Hey, welcome, welcome back, everyone. Next up at our conference, very pleased to have with us Ford Motor Company, Sherry House, CFO from Ford. Thanks for joining us, Sherry. I guess maybe, you know, just to start, I think, you know, you mentioned to me, it's your one-year anniversary, or maybe just a couple days past. It's very, very close, so. On Monday it was. Okay. So congrats on that. It's probably been about, what, three, four months since you took over. That's right. CFO role. Early February. You know, obviously, I'm sure you've been very busy since then. It's not like there's been anything happening in the world, or at Ford. I guess just to take a step back, since you started at Ford, what has surprised you the most? And maybe you could reflect a little bit on, you know, the past couple of months, or really even year, where it has been sort of so dynamic. What's changed about your thinking about the company, but also what's changed about what you do at the company to interact with this more volatile environment? Mm-hmm. Yeah. I'd start by just saying, like, what drew me to the company. What originally drew me to the company is I felt that they had an advantage strategy. So the fact that we're in hybrids, in electrification, in ICE, having the pro business of ICE, all these things provides choice for customers. Incoming from a full electrification platform, as Lucid CFO previously, having all of that, I thought was gonna be wonderful. The other thing that really attracted me was the fact that some of the strategic bets the company made, I felt were good ones. Got in early with electrification, got in early with hybrids, and really in an advanced position with respect to pro. I was particularly interested in what was happening in the Advanced EV Development Center. We used to refer to it as Skunk Works. Now that I'm inside and I have the chance to really see that, as an engineer, I was previously an engineer, what I was so surprised by is how advanced it truly is. I spent a lot of time in venture capital. I spent time helping companies set up corporate VC units, thinking about innovation. When a really big company is able to do innovation at scale, that is something that is really remarkable and you need to celebrate. Doug Field and Alan Clark and the people who have come into this organization are truly doing that. They're using best practices and first-principles thinking. They're bringing together designers and manufacturers, software and hardware together, procurement together, using brand-new tools that Ford's never used before, and standing up a platform that's now going to have multiple variants on it over time. This is the way that Waymo's work. This is the way that some of the new-age electrification companies operate. I'm seeing it in Ford. I'm incredibly excited and, frankly, somewhat surprised by the ability of progress that they've been able to make. That would be a few things. I guess you also had a second part to the question. Yeah. The second part was just, I guess, as in, in your role, right, it seems like the company has to be much more nimble, reactive, in some cases proactive. Yeah. To sort of some of the volatility. You know, versus maybe when you came in, what you saw, what sort of processes have changed? What have you helped change to sort of better react with sort of the day-to-day uncertainty? So I think you're absolutely right. Optionality and nimbleness are key. We've had to stand up SWAT teams to be able to deal with some of the tariffs and all of the changes that are happening. One of the good things about Ford is that I think we've got the right mix of talent now. We've got a lot of new talent, but we also have the long-tenured talent. They have deep connections within the company, highly internally networked. When something like this happens, they know exactly who to talk to in all the different functions to get situated and coordinated to be able to act. I've been really impressed by a lot of what the business has been doing there. In terms of what am I specifically bringing to the mix, I'd say that as I observe the business, some of the things that I'm looking at is that the company has been progressing forward. They've been progressing forward incrementally. What we're looking to do now is to progress forward in a transformational way. Take a department that you might evaluate. You might say on a scale of one to five, it's at a 2.5. Where in the past, we would look to get to 2.7 or three and say, "This is really good. We're progressing as a business," and it is good. Mm-hmm. Now we're saying, "What if you got all the way to five? Does it make sense to get to five? Do you have a cost-benefit of getting to five? Maybe you should get to 4.7. And what do you need to do to get there? How do you break down those parts? How do you do milestone-based thinking?" So kinda taking some of the venture capital thinking where you put in money, when a milestone is hit, and you hold yourself accountable to all