Ford Motor Company (F) Earnings Call Transcript & Summary

Okay, everybody. Delighted to have with us for this next session, Ted Cannis, General Manager of North American Commercial Vehicles for Ford Motor Company. Ted is joined by Henry Ford who will -- I think, is on mute now, but is from Investor Relations and delighted in getting to know Henry since he joined the team. Before we go any further, this webcast is for Morgan Stanley clients and representatives only, not for members of the press, please drop if you're members of the press. And also important disclosures, please go to www.morganstanley.com/researchdisclosures. [Operator Instructions] I'm going to come up for air a few times, I promise, but we're going to have about a 35-minute session with my friend, Ted Cannis. Ted, I want you kick it off, I think you wanted to make some introductory remarks and just run through a few slides, which our audience members and our clients will advance themselves. But Ted, off to you with kind of key vision and mission on the CV side and the mission of Corktown and Edison.

All right. Thanks a lot, Adam. Hello, everybody. Great to talk to you from Ford. I'm going to talk through a couple of quick things today just to reinforce where we are with our new CEO, Jim Farley. And then I really want to get into North American commercial vehicles and really where the sweet spot is overlapping with electric vehicles. And today, I really want to highlight, I don't think a lot of people talk to you about commercial vehicles, so -- which is just a difference all by itself. And there are big differences in approaching to the market, and if there's one thing I'd like to do today is explain that difference. So if you've got your plan at home from our slides, you can see our new plan that Jim Farley rolled out in -- when he came in October. And this is really focusing the organization with some new energy. And I want to go through some of those elements. I'm going to just touch on elements of my area. In Slide 3, when we talk about driving growth, improving execution and speeding transformation, there's this double transformation. We've got to turn around automotive, but we've got a lot of growth and disruption and new things to get done. In our case, in the commercial vehicles, actually, this is not the case. We're going to improve off a great base. And I want to talk to you about that, about investing in the great base. That is a big change also. One of the big changes about Jim Farley, how he's always approached the market when he first came to Ford and I was working in marketing and sales, both lean into your strengths. And that was a part of our electric strategy. That is a part of Bronco. This is a Jim Farley effort. It's really lean into the strengths that you have and go with the opportunities you have. So what I'd like to talk to a bit about those quickly. So first, Slide 4. This is the Mustang Mach-E, for those who haven't seen one, we have to compete like a challenger. Yes, we've been around 100 years. But it's a different world with a different business, different competition that means completely rethinking ourselves, we cannot be complacent. Mustang Mach-E was one of those. When we said we are going to go after electric vehicles, we said we'd go after our strengths, performance vehicles, commercial vehicles, like pickups and vans, which I want to talk about today. I've had Mach-E now, one of the first builds to go through the feedback to the team for probably a couple of months back. What a blast, and I know Adam had a chance to drive last week. It's a real joy. And we focus that car on a different kind of customer, somebody who's technology-oriented because -- and we're going to talk about a lot of this today, adoption rates. Early adopters are not the same at the end of the bell curve. And in this case, they're much more technology-focused, they tend to be younger, they tend to have a different income level and they're looking for a different thing in a car. And this car was as much post on, first, the technology and then also being battery electric. I think it goes without saying every battery electric vehicle is 0 emissions. So that is not a significant deciding factor for customers. The next thing we said is we got to have these must-have products and services. That speaks for itself, but I want to talk a bit more about that. In Slide 6, we talked about capitalizing on Street. Vehicles like E-Transit that we announced all the specifications at the end of last year and that we will start building and delivering to customers at the end of this year. And then we talked at the end of last year also about modernizing everywhere. This includes our current client base of commercial customers but also new facilities like the picture we saw in Slide 7, which is the new Rouge plant at the [indiscernible] the electric vehicles for the electric F-150. That's another huge investment that we're making. We've announced that a new electric F-150 will come out midyear next year. So we're very excited about it. That is core to the strategy. When you go to Slide 8, you can see our electric vehicles there. And on the left is the transit. And on the