Recent Developments: Ford is navigating a challenging 2024 with a focus on profitability through its Ford+ initiative, despite pressures in the EV segment. The company reported a second-quarter EBIT of $1.2 billion for its Ford Blue segment, though EV-related losses remain a concern. Hybrid vehicle sales increased by 34%, now making up 9% of all global sales. Ford has raised its 2024 cash flow outlook to $7.5-$8.5 billion, driven by strong performance in its Ford Pro division and an improving product mix.

Investment Considerations:

• EV Transition: Continues to face pricing pressures; significant investment in next-gen EVs.

• Hybrid Growth: Robust sales increase, showing strong consumer adoption.

• Profitability: Expected full-year EBIT of $10-$12 billion, though EV losses remain a drag.

Risks:

• Market Volatility: Ongoing competition and pricing pressures in the EV market.

• Execution Risk: Success of Ford+ and the transition to a more electric-focused lineup.