of those actions. The other thing I would say is that the business has been doing a good job of implementing new technologies and really starting to advance. You can't just implement. You have to implement and get impact. That's different because when you design it at the outset, you're designing for efficiency as the end goal. It's cost savings as an end goal, not simply to put something in place. That type of thinking is stretching the organization's kinda frame of reference in a really good way. Yeah. I mean, it sounds like, you know, a lot of what you're talking about does require, like, a deep cultural change. And, like, Ford is a storied. Mm-hmm. Manufacturer in the U.S. and really globally, but obviously has a, has a very sort of long history, and there are sort of ingrained practices and teams and fiefdoms, if you will. Do you have you noticed even in your year some of that sort of culture change that is, is enable that new type of thinking, or is there still some resistance internally? There are a couple of things that are happening. One is we're starting to put more specialists in roles.So as opposed to putting a really great generalist in a role, we're bringing in specialists. We're bringing in Bryce Currie in manufacturing, an amazing manufacturing leader on the forefront of lean thinking. Mm-hmm. You bring in Liz Door, an amazing supply chain leader at the forefront of that thinking versus having generalists in those roles. These people understand what expertise is like. The other thing I would say, that I've been challenging the company to think about is not letting your governance define what the pace of the business is going to be. Because what happens in big companies, you all see it all the time. You have weekly meetings on a topic. You have monthly meetings on a topic. You have quarterly meetings on a topic. What happens when you set up your business that way is you are running to that governance structure, and you're only doing the work to be ready for that weekly meeting, and monthly meeting. If you can step back and let the priorities define the pace versus the governance structure, the business define the pace, I think you can go a lot faster, and you can make sure you're focused on the right things. These are culture differences. One other one would be the way that you break boundary constraints. If you're having meetings with just one function, a lot of times you can't break the boundary constraints 'cause you don't have everybody in the room to tell you that you can do something. You feel like you can't. Having more cross-functional meetings as well. These are all tactics. Mm-hmm. They make a difference. Yeah. We saw this in the work that I was able to help effectuate with Model E early on in my tenure. Great. Let's get into some of those topics. I guess, you know, not to sort of spend even more time on tariffs, but I think I just wanna sort of level set for investors, right? You talked about a $2.5 billion gross impact, $1.5 billion net impact. Now my understanding, if I recall correctly, was that was sort of, you know, half materials and parts, right, some such as like steel and aluminum. Absolutely. Right, for the two and a half. And then the other half was sort of more, I guess, straight tariffs. Vehicle. Vehicle tariffs, right? Exactly. Since though you gave that color on earnings, right, we've seen a couple of things happen. One is a change in China. Mm-hmm. Policy. Two, over this past weekend, some changes to steel and aluminum. Right. How should we think about what you previously said, what was sort of embedded in that, and what are the puts and takes from those two, at least two new factors? Yeah. I'll start by saying I'm not gonna provide, like, the full details of those puts and takes because we're gonna study that, and we're gonna give you that in Q2. Okay. At our Q2 earnings, which will be probably late July. Let me just break down the $2.5 billion for you. The $2.5 billion has two parts in it, as you said. About half of it is parts. That also included steel and aluminum in it, okay? It also included $200 million of tariffs we already paid in Q1 related to parts. The second part of it is vehicle tariffs. That is gonna be related to the vehicles that we are importing less the offset that we are anticipating to get for the U.S. content that are in those cars. Mm-hmm. Okay? Those are the two pieces. The two new things that you just mentioned, the China tariffs brings the parts piece down, and the aluminum and steel brings the parts piece up. Mm-hmm. Good news is they're offsetting. Okay. That's about the level of context that I can provide at this point. Sure. We're gonna be happy to provide more detail at Q2. Maybe just on that, you know, you did, you know, withdraw the guidance on the first quarter. I think it was understandable at the time. There was still a lot of raw and fresh sort of information, and things seemed to be changing, if not by the day, by the hour. Sure. Like, do we think we're at