right is the prior model of the F-150 because the prototype was the prior model. We couldn't show the new one at the time because we hadn't launched the new internal combustion version. But it's important that we have as a full OEM, a van and a pickup. If you're going to handle the commercial business, it was essential to deliver those. And that's a real F-150, so you know already, it's light weighted with aluminum. We took the lead in the industry with that. If you look at the size of the vehicle versus some of our investment partners, like, as you know, we've invested in Rivian product. It is more an adventure product. It's kind of ranger sized and its cabin and pickup bed, it's 4.5 foot lower bed. This is an F-150 with a 5.5 foot, it's built to do work, not show cars, this is a workhorse, not a show horse. A lot of customers out there are the never nevers of retail customers. They may go to Home Depot and grab a little lumber or once in a while, go something for somebody. But there's a lot of never nevers out there, never towed, never [indiscernible]. This is about doing real work, and we'll get into that in a second on what that means to commercial customers. So where do we stand with commercial customers? And on Slide 9, Ford has in the commercial business, that means people that do work, they have a company, they file taxes, they're running a business, and they're registered in a commercial name. We have 45% of the market share in the United States. We've been the best-selling van for EONs. We've been the best F-Series best-selling pickup for EONs. Both strong brands. So underpinned by brand. And that means a tremendous presence in that marketplace and relationships to get work done. And commercial work is different than the retail work, and the decisions are different. I'll let you think about the people. In many cases, it's a purchasing manager. It's not mom and dad. It is a fleet manager. These are people doing business things like we do, investment analysts who pencil spreadsheets. Hey, what's the cost to maintain this? What will be the residual value? How can I improve my productivity? They are used to making capital investments in plants, facilities equipment and penciling towers and EBITs just like we are in the investment community. I'd say that as a former member of the Investor Relations team and a long-time finance guy. It's a different kind of decision mindset than what I'd say might versus needs. A retail customer goes, "I might have grandma over for Thanksgiving so I need a 7-seater. You say, well, how many people do you have in the family? I have 2 and a dog. Well, why do you need a 7-seater? Well, I might have the school and the kids -- they'll bring a friend. People who are buying retail plan around what might happen. A commercial customer knows what they're doing. They have telematics data. They know their route is 5 stops, roughly 50. They know the neighborhood where they're doing landscaping. If they're landscaping in Detroit, they're not driving to Chicago for fun with a particular thing. So it's a very different decision process. So 45% of that business, a commanding presence. When we go into the next slide, I just talked about commercial customer needs, Slide 10. First, it's the right tool for the right job. If you're an electrician and you have a van and you got your wires yourself and a set of tech tools and bins, you have one thing. You probably want to garage it at home, you drive it in, has to be garageable, it has to be X link, X height. Another guy doing delivery, who wants a really long van, high rail, they carry about cargo space, not a low. Why would you have a medium-roof van? If you work a lot in and out of your van, a medium-roof van allows the roof height so you can walk in and out with whacking your head and you can see a lot better. Every commercial application and the majority of transit vans are upfit. That means they have to fit that for the job. So they are purpose-built to do something. The second thing is the cost of ownership. They're doing the math, the maintenance cost, the fuel cost, the depreciation over the residual life and how it can improve the productivity. Every one of these fleets and with outside reckoners as well do productivity calculations. And that's why you can't really trick them with nonsense. They're using third-party data that's publicly available that matches up for cost of ownership. And some things are not like you expect. One of the reasons we have such success with the hybrid police cars that we do, and we dominate the police business, is that idling is a big part of police duty. So hybrids are fantastic for idling, very, very efficient. Employee productivity. When you're hiring a guy and doing max uptime, commercial customers don't want to go down. You can't afford to have 5% of the fleet not working. Either that means they're not serving customers or not generating revenue. And if your particular application, you've built a body construct on that, you can't just go and swap out all your equipment into something else when somebody gives you a rental explorer. It doesn't work that way. You need the right tool for the job. So uptime, and our focus on