>> melissa, jim farley was talking, a fire up did side chat with him and john lawler talking with the analysts there, saying this is where the company is right now, basically the same message, where they say, look we're at about a $7 or $8 billion cost disadvantage, we think at a minimum we can address it almost immediately things like warranty costs, as well as the efficiency sits it's not going to happen overnight, but there is the plan from jim farley then the question of whether or not when it comes to electric vehicles. lots of news on that front today. that's going to halted through next week. if you're a ford investor, the good news is you're hope form what they say comes to fruition if they have found it and can address it, then they'll start up products potentially by the end of next week, if not the following week remember, evs are the future for ford yes, i knowle money comes from the internal combustion business, but we've got to be bigger and better. by the end of this year today they will move toward nongauche ev pricing no haggling with the dealer. when you look at ford

well, jim farley summed up very clearly.release that they announced within the last hour, we left about $2 billion in profits on the table that were within our control and we're going to correct that with improved execution and performance. the words of jim farley. that was in the release. he had similar words on the conference call. by the way, the cfo talking right now equally sobering in his assessment what happened? higher costs in terms of execution. they left about a billion dollars on the table in volumes that were not delivered. 100,000 vehicles, and a billion dollars in costs paying more for things like premium freight, as well as chip shortages hurting the company. john lawler saying we need to improve quality and lower the cost now so it gets to the 2023 guidance. quickly, melissa, profit of 9 to $11 billion. basically going to come in line with what they turned this year. and free cash flow approximately 6% they are issuing a 65 cents a share one-time supplemental dividend for the modernization of the rivian shar

it's the cost component front and center for ceo jim farley. >> we know what we have to go after.ou all the metrics and all the specific gaps we see but whether it's absenteeism and sequencing systems, the number of wiring harnesses we have, we know what it is. some things we can do quicklily simplifying product and make customer-facing choices simpler and lowers take a lot more time. >> bottom line, costs are going to be a big part of cutting what they need to cut in the weeks and months to come as for electric vehicles, which has been a focus for jim farley, they'll be quadrupling their production this year, but they're still not turning a profit overall on their electric vehicles though farley believes that can change and they won't have to cut prices >> we can get there, absolutely. first of all,there are two models we didn't reprice because we were careful and thoughtful and i think correct in the end for electrifying the pickup truck and a van, both markets we dominate in. we have not adjusted to that price because we have more than enough demand. >> by the way, can you hear

the ford motor company was at the announcement today in romulus, michigan he was asked, look is jim farley your man is he still the guy to fix this company after what happened in the fourth quarter he said yeah i think he is doing a fantastic job, and that he is focused, jim farley is focused on eliminating the inefficiencies that came out and were behind the company falling short of its profit targets for all of 2022. that's the story with ford, melissa. you see the shares getting a little bit of a pop today. >> roughly, phil, what is the differential in costs? will it cost that much less in terms of what they will make the battery for and what they give up on range? >> yeah. well, lfp batteries are about 15% less to produce than ncm, the other technology, the current makeup of the batteries that ford uses right now overall, lfp batteries have a range that's probably 15% less than the current makeup or mcn batteries. but let's talk about this, melissa. a lot of people sit there and say well, i want all 300 miles of range, if that's what a particular vehicle's range is. the reality is not

this has ford motors expectations of the sort of this year, here to react jim farley forbes presidentceo. welcome, guys. >> glad to be here with you g guys. >> brian: jim, first off your reaction to the jobs number and the overall health of our economy. does it surprise you question what >> not really for our industry, forbes is the number one employer in the auto industry but we added 20,000 jobs in the last two years and we will add some more. so for us we are expanding, we are growing and that fits with what i see. inflation wage, how do we handle that superhot job market and people making a lot more? inflation. >> ainsley: electric via vehicles and expectations for manufacturing and selling truck and i know lightning is very big. >> we are number two live sales above tesla, the most popular tp a ev as well. but to your point, we have supply chain problems. still a little lumpy. in the supply chain is behind us. that is not what we are seeing. we have 100,000 disruption in december. that is honest and we can manage the supply chain better but we need to onshore chips and raw materi