a level now where you have a little bit more visibility and confidence to sort of reintroduce that fuller guidance with the second quarter? So we would like to. Mm-hmm. Okay? I'll put that out there. We want to give the street as much information as we can. When we decided not to do it in Q1, we had looked at what do we know and what do we not know. Unfortunately, what we didn't know was so much bigger, and there was so much variability associated than what we did know, we felt that it was prudent and appropriate to pull guidance. Mm-hmm. What we did do is we said, had it not been for tariffs, we're on track with the $1 billion. We're on track with our prior guidance. We were able to define for you an estimate of what we thought the gross and net impacts of tariffs were. What we didn't know, and some of it we still don't know, is what types of changes we might have in the domestic tariffs. You mentioned just two that happened in just the last. Right. 10 days. But then also what is gonna happen internationally, any type of retaliatory tariffs? What are gonna be any policy changes, consumer impacts? How is the consumer gonna take these tariffs, and what are gonna be the impacts on them? And then importantly, we have this other item called rare earth minerals, and getting the approvals out of China to move necessary components into the U.S. has been an issue. All those items still exist to a degree. I do think there has been some settling in several of them. As we move into the next couple of weeks and prepare for the quarter, if we give guidance, it will be with, you know, the caveats of what, what we can't define. And if we don' t, we are gonna give you every piece of information that we feel we can to help you and other analysts and investors with doing your models and being able to understand the business as much as possible. I wanna maybe just double-click on a couple of things you mentioned there. Maybe I'll go in reverse order. The first is rare earth minerals, which obviously. Sure. Sort of has become a little bit more topical, at least in my conversation with investors over the past week. You mentioned maybe you're seeing some potential disruption. I mean, like, how pervasive is that? And, like, really, maybe you could just sort of describe, I guess, what it's impacting and what type of backlogs there might be in terms of getting rare earths into the supply chains that could impact your production of vehicles. There are many components that rare earth minerals are in. Mm-hmm. Any of those that are coming from China require you to now go through export controls. There is an additional layer of administrative process that has to happen. Sometimes it goes through really smoothly. Sometimes things get held up, and there are questions. When it gets held up and there are questions, we have to work through that. If we are not positive it is going to go through, you have to look for alternative parts or alternative ways to get things. Most frequently, it goes through. It just may take more time. You might be facing expedited shipment costs that you were not anticipating. It just puts stress on a system that is highly organized with parts being ordered many weeks in advance. We are managing it. It continues to be an issue, and we continue to work the issues. I don't know if at some point this is going to be a larger issue for us. The second thing you mentioned is, you know, excuse me, federal reimbursements for some of the costs on tariffs. Like, you know, can you just, maybe at a high level, very simplicity like, talk about how is that sort of functionally working? I don't think you're necessarily getting some of those sort of cash payments today. Like, maybe just walk us through a simple example, like, what you have to do, the process it needs to go through, and sort of when you expect to actually get cash reimbursements for some of those offsets. A lot of that is being defined real time. The timing of the reimbursements, I don't completely know. Okay. You're paying the tariffs now. I think it's very possible that there will be a delay in getting those offsets. I'm talking about the parts offset. Mm-hmm. It could be by a quarter. It could be by a couple of quarters. All of you that are looking at our financials in Q2, Q3, Q4 are gonna have to know that it's gonna be a bit lumpy. Right. You know, you might have more expense before you actually get the money reimbursed. I guess just maybe to close out tariffs, and this is, you know, if we think about the goals of the policy and sort of re-reshoring manufacturing back to the U.S., and you already, you know, as you've highlighted numerous times, we think you have, and I, I agree, sort of a competitive manufacturing footprint in the U.S. That's true. But, you know, the supply base is more spread out. It does seem like when you, when you think about this policy, there's an opportunity for you to work with your suppliers to ring out efficiencies while they maybe resource some. Mm-hmm. Or some