uptime is critical. Employee productivity, you hire a new guy, $17 an hour, who's got to do a certain job, how he drives that vehicle, and which is why you have on the back, 1 (800) something another about how he's driving, collisions, liability, et cetera. Performance on that operation [indiscernible] tickets. So well-being and health, just to attract labor is a big thing. And then obviously, for the big companies, corporate sustainability, obviously, is a major subject. So that is the structure of the thinking when they're making decisions. So let's just talk a bit about E-Transit that we launched at the end of last year, and then we'll go on to sale at the end of this year. Slide 11. What do you need in a commercial customer battery? You don't buy more than what you need. So when you talk to retail customers, they say, well, how far do you drive back and forth to school? About 25 miles each way. And what about to work, I'm going from Connecticut to Manhattan. What do you drive and so you ask him and interview. He says 33 miles, I get 45. How many miles do you need? 400, 300 miles because retail customers buy the cushion because of their perception of loss. It's too much risk not to have cut cushion. Commercial comes towards a large body of them already are using telematic data, and we studied 30 million miles of telematic data for North American [indiscernible] van customers. The average customer drives 74 miles per day. They buy and will buy the battery they need to get the job done, just like they buy -- if they can get a job done with an F-350 Super Duty, they don't buy the F-650. It costs more money, it has more depreciation, it costs more to operate. You buy what you need to get the job done because you know what job you're doing. It's a very different mindset than the retail customers. They're matching up math in every case to the application they need. So our van, which will come out at the max range of 126, and we'll have more to announce in the future on future versions of each van. So 126 miles will more than cover a lot of customer needs that we have in winter, up hills and there's a lot of math that we have to do for gradability, payload calculations when we come up with our perfect sweet shop for the customer. So then I'm going to go to Slide 12. So obviously, what's -- when they're penciling these numbers for commercial, what's the benefit? Maintenance costs are much less. This is not early, there's less parts in the vehicle, significantly less and it costs about half as much to operate because of the fuel efficiency. Now that takes a lot of coaching, and we have a lot of work with all of our commercial vehicle centers. We have more than 600 across North America to work those out because the kilowatt costs are different across the country, and the fuel prices are different across the country. Availability is different. So making that pencil for your particular application and uplift to get your job done requires a lot of work, which is why we have these very seasoned commercial vehicle center managers. There is a confusion out there that only large customers are interested, not true. We're getting tremendous interest from CEOs and individual owner-operators, small, medium, large businesses, plumbers, HVAC guys, they -- electricians. They want to prove to their customers in California that they are green because the country is about climate overwhelmingly by popular opinion. So they want their customers to be better served. This also leads to integrating the charging solutions on Slide 13. In the commercial business, many like your cable guy is likely to bring his van home and charge in the garage. So you have to have a solution for that. The employee brings at home, how do you separate the house electric versus the vehicle electric that's employee based. Many want depot, you go to -- it's a potato chip factory. Employee goes in the morning, picks up his stuff and then drives it to around his route and then drops off the vehicle at the end of the day. Those kind of depots have to be set up to help those customers. They don't want to make any extra trips because that's employee paid time. That's the whole goal of electric is eliminate employee paid time at stop offs and gas stations, others. And then, of course, you also need a safety net of public charging, which we have with Mach-E, already available for those customers because why don't you want to do public charging because it's expensive and you have employee wait time. Because these are people either yourself as individual owner-operator, not generating income or you have employees not generating income. So when you look at Slide 14, Transit is so important because when a lot of the competition out there is talking about one application, delivery, long wheelbase, high roof. Last year, that was in the full-sized van business about 7% of the industry. And that was with a lot of growth. There are a lot of vocations that I mentioned, service and maintenance of buildings, electric, electricians, plumbers, heating guys, cooling guys, there are tremendous amount of other businesses that are not those. A big high roof long van does not fit in the garage. And if