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Insights into Ford: S&P Conversation Highlights, including:

• Automotive Profit Margin Trajectory: Understand how S&P’s Ford Credit Rating Outlook prioritizes margin direction over exact numbers, with projections showing recovery from 4.5%-5.0% in 2025 to 7.5%-8.0% by 2027 despite falling below the 8% downgrade threshold.
• Regulatory Cost Relief Impact: Discover how relaxed US and EU emissions standards could reduce Ford’s regulatory compliance burden by up to 60 basis points starting in 2026, significantly lowering the previously expected multi-billion-dollar cost impact.
• Warranty and EV Profitability Focus: Learn how Ford’s improving initial quality metrics and transition to over-the-air fixes—95% less costly than physical repairs—are expected to reduce warranty costs and narrow the 300 bp Model e margin drag through next-generation EVs launching in 2027.
• Tariff Mitigation Strategy: See how Ford’s heavy US manufacturing base provides a competitive advantage with lower tariff exposure versus peers, while disciplined pricing on profitable SUVs and pickups could drive market share gains as competitors raise prices.
• BBB- Rating Stability Factors: Gauge the key factors supporting Ford’s negative outlook rather than immediate downgrade, including cost reduction targets of $1.0 billion for 2026 and S&P’s view of a credible path back to the 8% EBITDA margin threshold by 2027-2028.