>> jimmy: hey guys, i'm here at rpm raceway in new jersey, and i'm joined by the boss at ford, jim farley formula 1 drivers in the world, sergio "checo" perez >> huge. >> jimmy: i'm a little nervous but before we get into that, i want to talk about ford coming back into formula 1 racing >> we haven't been in formula 1 in 20 years, but -- and we're going back and racing's gotten huge formula 1's gotten huge in the u.s., and we want to use it to promote our electric vehicles, so it's -- it makes sense for us >> jimmy: and you've got a good team too >> well, we're going to join red bull like, they've been world champion for a couple times. and -- >> jimmy: you got red bull you got a good team. >> i'd -- oh, yeah it's perfect for us. >> jimmy: of course, you would do this. >> you know, 'cause some ceos are into golf or tennis. >> jimmy: yeah, yeah >> or yachting but i like racing. [ laughter ] yeah >> jimmy: yeah now jim, you were a racer yourself [ applause ] last year, i got to visit you in detroit >> yeah. >> jimmy: you took me out for a spin it was so much fun >> yeah. >> jimmy: i loved e

lots to discuss about this announcement and this agreement with catl with ford ceo jim fa farley, he up next hour on "power lunch," with he will talk to him about this investment and really the elephant that's in the room, kelly, which is how confident can you be that a partnership with a chinese ev battery firm is not going to face some resistance in washington given the environment that we are in right now? >> exactly. >> we will talk with jim farley at 2:30. >>> ford shares just under 2% gain >>> still ahead forget a four day workweek or unlimited vacation days as an incentive to get workers, a report says there is a systemic is shift working that will make the labor market more challenging. >>> headlines out of washington, john kirby of the national security council holding a news conference about the downing of that fourth high altitude object over the weekend says the white house is assessing what it was but the u.s. determined china does have a high altitude balloon program for intelligence dwaergt kirby went on to say the u.s. is not flying balloons or any other craft in chin

the ceo jim farley spoke to phil lebeau last night. phil, what did he have to say? of frustration we heard from jim during the interview it is clear. he realizes that the problems at ford are substantial we will not go over the numbers from the fourth quarter. the main thing to tomfocus on i the miss comes to this $1 billion of lost volume. vehicles, 100,000 of which, the did not make another $1 billion was due to higher than expected costs in the fourth quarter here is farley talking about the cost issues facing ford. >> we lost about 100,000 units of production. that is very material. came in late in the quarter. most of it is chips. some new supply issues you could say that is bad luck for ford that is not how we see it. we can manage our supply chain in different ways. we were dependent on broker chips and things like that >> okay. that is what happened in the fourth quarter the question now is what does farley and his team do to fix the situation at ford? it sounds trite, but improve quality. they have real issues there. gre greater efficiency in the manufactur

just two weeks ago ford ceo jim farley announced the company lost about $2 billion over the previousave to make up for that shortfall somewhere so who cares if it comes at the expense of american independence? of course michigan governor confess of the chance to take a victory lap returning her state over to the ccp. >> we are coming together to celebrate a big won for team michigan. we are to make vehicles top to bottom right here in the great state of michigan and i'm grateful to ford. >> laura: if someone cared about paying good paying jobs should be pushing for more drilling and more fracking. which would actually make a stronger than and not more dependent on china. independent energy analysts who tracks mineral markets does not seem concerned with what this means for american markets. instead he took a shot, claiming that he would just throwing some red meat. red meat? fox exclusively reported today that the ceo of contemporary technology, the chinese company that's partnering with ford is tied directly to the ccp so-called united front influence campaign. but of course don't a

speaking to cnbc, jim farley spoke out. >> this is a wholly owned subsidiary of ford it is our investment that is as simple as it needs to be based on that, whether it is in review, it is based on our i investment >> it is clear from this, this is a good example of a company that is betting big on the u.s although they are an american automaker and reducing the size of the footprint in europe cutting 3,800 engineering and administration jobs on the continent and spreading out to factories. they want to focus more and invest more in the electric vehicle future that is coming at the expense of jobs, specifically in europe. >> it is a good proxy for the auto sector. they are trying to streamline and take out costs because of how costly the ev investment is. you look at ford and the other piece to the story and alongside the job cuts in europe is the collaboration they have announced with the chinese supplier for this new battery plant in michigan. the u.s., we have seen companies there, automakers take advantage of president biden's incentives around electric vehicles bringing more productio