you're planning your architecture only for that one application, which is a life low delivery with a lot of empty space, you're going to make mistakes on the total architecture for the weight there. So what we have is 3 lengths, 3 roof heights and cargo van cutaway and chassis. So you can pull off the back end and put your application on. That allows coverage of the vocations of the entire business other than the buses. That's very important because otherwise, there's just not -- and you can't go after the small, medium businesses that are desperate to go electric right now. So on Slide 15, we expect the global demand growth to grow very fast. We're expecting 1.1 million global units in the electric van business by 2030. That's a CAGR of over 50%. And this gets to the total change in our business of commercial vehicles on Slide 16. So we've been selling vehicles with tremendous connection to the community, matching these upfits because the majority of Transits are upfits and F-150s and super duties are all -- super duties in particular and above are all very majority upfitted. You have these great base, but we couldn't talk to the customer, the 45%, basically after the point of sale. That is completely different now in both internal combustion and in the electric vehicles because we're connecting all the vehicles. So starting the 20 mile of the internal combustion engine, Transit with 100% modems, and we started rolling out our telematics solutions Ford Telematics, Ford in-cab coaching, forward fuel cars. For the E-Transit, we will be providing a complete set of charging services. So you can split that bill for the customer who brings his van and employee van at home for tax reasons or business reasons. You can offer a complete roaming charging services to the whole country. So these are the kind of applications that make it possible for customers to really go out there and we can connect with that customer on an ongoing basis to have subscription services that are paid for, navigation, connected services like telematics that we're already starting to offer. We can add charging services on top of that, and we see opportunities for all of that to have much higher accretion of our parts and service business because before, we didn't really have the opportunity of life cycle and now we can bring all the data back into the vehicle to do prognostics, user analysis, obviously, with all the privacy rights that you would expect, and many of those customers have signed that already when they sign on to services to better improve them. The new F-150 internal combustion has end-to-end module over-the-air update capability as does the Mach-E, as does the new Bronco. So you have these modules that can feed the information back for usage, turn it into knowledge for both market purposes to improve customer experiences, offer improved features, improve quality opportunities. So that life cycle and this massive base we have, 645 commercial vehicle centers, already 90% EV certified. Because when somebody slams into the back of your van and these delivery companies and others, one of the biggest problems they have is the vehicles taken out because of collision. New employees, employee rotations, some of these industries very fast. That's why in-cab coaching. You don't hit speed limits. You don't have harsh braking, so it doesn't slam your front or your back. We can enable those capabilities and provide that whole network because they want to keep uptime. And without that pool of vehicles and support, you cannot keep the vehicles uptime because most of the components are still not battery electric, there are ramps and bumpers and doors, things that we've been doing for a very long time. So we have 2,100 EV certified dealers across North America already. As I mentioned, 90% of our commercial vehicle center dealers who are specialists with commercial vehicles are already EV certified. So that has a bit of the structure of the difference. So just to highlight again, it's needs to do things versus I might want to do things. I need this range. That's all the range I want to pay for. I don't want to buy extra. Cost, it's about penciling taxes and expenses. It's about productivity and uptime. How do I keep running all the time, so I can earn my income. And for us, it's about how I can now bridge from this awesome base of 45% share and grow my share of wallet across the value chain and a lifetime of this connected capability I never had before. So we're pretty excited both about the electric and how the electric -- the F-150. And I got to tell you the F-150 that's coming, not only is it going to be the start to be the most horsepower and torque and a fast acceleration and to do heavy towing, key for a customer who's going to do real work, it's going to have amazing new things like this giant front trunk for additional capacity for secured loading, a big concern always for pickup owners, where do I secure items. I talked about this Pro Power Onboard, in this case, on the new F-150 battery electric, it will have mobile power generation where you could power your house and work sites and also the E-Transit as Pro Power Onboard as well. So with that, Adam?

