WEBVTT - Darren Palmer on the EV Revolution (Podcast) 0:00:00.080 --> 0:00:06.080 M This is Mesters in Business with Very Results on 0:00:06.240 --> 0:00:10.800 Bluebird Radio. This week on the podcasts, I say it 0:00:10.800 --> 0:00:14.800 every week, but it's true. I have an extra special guest. 0:00:15.760 --> 0:00:19.040 His name is Darren Palmer. He is the head of 0:00:19.079 --> 0:00:24.040 Electric Vehicle Development at Ford, where he helped to introduce 0:00:24.120 --> 0:00:28.920 such vehicles as the Mustang Maki, the F one fifty Lightning, 0:00:29.120 --> 0:00:32.760 the transit van. They are working on everything from an 0:00:32.760 --> 0:00:36.879 electric explorer. If you would like to get your hands 0:00:36.960 --> 0:00:40.960 on an electrified Bronco, well you better listen to this 0:00:41.040 --> 0:00:47.280 because this is absolutely a fascinating conversation, not just about cars, 0:00:47.360 --> 0:00:52.600 but about technology and software and consumer relations and design 0:00:52.880 --> 0:00:56.040 and really I don't think there's an area we didn't 0:00:56.080 --> 0:01:00.200 touch on. I found it utterly, utterly intriguing, and I 0:01:00.240 --> 0:01:03.720 think you will also, so, with no further ado, this 0:01:03.800 --> 0:01:10.640 is Ford's director of Electric Vehicle Development, Darren Palmer. This 0:01:11.080 --> 0:01:15.559 is Mesters in Business with very Renaults on Bloomberg Radio. 0:01:16.840 --> 0:01:20.800 My extra special guest this week is Darren Palmer. He 0:01:21.000 --> 0:01:25.400 is the General manager of Battery electric Vehicles at Board. 0:01:25.840 --> 0:01:30.640 He is overseeing Ford's thirty billion dollars shift to electrification. 0:01:31.040 --> 0:01:34.920 He helped launch the Mustang mach e, the Transit and 0:01:35.000 --> 0:01:39.600 the F one fifty Lightning. He holds an MBA from 0:01:39.680 --> 0:01:43.360 Henley Management College in the UK, as well as an 0:01:43.360 --> 0:01:49.560 electrical Electronics and Technology degree from Birmingham University. Darren Palmer, 0:01:49.920 --> 0:01:53.720 Welcome to Bloomberg. Thank you. It's a pleasure to be here. 0:01:54.320 --> 0:01:57.320 So let's start with your background. You you get an 0:01:57.360 --> 0:02:01.440 engineering degree in the ninety nineties. Was the plan always 0:02:01.480 --> 0:02:04.400 to go into automobile manufacturing or or or were you 0:02:04.480 --> 0:02:07.720 focused on a different sector? But it sounds so long 0:02:07.760 --> 0:02:10.560 ago now when you say the nineties. Um yeah, So 0:02:10.720 --> 0:02:13.480 my fan was always to go into engineering. I think 0:02:13.520 --> 0:02:15.960 a lot of people in engineering know that they're destined 0:02:16.000 --> 0:02:20.000 for that. I really like metatronics at the time. Um so, 0:02:20.160 --> 0:02:25.240 the fusion of electronics and electrical with creating movement as well. 0:02:25.600 --> 0:02:27.640 So I knew I wanted him to go into something 0:02:27.720 --> 0:02:32.040 of complex engineering. And I think somebody once said to me, uh, 0:02:32.120 --> 0:02:35.160 you know, planes take too long, trains don't have as 0:02:35.240 --> 0:02:39.079 much interest. But cars are constantly changing over and they're 0:02:39.120 --> 0:02:42.040 a huge purchase in people's lives. So that's what made 0:02:42.120 --> 0:02:45.480 me look towards cars. And I looked at a number 0:02:45.520 --> 0:02:48.799 of car companies, but I think I always knew I 0:02:48.840 --> 0:02:50.560 wanted to go into water, and I've got a few 0:02:50.600 --> 0:02:54.320 offers that Ford was a t The company had a 0:02:54.360 --> 0:02:59.160 great reputation and furthermore, makes cars for everybody, and I 0:02:59.240 --> 0:03:02.320 was interested in making cars for everybody, not just a 0:03:02.400 --> 0:03:06.200 privileged for you really interesting and you have a reputation 0:03:06.240 --> 0:03:10.480 as a petrol head, you're a Mustang guy. What led 0:03:10.520 --> 0:03:15.600 you to gravitate towards e VS over these years? Well, 0:03:15.680 --> 0:03:18.680 I've I've I've been very lucky in this career, twenty 0:03:18.760 --> 0:03:21.560 nine years in the forward, and every time the last 0:03:21.680 --> 0:03:25.120 challenge finished, they offered me another challenge. So I ended 0:03:25.200 --> 0:03:30.440 up working all over the world on every type of cars, vans, commercials, 0:03:30.480 --> 0:03:34.320 every class, B, C, C, D class cars are increasingly larger, 0:03:34.320 --> 0:03:38.240 and then luxury and every all around the world India, China, 0:03:38.960 --> 0:03:44.560 South America, US, Australia, so and at one point I 0:03:44.600 --> 0:03:49.240 had plants on four continents, five continents, and development center 0:03:49.280 --> 0:03:52.160 on four continents. So all of those different parts of 0:03:52.200 --> 0:03:55.280 experience led me to I was starting to work on 0:03:55.360 --> 0:04:00.320 hybrids and the company said, we want to do something, friend, 0:04:01.400 --> 0:04:06.440 we need to have a completely new approach to electric cars. 0:04:06.480 --> 0:04:09.200 Because we were trying and we were getting nowhere. They 0:04:09.240 --> 0:04:12.800 decided they to do something called Team Edison, and they 0:04:12.840 --> 0:04:17.320 asked with my background of international and really open mindedness 0:04:17.440 --> 0:04:20.280 was the key there. We formed a team called Team 0:04:20.400 --> 0:04:24.880 Edison to determine the future of electric cars for Forward. 0:04:24.920 --> 0:04:27.760 So that that was about four four years ago, and 0:04:27.800 --> 0:04:29.440 that was four and a half and that was my 0:04:29.520 --> 0:04:32.960 moving to electric cars. Tell us about Team Edison obviously 0:04:33.600 --> 0:04:38.280 a little bit of a reference to to a famous 0:04:38.320 --> 0:04:42.440 American entrepreneur, what what is Team Edison at Forward? So 0:04:43.520 --> 0:04:47.360 what was happening was we were trying to develop electric cars, 0:04:47.400 --> 0:04:50.920 but they were being measured by the same measures as 0:04:51.000 --> 0:04:54.640 gas cars, so they wouldn't meet the hurdles, the investment hurdles, 0:04:54.640 --> 0:04:58.720 the profit hurdles, the volume predictions. So we were getting 0:04:58.720 --> 0:05:02.160 nowhere and we in fact we were going to make 0:05:02.320 --> 0:05:06.760 a Ford Focus their version two, and we knew that 0:05:06.839 --> 0:05:11.960 it was becoming increasingly I'm aware that that really isn't 0:05:12.000 --> 0:05:15.000 what the market wanted. So we had to change something, 0:05:15.080 --> 0:05:19.120 and we knew it was a cultural change. So we 0:05:19.240 --> 0:05:23.279 decided we either buy an electric car company, but then 0:05:23.640 --> 0:05:25.760 you have to transfer tens of thousands of people in 0:05:25.839 --> 0:05:29.440 one day, or we try something different. We try we 0:05:29.560 --> 0:05:33.839 create a startup within Ford Motor Company and then that's 0:05:33.880 --> 0:05:37.280 what we decided to do. So a gent called Ted Cannis, 0:05:38.320 --> 0:05:41.360 really one of our top business leaders, was put in 0:05:41.360 --> 0:05:43.719 as the head of that group and he set about 0:05:43.800 --> 0:05:48.480 to create recruiting people internal and external to head up 0:05:48.480 --> 0:05:51.920 Team Medicine. I was the first one in and when 0:05:51.920 --> 0:05:55.039 he told me the proposal, um, he convinced me to 0:05:55.080 --> 0:05:57.800 come in and that's where the journey started. And we 0:05:57.880 --> 0:06:02.920 had some external people, but not huge amount because it's 0:06:02.920 --> 0:06:04.640 all about the first you've got to work out what 0:06:04.720 --> 0:06:07.040 to do, and then you've got to make it happen 0:06:07.160 --> 0:06:09.240 in a hundred year old company, and I can tell 0:06:09.240 --> 0:06:13.280 you making it happen was harder than determining what to do. 0:06:13.800 --> 0:06:19.120 So we so we formed, and we moved ourselves outside 0:06:19.120 --> 0:06:23.839 of the main buildings and we formed a different culture, 0:06:23.839 --> 0:06:26.080 really building it up from the ground. We had about 0:06:27.160 --> 0:06:32.120 people handpicked each one and we were inspired by startups 0:06:32.120 --> 0:06:35.520 in California, so we spent time there early on to 0:06:35.640 --> 0:06:38.919 determine how they work, which is very different, and we 0:06:39.000 --> 0:06:42.240 set up a culture extremely similar to that. We also 0:06:42.279 --> 0:06:45.719 went to China to Norway where electric cars were prevalent 0:06:46.040 --> 0:06:48.800 to see what others are doing, and then we we 0:06:48.880 --> 0:06:51.560 set about determining where to go. At the time, it 0:06:51.600 --> 0:06:55.080 was an eleven billion dollar investment in electric cars. It's 0:06:55.120 --> 0:06:58.240 now today announced a few days ago to fifty billion. 0:06:59.760 --> 0:07:02.480 I have thirty billion down in my notes, but fifties 0:07:02.480 --> 0:07:07.039 a lot of money. The team Edison. The first project 0:07:07.279 --> 0:07:10.120 was that the Mustang or was it leader was the 0:07:10.320 --> 0:07:14.480 medicine after the Mustang Marquis. So the first thing to 0:07:14.560 --> 0:07:17.320 do was to determine where to play and how to win. 0:07:18.640 --> 0:07:22.000 And that meant we had to first understand I mean 0:07:22.080 --> 0:07:26.080 for the whole portfolio without the time was eleven billion dollars, 0:07:26.360 --> 0:07:30.160 so three or four cars coming through, and the battery 0:07:30.160 --> 0:07:33.120 infrastructure and the charging infrastructure and all those things we 0:07:33.160 --> 0:07:35.320 had to do. So it was actually to work out 0:07:35.320 --> 0:07:37.120 where to play and how to win, and we quickly 0:07:37.120 --> 0:07:40.840 worked out. We went to California and I was talking 0:07:40.840 --> 0:07:45.040 to customers in California and quizzing them about their cars, 0:07:45.360 --> 0:07:50.600 and we determined quite quickly that they had transitioned to 0:07:50.680 --> 0:07:53.160 BEV and they would never come back. They were also 0:07:53.280 --> 0:07:56.600 delighted with their products and it felt like they'd moved 0:07:56.640 --> 0:07:59.920 from a flip phone to a smartphone like an I 0:08:00.080 --> 0:08:04.960 phone or similar and at any price, they would never 0:08:05.000 --> 0:08:07.800 move back, which was very similar to the phone analogy, 0:08:08.120 --> 0:08:10.760 and I asked one of them. I offered them, Hey, 0:08:11.080 --> 0:08:13.680 you know, we need your car for testing, so I'll 0:08:13.760 --> 0:08:16.440 give you. I'll give you a free BMW M three 0:08:17.120 --> 0:08:19.320 and two thirds of your money back. And he said, 0:08:19.320 --> 0:08:22.840 I'm not interested. How can that be? Said, well, I'm 0:08:22.840 --> 0:08:26.480 a I'm authorized to offer you of your money back 0:08:27.160 --> 0:08:30.640 and free BMWM three. He said I'm not interested, and 0:08:30.680 --> 0:08:32.720 I said how can that be? And he said, well, 0:08:32.800 --> 0:08:36.440 because I've discovered the future. UM, I can afford it 0:08:36.440 --> 0:08:39.480 and I deserve it. And we realized at that point 0:08:40.520 --> 0:08:43.560 these people they're never going to buy the traditional vehicles 0:08:43.600 --> 0:08:46.800 that we had. They're buying a technology product. And we 0:08:46.920 --> 0:08:50.600 brought that realization back and said we need to completely 0:08:50.640 --> 0:08:55.800 change our plan. And that led us to leading with 0:08:56.000 --> 0:08:59.959 our icons. So we made a plan of which vehicles 0:09:00.000 --> 0:09:04.520 to attack in which order, and we made the strategic 0:09:04.720 --> 0:09:09.480 choice that every vehicle from forward will do things that 0:09:09.600 --> 0:09:13.200 gas never did, enabled by the technology. So none of 0:09:13.240 --> 0:09:16.400 them will be a car just with an electric motor 0:09:16.440 --> 0:09:19.560 in it. That's not what crustomers want. So that's what 0:09:19.600 --> 0:09:21.960 we did. In the first thing we did into medicine, 0:09:22.760 --> 0:09:25.280 which was the eleven billion dollars, and made the first 0:09:25.360 --> 0:09:29.240 three cars, the Mustard macke which you may have seen 0:09:29.280 --> 0:09:36.000 one recommended, the only electric car recommended in America, and 0:09:36.480 --> 0:09:41.640 now the last last week, and then the Transit is 0:09:41.640 --> 0:09:45.200 now just launching. We're nearly sold out already and it 0:09:45.240 --> 0:09:46.839 is likely to be a leader in its field. It's 0:09:46.840 --> 0:09:50.960 already nearly global in its field now with a gas vehicle. 0:09:51.320 --> 0:09:54.280 And then their fifty Lightning, which is of course the 0:09:54.280 --> 0:09:59.240 big one for us, where we've got over two orders. 0:09:59.240 --> 0:10:02.800 Now we had to switch the system off. So let's 0:10:03.000 --> 0:10:06.600 talk about those three big cars that you ever saw 0:10:06.600 --> 0:10:10.800 the launch on, starting with the Mustang mac Markie, which 0:10:10.880 --> 0:10:14.080 won a number of awards. I had a loaner of 0:10:14.120 --> 0:10:17.680 those cars last year and thought it was a really 0:10:18.320 --> 0:10:22.600 interesting and very well made ev tell us about the 0:10:22.679 --> 0:10:26.920 challenges you ran into when you were first thinking about 0:10:27.000 --> 0:10:32.040 putting that car out. Uh, it really was a substantial 0:10:32.080 --> 0:10:35.200 break from what Ford had done in the past. Yeah, 0:10:35.320 --> 0:10:39.560 So we had originally planned a focus their part two, 0:10:40.920 --> 0:10:45.360 but we quickly realized due to human centric work, we 0:10:45.360 --> 0:10:48.160 were doing and human centric work puts you out with 0:10:48.280 --> 0:10:52.120 customers very early and you just talk with them about 0:10:52.360 --> 0:10:54.160 how they feel about things that you know, you're not 0:10:54.200 --> 0:10:56.400 asking them exactly what they want, You're just talking about 0:10:56.400 --> 0:10:58.440 to them about their lives and what they see. We 0:10:58.600 --> 0:11:01.560 discovered pretty quickly what they were looking for in this 0:11:01.679 --> 0:11:06.280 next generation was a technology product first. And you know, 0:11:06.320 --> 0:11:08.560 there's one company out there which is really doing that, 0:11:08.559 --> 0:11:10.720 which is Tesla. They've been a leader in that space. 0:11:11.240 --> 0:11:15.040 And we noticed how customers of those vehicles were. They 0:11:15.200 --> 0:11:18.320 really liked the experience they got, and we said, we 0:11:18.679 --> 0:11:20.680 in that vehicle we're going to make, it needs to 0:11:20.679 --> 0:11:24.400 be a technology first vehicle, but we want to bring 0:11:24.480 --> 0:11:27.000 what is our spin on there? What is Ford? What 0:11:27.040 --> 0:11:30.359 does Ford bring to the table? Tesla have their attributes, 0:11:30.920 --> 0:11:33.120 but Ford need to have their own. And we said 0:11:33.160 --> 0:11:38.280 to ourselves, um, what brands do we have that could 0:11:38.960 --> 0:11:41.839 be worthy of what we're going to make and that 0:11:41.960 --> 0:11:45.520 could be synergistic. So the one that came to mind 0:11:45.520 --> 0:11:49.199 pretty quickly was Mustang. And the first time we said that, 0:11:49.280 --> 0:11:54.400 it sounded um crazy, you know, and some people were 0:11:54.480 --> 0:11:58.400 very shocked by that. So we asked ourselves, what if 0:11:59.400 --> 0:12:02.680 it was a stone, and then we we started with 0:12:02.720 --> 0:12:06.679 the exterior design actually, and we went downstairs to the 0:12:06.679 --> 0:12:09.440 design team who were working on a focus both Part two, 0:12:10.360 --> 0:12:13.199 and I could tell you they weren't the most fired up. 0:12:13.960 --> 0:12:17.080 And then we said what if? And again they know 0:12:17.120 --> 0:12:18.840 they started to come to the table, and we said, 0:12:18.840 --> 0:12:21.760 what if we mixed it's going to be an suv 0:12:22.080 --> 0:12:26.360 because that's the segment growth, the greatest segment growth and 0:12:26.400 --> 0:12:29.760 where customers are going, especially millennial, So we wanted it 0:12:29.800 --> 0:12:32.640 to be there. We knew that, so it's we're there. Therefore, 0:12:32.679 --> 0:12:36.319 we're talking about an suv, musting what might it look like? 0:12:36.400 --> 0:12:40.839 And in that first day they started sketching and we 0:12:40.960 --> 0:12:44.640 put together some of the must plank cues with that suv, 0:12:44.920 --> 0:12:48.000 and then we started to like what we saw, and 0:12:48.000 --> 0:12:51.439 then we that they the designers got lost in it 0:12:52.080 --> 0:12:54.440 and then said okay, leave us. We left them, and 0:12:54.440 --> 0:12:55.800 then the said we're going to make a clay of 0:12:55.840 --> 0:12:57.600 that vehicle. And so we went away for the weekend 0:12:58.440 --> 0:13:01.880 and we came back early six five six am on 0:13:01.960 --> 0:13:04.240 Monday morning and said, don't look at it. Well, we 0:13:04.320 --> 0:13:07.520 walked away and they were putting dia Knock onto it, 0:13:07.559 --> 0:13:10.920 which is the kind of silver foil that simulates a vehicle. 