440 enough and it's it's peppy, and I don't think you 0:12:34.559 --> 0:12:38.880 need more. However, when I'm in a V eight, I 0:12:38.920 --> 0:12:42.160 love the sound, I love the warmth, I love the vibes, 0:12:42.679 --> 0:12:45.760 and you can do that with the Bronco by as 0:12:45.800 --> 0:12:49.280 evidenced by the dr platform, Is there ever any chance 0:12:49.559 --> 0:12:51.120 that a V eight could go in a Bronco. 0:12:51.600 --> 0:12:53.600 It could, but I don't think that's going to be 0:12:53.640 --> 0:12:56.320 our priority. When we developed the Bronco in the mid 0:12:56.440 --> 0:12:58.920 six in the early sixties, it was proved in sixty 0:12:58.920 --> 0:13:01.560 two at the same meeting as a Mustang was approved, 0:13:02.080 --> 0:13:04.640 and it was the same Mustang. It was the same horse. 0:13:05.360 --> 0:13:07.800 One was a Bronco and one was a Mustang. But 0:13:08.040 --> 0:13:11.880 the designer designed the same horse doing two different things, 0:13:12.559 --> 0:13:14.760 and the whole concept of the Bronco. I have the 0:13:14.800 --> 0:13:18.439 approval paper Lei Cocoa proved it in my office right now, 0:13:18.920 --> 0:13:22.120 just you know, twenty feet from here. And the Bronco 0:13:22.280 --> 0:13:24.840 was an off road Mustang. That was the concept of 0:13:24.840 --> 0:13:28.640 the vehicle. So it does make sense to you know, 0:13:28.760 --> 0:13:31.600 kind of mix and match a little bit, but you know, 0:13:31.720 --> 0:13:34.439 that's that's really not our priority right now in Bronco. 0:13:35.000 --> 0:13:38.040 We really want to. Yeah, I think things are changing 0:13:38.080 --> 0:13:41.959 a lot for the auto industry. The best selling vehicle 0:13:41.960 --> 0:13:44.600 in the US for forty years has been the F series. 0:13:45.360 --> 0:13:47.560 We have an electric Mustang. We have an electric F 0:13:47.600 --> 0:13:50.520 one fifty hybrid is twenty five percent of all F 0:13:50.559 --> 0:13:54.080 one fifty sales. Now, the most popular combustion engine is 0:13:54.080 --> 0:13:57.240 a twin turbo VS six not a V eight. 0:13:57.559 --> 0:13:59.040 You know, things are changing. 0:13:58.760 --> 0:14:01.720 As fascinating the whole alone. 0:14:02.200 --> 0:14:05.000 I mean, I would say that maybe because you don't 0:14:05.040 --> 0:14:07.640 offer the big V eight, like my Raptor has a 0:14:07.640 --> 0:14:10.559 six point two liter V eight and it never gets 0:14:10.559 --> 0:14:13.360 old or disappointing, but can get. 0:14:13.240 --> 0:14:17.160 I guess, I guess, I guess what maybe you'll get 0:14:17.280 --> 0:14:20.160 in between the lines here I'll be explicit about it 0:14:20.240 --> 0:14:22.600 is We're just kind of an irreverent company in a way, 0:14:23.120 --> 0:14:25.400 and we want to we want to do things that 0:14:25.440 --> 0:14:28.840 surprise people. And I think a V eight Bronco wouldn't 0:14:28.840 --> 0:14:29.920 surprise a lot of people. 0:14:29.960 --> 0:14:30.640 And I think. 0:14:32.440 --> 0:14:35.280 You know, and I think a manual V eight will 0:14:35.320 --> 0:14:37.800 continue to surprise people in the Mustang even though it's 0:14:37.880 --> 0:14:41.440 kind of conventional. I mean, if we were doing a 0:14:41.480 --> 0:14:43.280 super high end raped or should we do it on 0:14:43.400 --> 0:14:45.760 Ranger or should we do it on F one fifty, 0:14:46.080 --> 0:14:48.760 there's an argument to be made there. We are the 0:14:48.880 --> 0:14:52.160 leader in the off road performance space and pickups where 0:14:52.200 --> 0:14:54.600 the number one producer pickups in the world, not just 0:14:54.720 --> 0:14:57.680 in the US. Rangers now number two to Toyota. When 0:14:57.720 --> 0:15:00.880 I came to the company was fourteenthers, it's really like 0:15:01.240 --> 0:15:04.520 twenty percent. It's our second highest following vehicle in the 0:15:04.520 --> 0:15:08.040 company is Ranger. We build in five plants around the world, 0:15:08.120 --> 0:15:11.000 and it is Ford in Australia and South Africa and 0:15:11.120 --> 0:15:14.720 South America, and we're number one in pickups in Europe 0:15:14.760 --> 0:15:18.200 now and we're just launching the Ranger in China and 0:15:18.240 --> 0:15:21.160 one of the fastest segments in China is a pickup market. 