jim farley left $2 billion on the table. >> easy come, easy go. $2 million matters, maybe not to muskbut to farley. >> well, it's very difficult to fire a lot of people you got internal combustion, and you've got ev in the same roof it's just -- >> which would you rather own, jim, tesla or ford, if you had to decide? >> now tesla >> what was that >> now tesla my travel trust owns ford. look, that was a really bad miss and jim farley has to make this quarter. >> we have the music up, but he said tesla over ford and gm. >> look, tesla's got no more insider selling. i thought that was good. >> it is good. >> and ron's going to come on tomorrow and says it's worth a thousand tomorrow, you'll be asking me, wow, what do you think >> we'll get cramer's "mad dash," countdown to the opening bell lot more to get to, including some of these research calls futures remain weak as we have elevated yields today. "squawk on the street" is back after a break. what's this, a hospital bill? mm-hmm. for 1,100 bucks? ga-a-a-ap! looks like your wallet may need a sling too. tell me about it. did that goat s

giving a presentation today, a fireside chat if you will at wolf research and the research is how jim farleyn shy of their own guidance for all of 2022, in terms of what they plan to earn. he said today, look we're 7 to $8 billion cost wise above our competitors, 3 to 4 billion of that comes from materials, complexity of the entire supply chain and the other 3 billion, that's on us that's structural and engineering issues that need to be resolved and they are front and center for jim farley. he said this is about redefining what we do with the 120-year-old part of the company. let's be clear, he is not talking about the future with evs. he's talking about redefining the ford that you and i grew up with, that everybody knows about. when you talk about the ev part of the business. he spent a long time today talking about the fact they do believe they can get to their target of 8% ev margins by 2026 he said i'm surprised we're number two in terms of ev sales at this point. did i expect it? no but this is not enough he said today they're going to move towards nonany -negotiable pricing of evs an

i'll bank with jim farley as i did with my charitable trust at the annual club meeting and i'll say you can, too jim, your feet are to the fire terry in washington, terry >> caller: hello, jim. >> terry, how are you? >> caller: i have a question and stock opinion. >> okay. >> caller: you always instruct us to do our homework before investing and i'm doing my due diligence in joining the club but want to know past performance specifically how it did in 2022 a down year for the averages and also, where can i find a list of the stocks in the trust and my stock i'm calling about -- >> you have to go to cnbc -- all of that is at cnbc.com all of what you said is at cnbc.com that's what i'll drive you toward they make indispensable equipment the size of a bus, actually, to be able to make it so you can have great semi conductors at the highest end and i like the stock let's go to folnetti in new york. >> caller: jimbo, boo-yah. >> boo-yah, what's up? >> caller: i appreciate you taking my call shoutout to my older brother for introducing me to your show five years ago and congratulate my baby s

and jim farley did leave $2 billion on the table i made it clear my charitable trust will give ford the boot this quarter because farley says they must do this quarter. i agree. if they don't, it has to go. i made that point in this really terrific investing club meeting this saturday. you can go replay but i really am putting the feet to the fire. you know, it's time. it's time that ford got it better you know it and i know it and otherwise, it's time to go all right. my view is propal. t -- powell. the soft landing strengthened not got weaker and beat on the top and bottom lines last week but inventory remains high is that worrisome? is the stock left out in the cold or headed up? i got the ceo. >>> then is the rally and s&p going to run out of steam? we'll go off the charts and find out and can the bull market with the ad sector i like so much continue in 2023 we'll go to the largest seed and crop protection company. we'll speak with the ceo "mad money" is back after the break. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet crame