0:13:11.240 --> 0:13:13.280 And when we all turned around and we saw that 0:13:13.440 --> 0:13:17.319 first execution, we said, oh my, oh, my word, that 0:13:17.320 --> 0:13:20.360 that couldn't work. That could work. That was from the 0:13:20.440 --> 0:13:24.960 first weekend, and we said, my word, that could work. 0:13:25.000 --> 0:13:29.440 And by the way, the designers had gone from not 0:13:29.600 --> 0:13:33.560 the most excited, too off the wall, excited, didn't have 0:13:33.600 --> 0:13:37.120 time to talk to us, just busy creating. They immediately 0:13:37.120 --> 0:13:39.160 took the DIA knock off again and started carrying on 0:13:39.200 --> 0:13:41.320 with the clay and they're off. So we went to 0:13:41.360 --> 0:13:45.720 the next department and we went interior and and we said, 0:13:45.760 --> 0:13:47.800 what have we got? They showed us and we said, 0:13:47.880 --> 0:13:50.319 you know, that doesn't really look that's not a Mustang. 0:13:50.400 --> 0:13:53.600 That's not worthy of that. And we said, how would 0:13:53.600 --> 0:13:55.600 you change it? There was a Mustang, and same thing happened. 0:13:55.679 --> 0:13:58.719 They started to get excited by the way. Both of them, 0:13:58.720 --> 0:14:02.439 the exterior designers and the interior were both the people 0:14:02.440 --> 0:14:04.840 who did Mustang, so we didn't need to explain to 0:14:04.840 --> 0:14:06.680 them what the Mustang was. It was the same people, 0:14:07.360 --> 0:14:09.120 and they started to bring a lot of those cues 0:14:09.120 --> 0:14:11.920 in so they kicked off. There were the same the 0:14:11.960 --> 0:14:14.040 same excitement. We went to the next department and we 0:14:14.040 --> 0:14:17.960 said we need technology and that was a problem. We 0:14:17.960 --> 0:14:20.080 went and said, what have we got that would be 0:14:20.120 --> 0:14:24.520 a high tech tech forward solution that is over their 0:14:24.600 --> 0:14:27.920 updateable and we'll work for years to come and upgraded. 0:14:27.960 --> 0:14:30.840 And I'm afraid we didn't have anything. But our system 0:14:30.880 --> 0:14:32.840 at the time was not going to do the job. 0:14:33.360 --> 0:14:37.160 So that was the biggest challenge for us. And and 0:14:37.640 --> 0:14:41.640 we we went downstairs to the development team and we 0:14:41.680 --> 0:14:47.040 said in team medicine, we work without grade structure, all 0:14:47.080 --> 0:14:50.640 together on the problems and anybody can speak up without 0:14:50.760 --> 0:14:54.840 fear of anything, reprise or anything. So we encourage people 0:14:54.840 --> 0:14:57.720 to speak up. So we pulled together. We went downstairs 0:14:57.720 --> 0:15:00.680 to the to the main team and we work asked 0:15:00.760 --> 0:15:03.760 the programmers who were working on very for it to 0:15:03.800 --> 0:15:05.680 come into a room and we shut the door. We 0:15:05.760 --> 0:15:10.160 explained how we work. Anyone can speak up, and I 0:15:10.200 --> 0:15:12.920 said to them, hey, guys, we need a next gen 0:15:13.360 --> 0:15:16.760 operating system that's world class on this car is launching 0:15:16.760 --> 0:15:19.800 in two and a half years. How how might we 0:15:19.840 --> 0:15:23.360 do that? And they were silent for a while. People 0:15:23.400 --> 0:15:25.640 take time before they're comfortable, and one of them said, 0:15:26.640 --> 0:15:29.920 not working the way we work. I said, that's interesting. 0:15:30.440 --> 0:15:31.880 How would you do that? Then they said, you'd have 0:15:31.920 --> 0:15:36.680 to work like a software company and we said, like what, Well, 0:15:37.000 --> 0:15:40.320 they work in one room with the designers, the human 0:15:40.360 --> 0:15:44.640 machinery are facing the programmers in one team, together with 0:15:44.840 --> 0:15:47.400 the equipment they need, the facilities they need, in the 0:15:47.480 --> 0:15:52.720 funding they need, without frankly, management interference. And I said, 0:15:52.720 --> 0:15:55.560 what if we do that? And they said, We're never 0:15:55.600 --> 0:15:57.480 going to do that here. I said, well, what if 0:15:57.480 --> 0:15:59.760 we said we'd give you everything you want because you 0:15:59.840 --> 0:16:02.280 do that. They said, well, if you could do it, 0:16:03.280 --> 0:16:06.120 then then yes we would. And I said, well if 0:16:06.160 --> 0:16:08.240 would you start Monday? If we could do that? Said yes, 0:16:09.560 --> 0:16:11.600 and then I said, and I never forget this. It 0:16:11.880 --> 0:16:13.720 made me laugh. I said, hey, hold on a minute, 0:16:13.720 --> 0:16:16.680 hold on, how do I know that you actually know 0:16:16.760 --> 0:16:19.680 how to do that? And he said, John, John, show 0:16:19.760 --> 0:16:22.680 him John. And so he looks over to the other gentleman. 0:16:22.880 --> 0:16:25.800 He puts down his delaptop and he pulls out an 0:16:25.840 --> 0:16:31.320 alien where from his side bag, and as he's opening it, 0:16:31.360 --> 0:16:33.160 Tom says to him, yeah, he's just come back from 0:16:33.160 --> 0:16:36.680 a gaming convention in South Korea, like, oh okay, And 0:16:36.720 --> 0:16:39.080 he then shows me some of the things they've worked on, 0:16:39.160 --> 0:16:42.720 and they they have and it looked like something out 0:16:42.720 --> 0:16:45.600 of Marvel, and okay, I got it, you guys know. 0:16:46.240 --> 0:16:49.320 So we then went upstairs and we went to our 0:16:49.400 --> 0:16:51.280 leadership team and we said, well, you know, we really 0:16:51.800 --> 0:16:55.000 we're into big trouble. We need this system in two 0:16:55.080 --> 0:16:58.280 and a half years and the team, you know, can't 0:16:58.280 --> 0:16:59.600 do it the way they work. And he said, well, 0:16:59.600 --> 0:17:03.120 have you got a proposal? We said, yeah, we have 0:17:03.200 --> 0:17:05.080 to work in a different way and we need me 0:17:05.320 --> 0:17:09.200 maybe seven million dollars of immediate funding to just trund 0:17:09.320 --> 0:17:14.840 everything they need. So he said, okay, just do it, 0:17:15.280 --> 0:17:18.360 do it now. So okay, so went upstairs to the 0:17:18.440 --> 0:17:20.920 VP of engineering and we said the same thing. He said, 0:17:21.040 --> 0:17:23.360 start now, get on with it. So we went back 0:17:23.359 --> 0:17:25.680 down to the team that evening and said we're ready 0:17:25.720 --> 0:17:29.600 to go. Please start um And Monday morning they started. 0:17:30.240 --> 0:17:33.720 And what I've learned from many of the startups, the 0:17:33.800 --> 0:17:39.680 way to work nimble is that leaders serve the employees 0:17:40.560 --> 0:17:43.560 who who are who are creating for the customer. My 0:17:43.680 --> 0:17:45.960 job is to clear the path in front of them. 0:17:46.040 --> 0:17:48.359 So I went every morning, what do you need today? 0:17:48.640 --> 0:17:51.440 We need better computers, do you know where to get them? Yes? 0:17:51.760 --> 0:17:54.880 Going by? Now? What else do you need? We need 0:17:54.920 --> 0:17:57.119 some screens that emulate the screens we're building for a 0:17:57.200 --> 0:17:58.840 good going by. Do you know how to get them? Yes? 0:17:59.280 --> 0:18:01.560 I can buy them. Best play gone by him now 0:18:02.000 --> 0:18:05.320 And they were delighted to have that ability. And then 0:18:05.359 --> 0:18:06.919 the next day asked what do you need, Hey, we 0:18:06.960 --> 0:18:11.040 need a server computer to serve some of the interfaces. Okay, 0:18:11.640 --> 0:18:13.920 give it to them. And then the third day they said, 0:18:13.960 --> 0:18:15.840 what do you need? Said old pizza and coffee kind 0:18:15.880 --> 0:18:18.560 of joking. Okay, you get pizza and coffee, and what 0:18:18.640 --> 0:18:20.760 else you need? The answer is what do you need 0:18:20.800 --> 0:18:23.800 to get it? And and they've never worked like that 0:18:23.880 --> 0:18:27.120 in Ford. And then the fourth day, what you need nothing, 0:18:27.200 --> 0:18:29.520 just leave us alone. Okay, fifth day, what you need? 0:18:29.600 --> 0:18:32.440 Something else? And so on. We just kept doing that 0:18:33.200 --> 0:18:37.199 and then we've created no presentations. When they want to 0:18:37.200 --> 0:18:41.320 demonstrate something, they just showed it to us. And the 0:18:41.400 --> 0:18:44.439 progress was I've never seen anything like it in my 0:18:44.600 --> 0:18:49.760 in my career. Within two weeks they had running prototypes 0:18:50.359 --> 0:18:54.639 that were touchable interfaces that they had created. One of 0:18:54.720 --> 0:18:57.600 them created the main interface, you know, while he was 0:18:57.640 --> 0:19:01.240 working off site at home, and he decided to create 0:19:01.240 --> 0:19:05.440 an enhage temail fire for the Internet, the main language 0:19:05.440 --> 0:19:09.359 for websites, because that was convenient to create and he 0:19:09.440 --> 0:19:12.160 had a complete working interface in two weeks, and because 0:19:12.160 --> 0:19:14.919 it was hate Temail five, it could reconfigure like a 0:19:14.920 --> 0:19:18.400 web page does, which most cars do not do. And 0:19:18.440 --> 0:19:21.480 then and then within three weeks they were testing it 0:19:21.520 --> 0:19:25.760 with customers in Chicago and streaming it live while the 0:19:25.800 --> 0:19:28.600 whole team watched the customers. And at one point a 0:19:28.680 --> 0:19:31.800 customer got caught up on some of the interface, and 0:19:32.080 --> 0:19:33.600 the guy said, how can you fix that? And he 0:19:33.680 --> 0:19:37.760 corrected the code, live redeployed, and because it was live 0:19:38.440 --> 0:19:41.119 fed from a server, it updated the interface in the 0:19:41.160 --> 0:19:43.359 hands of the customer who then was not caught on 0:19:43.400 --> 0:19:45.320 it and we could carry on with the work. I've 0:19:45.359 --> 0:19:47.760 never seen anything like it. They did three rounds of 0:19:47.800 --> 0:19:52.720 that testing live watching customers in Europe, in China, and 0:19:52.800 --> 0:19:57.560 in US, and in twelve weeks created an all new interface, 0:19:57.760 --> 0:20:01.120 which you know, he's getting extremely good reports now from 0:20:01.119 --> 0:20:05.240 consumer reports and and JD Power one of the best 0:20:05.240 --> 0:20:08.000 curR interfaces in the world. So it was incredible. I've 0:20:08.000 --> 0:20:10.119 never seen anything like it in my career. And I 0:20:10.200 --> 0:20:16.120 learned a lot through that process. And last year, despite 0:20:16.240 --> 0:20:21.320 the pandemic and despite um the supply issues. I think 0:20:21.359 --> 0:20:25.800 you guys sold something like twenty seven thousand Mustangs is 0:20:26.560 --> 0:20:29.680 that right in the US? Yes, a little bit more, 0:20:29.760 --> 0:20:34.000 and we were nearly fifty globally from the same plant. 0:20:34.800 --> 0:20:41.399 We're completely sold out and we're trying to meet that 0:20:41.480 --> 0:20:45.199 demand with what we've actually we're actually we've agreed and 0:20:45.240 --> 0:20:48.480 we have funded, and we're going to increase production to 0:20:48.640 --> 0:20:53.280 over two hundred thousands. Wow, that's a huge number. So 0:20:53.440 --> 0:20:57.000 the market the Marquee is very much a crossover. Are 0:20:57.000 --> 0:21:02.600 there any plans to electrify the traditional Mustang pony car? 0:21:02.800 --> 0:21:06.919 The two door sports car? So you get that asked 0:21:06.960 --> 0:21:10.920 that one a lot. So the next cars along after 0:21:11.000 --> 0:21:14.280 we've done the Lightning is the three row car, so 0:21:15.080 --> 0:21:17.520 the size of an Explorer, that type of car. That's 0:21:17.560 --> 0:21:20.560 the next one along. We've we've already announced that one, 0:21:21.000 --> 0:21:23.399 and then we have a lot of calls for other cars. 0:21:23.400 --> 0:21:26.480 You can imagine, there's huge calls for an electric Broncho, 0:21:27.680 --> 0:21:29.800 and there's others which we haven't announced yet. And we've 0:21:29.800 --> 0:21:33.720 got a fifty billion dollar roadmap of many cars including 0:21:33.760 --> 0:21:42.240 Lincoln's the the Mustang Sports Coupay, and that needs a 0:21:42.359 --> 0:21:45.399 very low battery to make that to what we want 0:21:45.440 --> 0:21:49.280 it to be. And uh, and we have quite high 0:21:49.320 --> 0:21:52.000 aspirations for what we would want that to be. And 0:21:52.080 --> 0:21:54.560 so we're only going to do that when the technology 0:21:54.600 --> 0:21:57.960 will allow. We know customers really want, they want over 0:21:58.000 --> 0:22:02.240 three miles, you may, that makes them comfortable and happy. 0:22:02.400 --> 0:22:06.240 And that's always been a product that has punched above 0:22:06.240 --> 0:22:09.920 its weight and gives performance of normally much more expensive 0:22:09.960 --> 0:22:14.480 cars and with the whole imagery of Mustang. So we're 0:22:14.520 --> 0:22:17.720 not doing it yet, nothing nothing to declare on the 0:22:17.760 --> 0:22:19.679 timing of that yet. We're going to do it, but 0:22:19.680 --> 0:22:21.840 we'll only do it when the technology allows us to 0:22:21.880 --> 0:22:25.800 make it incredible. You know, the Marquee has by all 0:22:25.880 --> 0:22:29.720 measures been a wild success, if there's any fly in 0:22:29.760 --> 0:22:32.920 the ointment, and this kind of surprised me. It was 0:22:32.960 --> 0:22:36.880 all the pushback on the Marquee over the Mustang name. 0:22:36.960 --> 0:22:41.399 What you're a Mustang guy, what was your reaction to 0:22:41.560 --> 0:22:45.640 the sort of you know, old school enthusiasts who were 0:22:46.000 --> 0:22:50.960 offended by a crossover we're using the name Mustang. Well, 0:22:51.240 --> 0:22:55.880 I understand, I very much understand it. I'm extremely active 0:22:56.800 --> 0:22:59.800 on listening on social media was something we learned a 0:22:59.840 --> 0:23:01.760 lot in the way startups do it all the time. 0:23:02.720 --> 0:23:06.160 And from the first weekend we launched, we were watching 0:23:06.240 --> 0:23:09.240 social media live and somebody, you know, for example, had 0:23:09.240 --> 0:23:12.960 a problem on the first Saturday, and we asked permission 0:23:13.000 --> 0:23:15.639 to speak to them and we contacted them, which they loved, 0:23:15.880 --> 0:23:19.680 and we fixed it. So I'm extremely aware of negative 0:23:19.720 --> 0:23:23.760 feedback from current owners. So what I set off about 0:23:23.880 --> 0:23:27.520 doing a year ago was talking to lots of them, 0:23:27.560 --> 0:23:31.920 and we actually brought in the presidents of both Mustang 0:23:31.960 --> 0:23:36.720 clubs and amazing guys, and we brought them actually to 0:23:36.760 --> 0:23:41.720 the launch in California, and we brought them along and 0:23:41.760 --> 0:23:44.000 they came to see me and said, Darren, you know, 0:23:44.119 --> 0:23:47.600 I understand what you're doing, but I can't really endorse it, 0:23:48.560 --> 0:23:50.560 and you know, I just wanted to let you know that, 0:23:50.640 --> 0:23:52.480 but I do appreciate what you're doing here. So that 0:23:52.560 --> 0:23:56.359 was at the beginning. At the end of the two days, 0:23:56.960 --> 0:24:00.159 one of them brought two and one of them brought one, 0:24:01.560 --> 0:24:04.440 and they said wow, yeah and and and they said, 0:24:04.680 --> 0:24:10.639 so listen, this vehicle supports the other Mustang. We couldn't 0:24:10.640 --> 0:24:15.040 be selling the V eight Mustang very much longer without 0:24:15.080 --> 0:24:18.920 the support of these TV so it protects the current Mustang. 