parts there. Can you just talk a little bit about, A, you know, what you think can move, can't move, and B, what really are those conversations you're having with suppliers about commitments and need to sort of move stuff back with the goal of, right, having it really be a win-win for both sides? Right. Start with the basics. As you said, 80% of what we sell in the United States, we manufacture in the US. 80% of what we manufacture in the US has USMCA compliant parts. So that means on the vehicles that we're manufacturing in the US, 20% is coming in from outside. That is the piece that right now there's a parts offset for 15% of what our, not 15% of the 20%, but basically 75% of that 20% is covered. In terms of our supplier relationships, they're our partners. Mm-hmm. As we face the tariff situation, we face it together. The types of conversations we are having are around, do you have additional capacity in the U.S.? Could you move to the U.S.? What types of investments might help you get there? When we look at how we interact with the suppliers, it is a very complex and nuanced situation. Deciding which suppliers you are working with in these matters might depend on the quality that they have provided in the past. Do they have the leading IP? Are they a good cost provider? How have they performed for us over the last year? We look at all of these things also when we are working with them. On an individual basis, we are deciding whether or not it makes sense to make some of these changes. I don't have anything to announce with you right now, but of course, you would look at some of your higher-priced components first, items that affect more vehicles. That would be the order of operations. Perfect. Maybe we could just talk a little bit about the marketplace specifically in the U.S., because, right, part of your guidance also sort of was this, you know, market factors. And I know there was not a lot of specifics as to whether it would be price or volume and market share gains. Mm-hmm. It could be either/or, and it could be, I think, probably dependent on which vehicle or segment we're talking about. I wanna sort of get your temperature on how you think things are evolving relative to what you internally expected when you sort of last spoke to us on earnings. You know, we got the sales data for May yesterday. Mm-hmm. For, you know, the market overall, obviously, you know, slowed a little bit from the past couple of months where I think. Mm-hmm. We could all agree there was at least some level of pre-buy ahead of price increases. You know, Ford performed, I thought, pretty well. Very well. Very well. Yeah. Yeah. It seems like some of the marketing and the messaging with, you know, with employee pricing and Made in America seems to be resonating. I wanna get your sense for what you're seeing in the marketplace for Ford vehicles right now. Yeah. Let me start at the industry level, and then I'll get into Ford. At the industry level, I would say our view is unchanged from what we said at earnings, which is we were seeing significant increase in SAR through Q1 and Q2. We believe that there will be a drop-off in Q3 and Q4 as we thought there may have been pull ahead. We do believe that a lot of these imported vehicles will have to take some sort of pricing either through incentives or top line. We think that takes some time to work through. We were expecting more of those effects to be happening in Q3 and Q4. And so we had talked about, at an industry level, believing that pricing might be up 1-1.5%. As you get to Ford, our From America for America program that goes from now, it's been ongoing. It goes through July 7, has been outstanding. I mean, it truly has given our dealers and customers something to get excited about, something to come to the showroom about. We were able to, in May, enjoy a 16% sales increase across Ford and Lincoln retail and commercial, on a year-over-year basis for May. Mm-hmm. Year-to-date, we are up over 6%. We are definitely seeing the impact of solid volume, solid demand for our products. We have the brand new Navigator and Expedition as well. We have a great lineup, and we have seen pricing resiliency. When you kind of think about the P times Q, we have been very solid in what we have been able to experience thus far. We will talk more about that as we get to Q2. I wanna turn the conversation to cost 'cause this is obviously a big part of. Mm-hmm. Sort of the Ford investment case. Sure. you know, in the past, you've highlighted that $7 billion, you know, gap. Mm-hmm. versus competitors. I'm curious, you know, sort of how you assess that now, given that there have been some changes. Like, part of that was definitely footprint, but, and maybe that gap has narrowed not because of anything you did to improve, but because some of your competitors have additional costs. Mm-hmm. Right? Mm-hmm. I don't know if you have sort of an update of where that stands. You know, maybe if you think about the three broad areas you