New Carnegie Classification recognizes Behrend as a ‘Higher Earnings' college
Just 10 percent of all U.S. colleges and universities received the 2025 designation, which measures graduates' earnings eight years after they enroll at a college. The designation, part of a new Student Access and Earnings Classification, is awarded by the American Council on Education and the Carnegie Foundation for the Advancement of Teaching; it also assessed student access at the institutions that were evaluated.
'This new designation reinforces what we consistently hear from our graduates, who find success and competitive compensation in their chosen careers,' Chancellor Ralph Ford said. 'That measure is important not only to our graduates, but to prospective students who are just beginning their college experience and want to be strategic with that investment.'
In February, Penn State Behrend and Penn State Harrisburg received the Carnegie Classification for 'Research Colleges and Universities,' a new designation for high-achieving research institutions that do not award Ph.D. degrees. To qualify, a college must produce at least $2.5 million in annual research and development spending.
At Behrend, the research enterprise now generates nearly $10 million in sponsored research every year. Highlights from the last year include:
• $6.5 million from the commonwealth's Redevelopment Assistance Capital Program to begin construction of the Center for Manufacturing Competitiveness, an industry-facing research facility that will feature specialized plastics, metal-casting and manufacturing labs.
• $4.4 million from the Department of Defense and the Institute for Advanced Composites Manufacturing Innovation to develop metals-based manufacturing programs.
• $2.5 million in federal funding for a battery-testing rig that will be used to study thermal runaway — a chain-reaction that can occur when lithium-ion batteries overheat.
'Research opportunities are a pillar of Penn State Behrend's 'Open Lab' approach to learning,' Ford said. 'For students — especially undergraduates — a research experience can be a differentiator. In the lab or in the field, students more fully understand the nature of their work, and they see firsthand how they can make a difference.'
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For those unable to listen to the live conference call, a replay will be available after the call through the archived webcast in the Events section of the StandardAero's investor relations website or by dialing (877) 660-6853 or (201) 612-7415. The access code for the replay is 13754729. The replay will be available until 11:59 PM ET on August 27, 2025. About StandardAero StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is an NYSE listed company under the ticker symbol SARO. For more information about StandardAero, go to Forward-Looking Statements This press release contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), and Section 27A of the Securities Act of 1933, as amended (the 'Securities Act'). In some cases, you can identify forward-looking statements by the words 'anticipate,' 'assume,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'foreseeable,' 'future,' 'intend,' 'may,' 'might,' 'objective,' 'ongoing,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'will,' or 'would' and/or the negative of these terms, or other comparable terminology intended to identify statements about the future. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations for the fiscal year ended December 31, 2025, the net impact from tariffs, financial condition, liquidity, prospects, growth, strategies, the industry in which we operate and other information that is not historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, among others: risks related to conditions that affect the commercial and business aviation industries; decreases in budget, spending or outsourcing by our military end-users; risks from any supply chain disruptions or loss of key suppliers; increased costs of labor, equipment, raw materials, freight and utilities due to inflation; future outbreaks and infectious diseases; risks related to competition in the market in which we participate; loss of an OEM authorization or license; risks related to a significant portion of our revenue being derived from a small number of customers; our ability to remediate effectively the material weaknesses identified in our internal control over financial reporting; our ability to respond to changes in GAAP; our or our third-party partners' failure to protect confidential information; data security incidents or disruptions to our IT systems and capabilities; our ability to comply with laws relating to the handling of information about individuals; changes to United States tariff and import/export regulations; failure to maintain our regulatory approvals; risks relating to our operations outside of North America; failure to comply with government procurement laws and regulations; any work stoppage, hiring, retention or succession issues with our senior management team and employees; any strains on our resources due to the requirements of being a public company; risks related to our indebtedness; our success at managing the risks of the foregoing, and the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the SEC. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. You should understand that it is not possible to predict or identify all such factors. We operate in a competitive and rapidly changing environment. New factors emerge from time to time, and it is not possible to predict the impact of all of these factors on our business, financial condition or results of operations. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives, plans or cost savings in any specified time frame or at all. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. We caution you not to place undue reliance on these forward-looking statements. All forward looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Forward-looking statements speak only as of the date of this press release. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Non-GAAP Financial Measures This press release includes 'non-GAAP financial measures,' which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States ('GAAP'), including Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA, and Free Cash Flow. We use these non-GAAP financial measures to evaluate our business operations. Certain of the non-GAAP financial measures presented in this press release are supplemental measures of our performance, in the case of Adjusted EBITDA and Adjusted EBITDA Margin, that we believe help investors understand our financial condition and operating results and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results 'through the eyes of management.' We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. We also present Net Debt to Adjusted EBITDA and Free Cash Flow, which are liquidity measures, that we believe are useful to investors because it is also used by our management for measuring our operating cash flow, liquidity and allocating resources. We believe it is important to measure the free cash flows we have generated from operations, after accounting for routine capital expenditures required to generate those cash flows. When read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, further adjusted for certain non-cash items that we may record each period, as well as non-recurring items such as acquisition costs, integration and severance costs, refinance fees, business transformation costs and other discrete expenses, when applicable. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important metrics for management and investors as they remove the impact of items that we do not believe are indicative of our core operating results or the overall health of our company and allows for consistent comparison of our operating results over time and relative to our peers. We define Net Debt to Adjusted EBITDA as long-term debt, less cash and cash equivalents divided by Adjusted EBITDA. We define free cash flow as cash from operating activities less capital expenditures. Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with GAAP. Readers should review the reconciliations of our non-GAAP financial measures to the corresponding GAAP measures included in this press release and should not rely on any single financial measure to evaluate our business. We have presented forward-looking statements regarding Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measure determined in accordance with GAAP. The determination of the amounts that are excluded from this non-GAAP financial measure is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period in reliance on the exception provided by item 10(e)(1)(i)(B) of Regulation S-K. We are unable to present a quantitative reconciliation of each forward-looking Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow to its most directly comparable forward looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measure without unreasonable effort or expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the company's future financial results. These non-GAAP financial measures are preliminary estimates and subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the company's actual results and preliminary financial data set forth above may be material. (unaudited) June 30, December 31. 2025 2024 ASSETS Current assets: Cash $ 91,513 $ 102,581 Accounts receivable (less allowance for expected credit losses of $15,020 and $15,455, respectively) 677,257 580,668 Contract assets, net 1,070,834 915,200 Inventories 851,597 847,018 Prepaid expenses and other current assets 56,759 29,707 Income tax receivable 21,054 9,960 Total current assets 2,769,014 2,485,134 Property, plant and equipment, net 575,560 568,607 Operating lease right of use asset, net 217,660 172,206 Customer relationships, net 962,913 1,004,701 Other intangible assets, net 268,275 291,487 Goodwill 1,684,287 1,685,970 Other assets 3,923 4,417 Deferred income tax assets 1,079 1,079 Total assets $ 6,482,711 $ 6,213,601 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 643,728 $ 645,701 Accrued expenses and other current liabilities 102,201 99,572 Accrued employee costs 72,876 79,134 Operating lease liabilities, current 19,777 17,663 Due to related parties 696 1,345 Contract liabilities 420,229 400,025 Income taxes payable, current 2,259 6,655 Long-term debt, current portion 23,461 23,449 Total current liabilities 1,285,227 1,273,544 Long-term debt 2,295,131 2,207,977 Operating lease liabilities, non-current 208,395 164,224 Deferred income tax liabilities 159,791 169,824 Other non-current liabilities 20,884 24,628 Total liabilities 3,969,428 3,840,197 Commitments and contingencies (Note 11) Stockholders' equity Common stock ($0.01 par value, 3,500,000,000 shares authorized; 334,470,264 and 334,461,630 shares issued and outstanding as of June 30, 2025 and December 31, 2024) 3,345 3,345 Preferred stock ($0.01 par value, 100,000,000 shares authorized; no shares were issued) — — Additional paid-in capital 3,950,677 3,944,802 Accumulated deficit (1,432,665 ) (1,563,321 ) Accumulated other comprehensive loss (8,074 ) (11,422 ) Total stockholders' equity 2,513,283 2,373,404 Total liabilities and stockholders' equity $ 6,482,711 $ 6,213,601 Expand STANDARDAERO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Six Months Ended June 30, 2025 2024 Operating activities Net income $ 130,656 $ 8,591 Adjustments to reconcile net loss from operations to net cash provided by operating activities: Depreciation and amortization 97,223 92,876 Amortization of deferred finance charges and discounts 3,288 6,745 Amortization of loss on derivative instruments — (303 ) Amortization of interest cap premiums 5,467 4,652 Payment of interest rate cap premiums (5,524 ) (4,534 ) Stock compensation expense 5,875 — Loss on debt extinguishment — 3,577 Loss (gain) from disposals, net 3,449 (132 ) Non-cash lease expense 866 468 Deferred income taxes (11,560 ) (6,858 ) Foreign exchange loss (gain) 431 (170 ) Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net (96,589 ) (16,955 ) Contract assets, net (155,634 ) (6,296 ) Inventories, net (4,579 ) (9,445 ) Prepaid expenses and other current assets (24,422 ) (7,096 ) Accounts payable, accrued expenses and other current liabilities 25,885 9,886 Contract liabilities 20,204 (78,919 ) Due to/from related parties (649 ) 1,225 Income taxes payable and receivable (15,490 ) (15,466 ) Net cash used in operating activities (21,103 ) (18,154 ) Investing activities Acquisitions, net of cash and other 1,254 — Purchase of property, plant and equipment (47,262 ) (45,101 ) Payments for purchase of intangible assets (30,000 ) (214 ) Proceeds from disposal of property, plant and equipment 3,637 539 Net cash used in investing activities (72,371 ) (44,776 ) Financing activities Proceeds from long-term debt 345,000 435,969 Repayment of long-term debt (261,785 ) (368,380 ) Payment of deferred financing charges — (392 ) Repayments of long-term agreements (1,501 ) (1,285 ) Net cash provided by financing activities 81,714 65,912 Effect of exchange rate changes on cash 692 (690 ) Net (decrease) increase in cash (11,068 ) 2,292 Cash at beginning of the period 102,581 57,982 Cash at end of the period $ 91,513 $ 60,274 Supplemental cash flow information: Supplemental disclosure of non-cash investing activities: Acquisition of property, plant and equipment, liability incurred, but not paid $ 839 $ 993 Acquisition of intangible assets, liability incurred but not paid — 261 Expand Selected financial information for each segment is as follows: _________________ (1) Other segment items for each reportable segment primarily includes cost of sales and other selling general and administrative expenses. (2) Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt. (3) Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of our CFM56 capabilities into Dallas, Texas. (4) Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs. (5) Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations. Expand _________________ (1) Other segment items for each reportable segment primarily includes cost of sales and other selling general and administrative expenses. (2) Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt. (3) Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas. (4) Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs. (5) Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations. Expand _________________ (1) Other segment items for each reportable segment primarily includes cost of sales and other selling general and administrative expenses. (2) Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt. (3) Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas. (4) Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs. (5) Represents professional fees related to business transformation, secondary offering costs and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations. Expand _________________ (1) Other segment items for each reportable segment primarily includes cost of sales and other selling general and administrative expenses. (2) Corporate primarily consists of costs related to executive and staff functions, including Information Technology, Human Resources, Legal, Finance, Marketing, Corporate Supply Chain and Corporate Engineering Services finance, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies, and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Corporate function also includes expenses associated with the Company's debt. (3) Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas. (4) Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs. (5) Represents quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, that are the result of other, non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations. Expand The following table presents a reconciliation of net income and net income margin to Adjusted EBITDA and Adjusted EBITDA Margin, respectively: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (in thousands, except percentages) Net income $ 67,713 $ 5,404 $ 130,656 $ 8,591 Income tax expense 24,022 20,967 46,211 37,879 Depreciation and amortization 48,547 45,499 97,223 92,876 Interest expense 43,835 78,051 87,626 155,599 Business transformation costs (LEAP and CFM) (1) 5,264 12,847 18,181 23,091 Refinancing costs — 655 — 4,938 Loss on debt extinguishment — — — 3,577 Non-cash stock compensation expense 3,830 — 5,875 — Integration costs and severance (2) 1,360 327 2,740 617 Secondary offering costs 3,860 — 3,860 — Other (3) 6,206 6,632 10,492 8,782 Adjusted EBITDA $ 204,637 $ 170,382 $ 402,864 $ 335,950 Revenue $ 1,528,943 $ 1,347,198 $ 2,964,531 $ 2,582,921 Net income margin 4.4 % 0.4 % 4.4 % 0.3 % Adjusted EBITDA Margin 13.4 % 12.6 % 13.6 % 13.0 % Expand _________________ (1) Represents new product industrialization costs with the business transformation of the LEAP 1A/1B engine line in San Antonio, Texas and the expansion of the Company's CFM56 capabilities into Dallas, Texas. (2) Represents integration costs incurred, including any facility or platform consolidation associated with the integration of an acquisition that does not meet capitalization criteria and severance related to reduction in workforce or acquisitions. Examples of integration costs may include lease breakage or run-off fees, consulting costs, demolition costs or training costs. (3) Represents other non-recurring costs including professional fees related to business transformation and quarterly management fees payable to Carlyle Investment Management L.L.C. and Beamer Investment Inc. under consulting services agreements, representation and warranty insurance costs associated with acquisitions, and other non-comparable events to measure operating performance as these events arise outside of the Company's ordinary course of continuing operations. Expand The following table presents a reconciliation of Debt to Net Debt and Net Debt to Adjusted EBITDA: The following table presents revenue by segment, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin: The following table presents a reconciliation of Cash Flow from Operations to Free Cash Flow:
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Ford Seeks a ‘Model T' Moment with New EV Platform. That's Easier Said Than Done.