0:24:19.160 --> 0:24:21.480 By the way, we still sell the current Mustang, so 0:24:21.600 --> 0:24:25.159 it's a companion is growing the brand into in a 0:24:25.200 --> 0:24:27.840 new space. And I can't tell you the joy of 0:24:27.920 --> 0:24:32.879 the of the customers. Literally nine of them recommend it 0:24:32.960 --> 0:24:36.080 to friends and families and everyone will listen to them. 0:24:36.600 --> 0:24:41.280 So that's the highest satisfaction car I'm ever aware of 0:24:41.440 --> 0:24:44.040 that We've had well, I'll tell you card people love, 0:24:44.400 --> 0:24:48.400 I'll tell you personally. Having sat in you know, everything 0:24:48.440 --> 0:24:52.040 that's out there, um and having had the Marquee, the 0:24:52.280 --> 0:24:55.040 sort of middle not the GT the middle of the 0:24:55.119 --> 0:24:58.200 of the road version for a week, I came away 0:24:58.280 --> 0:25:02.320 very impressed with the old quality, the fit and finish. 0:25:02.440 --> 0:25:07.440 It just felt like a substantial vehicle that was well 0:25:07.480 --> 0:25:11.320 made and was I don't want to say luxurious, but 0:25:11.400 --> 0:25:14.680 it kind of reminded me of a Volvo where everything 0:25:15.040 --> 0:25:19.160 is very well put together, very well thought out. There's 0:25:19.200 --> 0:25:23.440 a degree of minimalism in it that was very effective, 0:25:24.160 --> 0:25:26.680 and it very much had its own personality. I came 0:25:26.680 --> 0:25:31.119 away really impressed with that and wanna try a GT 0:25:31.320 --> 0:25:34.199 out and see what what the higher horsepower is like, 0:25:34.880 --> 0:25:37.959 but you know the Mustang. Everybody knows a lot about 0:25:38.160 --> 0:25:45.840 the sexy new uh hotness is the one Lightning. The 0:25:45.920 --> 0:25:48.439 four f one fifty has been the best selling vehicle 0:25:48.480 --> 0:25:51.560 in America for I don't know, forty years, running some 0:25:51.680 --> 0:25:56.399 crazy number. You must have very very high hopes and 0:25:56.480 --> 0:25:59.119 expectations for the Lightning. Tell us a little bit about 0:25:59.400 --> 0:26:04.280 the development of that vehicle. Yeah, the Mackie is like 0:26:04.359 --> 0:26:09.960 a practice compared to the Lightning. So we are very 0:26:09.960 --> 0:26:16.240 aware of Lightning from fifties status as America's number one 0:26:16.359 --> 0:26:20.280 vehicle for over four decades, and the love for that 0:26:20.320 --> 0:26:24.040 product is indescribable. I know that because I see the 0:26:24.080 --> 0:26:28.480 customers talking. So when we started that project, we knew 0:26:29.040 --> 0:26:33.320 what was ahead of us, and everyone was warning us, 0:26:33.520 --> 0:26:37.240 you might better make sure that vehicle is worthy. So 0:26:38.160 --> 0:26:42.040 what people expected is built for tough, and of course 0:26:42.800 --> 0:26:46.920 it's been punished as every piece is the same as 0:26:47.080 --> 0:26:49.879 a gas. It will pass all of the things the 0:26:49.920 --> 0:26:52.199 gas does. Of course it does, and we put it 0:26:52.240 --> 0:26:55.119 down Silver Creek, which is hideous, to be honest. We 0:26:55.440 --> 0:26:59.240 have robots drive them now because it's it's too brutal 0:26:59.320 --> 0:27:02.679 for humans in an accelerated test. That's how brutal they 0:27:02.680 --> 0:27:04.560 are now, and all their from clifts do that, but 0:27:04.600 --> 0:27:08.040 so does the lightning. We've made a battery case system 0:27:08.080 --> 0:27:11.919 that's impervious and can go underwater, and it had We 0:27:12.000 --> 0:27:14.600 know it has to be tough and reliable, and that's 0:27:14.720 --> 0:27:19.440 as given. But what people didn't expect is that mantra 0:27:19.520 --> 0:27:22.880 that we put forward. Every electric car from forward has 0:27:22.920 --> 0:27:27.880 to do things that gas could never do, because that's 0:27:27.920 --> 0:27:32.399 what attracts people in We're aware, you know, we believe 0:27:32.880 --> 0:27:38.480 this could be the vehicle that attracts mainstream America into 0:27:38.520 --> 0:27:43.639 beds because I can tell you thirty seconds in the 0:27:43.720 --> 0:27:48.760 driver's seat will convert the most hardened the enthusiasts into 0:27:48.800 --> 0:27:53.520 a wow because it feels like a magic carpet when 0:27:53.560 --> 0:27:57.840 you drive off, because it's an isolated subframe, no vibrations 0:27:57.880 --> 0:28:01.600 at all, near silence. You're waiting for the noise to come, 0:28:02.040 --> 0:28:03.600 and then you look at the speedometer and you're at 0:28:03.640 --> 0:28:07.480 sixty miles and there's no noise. It's quieter than my 0:28:08.240 --> 0:28:14.560 than a navigator compared to it's amazing. And because there's 0:28:14.600 --> 0:28:19.360 one gear and the accelerator pedal reacts in a fraction 0:28:19.400 --> 0:28:24.600 of a second. It's unbelievable even the most hardened electric enthusiast. 0:28:25.280 --> 0:28:28.640 And I've had some really amazing journalists in there. They're 0:28:28.640 --> 0:28:30.720 ready to be amazed, and they come away and say, 0:28:30.800 --> 0:28:32.840 oh my god, I was ready, and I'm still amazed 0:28:33.440 --> 0:28:36.000 because it fumps you in the back, like you've had 0:28:36.040 --> 0:28:39.280 seven dred and seventy five pound of talk in a 0:28:39.360 --> 0:28:41.960 fraction of a second with one gear. I can't really 0:28:42.000 --> 0:28:44.640 describe that. And you think and you're ready for it, 0:28:44.720 --> 0:28:47.960 you say, yeah, I'm ready, but it surprises you and 0:28:48.120 --> 0:28:50.800 you just want more. And so the great thing about 0:28:50.880 --> 0:28:54.600 it is that you can show customers in a few 0:28:54.640 --> 0:28:57.200 seconds and you've converted them. That's all it takes. You 0:28:57.240 --> 0:29:00.160 don't need to describe anymore. And that's going to do 0:29:00.320 --> 0:29:03.800 a lot for electric vehicles. And so because we have 0:29:03.920 --> 0:29:07.080 a huge dealer network, I'm able to put one. I've 0:29:07.120 --> 0:29:10.200 decided to put one in every dealer in America that's 0:29:10.200 --> 0:29:12.640 an e v D, which is pretty much all of them, 0:29:12.880 --> 0:29:15.320 so that people can go down there and try it, 0:29:15.920 --> 0:29:18.120 and the dealers are going to call their customers and 0:29:18.160 --> 0:29:21.880 those who say hey, electrics not for me, I say, good, good, 0:29:21.920 --> 0:29:24.680 come along here's the key, and see what you say 0:29:24.720 --> 0:29:27.800 after you've driven it. And I've tried it out on 0:29:27.840 --> 0:29:30.360 the most hardened people I can find, and they all 0:29:30.400 --> 0:29:33.960 and they all opens their eyes hugely. I did the 0:29:34.000 --> 0:29:35.880 same with mustind by the way, I found the most 0:29:36.680 --> 0:29:40.280 V eight petrol in the veins gas in the veins 0:29:40.960 --> 0:29:44.120 enthusedists I could find, and I gave them a mackey 0:29:44.440 --> 0:29:48.360 and said try that, and they went away. And I'm 0:29:48.360 --> 0:29:50.880 not interested. I don't I'm not interested in these things. 0:29:50.880 --> 0:29:53.000 You know. I'm always gonna love gas all my life. 0:29:53.040 --> 0:29:55.520 I do racing. I hear, I hear. I give them 0:29:55.520 --> 0:29:58.520 a macky GT Performance Edition and they come back three 0:29:58.560 --> 0:30:01.960 hours later with their mouth open and say, oh my god. 0:30:02.080 --> 0:30:04.360 One guy came back. He said to me, oh my god, 0:30:04.800 --> 0:30:10.560 the new definition, the new definition of performances silence. I 0:30:10.640 --> 0:30:13.040 might have to write that down, he and then he 0:30:13.080 --> 0:30:16.600 texted me later he got into his you know, hold 0:30:16.600 --> 0:30:18.280 the coupe and he said, oh my god, I feel 0:30:18.320 --> 0:30:21.760 like I just stepped back ten years. So that was 0:30:21.800 --> 0:30:24.000 the most hardened guy. Fine, And I said to him, hey, 0:30:24.680 --> 0:30:28.360 you know, you think you're a petrol head. Actually you're not. 0:30:28.440 --> 0:30:31.920 You're a performance spleusiast and it just so happens that 0:30:31.960 --> 0:30:36.239 the new performance benchmark is now is now electric. So 0:30:36.440 --> 0:30:38.920 he said, oh my god, that's it. And so that's 0:30:38.960 --> 0:30:43.040 how we knew it would it would work because real 0:30:43.160 --> 0:30:47.320 people who are passionate about that we loved it when 0:30:47.360 --> 0:30:50.560 they experienced it, and so that was a there's a 0:30:50.600 --> 0:30:54.200 barrier on the market must end because you know that preconception. 0:30:54.240 --> 0:30:57.200 But on the earth Fruit there's no barrier. People are like, well, 0:30:57.240 --> 0:31:00.640 maybe I try it. They tried Echo Bruce once and 0:31:00.720 --> 0:31:03.720 we changed their mind about the co boost and so 0:31:03.920 --> 0:31:05.840 they quote that to me, and so I'm willing to 0:31:05.840 --> 0:31:07.520 give it a go now. And I put them in 0:31:07.520 --> 0:31:10.240 there in seconds and they're like, I gotta have it. 0:31:11.000 --> 0:31:13.800 So I'm really excited about that. And for people who 0:31:13.880 --> 0:31:17.760 want to see that torture test, just go to YouTube 0:31:17.800 --> 0:31:21.600 and search for Silver Creek for torture test and you'll 0:31:21.640 --> 0:31:24.880 see what they do to these poor trucks. It's it's 0:31:24.920 --> 0:31:28.680 quite astonishing to see the videos. All right, So we 0:31:28.720 --> 0:31:32.440 have the Mustang out, we have the F one fifty out. 0:31:33.080 --> 0:31:34.920 Although I think a lot of people are still waiting. 0:31:35.000 --> 0:31:37.720 You guys are pretty much sold out of the next 0:31:37.800 --> 0:31:40.320 hundred thousand or some crazy number. Where where are you 0:31:40.400 --> 0:31:46.040 with the current pre sales and sales. Yeah, so it 0:31:46.200 --> 0:31:50.080 surprised us. So we knew that one day people will 0:31:50.160 --> 0:31:54.720 want over a hundred thousand of these, We did not 0:31:54.880 --> 0:32:00.840 expect that in two literally two some people one one. 0:32:01.040 --> 0:32:04.360 We we totally undercalled it, so did the whole industry, 0:32:04.400 --> 0:32:07.640 to be honest, and so we now we realize, you know, 0:32:07.760 --> 0:32:11.600 they're ready now because the point of the truck was 0:32:13.360 --> 0:32:15.479 the performance and power. Yes, but that's not even what 0:32:15.560 --> 0:32:17.880 people talk about. What they talk about is this megapower 0:32:17.920 --> 0:32:22.040 front because it changes it into a new type of vehicle. 0:32:22.800 --> 0:32:25.480 You've now got a luggage space which is basically the 0:32:25.520 --> 0:32:30.200 size of most medium sized suv extra and it and 0:32:30.240 --> 0:32:33.840 it's electronic way it lifts and closes, so you can 0:32:33.920 --> 0:32:36.360 use it to put your groceries in or anything you 0:32:36.360 --> 0:32:39.200 want that people want to put golf clubs in their 0:32:39.240 --> 0:32:42.360 two sets and other things. So it changes the product. 0:32:42.840 --> 0:32:45.840 People are very excited about front gating as well. I noticed. 0:32:46.640 --> 0:32:50.840 And then this backup power system where it uses bidirectional 0:32:50.840 --> 0:32:52.680 power and it will back up your home like a 0:32:52.920 --> 0:32:55.360 like a whole house generator for three days or up 0:32:55.360 --> 0:32:57.720 to ten days. This is what people are talking about. 0:32:58.280 --> 0:33:00.760 And then we decided to put it at a price 0:33:01.280 --> 0:33:05.000 that is basically equivalent to gas including the incentive. So 0:33:06.880 --> 0:33:10.120 and no one expected that either. People expected twenty more 0:33:10.840 --> 0:33:14.840 and that meant the barriers of price have gone. So 0:33:14.880 --> 0:33:18.520 it's just about adoption and are you ready, And that 0:33:18.600 --> 0:33:22.640 led to two orders before we switched it off. So 0:33:22.880 --> 0:33:25.720 we started off a lower run rate and this year 0:33:26.240 --> 0:33:30.040 we just we're opening the ordering in batches because we 0:33:30.080 --> 0:33:33.640 want fairness. I mean, people are really really excited about 0:33:33.640 --> 0:33:36.200 it and we want fairness. So it will be mainly 0:33:36.760 --> 0:33:41.480 from the date when you a person order registered and 0:33:41.800 --> 0:33:44.080 it's a reservation they have at the moment, not in order, 0:33:44.560 --> 0:33:47.200 and then we open up the ability for those those 0:33:47.240 --> 0:33:50.280 customers to order and then they specify their the important 0:33:50.360 --> 0:33:53.640 order and then we give them a date about approximate 0:33:53.720 --> 0:33:56.080 date which is really important to them. And once they 0:33:56.240 --> 0:33:58.560 ordered the date and we're as long as our launch 0:33:58.640 --> 0:34:02.440 goes well, we'll be on during those dates. UM. So 0:34:02.600 --> 0:34:04.840 that's I saw you on. We've opened up the twenty 0:34:04.920 --> 0:34:09.640 two model year and we we sold them out now um, 0:34:09.680 --> 0:34:12.800 and those customers all have dates and we'll be opening 0:34:12.880 --> 0:34:18.319 up the next set um in August, around August, and 0:34:18.360 --> 0:34:20.040 then the next set of customers will be able to 0:34:20.160 --> 0:34:23.600 order and that's a bigger batch um. And then the 0:34:23.719 --> 0:34:29.160 really big news is we have put in a capacity increase, 0:34:29.239 --> 0:34:33.360 a massive capacity capacity increase which will hit around July 0:34:33.520 --> 0:34:36.200 next year, and we're going up to a hundred and 0:34:36.239 --> 0:34:40.239 fifty thousand units a year run rate. So on when 0:34:40.239 --> 0:34:43.799 that wave hits, which will be from July next year, 0:34:43.920 --> 0:34:46.920 we will be able to satisfy demand in a much 0:34:46.960 --> 0:34:51.080 bigger way. And so we'll keep opening these waves of orders, 0:34:51.719 --> 0:34:55.959 keeping it fair and letting customers, keeping them informed about 0:34:55.960 --> 0:34:57.680 when they're going to get it, and we'll keep doing 0:34:57.719 --> 0:34:59.919 that until we fulfill all the orders. But there will 0:35:00.040 --> 0:35:02.080 be a big, big step up when we start ordering 0:35:02.800 --> 0:35:07.040 for the next July builds. That will be a much 0:35:07.120 --> 0:35:12.719 larger capacity uplift. So so last current e V I 0:35:12.800 --> 0:35:17.640 have to ask is the transit which is your large 0:35:17.680 --> 0:35:23.200 sized commercial van which I think most car enthusiasts overlook. 0:35:23.800 --> 0:35:27.680 That's a workhorse. You guys have sold a bajillion of those. 0:35:27.800 --> 0:35:31.600 What what was the thinking in terms of creating the 0:35:31.880 --> 0:35:36.520 transit van and what are your expectations for sales there, Yeah, 0:35:36.600 --> 0:35:39.960 so I am just as excited about that product. So 0:35:40.200 --> 0:35:44.040 because of how I see changing people's lives. So we 0:35:44.160 --> 0:35:49.000 created Forward Pro under ted Cannie, my great colleague who 0:35:49.080 --> 0:35:51.080 now runs out of CEO of Ford Pro, and that's 0:35:51.120 --> 0:35:56.080 to focus on our fleet customers and they're thinking behind 0:35:56.120 --> 0:36:01.279 that big Forward is somewhat half of commercial vehicles and 0:36:01.440 --> 0:36:04.040 the best selling commercial vehicles in the world, both in 0:36:04.200 --> 0:36:07.200 US and most of the rest of the world. So 0:36:07.400 --> 0:36:10.680 we needed to lead and we saw an opportunity to 0:36:10.800 --> 0:36:15.640 create a transit van using the components from the MACKI 0:36:16.160 --> 0:36:18.400 and that meant we could get really good scale and 0:36:18.440 --> 0:36:22.040 if one of them didn't sell, we could flex between 0:36:22.080 --> 0:36:25.680 them quite hell. In the end, this is not our problem. 0:36:26.040 --> 0:36:28.839 Our problem is not enough of either of them. Um 0:36:28.880 --> 0:36:32.400 So that's that's good, and that's but it uses a 0:36:32.520 --> 0:36:37.279 similar battery to the MACKI high tech pout cells, and 0:36:37.320 --> 0:36:40.200 it uses the motor system which is evolved from the MACKI, 0:36:40.280 --> 0:36:44.120 and they integrate I C controllers from the MACKI, which 0:36:44.160 --> 0:36:48.000 means great price, great scale, and it means we can 0:36:48.040 --> 0:36:50.040 offer a van. And this is what I'm so proud of. 0:36:50.400 --> 0:36:53.839 The price of these products is what I'm just as 0:36:53.880 --> 0:36:56.839 proud of because it means it can get into everybody's hands. 