talked about, which is the structural, the warranty, and the materials, you know, just an update on what you've done, what can be done in the near term, what can be done over the long term, what are things that, you know, Kumar and his team are doing to further reduce costs over time and make you more competitive? Yeah. We have looked at the competitive cost gap. First off, we have been very transparent about it. We think it is good for our business. We think it is good for the investors to know where we stand. We also see cost reduction as the biggest value unlock for our business and something that differentiates us, I would say, in a positive way because we have upside in front of us. Mm-hmm. We did look at this at the end of the year, and we did see before all this impact of footprint and tariffs, we saw a material difference in terms of us closing the gap. That was coming through in material costs and in, kind of, the industrial system costs of the business. It is a challenging thing to estimate. You do have to look at mix. You have to make a lot of assumptions. Even when you put all that aside, you could see that there is a marked change in our performance. I agree that there will be additional benefits based on our footprint that's now gonna put us in a more advantaged position. If you look at something like our F-Series trucks, 100% of them are made in the United States. On our competitors, it might be 50-60% with a large amount being imported. That is a difference. It is an advantage for us. All of our profit pillars, by the way, are manufactured in the U.S. In terms of progress that we have had over time, we looked at that gap, that $7 billion gap that you referenced, and we said, "What are the two biggest things that we could go after immediately and go after in a detailed, thoughtful, systematic way?" We picked warranty and material cost. We got a running start as we went into 2025. We brought in a consultant. We took four months of really studying and looking at the benchmarks, the best-in-class benchmarks. Again, not moving incrementally, moving and thinking transformationally. Difference. When we did that, we saw that there were five different things that we should do in both material cost and in warranty to really move the needle. I'm happy to say that we're seeing that happen. We just had three straight quarters of year-over-year cost improvement, and that's because of this work. I'm hoping and expecting that we're gonna continue to see that. You know, how we're breaking it is that it is dedicated, focused, transparent work. We put a spotlight on this at the executive leadership team level. Everybody is motivated. We talk about the performance milestones that we're hitting in our all hands. Our bonuses are tied to this happening as well. You've got a team that is just very focused on making the change. Now, as we go forward, I see lots of other areas for opportunity. It's somebody new that's coming in and coming from not a resource-rich environment. You know, I've been seven years a startup to coming into this. I see opportunity everywhere. I am very excited. I think if you talk to me in a year, you're gonna hear me talking more about investment efficiency, about engineering spend, about SG&A spend. We are eager to get after all of that as well. You have the open invite to come back next year. Okay. We can follow up. Okay. Maybe, just a good segue to one of the things you just mentioned in investment efficiency. I think one of the things that a lot of people are sort of circling here right now, even though, to be fair, nothing is set in stone yet, it does seem like emissions policy is moving more in one direction than another. Mm-hmm. Whether that's California, whether that's EPA. Mm-hmm. You know, you've in the past talked about a certain level of your capital expenditures going towards electrification efforts. I think, you know, in listening to Jim speak recently, it also sounds like you really wanna be more guided by the consumer. That's why you're sort of offering the different types of powertrain options. Mm-hmm. How does that impact your future investment in things like electrification? Not to say it does not ever have to be spent, 'cause I think most of us, or at least I would argue that we are sort of gonna trend towards electrification over time. It is just a question of the slope. Maybe it does get spent at a later point in time, but can you re-time the, is there a net lowering of spending, or does some of that capital get redeployed into other efforts? Mm-hmm. They would say that we're already making decisions like that. And you' ve seen the evidence of it when you saw that we decided to cease the three-row BEV that we were going to be producing in Oakville, and instead, we decided to bring Super Duty there. That is a decision that we made based on watching what was happening in the market. In terms of surprise, you talked about surprise at the outset. I was surprised that the business made a decision like