Great. Very thorough introduction. You covered a lot of ground. We got about, I think, 11 or 12 minutes to kind of do some discussion here. But let me start first with the -- I'm just going to start with the Mach-E, and we're going to go back to CVs. Okay, Ted? And yes, I did drive it last week. And as a Model Y owner, the Mach-E handled better, in my opinion. It was -- and I wasn't even driving the GK version. It was a beautifully handling vehicle. And that Bang & Olufsen sound system is just like it kicks a**. Those are the -- there are other things that stood out that were also very, very good, but it's a great product. You're going to sell zillions of those things as many as you can make. But my understanding, Ted, is that was a clean sheet, right? That was a Corktown clean sheet piece. Correct me if I'm wrong, it certainly came across that way. If I look at your van, the E-Transit, that is not a clean sheet. That is a conversion of your transit to make it an EV, right? And I realize that there's unique -- a lot of unique things about it that you highlighted. But tell us why you didn't go clean sheet on that? And then when we could expect the first dedicated platform for these types of products? Or if that's even on the horizon over the next few years?

So on the former, you're absolutely right. Mach-E is a new dedicated electric platform. Obviously, we'll have more to say on the future. And it was intended to do that for multiple reasons. One, so we could already -- it's already on sale here in North America, in Europe and later this -- end of this year in China as well. So there was a lot of intent there. The van and the pickup truck have more space for batteries already and it's just physically dimensionally possible. And the other thing is this upfitter part I mentioned to you. We have a whole battalion of upfitters around our operations in Kansas City. We -- while a retail customer can go cold turkey, and they go I'm going to go all electric. And I'm going to swap in my SUV for an electric SUV. They can only find another vehicle to do their job because they can find something equivalent to move the kids to school or to go to work. That is not the case for a business. A business cannot go cold turkey. They want to go in waves. I'm going to convert 10% of my fleet, 20% of my fleet. Because it's not an experiment. It's when they have a business truck, they needed to do work, and they need to carry over their upfits. Most of them have a dedicated way and process to do the business, like you and I do. You have a research process. We have -- they have an upfit process. They have racks and bins or an upfit they've worked on top of, and they want to carry that and all the learnings over to the new one. And they want to operate both at the same time. So there's a lot of benefit for them to run their operation during that period of transition to use both. That's quite different than the retail customers. So -- there's a lot of core advantages just because of the space and the configurations and power of the vehicles, particularly an F-150, it had already been lightweighted substantially and that's [indiscernible].