0:36:57.680 --> 0:37:00.719 That's what's important to us. So the transit it in 0:37:00.880 --> 0:37:04.879 a lot of businesses will actually start paying back from 0:37:04.920 --> 0:37:09.200 the first day. You're not talking about hey, in five years, 0:37:09.200 --> 0:37:12.600 in three years, I'm talking about the first day, and 0:37:12.640 --> 0:37:17.000 the running costs of something like half and there are 0:37:17.120 --> 0:37:19.799 and the time off the road for servicing and so 0:37:19.880 --> 0:37:23.919 on is much much less, so they have gone down 0:37:24.040 --> 0:37:28.759 really well. Um in those businesses, you must match the 0:37:28.880 --> 0:37:32.720 mileage to the available very carefully. You do not carry 0:37:32.719 --> 0:37:36.160 extra battery. That's inefficient, you just carrying it around for nothing. 0:37:36.200 --> 0:37:41.799 And many of those routes are very known and so 0:37:42.120 --> 0:37:44.800 a certain amount of the market that product is ready 0:37:44.880 --> 0:37:49.320 to serve, not the whole market yet, but a large, 0:37:49.480 --> 0:37:52.759 large proportion. So we expected that to go well, and 0:37:53.080 --> 0:37:56.360 that again has gone much better than expected. We're having 0:37:56.400 --> 0:37:59.600 to triple volume for that vehicle as well, and we're 0:37:59.600 --> 0:38:03.360 working on now. And but what I hadn't expected is 0:38:03.400 --> 0:38:08.880 all the new use cases. So every day we're seeing 0:38:08.960 --> 0:38:10.800 new use cases and the obvious ones. I mean, we 0:38:11.000 --> 0:38:14.600 we served the whole market delivery, which is one that 0:38:14.640 --> 0:38:17.880 people are very visible. This is only ten of our sales. 0:38:19.280 --> 0:38:23.040 Of the market, there's much bigger market is every other 0:38:23.160 --> 0:38:26.239 use you can think of for ava um And so 0:38:26.360 --> 0:38:30.120 that's what we serve with transit. But I'll give you 0:38:30.160 --> 0:38:33.359 a new use case. So we were launching ford Pro 0:38:33.480 --> 0:38:38.400 in Sonoma a couple of weeks ago. Oh and we 0:38:38.880 --> 0:38:41.279 decided to do that Ted lead This decided to do 0:38:41.360 --> 0:38:45.759 it with a wine growing region. So we did it 0:38:45.800 --> 0:38:51.279 with Francis coppler um And and his estate. And he 0:38:51.400 --> 0:38:55.719 showed us they have an innovation where they to grow 0:38:55.800 --> 0:38:59.359 better wine, make better wine day. At the moment when 0:38:59.360 --> 0:39:01.440 they take the wine in parcels they put them in, 0:39:01.520 --> 0:39:04.000 they have to mix three parcels together in one vat 0:39:04.000 --> 0:39:06.920 because they don't have enough bats. Nearly all wine growers 0:39:06.920 --> 0:39:09.400 do that. Trouble is you don't know which is the 0:39:09.520 --> 0:39:14.200 good parcel until a year later, so you have to 0:39:14.239 --> 0:39:16.759 mix them together and now you you mixed too good 0:39:16.760 --> 0:39:18.759 and weren't bad, and you don't know in the wine 0:39:18.880 --> 0:39:22.359 is mediocre. So his innovation that he came up with 0:39:22.560 --> 0:39:24.840 his team is to build a vat for every parcel. 0:39:26.200 --> 0:39:28.719 Now you have one parcel per vact. Trouble is you're 0:39:28.719 --> 0:39:32.960 not allowed to build above ground, because beautiful region. So 0:39:33.239 --> 0:39:36.719 he dug into a hillside and built it underground. So 0:39:36.760 --> 0:39:39.120 he showed us a new facility is amazing, looks like 0:39:39.160 --> 0:39:43.879 a James Bond villain layer. And he and there's only 0:39:43.920 --> 0:39:45.839 you know, there's only two bighcles you can use under there. 0:39:45.960 --> 0:39:50.080 One is a diesel van. Who wants a diesel van underground? 0:39:50.880 --> 0:39:52.759 That stage four is safe, so you can do that, 0:39:52.880 --> 0:39:56.560 you just don't want to, or an electric van. So 0:39:56.680 --> 0:40:00.040 he converted his entire fleet to electric, I mean it 0:40:00.280 --> 0:40:04.120 ly and then never look back. And so we announced this, 0:40:04.239 --> 0:40:08.000 We launched this with him a little while back, and 0:40:08.000 --> 0:40:10.439 and then of course there's I can't remember the number, 0:40:10.480 --> 0:40:14.520 but something insane number like thirty wine growing companies in 0:40:14.680 --> 0:40:17.719 US something like that. Don't quote me, but basically they 0:40:17.760 --> 0:40:20.759 all started contacting him and what are you doing. Oh, yes, 0:40:20.800 --> 0:40:24.320 I'm making one that per parcel, so my wine is 0:40:24.360 --> 0:40:26.839 just going to be top quality next year. Well they 0:40:26.880 --> 0:40:29.120 took notice of that. Then the next group and the 0:40:29.120 --> 0:40:31.160 next group and the next group said hey, why don't 0:40:31.160 --> 0:40:33.200 we do the same, And then he said what kind 0:40:33.239 --> 0:40:34.880 of vehicles do you need? And of course he said 0:40:35.000 --> 0:40:37.759 electric transit. So we now have orders coming in all 0:40:37.800 --> 0:40:41.600 over the Blade for electric transits for wine growing. And 0:40:41.640 --> 0:40:45.880 that's just one. That's just one use and we hadn't 0:40:45.960 --> 0:40:48.839 even thought that one. And then any time you need 0:40:48.920 --> 0:40:52.240 to bring a vehicle indoors, you can bring it indoors 0:40:52.760 --> 0:40:55.000 and they have power pro power and board, which means 0:40:55.000 --> 0:40:56.759 you bring them indoors and plug power tools in the 0:40:56.840 --> 0:41:00.000 back and they have enough power to run proper power tools. 0:41:00.080 --> 0:41:03.359 So you imagine building factories, building homes. You just put 0:41:03.440 --> 0:41:06.960 up the transit and start cutting wood up through from 0:41:06.960 --> 0:41:11.040 the back of the transit. No generators, no noise, completely independent. 0:41:11.160 --> 0:41:15.160 So that's the use cases where we expected to see. 0:41:15.400 --> 0:41:18.319 We're seeing huge ones. And by the one that I 0:41:18.320 --> 0:41:21.400 loved mostly, you gotta be really excited. Recently was on 0:41:21.440 --> 0:41:25.080 the fifty. That one has nine point six killer lots 0:41:25.080 --> 0:41:28.799 of power. That that's a whole home. And there's I 0:41:28.840 --> 0:41:32.640 saw a startup where instead of getting takeaway food, imagine 0:41:32.640 --> 0:41:35.680 you have two couples over for dinner. Instead of getting 0:41:35.760 --> 0:41:39.160 takeaway food, this business you you booked them online. They 0:41:39.239 --> 0:41:42.520 come to your driveway, open up the kitchen in the 0:41:42.560 --> 0:41:48.200 back and cook you dinner of your choice of that type, 0:41:48.760 --> 0:41:50.680 and they and they feed it. You know, they give 0:41:50.719 --> 0:41:53.879 you the just cooked food on your driveway, and they're 0:41:53.880 --> 0:41:57.800 going to use electric from fifties because the electric powers 0:41:57.880 --> 0:42:01.000 enough to parrel the cooking equipment, induction hobs, so on. 0:42:01.960 --> 0:42:05.120 How cool is that? I can just imagine that scaling 0:42:05.160 --> 0:42:08.759 all over America, don't you. It's really really interesting. So 0:42:08.920 --> 0:42:13.760 let's talk a little bit about batteries. You became general 0:42:13.800 --> 0:42:20.480 manager of Battery VS. Tell us about the thinking behind 0:42:20.640 --> 0:42:26.359 that new job and where it's going. Yeah, so, um, 0:42:26.480 --> 0:42:29.960 that that job. I used to be the product development 0:42:30.520 --> 0:42:33.560 director for Team Edicine. So my role was in the 0:42:33.680 --> 0:42:36.280 design and development of the new cars, leading the teams. 0:42:36.560 --> 0:42:40.080 Obviously a large team is involved in that. Um. But 0:42:40.239 --> 0:42:43.759 in late later on they decided they would like me 0:42:43.800 --> 0:42:46.839 to take the vehicles to market. There are so many 0:42:46.880 --> 0:42:51.080 elements there. There's the charge network, and there's buying online 0:42:51.160 --> 0:42:55.680 and how BEV customers want to be treated differently. So 0:42:56.239 --> 0:42:59.239 became a general manager, which means it was everything to 0:42:59.280 --> 0:43:01.480 do with the can after the customer and bringing those 0:43:01.560 --> 0:43:06.640 vehicles that we're designed to market. Um. So that meant 0:43:07.120 --> 0:43:10.440 I talk with customers the whole time. I watched social 0:43:10.480 --> 0:43:13.360 media all the time and I'm still very linked to 0:43:13.400 --> 0:43:17.200 the development teams to just make sure that we're learning 0:43:17.280 --> 0:43:20.839 quickly and we're evolving those vehicles. That that's really what 0:43:20.880 --> 0:43:23.000 the job is about. The fantastic job, by the way, 0:43:23.040 --> 0:43:26.080 I'm really enjoying it. So let's talk about the announcement 0:43:26.120 --> 0:43:30.600 that was made fairly recently. Ford's leadership decided it was 0:43:30.680 --> 0:43:32.480 time to go all in on t v s and 0:43:32.520 --> 0:43:36.040 there I guess splitting into two companies. Am I am 0:43:36.080 --> 0:43:39.280 I getting it right? Tell us about the new structure 0:43:39.320 --> 0:43:44.400 that's coming. Yeah, So Team Medicine lad the first round 0:43:44.640 --> 0:43:47.799 which delivered at least these first three products that you're 0:43:47.800 --> 0:43:52.520 seeing the markets. We actually really well to it, and 0:43:52.560 --> 0:43:56.480 then it was seen as now is the time to 0:43:56.800 --> 0:44:01.480 organize ourselves to really comp He were the best out 0:44:01.520 --> 0:44:04.960 there for the next set of products because He's really 0:44:05.000 --> 0:44:08.560 a transformation, and it was determined Jim Farley led the 0:44:08.640 --> 0:44:11.840 team to say, hey, I don't want people walking waking 0:44:11.920 --> 0:44:15.560 up in the morning and having to think about how 0:44:15.640 --> 0:44:19.479 to grow gas and how to grow BEV because they're 0:44:19.520 --> 0:44:24.479 so different. The BEV is not just a normal gas 0:44:24.480 --> 0:44:27.080 car with the electric motoring system. It's a completely new 0:44:27.120 --> 0:44:31.680 technology product. So he wanted to organize the teams so 0:44:31.840 --> 0:44:35.640 that they only are thinking about one of those. So 0:44:35.680 --> 0:44:38.400 that's how the team have organized. One is called Ford 0:44:38.440 --> 0:44:42.120 Blue and one is called Model E. That's the electric 0:44:42.120 --> 0:44:46.440 one obviously, UM, and there's also Ford Pro and Ford 0:44:46.440 --> 0:44:49.720 pros all about the commercial customers and their their sales 0:44:49.800 --> 0:44:52.560 and support. They don't do the development that will be 0:44:52.560 --> 0:44:56.920 done in the base in Blue or in Mode and 0:44:56.960 --> 0:45:00.880 it's an internal company organization. I would all it UM. 0:45:01.400 --> 0:45:03.680 And so the Model A team will be focused on 0:45:03.840 --> 0:45:09.640 everything about t vs, every aspect, from the selection of 0:45:09.760 --> 0:45:14.800 motors and controllers and electronics for efficiency, to the design 0:45:14.800 --> 0:45:18.560 and development of the vehicles, to the network charging this 0:45:18.760 --> 0:45:23.319 bidirectional power system that we've gotten, how that will work 0:45:23.360 --> 0:45:27.680 with customers, and improving the current vehicles because all of 0:45:27.680 --> 0:45:31.640 our electric vehicles are over the air update able, and 0:45:31.719 --> 0:45:35.000 when we say we plan on delivering lots of updates 0:45:35.000 --> 0:45:37.520 for customers, we really mean that. And we have a 0:45:37.600 --> 0:45:41.719 huge cycled plan of updates and improvements to those vehicles 0:45:41.800 --> 0:45:43.600 to roll out, and so that will also be under 0:45:43.640 --> 0:45:47.920 Modeling UM and so it's just to allow the team 0:45:48.000 --> 0:45:51.400 to really focus. We also will be setting up the 0:45:51.440 --> 0:45:54.560 same culture within that team, as we did in in 0:45:54.680 --> 0:46:00.440 team medicine, which is very flat structure leadership, supporting foyees 0:46:00.560 --> 0:46:05.279 to make changes for the customer, very efficient approval, and 0:46:05.920 --> 0:46:10.279 very can do an inclusive mindset that that brings in 0:46:10.360 --> 0:46:13.359 people from all walks of life and ethnicities to bear 0:46:13.400 --> 0:46:16.160 on the product development. We're doing so exactly like to medicine, 0:46:16.160 --> 0:46:19.640 to be honest, just on steroids. Um. So that's the 0:46:19.680 --> 0:46:23.480 plan and as part of that, I'm taking a new role. 0:46:23.960 --> 0:46:27.880 I go back now to product development and I'll be 0:46:28.160 --> 0:46:31.840 a VP of Product Development, Global product development for electric 0:46:31.880 --> 0:46:36.000 cars now under Doug Field. Can't and I can't wait 0:46:36.040 --> 0:46:40.080 to start. So we'll talk more about some upcoming cars 0:46:40.120 --> 0:46:43.680 a little later. Let's let's stay with the concept of 0:46:44.239 --> 0:46:50.360 the infrastructure for evs, and that's both battery and charging stations. 0:46:51.160 --> 0:46:53.840 How long do we think it's going to take before 0:46:55.640 --> 0:47:00.080 charging stations are as ubiquitous as gas stations? And I 0:47:00.080 --> 0:47:04.040 should preface that by saying Ford is part of a 0:47:04.160 --> 0:47:10.440 group that all have interoperable technology, and there's about I 0:47:10.480 --> 0:47:15.920 think charging stations and their consortium. Is that about right? Yes? 0:47:16.040 --> 0:47:20.080 So there's so we were we formed the Blue Oval 0:47:20.280 --> 0:47:25.160 Charging Network and we considered how will we support the 0:47:25.239 --> 0:47:28.520 growth of the network, who has to be huge investment 0:47:29.480 --> 0:47:33.760 and across the whole of the country and also global actually, 0:47:34.160 --> 0:47:37.200 and how might we support that? So one way we 0:47:37.239 --> 0:47:40.080 could build our own networks. You know, we have resources. 0:47:40.120 --> 0:47:42.680 We could do that, but then would be a Ford 0:47:42.719 --> 0:47:45.800 network and the Tesla network and GM network, and that's 0:47:45.840 --> 0:47:49.200 that's not good for customers. We just want the charging 0:47:49.239 --> 0:47:54.440 network to be everywhere. So instead we chose to put 0:47:54.480 --> 0:47:58.440 together every best network in America, every one of them, 0:47:58.480 --> 0:48:01.080 and we put them together under one system, is under 0:48:01.080 --> 0:48:04.319 the Blue Oval Ford Charge Network, and it's under the 0:48:04.400 --> 0:48:07.840 forward Pass app. So when you buy a vehicle you 0:48:07.920 --> 0:48:13.320 get free charging certain amounts, but more importantly, under one system, 0:48:13.840 --> 0:48:18.279 you've got automatic payment across that whole network. All the 0:48:18.320 --> 0:48:20.560 best ones are plug and charge. Now we were the 0:48:20.600 --> 0:48:22.840 first people to launch that. So you just plug it 0:48:22.880 --> 0:48:25.960 in and the car detects, automatically sets up and page 0:48:25.960 --> 0:48:28.920 and just plug and walk away. Then you can monitor 0:48:28.960 --> 0:48:32.200 your car over the over the year. Um. So that 0:48:32.320 --> 0:48:35.240 was our strategy. And the reason is is because huge 0:48:35.280 --> 0:48:37.480 investment is going to come into that now now that 0:48:38.080 --> 0:48:41.480 companies see the cars coming, they're going to put huge 0:48:41.480 --> 0:48:45.400 investment in so even before we talked on our podcast, 0:48:45.880 --> 0:48:52.160 we had and sixty but we're already up to nine 0:48:52.840 --> 0:48:58.160 now plugs because it's growing every day because as a 0:48:58.239 --> 0:49:00.960 sale of the investment, and they to be regional, the 0:49:01.040 --> 0:49:05.200 networks East, West, in Central and so on, so we 0:49:05.200 --> 0:49:09.359 we incorporate them really fast. So really just a couple 0:49:09.400 --> 0:49:12.879 of weeks, and we made a software system that it's 0:49:13.000 --> 0:49:15.600 very easy to integrate with and so no nobody ever 0:49:15.600 --> 0:49:17.600 said no to us. All of the networks are in 0:49:18.400 --> 0:49:21.640 and and it will grow hugely. It will be is 0:49:21.680 --> 0:49:25.080 the biggest network in America today, and we need to 0:49:25.080 --> 0:49:27.640 do more to communicate that because I noticed people don't 0:49:27.680 --> 0:49:31.000 know that yet. I didn't know that. I've spent week 0:49:31.080 --> 0:49:34.759 researching what you guys are doing. That that's a that's 0:49:34.760 --> 0:49:38.880 a surprising data point that I think would could be 0:49:38.920 --> 0:49:42.640 a deciding factor for someone who has range anxiety. Even 0:49:42.719 --> 0:49:47.200 though we know the trips are all local. This is 0:49:47.239 --> 0:49:50.359 correct and so I'm definitely am going to ampy up 0:49:50.400 --> 0:49:53.880 this year to communicate that. But one of the reasons 0:49:53.920 --> 0:49:56.080 I wanted to hold on that is that I need 0:49:56.160 --> 0:49:59.359 to make sure the quality is there because a risk 0:49:59.440 --> 0:50:02.600 of if you've got multiple networks, is the qualities not there? 