that because there was a lot already done. You had supply chain set up. You know, you're approaching, you know, getting ready for production. We said, "No, this doesn't make sense. What makes sense for the business, the signals we're seeing is we need to make this move. I think it's important for you to know that Ford Motor Company has the courage to make those tough decisions, and they will make them if they think that it's right. As we look forward, I agree with your thesis that electrification is the future. I also agree with that. I do believe that customers are taking their time, in some cases, to get there, and the consumer sentiment is ramping more slowly. The hybrids that we just now had close to 25% increase on a year-over-year basis in hybrid sales is really taking off. That type of continued investment is gonna be important for the business in the near term. How we're managing this differently than we did in the past to be more nimble and to be more thoughtful is we developed an internal capital committee. Now that we have the different segments, we have different hurdle rates for each of the three segments. We are looking at the investment and what the return on the investment is gonna be in order to make that decision. The other thing we're looking at are the services, the physical services, the software services, some of the enablers. When you look at our services and you look at the pro EBIT, we are now in the mid-teens percent of the EBIT is from physical services and the software and digital services. We think that's only gonna increase. There is also a case to be made. When you look at our Ford Plus plan, one of the items is durability. To be putting more of our money into areas like that that have great margins and a lot less investment to get it showing up in your EBIT. Those are the types of things that we're also focused on as a business. I would say more nimble, more thoughtful in a very strategic bi-segment way, are some of the key takeaways. Great. Why don't we see if there's anything in the audience, from investors? I think there's a mic somewhere, but if not, we could keep going on stage. Anything from the audience? Okay. Just going back to maybe some of the comments you made earlier on metals and steel and aluminum, I understand we're not gonna get the specifics on the dollar amount, but can you just remind us, right, like, how your steel and aluminum buy works, because I think it's sort of tranched out in terms of duration and some is contract and some is more spot. How does that sort of play out? Yeah. I would say, first off, 100% of our sheet aluminum is purchased in the U.S. Mm-hmm. 85% of the steel is purchased in the U.S. When we even talk about tariff impacts, they're small for us on a direct basis, okay? Where we see a lot of the increase come through is the increase in prices. That's the nature of, and I, I just making sure everybody's kinda baselined on, on the kinda the situation. How we manage that as a business is we manage it through fixed contracts, and we also manage it through hedging. On the fixed contracts, they don't happen just once a year. They happen throughout the year. You're in a constant situation on a quarter or a four-month basis in which an old contract is rolling off and a new contract is being brought on. When all of this hit, there is a delayed impact. If you believe that prices are going to rise, there would be increasing costs over time. Mm-hmm. We also have seen, even recently, that there has been some settling that's been happening. So you've got that offset as well. I guess one other, one other thing that comes up a lot and, you know, we talked a little bit about investment efficiency, but just overall sort of, you know, capital efficiency, not just at Ford, but really this, this industry. You know, I don't, I don't think Ford officially commented on this, but there were media reports about a partnership with Nissan for, for batteries. Mm-hmm. I'm not sure what you're able to sort of say about that. I'm just thinking bigger picture, like, how do you, as CFO, think about partnerships with, potentially competitors, but to sort of share resources, share capital that, you know, where there's sort of a win-win for all parties involved here? Mm-hmm. I think as a business, you have to first start with thinking about where do you want your core competencies to be? What are gonna be your strategic elements that you are providing to the customer, whether it be brand or differentiation or certain types of IP? What we're doing in the Advanced EV Development Center, for instance, is, you know, really important in terms of differentiating. As you look at a very competitive global landscape with differentiated needs in software and in vehicle sizing, as you go around the world, it could make sense. It does make sense to be thinking about, should you partner in order to get more efficiency on things that you do not either have to be number one in, or perhaps you and your partner are