So just to be clear, there's no -- you don't feel that there's a disadvantage to not doing a purpose-built EV in the commercial segment, be it an EV pickup or a van. Or is this -- I'm not asking you to roll it out or roll it in. But that's -- the message I'm getting for you is to not expect a purpose-built clean sheet in those segments in the next couple of years. And maybe anything is possible longer term, but the next few years, we're not to be expected. Is that correct?

I would say you can expect from us that in the next couple of years that we've announced the E-Transit and the F-150, we believe we will completely lead the commercial business with these 2 products.

Okay. A specific one on where does logistics fall in -- within your work category? I don't know, Ted, if you've sized that market? And I'm thinking of Amazon, Walmart, Chewy and all the things that show up at your door and people on this call doors. Is that duty cycle or use case so that modality of range where does that fit in, in terms of what is addressable now with the 126-mile max range?

So there's quite a few different businesses out there in the full truck and van business. The largest category by far, vocation as a service and maintenance, as I mentioned before, that's kind of think electricians, HVAC, plumbers, things like that.

Gutters?

Yes. They're just much bigger. Construction is important. That's heavily pickups, but also there's a lot of vans in that space as well. When you're setting -- if you're out in the neighborhoods, like I am, everybody is modernizing their house, and you can see stacks of these vehicles out there servicing as they do in landscaping and others. So with the 126-mile range on the upside, which is a low-roof, short wheelbase van, we can cover almost all of those sectors in some elements. The ones that do more work are the ones that need to do heavier carrying, more winter, winter is draw on battery power and where they need more refrigerated power. So when you have to do that heating and cooling like fresh produce, that takes a lot more draw on the battery, those will be more restricted. Empty cube space, the biggest problem with the big van is that it just pushes a lot of air. So it can't get [indiscernible].

So you mentioned that EVs provide a positive opportunity for parts and service. But that does seem at least ostensibly at odds with what a lot of folks in the business, and including on the retail and the dealer side, say, which is that these things have far fewer moving parts. They're just going to be -- all else equal, they're going to last longer. There's less to do. So is that comment that Ford is somehow by having the connected vehicle architecture that you're able to increase your share, your shots on goal on engaging. You're not saying that these vehicles are going to create more severity or frequency of service by itself because I think inherently, unless you disagree, they should be more reliable vehicles than the internal combustion counterparts. Is this more of a share and business model comment you're making, not on the technology itself?

I think you ciphered my comments correctly. There's 2 pieces going on. It's growing our share of the internal combustion business by now being connected, as you said, because I have better [ combustion ], I can do prognostics. I can read all that data and I can help solve the customers' problems before. So has a lot of growth in internal combustion products. And that's important, Adam, because these vehicles are held longer than retail. Commercial customers hold their vehicles on for, let's say, 6 years, is an average year on that park. They stick with the fold a lot longer because many times, it's cheaper to upfit that product to keep it running than it is to upfit. By the time they put the vehicle, put all their upfit on it, it's very expensive. It's better to keep it running. So we have a huge opportunity in our existing and ongoing part of internal combustion. We do have the opportunity on the electric vehicles, except there's just a lot less parts, as you mentioned. But that doesn't mean the opportunity of collision and the other piece -- rest of the business continues as well.

All right. I got a couple of questions here on vertical integration, and I'll combine it with your strategy to date. You've got the partnership, a strategic work with Volkswagen in Europe. You've got the relationship with Rivian, okay, for the show car, if you will, the show truck. You then have your in-house stuff. Now I realize there's management change, and there's a lot of strategy and technology that's still evolving. Where some investors are a bit confused or maybe don't have enough evidence to determine whether Ford is an outsourced model for EVs vertically integrated, deeply vertically integrated. There's some kind of in between. It's kind of -- the perception is it's not sure -- we're not sure yet. Is there anything you can say today to kind of help kind of move us or paint that narrative a little bit more specifically for us on vertical integration?

Absolutely. And clearly, our competition, there are competitors of ours who are sharing platforms. We are not unique in that one. There's a lot of market coverage and we have to be capital efficient. That's what you want, that's definitely what we want. So where we're playing to our strengths, it's all us. Performance vehicles, commercial vehicles, you're hearing and if you look at our portfolio that we announced, it's Ford, Ford F-150, we designed that. The transit -- E-transit, it's us. The Mach-E, it's us. Where there's opportunities where we don't have the scale, like smaller cars designed for the European market like NEB, for us, it makes a lot of sense. It's right in the sweet spot of what Europe is doing for the European market. We think that's good. That is not core to North America and then spread around the world like Mach-E. Where there's a particular play like a show adventure vehicle, absolutely we believe there's an opportunity there and that we can share on that, but it's not the scaled core part of Ford's business. Where we see scale and importance, we're doing it. And this also goes to your vertical integration content. Where we see scale and opportunity, we look at it and it makes sense on a capital, cost and scale standpoint, we think we have the expertise and the comparative advantage and if we think we can create a proprietary or differentiated experience, then we're in. So that's why we're vertically integrating the E-Motors and the E-Gears. And we continue to reassess that scale and vertical integration. When it was small amounts of units, it's one thing. U.S. market last year at, let's say, 1.5% EVs and a lot of that in California still. But those opportunities are really presenting themselves.