0:50:02.680 --> 0:50:06.960 So we are remotely monitoring all of the stations and 0:50:07.040 --> 0:50:09.719 you would think that's enough. For a while, we thought 0:50:09.719 --> 0:50:14.120 that might be enough, but it's not actually because the 0:50:14.239 --> 0:50:18.919 terminals are you know, they have payment systems on them 0:50:18.960 --> 0:50:21.520 and it has to go through quite a few steps 0:50:21.600 --> 0:50:25.560 before it triggers, and if one of those steps goes wrong, 0:50:25.760 --> 0:50:28.799 it doesn't allow you to charge. So we found that 0:50:29.160 --> 0:50:33.240 in some cases this system looks like it's working and doesn't, 0:50:33.880 --> 0:50:37.520 and so we decided to put out a group of 0:50:37.560 --> 0:50:41.560 people that they're called the Ford Charge Angels, and they 0:50:41.600 --> 0:50:45.640 are roaming the network with highly instrumented vehicles. In fact, 0:50:45.640 --> 0:50:49.680 we had to specially order the instrumentation systems. They're very 0:50:49.760 --> 0:50:53.120 unique because they monitor all of the signals going between 0:50:53.120 --> 0:50:55.759 the car and the network, and they are roaming the 0:50:55.800 --> 0:51:02.400 network with the sole mission to test charges everywhere, especially 0:51:02.440 --> 0:51:05.640 if there are hot spots, and then when we know 0:51:05.800 --> 0:51:09.480 there's a problem. They were very connected to the charging networks. 0:51:09.480 --> 0:51:12.959 We've got the CEOs on speed dial and we even 0:51:13.040 --> 0:51:16.239 asked them to repair, and if they cannot repair in 0:51:16.280 --> 0:51:19.279 a time that we deem effective for our customers, we 0:51:19.320 --> 0:51:22.240 remove them from the network so that so that customers 0:51:22.280 --> 0:51:25.480 are never sent to a Forting charger, and we can 0:51:25.480 --> 0:51:28.000 do that really fast. Now we get up to system 0:51:28.040 --> 0:51:33.640 to do that, and um, the networks are often fix 0:51:33.719 --> 0:51:36.000 it there, and then if they can't and it's not 0:51:36.080 --> 0:51:37.600 quick enough, we take it out so that you do 0:51:37.680 --> 0:51:41.279 not get rooted there. And we're unique in doing that 0:51:41.320 --> 0:51:45.080 at the moment and the only company doing that. You're 0:51:45.080 --> 0:51:49.000 coming up on a hundred thousand UM chargers. So if 0:51:49.000 --> 0:51:51.480 you're looking for an excuse to make a big announcement, 0:51:51.960 --> 0:51:54.719 I would imagine that number is as as good a 0:51:54.719 --> 0:51:58.040 reason as any. But but let's talk about charge times. 0:51:58.520 --> 0:52:01.440 One of the complaints some e V buyers who have 0:52:01.520 --> 0:52:04.840 been dragging their feet have mentioned has been the long 0:52:05.040 --> 0:52:08.920 charge times. What's the future of this technology look like? 0:52:09.040 --> 0:52:13.120 Will we ever get to a point where the seven 0:52:13.160 --> 0:52:15.319 minute or five minutes fill up that you would get 0:52:15.320 --> 0:52:18.879 a gasoline you could do with the electricity. What's what's 0:52:18.920 --> 0:52:21.440 the best we can hope for it? Yeah, So one 0:52:21.440 --> 0:52:23.960 of the things I'll say is, and this is like 0:52:24.080 --> 0:52:26.839 when you know you have a flip phone and you're 0:52:26.880 --> 0:52:30.080 looking at iPhone technology and you think, you know what 0:52:30.160 --> 0:52:33.480 an iPhone, but until you owned one, you didn't really 0:52:33.480 --> 0:52:37.240 know what it does. It's like saying, hey, my flip 0:52:37.239 --> 0:52:40.080 phone lasted four days and my iPhone has to be 0:52:40.160 --> 0:52:43.120 charged every day. Therefore, I don't want an iPhone. It's 0:52:43.200 --> 0:52:46.640 like saying that. But when you own an iPhone, you 0:52:46.760 --> 0:52:49.800 realize you just plug it in a nut and it 0:52:49.880 --> 0:52:52.000 fits perfectly with your life. If you go on a 0:52:52.000 --> 0:52:55.839 long trip with an iPhone, you might sometimes charge it 0:52:55.880 --> 0:52:58.240 with a backup battery or a quick plug in because 0:52:58.480 --> 0:52:59.879 you know you're going to be using it all day. 0:53:00.719 --> 0:53:04.319 But nobody nobody went back from an iPhone to a 0:53:04.320 --> 0:53:08.319 flip phone, and beds are the same. The perception from 0:53:08.360 --> 0:53:11.279 people is, oh, I need a vehicule that's exactly the 0:53:11.320 --> 0:53:15.760 same as my gas. This is a massively common misconception. 0:53:16.320 --> 0:53:19.640 For example, I've owned a Mackie for now a year 0:53:19.640 --> 0:53:21.480 and a half. I never had a car for more 0:53:21.520 --> 0:53:25.000 than a year and a half as my company car, 0:53:26.040 --> 0:53:29.560 and every day it's lug in my home and I 0:53:29.640 --> 0:53:31.680 leave every day with a full tank. When I go 0:53:31.719 --> 0:53:33.840 on a business trip, I leave to the airport with 0:53:33.880 --> 0:53:39.440 a I never ever stop to interrupt my day to 0:53:39.560 --> 0:53:41.800 fill my car up, not once in a year and 0:53:41.840 --> 0:53:44.600 a half because it's already always ready. And that's what 0:53:44.680 --> 0:53:48.360 people forget about this. The thought of having to go 0:53:48.440 --> 0:53:51.719 and get gas while I'm about to go somewhere and 0:53:51.719 --> 0:53:54.240 I've forgotten to fill it. It's horrifying to me. Now 0:53:54.719 --> 0:53:57.440 makes me angry. And then when I go on a 0:53:57.480 --> 0:54:01.200 longer trip, I type it into the route planner system 0:54:01.239 --> 0:54:03.640 and it tells me where to stop and win, and 0:54:03.680 --> 0:54:06.239 I drive for three hours and then I stop, I 0:54:06.320 --> 0:54:08.960 plug it in and walk away. It takes me precisely 0:54:09.120 --> 0:54:11.759 ten seconds to charge my car. I plug it and 0:54:11.800 --> 0:54:14.160 I go and do something else. I go and get 0:54:14.160 --> 0:54:16.680 a coffee, or I go shopping. There's many of the 0:54:16.719 --> 0:54:19.680 sites have shops next door. Or I put out my 0:54:19.719 --> 0:54:22.239 laptop and catch up with mail. By the time I 0:54:22.280 --> 0:54:24.840 look back up again, I realized I've overstayed it and 0:54:24.920 --> 0:54:27.080 my car is now fully charged. Most of the time, 0:54:27.160 --> 0:54:29.680 to be honest, or I talked to somebody who's come 0:54:29.760 --> 0:54:31.719 to talk about the car. That happens a lot as well. 0:54:32.360 --> 0:54:35.080 But really, you know, it's a different way of thinking 0:54:35.120 --> 0:54:38.160 about it. It takes me dirty seconds to charge my 0:54:38.200 --> 0:54:40.320 car because I plug it in and I'm doing something 0:54:40.360 --> 0:54:44.799 else and most owners of modern webs will feel the 0:54:44.840 --> 0:54:48.040 same about it, you know. So, so I wanted to 0:54:48.080 --> 0:54:51.200 say that first because that changes your life and your 0:54:51.280 --> 0:54:55.600 way you think about these products now. Later it takes 0:54:55.960 --> 0:54:59.640 on a typical trip, the car will usually take about 0:54:59.680 --> 0:55:03.160 twenty few minutes to charge because it usually hops you 0:55:03.440 --> 0:55:07.600 between fast chargers, and it will favor the fastest charges. 0:55:08.200 --> 0:55:10.840 And on most trips you'll stop and you're trying to 0:55:10.880 --> 0:55:14.000 get to a destination, so it will boost you quickly 0:55:14.239 --> 0:55:17.320 at the beginning part of the charge faster than the 0:55:17.440 --> 0:55:20.560 later part. So it will tend to optimize you by 0:55:20.800 --> 0:55:23.520 charging maybe twenty minutes or twenty two minutes or something 0:55:23.880 --> 0:55:25.800 that's just a long enough to go and get a sandwich, 0:55:26.600 --> 0:55:29.279 restroom and back to the car really and they're off again. 0:55:29.400 --> 0:55:32.000 So that's what it tends to do. Now, do we 0:55:32.080 --> 0:55:36.319 have technology later that will charge even faster, Yes, we do, 0:55:37.520 --> 0:55:40.080 like eight hundred volt systems, so they will charge even faster, 0:55:40.920 --> 0:55:44.799 under twenty minutes for the entire charge from you tend 0:55:44.800 --> 0:55:48.239 to Yes, these are coming as well, But honestly, it 0:55:48.280 --> 0:55:51.640 makes less difference to your trip than you think it does. 0:55:52.000 --> 0:55:55.520 So instead of twenty two minutes, you're there for ten. Okay, 0:55:55.640 --> 0:55:57.680 But as I say, you plugging them go and do 0:55:57.800 --> 0:56:01.040 something else mostly so they will get better. But but 0:56:01.400 --> 0:56:05.279 cars are ready now, you've seem common misconception. We don't 0:56:05.280 --> 0:56:08.600 need to wait with three hundred mile cars, and we're 0:56:08.680 --> 0:56:12.800 up to three three now with that plus the network 0:56:12.840 --> 0:56:16.319 that's out that we're ready immediately. Especially you mean a 0:56:16.360 --> 0:56:18.480 lot of customers are using it as their second car. 0:56:18.760 --> 0:56:22.480 It's a complete no brainer. So it's just we have 0:56:22.560 --> 0:56:25.040 to do more to communicate that to customers and bring 0:56:25.120 --> 0:56:28.040 customers along with us. Three hundred miles means that if 0:56:28.080 --> 0:56:31.560 you're driving sixty to seventy, which is what the highways 0:56:31.600 --> 0:56:34.640 by me are, that that's four or five six hours 0:56:34.640 --> 0:56:37.560 of driving. You still need to get out, stretch your legs, 0:56:37.560 --> 0:56:40.479 go to the bathroom occasionally, if that's right. And most 0:56:40.480 --> 0:56:43.920 people won't go below temper cent. You know, they're a 0:56:43.920 --> 0:56:46.719 bit nervous, so they don't usually go below So you 0:56:46.719 --> 0:56:49.800 have to save that thirty so it's like two seventy miles. 0:56:49.800 --> 0:56:51.920 But you're right, if you're going faster, it will be 0:56:51.920 --> 0:56:53.640 a little bit les but it's quite a long time 0:56:54.520 --> 0:56:58.920 and most people need to stop and rest and and 0:56:58.920 --> 0:57:00.680 then you just build it into your day. Like I 0:57:00.760 --> 0:57:03.919 say you when I'm on going someone for a business trip, 0:57:03.960 --> 0:57:07.440 I stopped halfway plugging in, get a coffee, and I 0:57:07.640 --> 0:57:10.160 catch up on some mail and so usually, but I 0:57:10.600 --> 0:57:12.840 get into it, I look up and oaks, I've stayed longer, 0:57:13.440 --> 0:57:15.600 and now I'm really fully charged. I didn't just boost it. 0:57:15.640 --> 0:57:18.600 I charged right the way back up to now and 0:57:18.640 --> 0:57:21.200 off I go again, and I arrived with too much range, 0:57:21.760 --> 0:57:23.800 and then plugging at the hotel. It's ready the next day. 0:57:23.840 --> 0:57:26.000 So it just fixed into your life more than you 0:57:26.040 --> 0:57:30.680 think it does. And the from fifty over three hundred 0:57:30.680 --> 0:57:35.680 miles go very robustly over three miles, so even better. 0:57:36.000 --> 0:57:38.600 So so the folks who are sharping for five hundred 0:57:38.600 --> 0:57:42.080 mile range or even talking about eight hundred and a 0:57:42.120 --> 0:57:45.800 thousand mile range, that seems based on what you're saying, 0:57:45.840 --> 0:57:50.240 that really seems like it's unnecessary and not practical because 0:57:50.320 --> 0:57:54.520 the human element, even with driver assist, the human element 0:57:54.640 --> 0:57:56.560 is still going to get fatigued and still needs to 0:57:56.600 --> 0:58:00.400 occasionally stretch their lets. So you know, they are use 0:58:00.480 --> 0:58:04.400 cases for those vehicles, and only one really does that 0:58:04.480 --> 0:58:07.320 kind of range at the moment, and so that's some 0:58:07.360 --> 0:58:11.080 customers need that, So that's okay. But but you are 0:58:11.160 --> 0:58:15.479 carrying it's not like gas. You are carrying extra weight 0:58:15.520 --> 0:58:20.080 with you and every day that is costing you money 0:58:20.280 --> 0:58:23.520 and it is changing the performance of the car and 0:58:23.680 --> 0:58:27.800 it has all that weight for handling. So carrying a 0:58:27.800 --> 0:58:30.240 five dred mile battery when you really do thirty miles 0:58:30.240 --> 0:58:34.040 a day is a real waste. UM. So you know 0:58:34.080 --> 0:58:36.720 there's an optimum, I would say, and for some use 0:58:36.760 --> 0:58:41.760 cases you know that's okay, but it's it's a rare 0:58:42.000 --> 0:58:45.360 use case. Um. And so we're seeing once you reach 0:58:45.520 --> 0:58:50.720 three hundred, it really changes the impression of the customers. 0:58:50.720 --> 0:58:55.000 They've become much more confident around the just over three. 0:58:55.960 --> 0:59:00.400 So last battery question, UM. One of the issues I've 0:59:00.400 --> 0:59:05.560 read about is the question of either recycling or reusability 0:59:05.840 --> 0:59:10.040 of EV batteries. Are either of those anywhere off on 0:59:10.080 --> 0:59:16.360 the horizon? Oh yes, So that's super important to us, um, 0:59:16.680 --> 0:59:21.880 And for two reasons. It's becoming clear that the supply 0:59:22.040 --> 0:59:26.200 of batteries and all of the chemicals needed are a 0:59:26.360 --> 0:59:29.960 real challenge. And as the whole world ramps up to 0:59:30.080 --> 0:59:33.280 electric vehicles, it will split into those that are able 0:59:33.360 --> 0:59:35.480 to get the materials and batteries and those that are 0:59:35.520 --> 0:59:39.240 not and if somebody hasn't started already and it's very 0:59:39.320 --> 0:59:43.520 far advanced into that, they're going to have a huge problem. 0:59:43.560 --> 0:59:46.959 And so that's why you've seen that we invested over 0:59:47.000 --> 0:59:50.800 eleven billion dollars in Blue Oval City, the largest that 0:59:50.880 --> 0:59:54.560 I know of investment of its kind in America. And 0:59:54.800 --> 1:00:00.840 it builds an entire city to build trucks and then 1:00:01.000 --> 1:00:06.760 and also two plants so far for batteries, a huge 1:00:06.760 --> 1:00:13.200 amount of batteries. And it also vertically integrates the chemicals 1:00:13.280 --> 1:00:17.840 supply required for the batteries. Um So that's the first stage. 1:00:18.160 --> 1:00:20.520 So because we know that we need to secure enough 1:00:20.560 --> 1:00:24.200 batteries for millions of cars, where is that plant to 1:00:24.280 --> 1:00:29.960 build those batteries? Located? Tennessee? Tennessee? Because am I remembering 1:00:29.960 --> 1:00:34.160 this correctly? The marquee was made I think in Canada 1:00:34.240 --> 1:00:37.760 or Mexico, I don't remember which it's it's Mexico, yes, 1:00:37.880 --> 1:00:41.120 because that was the next plant that we had available. 1:00:41.880 --> 1:00:45.840 Um So that's why we went there. You know, we're 1:00:45.880 --> 1:00:50.880 gonna be using lots of our plants and and and 1:00:50.880 --> 1:00:53.160 and and we will fill them up as we go. 1:00:53.240 --> 1:00:55.280 So we kind of fill them up with whichever plant 1:00:55.360 --> 1:00:58.360 is ready and some other factors. Actually, that's why that 1:00:58.400 --> 1:01:02.400 one was Mexico and the from fifty in Dearborn, UM. 1:01:02.440 --> 1:01:04.320 And so I will you start filling up all our 1:01:05.160 --> 1:01:08.520 gas plants one at a time. So the Blue Level 1:01:08.560 --> 1:01:14.040 City Complex is six miles square in West Tennessee, UM 1:01:14.120 --> 1:01:19.160 and the battery part correction is Central Kentucky with twin 1:01:19.240 --> 1:01:22.800 battery plants. So yeah, it's it's huge, a better but 1:01:22.880 --> 1:01:24.640 a really exciting one. And the one you asked me 1:01:24.720 --> 1:01:30.000 is about recycling. So we tied with Redwood Materials. J. B. 1:01:30.160 --> 1:01:32.840 Strobell was one of the founders of Tesla and he 1:01:32.960 --> 1:01:36.560 now runs a company called Redwood Materials. They're very high 1:01:36.600 --> 1:01:41.480 ambitions in recycling and we are partnered with them. And 1:01:41.560 --> 1:01:47.960 so we are beginning now using um scrap from battery 1:01:48.000 --> 1:01:54.280 production to recycle it to produce materials for new battery production. 