Risk Factors Update Summary

• Ford may enter into multi-year commitments with suppliers for raw materials and components, subjecting them to risks associated with lower future demand. This may result in significant costs.
• Ford's ability to offset significant labor cost increases due to new union contracts ratified in 2023 is crucial. Failure to do so could have a substantial adverse effect on the business.
• Lower-than-anticipated industrywide electric vehicle adoption rates have led to adjustments in spending, production, and product launches. This adjustment may result in substantial charges and adjustments to inventory.
• Ford's ability to attract, develop, and retain highly skilled talent is critical for success and competitiveness. Intense competition for talent may lead to increased costs and challenges in retaining skilled employees.
• Cybersecurity incidents and disruptions pose a significant risk to Ford's operational information systems, security, vehicles, and services. Despite significant resources devoted to cybersecurity, the risk of interruptions and compromises remains.
• Increased regulatory scrutiny on automakers regarding vehicle performance, system misuse, and compliance with laws and regulations may result in substantial compliance costs and uncertainties for Ford.
• Ford's ability to comply with evolving regulations, particularly concerning emissions standards and ZEV requirements, is crucial. Non-compliance could lead to financial implications and reputational harm.