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Strategic Approach for Electrification June 27, 2019 Creating Tomorrow, Together

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Strategic Approach for Electrification June 27, 2019 Creating Tomorrow, Together Strategic Approach for Electrification June 27, 2019 Creating Tomorrow, Together Our Freedom of movement drives human progress. Belief Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan for Value Creation Winning Propulsion Autonomous Mobility Portfolio Choices Technology Experiences Fitness Metrics Operating Leverage Growth Build, Partner, Buy EBIT Margin Capital Efficiency ROIC Strong Balance Sheet Cash Flow Our People Culture & Values Our Strategic Approach For Electrification Focuses On Building A Foundation For Long Term Success Play To Our Strengths Commercial, Trucks, Utilities, Performance Building on our iconic nameplates; amplify Build Brand & Credibility attributes our customers love best Design, volume, manufacturing Leverage Scale & Technology and purchasing power Develop an ecosystem that makes the Business Model Innovation transitions to BEV lifestyle easier SECRET 3 Fitness Redesign Core Initiatives Customer Speed & Simplicity Efficiency Centricity Agility Blueprint-enabled Product-driven IT Hours Per Unit Next-generation Yield management demand org. living the reduction manufacturing management desired culture Advertising & Sales Global Capex reduction PD footprint & Promotion Complexity Order-To-Delivery through reuse capacity design rapid prototype Digital marketing Manage complexity optimization Modular architecture Manufacturing & lifecycle footprint Best cost at Job 1 management optimization Collaborative media Complexity optimization governance Freight Full-Network Agile GPDS Sourcing Smart Redesign Enterprise Product Line Management Skill Team Lead: IT Manufacturing Marketing & Sales PD / Purchasing Cross functional SECRET 4 Source: Ford Motor Company presentation at the Barclays Global Automotive Conference, November 14, 2018 Expected PD Fitness Impact Over 5 Year Plan Period ~$7B 20%+ ~$1B Engineering / Less Time Manufacturing ~$12B Improved PD Cost From Sketch Cost Material Cost Reduction To Showroom Reduction Fitness Targets Are Embedded In Our Business Plans 5 Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018 Implementing Five Flexible Architectures Customer Architecture Differentiators Flexible Architectures Consumer ICE*: RWD / AWD Experience 1 Body-On-Frame Energy ICE*: FWD / AWD Regulatory 2 Requirements Unibody ICE*: Commercial 3 Propulsion / Drive Van Unibody ICE*: RWD / AWD 4 Unibody BEV: All drive 5 Body / Frame types Unibody * BEV capable Global Architectures Coupled With Modular Designs Support High Product Differentiation While Delivering High Reuse And Scale Savings 6 Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018 We Are Bringing A Number Of Fully Electric Vehicles To Market In The Future Mustang-inspired BEV SUV Ford Territory BEV with 300 mile range in 2020 for China in 2019 Ford Transit BEV for Europe Ford F-150 BEV Partnership Product SECRET 7 We Are Deploying World-class Hybrid Technology Hybrid (HEV) HEV & PHEV Plug-in Hybrid (PHEV) F-150 Escape / Kuga Aviator Corsair Police Interceptor Explorer Territory 1-Ton Transit (China) (Europe) High-volume, Profitable Vehicles Like F-150, Explorer And Escape Will Bring Great Capability And Features To Customers 8 Internal Combustion Spending Will Be Re-deployed Into Electrification For Future Demand Internal Combustion Engine Architectures 17 12 29% Decline 2016 2022 SECRET 9 Source: Ford Motor Company CEO Strategic Update, October 3, 2017 xEV Commodities Make / Buy PHEV BEV Product Sourcing Product Sourcing Commodities: Current PHEV Future PHEV Future BEV • Battery Pack • Motor / • Gears / • Battery Array / • Battery Cell / • Power Electronics In-house Outsource Partner SECRET 10 Q&A.
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