0:15:21.680 --> 0:15:24.600 So you know, we we have to think about the 0:15:24.640 --> 0:15:29.840 globe now because both Mustang and Raptor Global brands. We 0:15:29.920 --> 0:15:33.680 sell the Raptor not even the Raptor are the Raptor 0:15:34.440 --> 0:15:36.520 F one fifty in China for one hundred and sixty 0:15:36.600 --> 0:15:39.000 thousand dollars and we sell everyone we make. 0:15:39.200 --> 0:15:42.480 I mean, that's so interesting. And I watched the great 0:15:42.480 --> 0:15:46.760 package that our colleague David Weston did with you recently, 0:15:46.960 --> 0:15:49.560 and you in that package you did say that you've 0:15:49.600 --> 0:15:54.440 never seen a competition before like what you're seeing in China. Now, 0:15:55.360 --> 0:15:59.320 can you talk a little bit more about what Ford 0:15:59.440 --> 0:16:01.720 needs to do. I think you even called it the 0:16:01.800 --> 0:16:05.840 ultimate test for Ford in for the next few decades. 0:16:06.000 --> 0:16:09.360 Can you just walk us through what exactly needs to 0:16:09.400 --> 0:16:11.480 happen at Ford to be competitive. 0:16:12.000 --> 0:16:14.520 It's a great question. Thank you for asking it, because 0:16:14.560 --> 0:16:17.520 it is the most on the commercial side's the most 0:16:17.520 --> 0:16:22.280 important question to ask for Look the whole global industry's 0:16:22.360 --> 0:16:27.600 ninety million units. The installed capacity currently in China at 0:16:27.640 --> 0:16:31.040 an eight hour shift is fifty three million units, So 0:16:31.080 --> 0:16:34.640 fifty three percent of all the global production for automobiles 0:16:34.640 --> 0:16:37.640 can be satisfied with all the plants in China working 0:16:37.720 --> 0:16:38.840 at eight hour shifts. 0:16:39.320 --> 0:16:41.280 Their local market is twenty nine million. 0:16:41.600 --> 0:16:45.200 That means, yes, the capacity that they have to serve 0:16:45.240 --> 0:16:46.960 the rest of the world. I won't call it over 0:16:47.040 --> 0:16:51.200 capacity because it isn't They have enough capacity in China 0:16:51.560 --> 0:16:54.360 with just working eight hour shifts, not building one more plant, 0:16:54.680 --> 0:16:58.600 to satisfying the entire North American market, and and all 0:16:58.680 --> 0:16:59.280 of us not to. 0:16:59.280 --> 0:17:00.800 Have to build one va. 0:17:00.960 --> 0:17:04.960 So they are now twenty five percent of the Mexico market, 0:17:05.160 --> 0:17:08.280 the Chinese. They're more than seventy percent of the Russian market, 0:17:08.320 --> 0:17:11.240 which most people don't watch anymore, but it's a big market. 0:17:11.760 --> 0:17:14.400 They are almost twenty percent of the Thai market, which 0:17:14.440 --> 0:17:17.680 is really critical for Southeast Asia because you can export 0:17:17.720 --> 0:17:20.400 from Thailand to Australia. New Zealand with no tariffs. Now 0:17:21.680 --> 0:17:25.000 they're setting up their supply chain globally, including Mexico. There's 0:17:25.000 --> 0:17:27.840 like three hundred Chinese auto suppliers in Mexico. 0:17:27.960 --> 0:17:29.400 Now. Mexico is such. 0:17:29.200 --> 0:17:32.879 A large market for BYD and all the companies they 0:17:32.920 --> 0:17:36.000 are that export that it's big enough that they can 0:17:36.119 --> 0:17:38.919 start to justify their own plant just from Mexico. And 0:17:38.960 --> 0:17:42.080 of course with NAFTA, they can clearly import to the US. 0:17:42.520 --> 0:17:45.960 The Chinese evs or a small part of what they export, 0:17:46.359 --> 0:17:48.760 but they're a big part of what they export to Europe. 