investment shares moved up 2.5% right now joining us to talk more about it is the company's ceo jim farleylly, i this jim is not quite ready yet. so let me outline the parameters of this agreement between ford and catl and why it is getting a lot of attention for ford, this deal makes sense because it will be the fourth battery plant that it opens here in the united states it will be built in central michigan, opens in 2026. i'm told jim is available. jim, thank you for joining us from michigan. let's get to the elephant in the room on paper this makes sense, but you know there is more than a few people, given the tensions with china and the united states right now, who are wondering if this plant is going to fly or if it face resistance in washington >> hi, phil. and thanks for the opportunity look, this plant is a wholly owned subsidiary of ford we run the plant and it is our investment, so that's as simple as it needs to be. and based on that, you know, whether it is review or whatever, based on our investment and our wholly owned subsidiary, we don't expect any issues >> you will be li

the ceo, jim farley, didn't rule out any more layoffs to preserve cash and cut down on costs, but he'snt the price of the mustang mach e to keep up with tesla, but also do you think it's just a ford issue? because gm, general motors, had a fantastic quarter. i mean, those are huge numbers and guidance went up for this year. tesla did the the same thing. stuart: real fast, starbucks. they reported their -- did they have a problem in china? susan: yeah. this is what we call china cratering, sales down 28% there. and apparently it's going to go negative for this quarter. so remember that china was their second largest market. they were building a restaurant there every 15 hours, and especially with the china covid lockdowns the last three years and, you know, the snags that we've seen there, they're saying that's going to go negative, actually be a drag on the balance sheet. but still, it was a record sales quarter because of the strength in the u.s. market. stuart: real fast, can anybody get on these calls? susan: yes, anybody can get on these calls. stuart: you've just got to know the n

ceo jim farley says the employee s need clear goals, better performance metrics, and also ford announcedling off the majority of their rivian stake which is that electric tesla competitor and they are taking a $7 billion- plus write down on that. ashley: interesting. all right let's talk about oil this morning, susan. russia is saying they are going to cut their output by about half a million barrels a day and how are the stocks reacting? >> well look at this , they're up probably one of the only sectors that it will be up today at least in the opening minutes, so as a result, russia cutting oil output. oil prices are up over 2% this morning, and that's helping lift the oil majors so take a look at the chevron, exxon, and occidental and also i was reading analyst reports they are talking about china's reopening that will add upward pressure on oil prices so you have a drain ing of supply with russia cutting, also you have more usage and demand up that could be higher oil prices. ashley: interesting. let's take a look at paypal. i was reading about this their ceo is going to retire at the

you can speculate that ceo jim farley will turn it around 14 smackers. i think i can take the pain.ewhere. i promise to try to find it just for you. right here on "mad money." i'm jim cramer signing off from beautiful miami. thank you for having me. and i will see you tomorrow! [ cheers and applause ♪ ♪ ♪ narrator: tonight, emma grede, founder and ceo of smash-hit apparel brand good americanng partn, returns to the tank. it's not quite growing at the speed that i think it should. i see a whole bunch of problems. you're selling yourself out of business. "this is bad." i'll do that deal. i obviously would not want to go through that pain again. but i felt like this is my purpose. you are badass women. who's ready to bring home the bacon? -whoa! -ah! -oh! -oh, my gosh. [ laughter ] ♪♪

ford ceo jim farley is sounding the alarm on that. >> even if the raw materials are secured outside china>> china owns a small but growing percentage of u.s. farmland, and concerns over tiktok still because users here in the united states of that popular app could be handing over their data to china by way of the chinese parent company of tiktok, bite dance. john. >> john: grady trimble, thank you. gillian. >> gillian: breaking a moment ago in california. a sheriff says they have arrested two suspects for the heinous cartel style murders of six at a california home last month. it turned out to be a growing gang war between two rival factions. >> in the beginning i mentioned it was a cartel-like shooting and as you can imagine, this is what it appears to be. investigation began to tighten from all across the state of california, all the way down into the central valley and we quickly learned it was right here at home. rivalry gangs, we have all heard of many, many times. the two members of the perez family, the victims' family, were well-known validated sernos gang members in the down of g