1:01:54.920 --> 1:01:58.200 And as the batteries start coming back, we're going to 1:01:58.280 --> 1:02:02.120 start using them to extract materials and reuse them back 1:02:02.120 --> 1:02:04.920 into our supply plan. It does two things. One, it 1:02:05.120 --> 1:02:11.040 secures battery supply when some of these chemicals and materials 1:02:11.080 --> 1:02:14.720 could become scarce, and it also allows us to reduce 1:02:14.760 --> 1:02:18.360 the price, and we have some quite ambitious price targets 1:02:18.400 --> 1:02:22.080 for that recycled material and I mean the commodity. So 1:02:22.120 --> 1:02:23.880 they move up and down every day. You know, in 1:02:23.920 --> 1:02:27.040 some cases it looks very good value compared to buying 1:02:27.080 --> 1:02:30.000 on the open market, and your market forces will determine 1:02:30.000 --> 1:02:33.040 the price of those chemicals. So we're one of the 1:02:33.040 --> 1:02:35.520 biggest operations that I know of to do that, and 1:02:35.560 --> 1:02:38.480 they will be on site in Blue Oval City from 1:02:38.480 --> 1:02:42.640 the start, really quite fascinating. Let's talk a little bit 1:02:42.720 --> 1:02:45.920 about some of the things that we're looking at in 1:02:45.960 --> 1:02:50.960 the future. You mentioned how proud you are of the 1:02:51.040 --> 1:02:55.440 price points that you've introduced cars like the Marquee or 1:02:55.480 --> 1:03:00.720 the Transit or the Lightning. Um, what do you think 1:03:00.840 --> 1:03:03.800 is going to happen going forward in terms of pricing, 1:03:04.880 --> 1:03:08.800 I not a not a battery hybrid, but a regenerative 1:03:09.080 --> 1:03:13.360 I guess p h t V hybrid. The Maverick was 1:03:13.480 --> 1:03:18.240 priced at pretty in expense of two hours for a 1:03:18.240 --> 1:03:23.920 compact four door pickup truck. How cheap can battery evs 1:03:24.000 --> 1:03:29.080 get in the future? Well today, So the FRO fifty 1:03:29.160 --> 1:03:34.080 Lightning with the included incentive that's available is really in 1:03:34.120 --> 1:03:38.520 the range right now of gas from right in the 1:03:38.560 --> 1:03:42.320 heartland of where we sell most of them. So I 1:03:42.320 --> 1:03:46.360 could argue that today we have one of the first 1:03:46.440 --> 1:03:50.200 vehicles that has reached parity with an equivalent truck. And 1:03:50.240 --> 1:03:54.440 I say equivalent. Yet the electrics faster than any from 1:03:54.480 --> 1:03:56.800 fifty we ever made more talk than any from fifty 1:03:56.840 --> 1:04:00.200 we ever made quite handles better, etcetera, etcetera than any 1:04:00.280 --> 1:04:03.200 f fifty ever. And it starts at the price of 1:04:03.240 --> 1:04:06.640 the gas. So there's one segment where we've managed to 1:04:06.680 --> 1:04:09.240 achieve it. That one is with the incentive, So that's 1:04:09.280 --> 1:04:11.960 helped us, helps it bring to bring it to more people. 1:04:13.520 --> 1:04:17.200 We are working on other vehicles not announced yet to 1:04:17.280 --> 1:04:21.760 bring the vehicles to more people, a lower cost vehicle. 1:04:22.800 --> 1:04:24.520 I can't say anything more about it at the moment, 1:04:24.560 --> 1:04:27.920 but that's one of our missions. And part of this 1:04:28.040 --> 1:04:31.960 huge investments we're making in batteries is obviously supporting that, 1:04:32.040 --> 1:04:35.680 because the biggest component by far is the battery. And 1:04:36.360 --> 1:04:42.080 already I can say that Mattie is a similar cost 1:04:42.240 --> 1:04:46.440 to run over five years as a Ford Escape. The 1:04:46.520 --> 1:04:51.040 total cost spent, it's the same as a foud Escape already, 1:04:51.640 --> 1:04:54.160 so that is also supported by an incentive at the moment, 1:04:54.400 --> 1:04:57.200 but that's amazing for those that wake up to see 1:04:57.200 --> 1:05:01.800 that now they're getting a huge bargain. And the charging 1:05:01.840 --> 1:05:06.439 networks already reached nine plugs, so they're available everywhere and 1:05:06.680 --> 1:05:09.160 there's hardly anyone there yet, so you also have the 1:05:09.200 --> 1:05:12.040 network to yourself, so it's a V ownership at the 1:05:12.080 --> 1:05:15.200 moment is just fantastic. You'll also find the parking spot 1:05:15.240 --> 1:05:17.960 for many places right next to the entrance because that's 1:05:17.960 --> 1:05:20.520 where the electric spot is, and they're half empty as well, 1:05:20.600 --> 1:05:22.520 so when you drive there, you feel like a V 1:05:22.560 --> 1:05:25.080 I P. So it's a really good time to get 1:05:25.080 --> 1:05:27.960 into them now. But we will. You know, we do 1:05:28.040 --> 1:05:30.680 have plans to bring vehicles that are even lower cost 1:05:31.480 --> 1:05:34.880 um and we're moving to more segments. So the three 1:05:35.000 --> 1:05:38.360 rows are next one along where the real family car 1:05:38.880 --> 1:05:42.360 size that is so popular in America. So currently the 1:05:42.400 --> 1:05:45.560 Ford Explorer, which I think comes with a third row, 1:05:46.040 --> 1:05:49.520 is available hybrid. You mentioned you're looking to do a 1:05:49.640 --> 1:05:53.240 three row suv. Can we assume we're going to see 1:05:53.280 --> 1:05:57.360 an E Explorer sometime soon, So yeah, we've announced that 1:05:57.400 --> 1:05:59.920 we're working on that one. It's it's a three row 1:06:00.040 --> 1:06:03.600 and the Explorer is indeed three row, so we're working 1:06:03.600 --> 1:06:05.920 on that now, but I would say it's the same 1:06:06.680 --> 1:06:09.880 segment as a three row explorer, I wouldn't call it 1:06:09.920 --> 1:06:16.120 any explorer. We intend to reinvent what these vehicles can be. 1:06:16.960 --> 1:06:19.600 And again, it will not be an explorer of an 1:06:19.600 --> 1:06:23.200 electric motor in it. It will be a new a 1:06:23.280 --> 1:06:27.240 vehicle that offers new experiences that are as game changing 1:06:27.280 --> 1:06:31.720 as bidirectional power and megapower funkies for the front fifty, 1:06:32.400 --> 1:06:36.360 but something things that are designed to delight the customers 1:06:36.360 --> 1:06:39.320 in this segment, the things they want in their daily lives. 1:06:39.360 --> 1:06:41.920 I won't say more about it yet, but intends to 1:06:41.920 --> 1:06:47.440 be an incredible vehicle. Again, so previously you said evy 1:06:47.480 --> 1:06:52.160 adoption is similar to the process that the iPhone had 1:06:52.200 --> 1:06:57.840 to go through. Any any groundbreaking product requires a readjustment 1:06:57.840 --> 1:07:01.760 into your life. Is that what you're seeing with ev adoption. 1:07:01.880 --> 1:07:05.000 Once people make it part of their routine, it's no 1:07:05.120 --> 1:07:08.880 longer the electric car. It just becomes the car. Oh yes, 1:07:08.960 --> 1:07:13.919 I mean universally, when people make the switch, no one 1:07:14.120 --> 1:07:18.160 goes back. It's the only analogy. And when I try 1:07:18.200 --> 1:07:20.760 to get across to people to use is the whole 1:07:21.040 --> 1:07:25.360 moving to iPhone or smartphone from footphone, no one goes back. 1:07:25.800 --> 1:07:29.919 And before people moved, they didn't know that. They thought 1:07:29.960 --> 1:07:32.640 they understood what an iPhone was, and because it looks 1:07:32.640 --> 1:07:37.040 similar to similar to a phone, but they don't didn't 1:07:37.080 --> 1:07:40.920 realize what it really is. And once they owned it, 1:07:41.000 --> 1:07:43.000 then they suddenly switched. They will never go back, and 1:07:43.000 --> 1:07:47.000 they told everyone they know is exactly the same. The 1:07:47.040 --> 1:07:50.200 most misleading thing about evs is they look like a car, 1:07:51.040 --> 1:07:53.160 and therefore you think it's like the cars you've known 1:07:53.200 --> 1:07:56.760 all your life, and it's nothing like that. So the 1:07:56.920 --> 1:07:59.720 more people we can get in there to feel it, 1:08:00.280 --> 1:08:03.360 the more people it will convert quickly. So let's talk 1:08:03.400 --> 1:08:06.560 about that. You know a lot of people a few 1:08:06.640 --> 1:08:12.040 years ago, we're projecting five. It doesn't feel like it's 1:08:12.040 --> 1:08:14.480 going to take that long. Where do you think the 1:08:14.520 --> 1:08:18.519 EV market is as percentage of new vehicle sales in 1:08:19.920 --> 1:08:25.240 or or Yeah, So if you think every person who 1:08:25.280 --> 1:08:29.080 gets one, we'll never go back, that's pretty much the rule. 1:08:30.160 --> 1:08:32.240 Then you start thinking about how fast is that going 1:08:32.280 --> 1:08:34.240 to take? Now, it took ten years for the iPhone 1:08:34.360 --> 1:08:38.960 to get everywhere right now or similar phones right so 1:08:39.040 --> 1:08:43.880 it took time for that because people take time, and 1:08:44.000 --> 1:08:48.479 so projections we changed weekly because we're trying to keep 1:08:48.520 --> 1:08:51.960 ahead of it. We we intend to be push ahead 1:08:51.960 --> 1:08:55.959 of the market UM and we're saying, you know, globally, 1:08:56.320 --> 1:09:00.320 half of our production it's going to be UM electric 1:09:01.200 --> 1:09:04.439 and that's millions of the year. When when do you 1:09:04.439 --> 1:09:08.320 think the last internal combustion engine car new that is 1:09:08.360 --> 1:09:13.280 manufactured in the US? Susion possible to tell. There's there's 1:09:13.320 --> 1:09:17.759 some use cases that are particularly difficult to solve. For battery, 1:09:18.360 --> 1:09:22.479 I actually think it will run for long a long time, 1:09:22.800 --> 1:09:25.240 but they will be they won't. There will be you know, 1:09:25.360 --> 1:09:32.320 for specific reasons or for price. That's that's why they 1:09:32.360 --> 1:09:36.760 will keep going. The best products will be electric. It's like, 1:09:36.800 --> 1:09:39.519 I mean, even if you look at tools. I recently 1:09:39.600 --> 1:09:45.479 bought a Listiam iron leafblower, and the first generation were 1:09:45.520 --> 1:09:49.559 a little bit less powerful than gas and much more expensive. Well, 1:09:49.600 --> 1:09:52.440 this next generation I had a choice same as gas 1:09:52.760 --> 1:09:55.679 and just a little bit more expensive or much more 1:09:55.720 --> 1:10:00.439 powerful than gas and more expensive. And that happen to 1:10:00.520 --> 1:10:03.200 just a couple of years. By the way, it's much 1:10:03.280 --> 1:10:06.160 quite a much more controllable and I'm never going back 1:10:06.160 --> 1:10:09.000 to a gas one. But there are use cases for gas. 1:10:09.000 --> 1:10:13.200 Belief lift blow is still in certain cases, right, So 1:10:13.920 --> 1:10:16.120 I think gas will run for a long time. It 1:10:16.120 --> 1:10:20.519 will be increasingly regulated for emissions, and it will get 1:10:20.560 --> 1:10:23.240 more and more expensive to regulate for emissions. It will 1:10:23.280 --> 1:10:26.080 be less and necessarieson to to need it. But I 1:10:26.120 --> 1:10:28.479 believe there'll be a reason for a while. So it 1:10:28.520 --> 1:10:31.400 was impossible to predict at the moment. So so let's 1:10:31.439 --> 1:10:37.280 talk about interior design in electrics. UM, I think Tesla 1:10:37.479 --> 1:10:41.439 gets the credit or the blame for just removing just 1:10:41.520 --> 1:10:46.080 about every manual mechanical button and putting it on the screen. 1:10:47.120 --> 1:10:50.719 I personally have found that to be frustrating if especially 1:10:50.800 --> 1:10:56.439 when I'm driving and it's three nested, three levels in 1:10:56.720 --> 1:10:58.639 and I have to take my off the road because 1:10:58.680 --> 1:11:01.880 I just want to lower the fan or increase the heat. 1:11:02.880 --> 1:11:08.080 What sorts of buttons should stay? UM, A mechanical button, 1:11:08.200 --> 1:11:10.320 like if I want to put my seat heat or on, 1:11:10.920 --> 1:11:13.880 why do I have to dig my way through three 1:11:14.000 --> 1:11:17.400 or four menus and and go down just the just 1:11:17.600 --> 1:11:21.240 the air conditioning heating system? Can we please keep that 1:11:21.400 --> 1:11:26.040 as mechanical buttons? So here's the way we think about it. 1:11:26.160 --> 1:11:30.280 So how many buttons on the front of your iPhone. None. 1:11:32.880 --> 1:11:34.439 Would you like me to put some buttons on the 1:11:34.439 --> 1:11:38.200 front of your icephone? Actually? Yeah, I have the on 1:11:38.240 --> 1:11:40.439 the side, I have the volume and the on off, 1:11:40.560 --> 1:11:43.720 which which but the it's the things that I use 1:11:43.960 --> 1:11:46.519 every time I get into the car. I don't want 1:11:46.520 --> 1:11:49.360 to go digging for And by the way, half my 1:11:49.439 --> 1:11:52.040 cars have too many buttons I have. You know, there 1:11:52.040 --> 1:11:54.880 are vehicles that have. You know, it looks like it's 1:11:54.880 --> 1:11:57.760 a fighter jet. I don't need that either. I like 1:11:57.880 --> 1:12:02.479 the idea of the the screen, but you know, the 1:12:03.040 --> 1:12:06.400 heat the seat warmers are a perfect example. And one 1:12:06.439 --> 1:12:08.439 of the things I thought was so interesting about the 1:12:08.479 --> 1:12:12.519 Marquee was the volume button was a physical button at 1:12:12.560 --> 1:12:15.080 the bottom of the screen and when you turn the 1:12:15.080 --> 1:12:19.400 screen on it I believe the same set of have 1:12:19.720 --> 1:12:22.559 to touch buttons are at the bottom of the screen 1:12:22.680 --> 1:12:25.920 always am I am? I remembering that correctly? You are 1:12:26.080 --> 1:12:28.400 so so. The philosophy is this This the reason why 1:12:28.400 --> 1:12:32.080 I ask you that question. The philosophy is, um, you 1:12:32.360 --> 1:12:36.719 do you want to do better than buttons? Okay, that's 1:12:36.800 --> 1:12:40.360 the philosophy, and the ones that you need, when you 1:12:40.439 --> 1:12:43.720 need them should be first surfeits. The whole point is 1:12:43.760 --> 1:12:46.000 that you do not have to dig and you have 1:12:46.040 --> 1:12:47.600 access to it when you need it, and that's the 1:12:47.640 --> 1:12:50.840 skill and getting that just right. There are some things 1:12:50.880 --> 1:12:55.240 you need buttons for or or control sticks, like the indicator. 1:12:56.120 --> 1:12:58.160 I imagine we're going to have the control stick for 1:12:58.200 --> 1:12:59.760 a long time because you use it all the time 1:13:00.640 --> 1:13:03.000 and it works really well, so don't take that away. 1:13:03.479 --> 1:13:05.559 And certain other things like the button to get out 1:13:05.600 --> 1:13:09.120 of the car, you really need that. But other buttons 1:13:09.720 --> 1:13:14.280 can be better when we can move them or change 1:13:14.280 --> 1:13:17.400 them to context. So for example, you mentioned I want 1:13:17.479 --> 1:13:20.400 heated seat immediately, so yes, we keep the heated seat 1:13:20.479 --> 1:13:23.719 on first surface at all times on the matching um. 1:13:23.760 --> 1:13:27.920 And you want access to the heating controls absolutely and 1:13:28.000 --> 1:13:31.479 temperature and so on. So we and we launched the 1:13:31.520 --> 1:13:35.559 car with a set of buttons are pervasive. If they're 1:13:35.560 --> 1:13:39.559 always there, then our customers gave us feedback and they 1:13:39.640 --> 1:13:42.800 want an extra button or one taken away, or they 1:13:42.840 --> 1:13:47.160 want the hood released to appear when they stop. Now, 1:13:47.160 --> 1:13:49.559 with an electronic screen, you can change it, and we're 1:13:49.600 --> 1:13:52.160 about to change it over the air. Actually, we're going 1:13:52.200 --> 1:13:55.479 to do a big human machine interface refreshed this year, 1:13:56.000 --> 1:13:58.400 and we're going to listen to the feedback from customers 1:13:58.439 --> 1:14:01.840 and make it better. And that's the great thing about 1:14:01.840 --> 1:14:04.280 a digital screen. You can make it better where a 1:14:04.320 --> 1:14:07.160 physical button is there and you can't. I give you 1:14:07.200 --> 1:14:12.479 an example, a button for the cameras on our vehicle. 