0:17:49.600 --> 0:17:52.040 There are already ten percent market share of all evs 0:17:52.040 --> 0:17:57.720 sold in Europe. They have brands like MG that are 0:17:57.960 --> 0:18:01.400 the top selling among the top selling evs in UK. 0:18:01.880 --> 0:18:06.400 They obviously own Vovo brand and post Our brand globally, 0:18:07.200 --> 0:18:10.480 so they're you know, they're very successful outside of China. 0:18:11.080 --> 0:18:14.960 And their biggest advantage is a new supply chain that's emerging, 0:18:15.520 --> 0:18:17.639 you know, that will compete against the Churbil and the 0:18:18.280 --> 0:18:21.760 corret Zu and of course the North America slash Western 0:18:21.800 --> 0:18:25.040 supply chain is very fit. They're building ground up, very 0:18:25.040 --> 0:18:29.840 efficient manufacturing plans for their supply chain and they have 0:18:30.080 --> 0:18:33.600 very established rules in China about how forward can compete 0:18:33.760 --> 0:18:38.800 with autonomous technology or data privacy. Our data can't leave China, 0:18:39.200 --> 0:18:41.159 and yet most of the countries in the world haven't 0:18:41.200 --> 0:18:46.280 really developed policies around data privacy and autonomy outside of China. 0:18:46.359 --> 0:18:49.560 For the Chinese, Huawei and Shaomi, their two big cell 0:18:49.560 --> 0:18:54.200 phone companies, have bet on automobiles, unlike Google and Apple. 0:18:54.760 --> 0:18:57.520 So when you drive the vehicles, they work great with 0:18:57.560 --> 0:19:00.359 your cell phone, especially if you own a Shaw or 0:19:00.840 --> 0:19:04.480 a Huawei phone. So the technology inside the vehicle has 0:19:04.880 --> 0:19:07.480 facial recognition AI assistance. 0:19:07.520 --> 0:19:10.240 In the vehicle, they have. 0:19:10.280 --> 0:19:14.119 Incredible mirroring with your phone. You can you know, you 0:19:14.160 --> 0:19:17.720 can find in China small brands that are micro targeted, 0:19:17.800 --> 0:19:20.399 like Li Auto, one of the fastest growing brands. They 0:19:20.760 --> 0:19:24.320 focused on erevs, which is a new kind of ev 0:19:24.480 --> 0:19:29.320 which we can go into. Leato focuses on Chinese large families. 0:19:29.720 --> 0:19:32.720 They have gravity seeds, projector screens in the rear seat, 0:19:33.160 --> 0:19:36.880 and their focus is to use the car as a 0:19:37.000 --> 0:19:40.560 stationary space. So they want to make the interior so 0:19:40.800 --> 0:19:44.840 digital and so attractive that there's really the most attractive 0:19:44.840 --> 0:19:47.800 way to use a Liauto car or stationary and so 0:19:48.400 --> 0:19:48.680 you know. 0:19:48.640 --> 0:19:50.160 They're really competitive on costs. 0:19:50.480 --> 0:19:53.360 They're getting really good on micro targeting, and for four 0:19:53.480 --> 0:19:56.199 to win, handed to your question, we have to be 0:19:56.240 --> 0:19:59.479 fully competitive on cost and we have to have vehicle 0:19:59.520 --> 0:20:03.439 concept that are very narrow, that are very specific to 0:20:03.480 --> 0:20:04.760 specific groups of people. 0:20:05.359 --> 0:20:07.479 And I think, what is that the first part? It 0:20:07.480 --> 0:20:08.480 looks like our future. 0:20:09.040 --> 0:20:12.160 When you say narrow car concepts, does that mean very 0:20:12.200 --> 0:20:15.399 specific variants of Mustang raptor all the things we've been 0:20:15.440 --> 0:20:16.320 talking about. 0:20:16.600 --> 0:20:21.080 No, it really means vehicles that are that are more 0:20:21.240 --> 0:20:24.240 narrow than an Explorer. What I mean, not physically narrow 0:20:24.359 --> 0:20:27.679 or but aimed at a much more specific client. Like 0:20:27.920 --> 0:20:30.480 for example, today we make we're the number one three 0:20:30.640 --> 0:20:35.600 row crossover you know, unibody crossover in the US with Explore. 0:20:36.240 --> 0:20:38.720 But that's not narrow. That's a very broad audience. We 0:20:38.800 --> 0:20:41.919 sell them as police interceptors, and we sell them to 0:20:42.080 --> 0:20:45.399 suburban families and everywhere in between. And we have an 0:20:45.480 --> 0:20:48.400 st version and it's like a really broad product. 0:20:48.800 --> 0:20:49.160 Get it. 0:20:49.960 --> 0:20:52.439