gonna be number one in, but you're just offering it through a different brand experience. We are absolutely open to doing that. I think we will continue to do that. You see that we've got some great partnerships already. We have partnerships with Volkswagen. We've got a couple of them in China, for instance. I think we will do more of that because in this day and age, the pace of change that is happening, the pace of development is accelerating. You're gonna need to do that so you do not have to do everything, but do what's most important. I guess the follow-up question is, in this, it seems like as an industry and sort of you look at what the consumer wants with a car, like, what the consumer values in the car is changing certainly versus 5 years ago, 10 years ago, 20 years ago. What are some examples of what Ford views as that sort of core competency that you feel you need to own versus sort of an area where you might be willing to look to some sort of partnership? You know, some of the in-cabin experiences, some of what you might be referencing in terms of software expectations, but that's still gonna be regionally defined. We might decide, hypothetically, that in the U.S., we define more of that. In other areas of the world, in Asia, maybe we've got a partner that's helping us to define more of that. Sure. I think you've gotta look at it on a regional basis and make that determination of where you wanna be. I like the fact that we have the Advanced EV Development Center, not just for the customer, elements of it, but also the cost efficiency that comes with more vertical integration and more simultaneous engineering by having hardware, software, procurement, manufacturing all co-located. Maybe just to close on Model E, which is obviously, you know, since you've segmented it, it's been quite obvious to investors, sort of the loss there. Mm-hmm. You talked a little bit about this in the first quarter and sort of, not to, not to, you know, extrapolate, but how should we think about Model E sort of progressing through the year, maybe into next year? Then, tying back in one of the points we talked about earlier, which is if there is slower demand for EVs, at least in the U.S., and potentially less of a need to, from a regulatory perspective, to sell them, should not that in and of itself be a little bit of a tailwind to the loss, since there is sort of a variable loss right now for those vehicles? Yeah. Let me start at the beginning. We were very early to market with the Lightning and the Mach-E, and those are continuing to sell very well, particularly the Mach-E. We're still having increasing sales on the Mach-E. I just took delivery of one, by the way, on Friday, and I love it. It is bright red, black wheels, and it's really fun to drive. I highly recommend it. That product continues to do really well. Yes, there are losses there. Yes, we are continuing to work those. We're making some important changes, like we're changing where the battery's gonna be sourced to bring down the cost. With that, you have some launch expenses as you do it. These things take time to work out. Our Gen two, you know, kind of in three, we've got the European launches. We're now gonna be benefiting from the full-year effect of the Capri, the Explorer, the brand new Puma. That's in Europe. Those are better from a cost performance basis than the Model, than the Mach-E and the Lightning. The third, even better, more profitable, larger scale is what's gonna be coming out of the Advanced EV Development Center starting in 2027. We are spending money now on that. When I talked about the losses for this year, a billion dollars of that. Mm-hmm. Is spent on the new. Mm-hmm. That new is gonna have a nice return on investment. You need to kinda put that in context when you're thinking about the spend this year and its impact on the future to get us to more profitable, more affordable vehicles for our customers. I think that's really important. The other thing you talked about is you talked about the regulatory environment. It might shift or change. Yes, it might. I think this is where Ford's strategy of having the hybrids and the ICE and the powertrain is really powerful. Mm-hmm. Might we have more flexibility that we do not have to manage just to compliance, but we can maybe manage more to the real-time signals that we are seeing in the market from customers. Mm-hmm. And maybe be able to do a little bit more maneuvering that could be more profitable. Yes, I think that that's a real possible upside for us. Great. Maybe just one rapid fire, as we close, the over $4 billion of commitments that you've disclosed in the K to buy credits and fusions. To confirm, there are provisions that allow you not to have to. That's right. Complete those purposes if the regulatory. If the regs change. Okay. That's right. Perfect. Great. Sherry, thanks so much for joining us. Really appreciate the conversation. It was great to be with you. Thank you so much. Thanks. Okay. Take care. Thanks.