1:14:12.600 --> 1:14:15.639 People say, I've gotta have the button on a truck. 1:14:15.920 --> 1:14:18.920 I'm always using the camera. So I say, well, at 1:14:18.920 --> 1:14:20.439 the moment, you have to press the button once for 1:14:20.479 --> 1:14:22.960 the front, to press it again for the rear, press 1:14:23.000 --> 1:14:25.280 it again for another view, and you press it so 1:14:25.320 --> 1:14:27.120 many times and you get it wrong and you cycle 1:14:27.160 --> 1:14:32.639 back around again instead, as soon as that sensor sense 1:14:32.760 --> 1:14:36.520 is something nearby, when you're at low speed parking automatically 1:14:36.560 --> 1:14:39.599 brings up the cameras and then it presents you with 1:14:39.680 --> 1:14:42.240 the direct camera button for the feed that you want, 1:14:43.000 --> 1:14:45.160 and then it remembers the one you use most. So 1:14:45.240 --> 1:14:48.200 now you pull up to the parking space, it automatically 1:14:48.200 --> 1:14:51.280 brings up your favorite camera. You don't touch anything. If 1:14:51.280 --> 1:14:53.400 you don't like it and you want a different view today, 1:14:53.439 --> 1:14:56.679 you just one touch a new view instead of pressing 1:14:56.720 --> 1:15:00.000 the same button four times. So that's you know, another 1:15:00.080 --> 1:15:02.439 example of you think you want the button until you 1:15:02.520 --> 1:15:06.240 have a system that works better. Now we understand you 1:15:06.240 --> 1:15:08.799 can't always guess perfect, so you always give the customer 1:15:08.840 --> 1:15:11.080 the controls, but you bring them at the right time. 1:15:11.320 --> 1:15:13.240 You don't need the camera button when you're at sixty. 1:15:14.400 --> 1:15:16.600 So that's the design and we never get it with 1:15:16.720 --> 1:15:20.240 perfect first, so we have over the air update and 1:15:20.240 --> 1:15:23.960 we keep improving it um And that that control of 1:15:24.120 --> 1:15:27.160 you mentioned is that's an amazing piece of technology. Is 1:15:27.160 --> 1:15:31.880 brand new. It's molecularly bonded to the screen, first in industry, 1:15:32.200 --> 1:15:34.960 and that's actually it's actually like an input device. It's 1:15:35.000 --> 1:15:37.599 not it's not just a volume knob, and we're going 1:15:37.640 --> 1:15:40.840 to unlock that in the next in the software update 1:15:40.920 --> 1:15:43.400 later this year. It's gonna so that it can control 1:15:43.479 --> 1:15:46.919 lots of things because it's very pleasing when you turn it, 1:15:46.920 --> 1:15:49.400 it feels good, and its control volume, but we can 1:15:49.400 --> 1:15:53.280 also make a control temperature, heat and other things, and 1:15:53.280 --> 1:15:55.479 we can use it for gaming as well. So we're 1:15:55.479 --> 1:15:58.120 about to unlock that button. It was always planned. We 1:15:58.160 --> 1:16:00.559 couldn't get there for job one, but but now we 1:16:00.600 --> 1:16:02.760 have customer inputs that we're going to make it better. 1:16:04.360 --> 1:16:07.360 So I have two other questions. I have two or 1:16:07.400 --> 1:16:09.400 three other questions I have to ask you before we 1:16:09.439 --> 1:16:13.160 get onto our favorite questions. The first you hinted at 1:16:13.200 --> 1:16:18.120 earlier I was reading you're prowling on social media looking 1:16:18.160 --> 1:16:22.719 for people complaining about their products and helping them resolve 1:16:22.800 --> 1:16:26.400 whatever issues they have. You personally called them to tell 1:16:26.479 --> 1:16:29.640 us about about what you've why you do that, and 1:16:29.640 --> 1:16:32.760 what you've learned from that. Yeahs as part of the 1:16:32.840 --> 1:16:35.920 launch of the vehicle and watching startups, and we learned 1:16:36.680 --> 1:16:41.080 how they watch social media because these are exciting product products, 1:16:41.080 --> 1:16:43.519 so people talk about them all the time. So there's 1:16:43.560 --> 1:16:48.879 a there are forums like the Macke Forum for from 1:16:48.960 --> 1:16:53.759 Macke obviously, and it's a rich source of direct customer feedback. 1:16:53.920 --> 1:16:58.760 The customers are taking video, photographs, big descriptions about what 1:16:58.800 --> 1:17:02.200 they see, both positive and negative, and it's the richest 1:17:02.240 --> 1:17:05.080 source of input I've ever had. So I watch it 1:17:05.280 --> 1:17:08.680 every morning. My whole team watch it every morning. My 1:17:08.720 --> 1:17:11.960 wife sick of me watching videos every minute I get 1:17:12.120 --> 1:17:14.880 because the customers are telling you directly what they say, 1:17:15.240 --> 1:17:17.880 you can't buy that, and then we use that to 1:17:18.560 --> 1:17:22.200 develop the cars. So that's why I watch that. Then 1:17:22.240 --> 1:17:27.280 I see customers struggling with things we've already fixed. And 1:17:28.080 --> 1:17:32.360 at first the buyers of the premium Maggie, they were 1:17:32.360 --> 1:17:35.599 really bad people. They really did their research. They either 1:17:35.760 --> 1:17:39.000 are experienced before or they've done a lot of research, 1:17:39.040 --> 1:17:41.639 and so they all help each other. You watch them 1:17:41.760 --> 1:17:44.080 struggling and they help each other, and they they've learned it, 1:17:44.120 --> 1:17:46.920 there's no problem. But when we went with the GT, 1:17:47.240 --> 1:17:51.840 I'm noticing more customers are having basic problems because they 1:17:51.880 --> 1:17:54.360 haven't learned the basics of ev They just loved the 1:17:54.400 --> 1:17:57.840 car so much that they bought one. So those customers, 1:17:57.920 --> 1:18:00.479 I'm seeing that, and I call them because I want 1:18:00.520 --> 1:18:04.639 to hear from them what they're experiencing. And every time 1:18:05.479 --> 1:18:08.200 I never hear what I think I'm going to I 1:18:08.240 --> 1:18:11.240 think I know, I speak to them, it is almost 1:18:11.479 --> 1:18:14.800 never exactly the same. So I do that a couple 1:18:14.840 --> 1:18:16.840 of times a week. I asked the permission. Of course, 1:18:18.560 --> 1:18:21.280 they love that. There hasn't been one that haven't ended 1:18:21.320 --> 1:18:24.160 up with an hour on the phone with them hearing 1:18:24.200 --> 1:18:26.840 about their experiences, and you know, their family and how 1:18:26.880 --> 1:18:29.120 they're using the car and so on, and that the 1:18:29.320 --> 1:18:32.400 richest source of input. And then I work out how 1:18:32.479 --> 1:18:35.840 might I help people like them. And for example, with 1:18:35.960 --> 1:18:38.160 the newer cars, they don't know the basics of EV. 1:18:38.240 --> 1:18:40.519 They don't know the evs dropped range in the cold. 1:18:41.240 --> 1:18:44.120 They don't know how much power that their heater can use, 1:18:44.280 --> 1:18:46.639 especially if they left it outside and the whole batteries 1:18:46.920 --> 1:18:50.480 at minus tend degrees C. They don't know to preheat. 1:18:50.560 --> 1:18:53.479 They don't know that the car will heat its battery 1:18:53.880 --> 1:18:56.200 when it's plugged in. It will make sure the battery 1:18:56.280 --> 1:18:59.439 is kept MP to them. They don't know that. And finally, 1:18:59.479 --> 1:19:02.400 they don't know how to reset their driver history, which 1:19:02.439 --> 1:19:05.640 the car has learned their behaviors over a week, and 1:19:06.040 --> 1:19:08.800 we'll give you an accurate range. It's very accurate. But 1:19:08.960 --> 1:19:12.360 if the customers not been looking after the car as 1:19:12.360 --> 1:19:14.559 a BEVE owner, then their range is going to drop 1:19:14.600 --> 1:19:17.439 a lot, and they can instantly reset it back and 1:19:17.479 --> 1:19:19.479 then change their behavior and they will see the results 1:19:19.479 --> 1:19:22.080 and means immediately. So they don't know any of those things, 1:19:22.080 --> 1:19:25.760 and they show them that they're usually super delighted, and 1:19:25.800 --> 1:19:28.559 then they've learned how to control their car. They've changed, 1:19:29.000 --> 1:19:31.120 you know, the temperature of a couple of degrees. They 1:19:31.200 --> 1:19:33.240 use the heated seat and stereo wheel and they preheat 1:19:33.280 --> 1:19:36.519 the car, their range goes from a massive loss to 1:19:36.720 --> 1:19:40.160 like five loss and then they write to me afterwards 1:19:40.200 --> 1:19:42.960 and they're just absolutely delighted. So and now I go 1:19:43.080 --> 1:19:44.559 back to my team and saying, how are we going 1:19:44.640 --> 1:19:47.720 to show customers. We have put it in the instructions, 1:19:48.200 --> 1:19:50.559 we have put it on the app, we have sent 1:19:50.640 --> 1:19:52.720 them messages, and we do tell them to plug the 1:19:52.760 --> 1:19:55.800 car in if the temperatures cold every time they exit 1:19:55.880 --> 1:19:59.160 the car when it's cold, but they don't know why 1:19:59.400 --> 1:20:02.360 they're going to do it. So some customers just ignore 1:20:02.400 --> 1:20:05.080 all of that until we speak to them. So we're 1:20:05.080 --> 1:20:08.120 trying to think of how to help them, and we're 1:20:08.120 --> 1:20:11.920 trying everything. It's basically psychology. So I'm thinking of all 1:20:11.960 --> 1:20:14.200 different methods and we brainstorming how will we do it? 1:20:14.479 --> 1:20:17.280 And different customers, each one is different and have their 1:20:17.280 --> 1:20:19.320 own ways. But you know, one way I'm considering at 1:20:19.320 --> 1:20:21.719 the moment it is a kind of competitive way where 1:20:21.760 --> 1:20:24.040 we say to you, hey, did you know you're in 1:20:24.080 --> 1:20:27.880 the bottom third of range for this car? And that 1:20:27.920 --> 1:20:29.640 will make the customers say, hey, why am I in 1:20:29.680 --> 1:20:32.080 the bottom dead And then we'll explain to them and 1:20:32.080 --> 1:20:35.719 now they're listening because you're bringing a little a little 1:20:35.720 --> 1:20:42.240 peloton gamification to managing range. That's right to to get 1:20:42.280 --> 1:20:45.639 their attention so that they care. I mean many customers 1:20:45.680 --> 1:20:47.880 know already, but a lot don't. And as we go 1:20:48.040 --> 1:20:51.040 mainstream there will be more of those. So it's really 1:20:51.080 --> 1:20:53.519 fun to do it. But that's why I call customers. 1:20:53.640 --> 1:20:55.840 It's great fun. Anyway. I love I love talking to 1:20:55.880 --> 1:21:00.400 them and here and feedback really interesting. I know you 1:21:00.439 --> 1:21:03.880 do a lot of traveling. You you previously discussed an 1:21:03.960 --> 1:21:08.840 interesting scenario and Shanghai about how families see within a 1:21:08.960 --> 1:21:12.160 vehicle and how different it is from the US. Can 1:21:12.200 --> 1:21:15.400 you explain that and tell us about some other differences 1:21:15.439 --> 1:21:19.240 you see in customers around the world. How did different 1:21:19.320 --> 1:21:25.960 users user vehicles differently? Oh? Yes, so we're all humans 1:21:26.040 --> 1:21:33.559 with similar needs, but due to cultural changes, we behave differently. 1:21:33.640 --> 1:21:37.600 So we were developing a global vehicle and China is 1:21:37.640 --> 1:21:40.280 one of the leaders in electric vehicle development, so we 1:21:40.520 --> 1:21:42.519 spent a long time there. Actually, I think I was 1:21:42.640 --> 1:21:47.160 sixteen weeks in China in total that year. And we 1:21:47.400 --> 1:21:50.160 did human centric development, which means you don't ask them 1:21:50.200 --> 1:21:52.840 what they want, you watch them with their permission, of course, 1:21:53.240 --> 1:21:55.720 and and watch them with their families, and we had 1:21:55.760 --> 1:21:59.640 people to translate for us, not just the language, but 1:21:59.760 --> 1:22:03.639 the what's going on. And frankly, if I've been watching 1:22:03.640 --> 1:22:05.640 them without those people, I would have missed it, and 1:22:05.880 --> 1:22:07.559 they would We watched them in the car and where 1:22:07.600 --> 1:22:11.320 they sit, and then we'd ask some questions and then 1:22:11.640 --> 1:22:13.519 the person the person would say, did you see that? 1:22:14.400 --> 1:22:16.639 I said, we'll see what? So did you see how? 1:22:16.680 --> 1:22:22.400 The question was asked of the uh man, and before 1:22:22.400 --> 1:22:25.519 he answered, he looked at the grandmother. No, I didn't 1:22:25.520 --> 1:22:27.680 see that, said yet, what do you know what that is? 1:22:27.720 --> 1:22:30.320 And I don't know what it is. That's because it's 1:22:30.320 --> 1:22:33.760 typical in Chinese culture. The grandmother will be buying that 1:22:33.880 --> 1:22:37.080 first car for the family, and so and the and 1:22:37.120 --> 1:22:42.160 the grandmother also will take will bow to the child. 1:22:42.800 --> 1:22:45.519 The child will be in the second row, and so 1:22:45.600 --> 1:22:48.360 the grandmother will be even next to the child or 1:22:48.400 --> 1:22:51.160 in the third row, because the mother will be in 1:22:51.200 --> 1:22:53.880 the second row looking after the child. So the third 1:22:54.200 --> 1:22:58.120 row of the car is super important because the grandmother 1:22:58.160 --> 1:23:01.479 is buying the car. My god, we never would have 1:23:01.560 --> 1:23:04.559 known that, and we did not give the attention to 1:23:04.600 --> 1:23:06.880 the third row the same as the first row that 1:23:06.960 --> 1:23:10.120 would not have been our plan. And so things like 1:23:10.160 --> 1:23:13.519 that you can only get by watching people and learning. 1:23:13.520 --> 1:23:16.479 And even if you ask a Chinese person what's different 1:23:16.520 --> 1:23:20.559 about here, no one can answer what's different between me 1:23:20.600 --> 1:23:23.320 and everybody else because they don't know what to say. 1:23:23.479 --> 1:23:25.360 You have to watch them and say, oh, look look 1:23:25.439 --> 1:23:29.040 that's different to what we know. So that's that's that's 1:23:29.080 --> 1:23:32.160 one there. That's one observation of many, many, many, but 1:23:32.320 --> 1:23:35.080 that that taught us a lot. And when they're evaluating 1:23:35.120 --> 1:23:37.519 to buy that car, the grandmother will get will will 1:23:37.560 --> 1:23:40.120 come with them, will sit in that third row, and 1:23:40.160 --> 1:23:43.200 we'll give them their opinion on the car. And and 1:23:43.520 --> 1:23:45.799 the buyer is going to pay attention to that grandmother 1:23:46.360 --> 1:23:48.360 just because of cultural and also the fact they're buying 1:23:48.360 --> 1:23:54.320 the car. So there's one um. Others in i'd say Europe, 1:23:55.040 --> 1:24:00.920 many more people don't have gary a garage, so they 1:24:01.240 --> 1:24:04.360 can't put a charger in, and so they're very interested 1:24:04.400 --> 1:24:06.840 in how they're going to own an electric car having 1:24:06.880 --> 1:24:09.400 to go and charge it, and that does require some 1:24:09.560 --> 1:24:12.439 change to your life, and you can build that into 1:24:12.479 --> 1:24:14.400 your life, but you do have to consider it. So 1:24:14.760 --> 1:24:21.120 they have different priorities for charging speed and where there's 1:24:21.200 --> 1:24:23.439 charges available to them and so on. So we're having 1:24:23.439 --> 1:24:26.559 to make sure we make vehicles that suit their life. 1:24:26.600 --> 1:24:30.240 They typically want the eight vehicles that charge faster because 1:24:30.240 --> 1:24:32.040 they're going to have to go and sit there every week. 1:24:33.080 --> 1:24:36.599 And I also asked another customers about how they live 1:24:36.680 --> 1:24:39.400 with their cars. And then one guy I asked him, 1:24:39.439 --> 1:24:41.320 I said, hey, would you want us to change that 1:24:41.439 --> 1:24:45.360 charging speed to fifteen minutes? He said no, way said 1:24:45.680 --> 1:24:48.040 that surprises me. He said, that's the best forty minutes 1:24:48.080 --> 1:24:50.560 of my week. I go out, I sit there and 1:24:50.600 --> 1:24:53.320 read a book and charge the CARSA Okay, I don't 1:24:53.320 --> 1:24:56.400 expected that. As I say, the customers don't say what 1:24:56.439 --> 1:25:00.320 you expect when you asked them. Huh. Quite quite a interesting. 