Ford (F), which achieved scale with its Model T in the early days of the automotive industry, now sees a 'Model T' moment in its electric vehicle (EV) business, as it announced a new platform which CEO Jim Farley termed 'the most radical redesign of how we manufacture cars since the Model T.' The company is looking to build a $30,000 electric pickup truck, which would be available in showrooms in 2027. Ford announced a $5 billion investment toward the initiative and expects the new models to be profitable from the start. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service The event failed to move the needle significantly for Ford stock, as markets are no longer as enthusiastic about EV industry developments as they were a couple of years ago. In this article, we'll look at the challenges as Ford prepares for the next phase in its history with a mass market electric car. More News from Barchart Warren Buffett Warns Investing At 'Too-High Purchase Price' Even for 'an Excellent Company' Can Undo a Decade of Smart Investing Why Archer Aviation's (ACHR) Post-Earnings Tailspin Looks Like a Favorably Mispriced Opportunity BitMine Immersion Now Holds 1.15 Million Ethereum Tokens. Should You Buy BMNR Stock Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! What Made the Ford Model T Successful? Ford's Model T was introduced in 1908 and was one of the first mass-produced vehicles. Henry Ford wanted the model to be 'affordable, simple to operate, and durable,' and through its cost-efficient moving assembly line process, the company was able to sell the car for between $260 and $850 – a price that helped achieve the stated goal of building a 'universal car.' The model was also ahead of its time. When the Model T was launched, there were an estimated 250 automotive companies in the highly fragmented U.S. automotive market. The industry subsequently saw consolidation, and most companies went defunct. One of the famous quotes from Henry Ford relates to the Model T, about which he said, 'Any customer can have a car painted any color that he wants so long as it's black.' Between 1914 to 1925, the Model T was only offered in black, which Ford says was 'solely for efficiency and uniformity.' The automotive industry has come a long way since, and customers are now spoilt for choice, not only between cars running on gasoline but also across electric cars and hybrids. While Model T's runaway success was due to its affordable price tag and innovative features, the current EV industry is a different landscape altogether. Key Challenges That Ford's Low-Cost EV Platform Will Face One of the biggest challenges for Ford's new EV platform will come from Tesla (TSLA), which has commenced the production of its low-cost model but has delayed the ramp-up as it prioritizes deliveries of other models before the EV tax credits expire. The second risk could come from Chinese automakers. While the U.S. market is currently essentially closed off to Chinese automakers, they are giving Western automakers a run for their money in China, as well as other markets where tariff barriers are not as prohibitive. Notably, Ford has publicly praised Chinese automakers and believes that it needs to compete with them to be successful. Finally, Ford hasn't really won any laurels for quality in recent quarters and has been plagued by recurring recalls and warranty costs. During their Q2 2025 earnings call, Ford COO Kumar Galhotra said, 'Warranty is the largest component of our competitive cost gap.' He, however, added, 'This is a major cost opportunity for us.' While Ford expects warranty costs to come down in the coming years, I would like to see real results, as these issues have simply been too frequent for comfort. Can Ford Deliver the Next Model T? Ford will eventually need to execute well, which is a risk to watch out for. Selling a $30,000 electric pickup profitably is easier said than done, and even Tesla wasn't able to sell its Cybertruck pickup for the kind of prices it announced at launch. As for the electric variant of the Model T, I would argue that Tesla Model 3 and cost-effective EVs from Chinese automakers, especially BYD (BYDDY), already have the crown. Along with Ford's ability to come up with an 'electrified Model T' equivalent, there is also a question mark over the demand for electric cars in the U.S., as President Donald Trump has done away with his predecessor's EV-friendly policies. Farley did admit that the company is taking a risk and there is no certainty about its success. He, however, emphasized, 'We're taking the fight to the competition, including the Chinese, with our teams across the United States: designers in California, engineers from Michigan, American workers right here in Louisville. For too long, legacy automakers played it safe." As things stand currently, Ford's EV business continues to lose billions of dollars every year and has accumulated cumulative losses of $12 billion over the last 2.5 years, which have eaten into otherwise strong profits from the legacy business. Overall, I won't jump to buy more Ford shares as yet, as the company hasn't really impressed with execution and quality over the last couple of years. On the date of publication, Mohit Oberoi had a position in: F, TSLA. All information and data in this article is solely for informational purposes. This article was originally published on