Now you drew -- historically though, you drew the line of batteries. Is that line moving? Or is that a solid line?

I think there is no -- there are no solid lines in this business. I think like we said, there was a time to not announce E-Gears and E-Motors with our partners. At this point in time, there's a lot of benefit of having multiple battery suppliers. We like the competitive friction. We like the access to technology. We've seen other OEMs make big bets on battery technology go all in that, a decade later are useless. So for right now, we think we've got where the sweet spot needs to be.

I'm going to -- for the questions here, I'm going to summarize some of them and just give you a chance to respond again. And I think you have touched on it in your prepared remarks, but I just want to give you some real-time feedback that I'm getting here, okay, from the questions. And I'm summarizing here folks because I'm not going to get through them all. But there's some questions about how can you kind of convert a transit EV, really be competitive with purpose-built. I want to keep going. There's someone that says, here, I'm a -- sorry, Ted, I'm a statistician. I understand averages versus max value needs but there's some risk they see in the limitations, particularly when you factor in duty cycle, mass, temperature, et cetera, please rethink this. This one is, what's the strategy on CV pricing going forward, expect to take price over time with high market share? Or does the scaling of battery capacity bring unit pricing power? So look, I just kind of crystallize again this -- the concerns we're getting on the range, I think, predominantly, just to reemphasize those points. And then maybe a word on pricing. And pricing versus your scale up in the CV portion alone, and then we'll wrap it up.

So a couple of things. And clearly, we do and with our commercial customers when we went out there with CEOs of household names that you would know has talked to us about their particular applications. And your analysts are totally correct, we don't doubt the math. The combination of payload, grade, winter and life over the 8 years, we will warrant you the battery for 8 and the system for 8 years, 100,000 miles, they all are factors and we work through all those factors with each of our customer for their application. If you have high roof, live in X location, it's a different calculation. And as I said, this is the first announcement on E-Transit, we have many more to come. So just stay tuned. We believe this is where we'll start, and we have plenty of opportunity to go from here. On the pricing, $45,000 is where it starts, about $10,000 more than a normal one. Based on our calculations, and again, that varies by whether in Louisiana or kilowatts and fuel prices are one thing versus California, that pencils for most of our customers. And that's before they've had big sustainability entry. This is just total cost of ownership math. And we also see a lot of productivity opportunities we put in, like Pro Power Onboard where you can have electric power on-site or 0 emissions like the house they're working on next door to me. They can't work report 7 a.m. and after, I think, it's 7:00 p.m., they're limited by noise [indiscernible]. So there's a lot of things that we've already heard from customers that allow them to change their operating patterns and do things they've never done before. And because we cover all small, medium, large business, our competition is not looking at all the locations. They're not even trying to get out to the small, medium and large customer. So we're pretty comfortable that we've got that covered. And based on the demand since our E-Transit launch announcement, I'm pretty feeling pretty good.

All right. Well, Ted, we're going to wrap there. I mean I think it's -- you've done a great job, I think, explaining the advantages that Ford has, particularly on distribution, your 2,100 EV certified dealers, the 645 CV centers. You obviously have a range of different projects going on. And I think that we can sense there's some synergy there. You're still experimenting, you're going deep in things like Mach-E, but I think one of the messages is that this is the first iteration and you're going to learn a lot as you go along. And I think that the message we're getting from Ford, which is very, very different from a couple of years ago is more of like an all-in on electrification.

All in on electrification and we're all in commercial. And I think nobody has that combination. It's just -- it's a white space for us, and we have so many customer relationships there who are looking for a range of products, not one.

Yes. Well, you touched so much of the range, and there's a lot more to discover there. So look forward to seeing you again. Thanks for your time, Henry, thank you for backing us up here. And this concludes the forward presentation. Ted, be well, Godspeed.

Thanks, Adam, see you. Got it.