1:25:00.320 --> 1:25:03.720 I'm gonna throw you one curveball question before we get 1:25:03.760 --> 1:25:06.880 to our favorites, and that is I have to assume 1:25:06.920 --> 1:25:10.080 you saw the film Forward versus Ferrari. What were your 1:25:10.080 --> 1:25:13.000 thoughts on that story? And you grew up in London? 1:25:13.080 --> 1:25:17.120 Were you a fan of Ken Miles? Yeah, that's a 1:25:17.120 --> 1:25:19.360 good one. So, I mean, we love that story. We 1:25:19.360 --> 1:25:22.639 we we all went as a team to watch that, 1:25:23.439 --> 1:25:25.120 to watch the you know, the struggle. I mean and 1:25:25.160 --> 1:25:28.559 it's all about, you know, people feeling you can't do 1:25:28.720 --> 1:25:31.559 something and then overcoming it. You know, that's what you know, 1:25:31.640 --> 1:25:34.200 of course it's all about. And it's a corporate forward there. 1:25:34.760 --> 1:25:37.200 You know. It's fun to watch. It's done in a 1:25:37.240 --> 1:25:40.680 really cool way, but really it's also about cars and 1:25:40.760 --> 1:25:43.640 about pushing yourself to win and when you didn't expect it. 1:25:43.760 --> 1:25:46.040 We all love that. We felt a little bit. You know, 1:25:47.080 --> 1:25:50.000 no one expected us to win with an electric car. 1:25:50.120 --> 1:25:52.760 Where when we said we were introducing electric car, I 1:25:52.840 --> 1:25:54.639 think it's fair to say most of the world did 1:25:54.640 --> 1:25:58.280 not expect us to to be the number one recommended 1:25:58.439 --> 1:26:02.560 car this year of consumer reports, in our first generation. 1:26:02.680 --> 1:26:04.200 I mean, I've got to say that's kind of a 1:26:04.240 --> 1:26:07.519 stretch even for us. We expected to do well, but 1:26:07.800 --> 1:26:10.400 that is beyond what we What we achieved was really 1:26:10.520 --> 1:26:14.559 respect what has gone before us. So we saw the 1:26:14.680 --> 1:26:17.200 um alignment of that film with some of the work 1:26:17.240 --> 1:26:20.559 we were doing. And Ken Miles was a super unique 1:26:20.560 --> 1:26:24.040 individual in this He's got his flaws, like all heroes, 1:26:24.520 --> 1:26:26.640 they've got their flaws. So we we love that. We 1:26:26.680 --> 1:26:28.439 all went to watch it together. We've we've watched it 1:26:28.479 --> 1:26:31.519 many times. Really interesting, well I know only have you 1:26:31.600 --> 1:26:34.040 for a few more minutes, So let me jump to 1:26:34.120 --> 1:26:37.640 my favorite questions that we ask all of our guests, 1:26:37.680 --> 1:26:40.280 starting with what have you been streaming these days? Have 1:26:40.400 --> 1:26:42.960 you had a whole lot of time to watch anything 1:26:43.000 --> 1:26:48.160 on um, Netflix or Amazon or anything like that. So 1:26:48.240 --> 1:26:50.840 I've got twin twin boys as well, ten year old, 1:26:51.040 --> 1:26:56.040 So it's work and family, that's it. And but when 1:26:56.360 --> 1:27:00.000 I listened every week, I listened to the Inside EVS podcasts, 1:27:00.240 --> 1:27:04.200 Tom Malogny and Dominic and Kyle. They are super geek 1:27:04.400 --> 1:27:08.760 about electric and I find it fascinating. Every week I 1:27:08.880 --> 1:27:11.240 met met them and we've we've been through some of 1:27:11.240 --> 1:27:14.280 the cars together. Taking Tom in the from fifty for 1:27:14.320 --> 1:27:19.120 the first time was amazing. He's super experienced with EVS 1:27:19.160 --> 1:27:21.280 and he was still amazed by the product, so he 1:27:21.400 --> 1:27:23.920 was the journalist referred to. It was so cool to 1:27:23.960 --> 1:27:26.479 see him so excited about it. He's ordered one one 1:27:26.479 --> 1:27:28.720 of the first people to get it. So I love 1:27:28.800 --> 1:27:31.920 that podcast because it's so detailed and if you hold 1:27:31.960 --> 1:27:34.040 you so much, and they care so much about getting 1:27:34.040 --> 1:27:36.280 it right. They've worked with EVS for fifteen years or more, 1:27:36.640 --> 1:27:38.680 so that's what that's one of the first things I 1:27:38.720 --> 1:27:40.960 listened to when when I've got time, are you I 1:27:41.040 --> 1:27:43.639 do what I'm doing? Other task I listened to every week. 1:27:44.600 --> 1:27:47.960 H really interesting. Tell us about your mentors who helped 1:27:48.080 --> 1:27:53.839 shape your career. Yeah, so, UM, I always loved Virgin 1:27:54.840 --> 1:27:58.160 and what they did there external, let's say, because they're 1:27:58.160 --> 1:28:01.439 totally focused on the customer. As I went through my career, 1:28:01.479 --> 1:28:05.120 that's the thing that I grew to do. That's my 1:28:05.280 --> 1:28:09.080 trade market. I love just making amazing stuff that they love. 1:28:09.200 --> 1:28:13.599 So he is obsessed by customer and and so that 1:28:13.600 --> 1:28:16.560 that's one of the things I He was an inspiration 1:28:16.640 --> 1:28:19.080 and it still is now. And I saw how that 1:28:19.160 --> 1:28:21.680 worked out. You know, you look after the customer and 1:28:21.680 --> 1:28:25.000 everything else will look after itself. UM. I had earlier 1:28:25.120 --> 1:28:30.599 mentors in engineering who was superb engineers. UM and one guy, 1:28:31.320 --> 1:28:36.599 guy called Franz lemon Um. He was retiring and in Germany. 1:28:37.120 --> 1:28:39.800 I worked in Germany for ten years. And when he 1:28:39.840 --> 1:28:43.479 went to do his um retirement do they had to 1:28:43.520 --> 1:28:46.439 move it and we didn't know why he and they 1:28:46.479 --> 1:28:48.559 moved it to the showroom and he turned up to 1:28:48.600 --> 1:28:53.440 the showroom. There were three thousand people there. Wow, everybody 1:28:53.680 --> 1:28:57.560 from the site had turned up. It was unbelievable. It 1:28:57.640 --> 1:29:01.680 had a very moving speech on stage. And and I 1:29:01.720 --> 1:29:05.400 have formed a habit of interviewing those who were retiring. 1:29:06.080 --> 1:29:08.720 I asked them, and always not in one ever said no. 1:29:09.400 --> 1:29:11.080 And I sat down with him and I said, could 1:29:11.080 --> 1:29:13.240 you give me one piece of advice? Because the guy 1:29:13.280 --> 1:29:17.080 had been so effective, so loved, I've done so much, 1:29:17.080 --> 1:29:20.439 because you know, could you tell me one thing that 1:29:20.479 --> 1:29:23.000 you that we would pass on? And he said, yep, 1:29:23.360 --> 1:29:25.920 straight away. And he said, at the beginning of my career, 1:29:26.080 --> 1:29:31.000 I I would focus on the most academic, the most brilliant, 1:29:31.040 --> 1:29:33.400 and this is how I would choose people. But by 1:29:33.439 --> 1:29:37.320 the end of my career, I also I saw a 1:29:37.400 --> 1:29:40.439 different pause. I saw a person who wanted to do 1:29:40.520 --> 1:29:45.040 it so bad, don't do anything. They'd learn everything they 1:29:45.080 --> 1:29:48.160 needed to about it. And all of our employees are 1:29:48.560 --> 1:29:54.480 very educated. You know, we're lucky. We educate from great institutions, 1:29:54.479 --> 1:29:57.639 so they're all they're all clever. But the one when 1:29:57.800 --> 1:30:01.160 somebody really wants it, that head to do anything to 1:30:01.200 --> 1:30:04.080 work to get it. He said, those people always do 1:30:04.200 --> 1:30:07.559 well because they want it so bad. And he said, 1:30:07.640 --> 1:30:09.920 that's how I recruited people from then on and I 1:30:10.080 --> 1:30:13.960 never forgot that. When I'm interviewing now, if someone's not 1:30:14.280 --> 1:30:19.599 perfect background, that doesn't matter. If they've got they've learned 1:30:19.640 --> 1:30:23.000 about the subject and they want it badly, I will 1:30:23.040 --> 1:30:25.760 give that person a chance. And it's never worked out 1:30:25.760 --> 1:30:28.840 wrong since. So that was an early mentor maybe ten 1:30:28.880 --> 1:30:31.519 years ago, but I never forgot that. So that's that's 1:30:31.520 --> 1:30:34.719 how I feel my teams up now. Really interesting, let's 1:30:34.720 --> 1:30:36.840 talk about books. What are some of your favorites and 1:30:37.200 --> 1:30:40.080 what are you reading right now? Yeah, So A Team 1:30:40.120 --> 1:30:46.160 of Teams um by General Stanley McCrystal and David Silverman 1:30:46.280 --> 1:30:52.320 amazing is using the story of the teams in Afghanistan 1:30:52.439 --> 1:30:56.280 and what they faced and how to uh and then 1:30:56.320 --> 1:30:59.880 it's relation to business and it's really about instead of 1:31:00.240 --> 1:31:02.880 one person at the top telling everyone what to do 1:31:02.960 --> 1:31:04.280 and they all have to come to them and they're 1:31:04.280 --> 1:31:07.960 a bottleneck. Instead, you make teams of teams. Each of 1:31:08.000 --> 1:31:11.040 your teams, you make sure you're aligned on what you're 1:31:11.040 --> 1:31:13.360 trying to do, and then you give them the space 1:31:13.400 --> 1:31:17.880 to operate and you trust them and either can be 1:31:18.000 --> 1:31:20.080 much more effective that way, and that's what they found 1:31:20.400 --> 1:31:24.599 in Afghanistan. Each team was independent and could could operate 1:31:25.080 --> 1:31:29.360 even without communication back to the central Amazing. So that's one. 1:31:29.439 --> 1:31:34.800 Another one's called Nudge Cass Sunsteine and Richard Tyler, just 1:31:34.960 --> 1:31:40.560 amazing about how um a lot of companies in society 1:31:40.720 --> 1:31:43.559 nudge you every day and you have no idea how 1:31:43.640 --> 1:31:48.200 much you're being nudged. It's but it's super important. And 1:31:48.240 --> 1:31:51.960 when you're developing cars and products, if you nudge someone 1:31:52.280 --> 1:31:54.720 where the right button is, they'll press the button. If 1:31:54.760 --> 1:31:56.680 you don't, they you know, they can't work out with 1:31:56.720 --> 1:32:00.120 the buttons, so they use it in supermarkets and all 1:32:00.160 --> 1:32:03.439 the things you might imagine. It's fascinating book. I really, 1:32:03.600 --> 1:32:07.680 I really recommend that that you your listeners read that one. 1:32:07.720 --> 1:32:10.960 It's just a wonderful book. Quite interesting. And our final 1:32:11.040 --> 1:32:14.320 two questions, what sort of advice would you give to 1:32:14.360 --> 1:32:18.320 a recent college grad who was interested in a career 1:32:18.560 --> 1:32:25.920 in either automotive design and manufacturing or battery and electronic technology. 1:32:26.000 --> 1:32:30.160 So I would say, you do your research and look 1:32:30.200 --> 1:32:34.880 at what customers are saying and and and think about 1:32:35.960 --> 1:32:37.960 what you would like to do as part of that, 1:32:38.720 --> 1:32:42.920 and then and build your knowledge up. First, show your 1:32:42.920 --> 1:32:47.600 interest in it, and then approach some companies who you 1:32:47.640 --> 1:32:52.719 feel moving in that space. Who you think maybe leading 1:32:52.720 --> 1:32:55.880 on winning in that space. And once upon a time 1:32:55.920 --> 1:32:58.960 that was really Silicon Valley and here you see that 1:32:59.040 --> 1:33:02.040 was really moving. But I believe now you know, you're 1:33:02.080 --> 1:33:08.080 seeing automotive companies of showing their moving into technology and 1:33:08.320 --> 1:33:12.759 extremely interesting technology and with a battery electric vehicle future 1:33:13.080 --> 1:33:16.160 and autonomous I think it's one of the most exciting sectors. 1:33:16.560 --> 1:33:19.240 And if you come to these you can make a difference. Here, 1:33:19.240 --> 1:33:22.280 you're not just a number you you will have You'll 1:33:22.280 --> 1:33:24.519 be able to train and make a real difference in 1:33:24.600 --> 1:33:27.759 products that are the second most expensive thing that people 1:33:27.760 --> 1:33:30.920 buy in their lives. And I think I think I 1:33:30.960 --> 1:33:33.559 would say there was a time when people said, hey, 1:33:33.600 --> 1:33:35.360 all cars are going to be similar soon and there 1:33:35.400 --> 1:33:37.599 will be a commodity and that may be very sad. 1:33:38.280 --> 1:33:40.599 And I think we've seen the first round of battery 1:33:40.600 --> 1:33:44.519 electric peoples couldn't be more wrong. There's nothing like that. 1:33:44.600 --> 1:33:47.720 They're just like gas in the fact that there's a 1:33:47.720 --> 1:33:51.639 whole suite of products with different attributes and feel to them, 1:33:51.720 --> 1:33:53.920 and there's a new level of performance that we could 1:33:54.000 --> 1:33:55.840 never do with gas as well, So it's even more 1:33:55.840 --> 1:33:59.080 exciting than ever before. So I think this sector is 1:33:59.080 --> 1:34:01.720 extremely important. Look for some of the companies that you 1:34:01.800 --> 1:34:05.479 admire in that space. I don't forget about the O E. 1:34:05.640 --> 1:34:08.720 M automotive companies because I think there's nowhere I would 1:34:08.840 --> 1:34:11.479 rather be than in this company doing this. This is 1:34:11.760 --> 1:34:14.880 even more exciting than the startups to me, because we're 1:34:14.880 --> 1:34:17.600 going to change the world with this. So fascinating and 1:34:17.600 --> 1:34:20.960 our final question, what do you know about the world 1:34:21.200 --> 1:34:27.200 of technology automobile manufacturing design today that you wish you 1:34:27.280 --> 1:34:30.000 knew twenty five years ago or so when you were 1:34:30.000 --> 1:34:33.360 first getting started for Wow? Yeah, so, I mean it 1:34:33.439 --> 1:34:36.440 took it took me years of working as an engineer 1:34:37.080 --> 1:34:41.640 in my little world, taking targets from whoever gave you, 1:34:41.920 --> 1:34:45.240 gave them from above and working in my closed area 1:34:45.280 --> 1:34:48.680 with goggles on. Right, that that's how I worked for 1:34:48.840 --> 1:34:52.080 many many years. I didn't I wasn't looking up to 1:34:52.160 --> 1:34:56.240 where my contribution played into the full vehicle. They didn't 1:34:56.240 --> 1:34:59.160 really encourage that either, And I wish I had said 1:34:59.200 --> 1:35:00.840 told on them and it was my doing and why 1:35:01.240 --> 1:35:03.599 and is that world class? And how can we push 1:35:03.640 --> 1:35:06.120 the boundaries? If I'd done that earlier, it would have 1:35:06.120 --> 1:35:08.840 been even more exciting. So it's just you tend to 1:35:08.840 --> 1:35:12.240 get into a job, especially in I guess the big 1:35:12.240 --> 1:35:15.400 o ems you're a small cog in a big system. 1:35:15.439 --> 1:35:18.280 I wish I'd looked up earlier to where does a 1:35:18.320 --> 1:35:21.400 small cog fit in and why? And I'm encouraging everyone 1:35:21.439 --> 1:35:23.919 in our company to do that now, and certainly everybody 1:35:23.960 --> 1:35:26.439 in Moodily is going to be doing that. So that's 1:35:26.439 --> 1:35:28.120 why I wish I knew thirty years ago. I wish 1:35:28.160 --> 1:35:31.720 I had kept that wide of you. While I'm it's 1:35:31.760 --> 1:35:34.799 important to get into details and work on details, very important, 1:35:35.080 --> 1:35:37.800 but you also must keep that overview of where does 1:35:37.840 --> 1:35:43.040 this sitting and fitting and why? Huh? Really quite fascinating, Darren, 1:35:43.080 --> 1:35:45.880 Thank you for being so generous with your time. We 1:35:46.000 --> 1:35:49.439 have been speaking to Darren Palmer. He is the general 1:35:49.479 --> 1:35:53.759 manager of Battery Electric Vehicles at Ford. If you enjoy 1:35:53.840 --> 1:35:56.200 this conversation, we'll be sure to check out any of 1:35:56.200 --> 1:35:59.880 our previous podcast that we've done over the past eight 1:36:00.080 --> 1:36:04.280 plus years. You can find them at iTunes, Spotify, a cast, 1:36:04.360 --> 1:36:08.040 wherever you feed your podcast fix. We love your comments, 1:36:08.040 --> 1:36:11.519 feedback and suggestions. You can write to us at m 1:36:11.560 --> 1:36:15.439 IB podcast at Bloomberg dot net. You can sign up 1:36:15.479 --> 1:36:18.160 for my daily reading list at Ridhults dot com. Follow 1:36:18.200 --> 1:36:21.120 me on Twitter at rid Halts. I would be remiss 1:36:21.120 --> 1:36:23.040 if I did not thank the Crack team that helped 1:36:23.120 --> 1:36:28.000 put these conversations together each week. Mohammed Remaui is my 1:36:28.080 --> 1:36:32.920 audio engineer. Sean Russo is my researcher. Paris Wald is 1:36:32.960 --> 1:36:37.439 my producer Atka val Bron is our project manager. I'm 1:36:37.520 --> 1:36:41.320 Barry Rihlts. You've been listening to Masters in Business on 1:36:41.479 --> 1:36:42.920 Bloomberg Radio.