earlier on "power lunch," the ceo, jim farley, discussed how this deal will help make evs more profitablefor the consumer >> we're scaling up to 600,000 units by the end of this year, and these batteries are less expensive, as you said, for the consumer they're also better business for us, and they'll help us get to that 8% road map for profitable evs. you know, scaling evs is great, but you have to make money on them >> phil lebeau joins us. phil, how does this fit into ford's ev strategy and what's new about it >> well, what's new about it is that lfp batteries, and that stands for lithium iron phosphate, that's the battery composition there. that's different than what they currently use, which is nickel, cobalt, manganese, and those are more expensive elements to have within a battery pack. lfp batteries, they're cheaper to produce they're a lower cost so you can bring down the cost of the ev that you're ultimately selling with that battery pack, and while the range is a little bit less, it's not a huge dropoff. so, for many people, lfp makes more sense in the long run to buy, and if y

just two weeks ago, ford ceod c jim farley announced the company lost aboutjirley two billion dollarsthe previous year. got to make upevious yr. for that i shortfall somewhere. so who cares if it comes at the expense of american dependance? and of course, michiganchigan governor gretchen witless wittmer couldn't pass up the chance to take a victory lap over turning her state over. to the ccp. >> we are coming together w to celebrate a big win for michigan. bo're going to make electricwe e vehicles top to bottom righttt here in the great state of michigan. state of michiga >>and i am grateful to ford. >> l but if someone really cared drilling and m good paying jobs ,she'd be pushing tonight for more drilling and more fracking sthich would actually make us stronger then and not more depend on china. chris bériot, an independents energy analyst who tracks mineral markets, he doesn't seem concernedalnot with what te means for american markets.ts t instead, he tookoo a shot at junkins move, claiming that he was just throwing some redd met to his base. red meat? well, fox exclusively report

i think she has more gravitas than anybody i like the stock very much i know that jim farley at ford to say that right now i like tesla more than ford, but there is an element to tesla ask that car that sounds terrific there are a lot of good articles this weekend about why, in the end, why germany's not doing more and the implication is because china is such a huge market for german cars, and china is aligned with russia what a damning, damning story about the intentions of germany. >> there's a lot of ukraine-china headlines. one is the idea that some of these european companies might offer security guarantees for zelenskyy to participate in some kind of talk biden has said, ruling out f-16s for now. >> well, because they can fly over russia. >> macron's going to go to china in april >> that will be interesting. macron's been a pretty honest broker of things, i think. obviously, we've not allowed -- air environment has not allowed drones, but russia is using iranian drones we've got -- where's reagan? we've got an axis of evil here he made that comment at the beginning of the end o

by the way, just so we know, jim farley, ceo of ford, was not happy with my comments, because he -- wello when the big game comes, you annihilate those who have sided with musk. i don't know about musk himself. but the reason i think it can is because they raised prices in china. now, he does do kind of a surge pricing, like uber, but not lyft, because no one takes lyft, and david, have you noticed that he raises prices, lowered prices, don't you think if you bought it the week before a price increase, you feel great, but if you bought it during the price increase, you're a loser how does that work >> i don't know how that works i agree with you, jim, you're going to not be happy if he cuts prices as sharply as he did not that long ago, and you bought one a week before. you need some sort of price guarantee, don't you >> yes, you do >> or look ahead within a certain amount of time >> you're right. is there a price guarantee for the people who bought salesforce.com yesterday at $173 and what the heck is going on there? did an activist declare victory, just didn't call in? >> listen, they'

. >> he didn't throw jim under the bus, so to speak, farley under the bus. >> not at all.have limited attention span and resources. so made some trimming around the edges. the way the market views these stocks is, look, you have kind of a core business that's no growth or worse, and maybe at a bad point in the cycle and you're starting to see a little wear and tear on consumer credit worthiness with regard to auto finance. on the other side they're doing what they need to do on evs it's still something you can't bet on is going to succeed at scale. so i think that's where almost everybody is then you have the tesla changing the prices all the time, and dialing it up. i wonder about that in a sense -- >> they've got dynamic pricing. >> dynamic pricing, but don't all automakers they just don't change the list price. they change the incentive, tell the dealers go harder or sorter. >> tesla doesn't have a dealer network really. >> exactly so you see it. it's just more visible so you're responding to short-term market signals and supply and demand. >> a great note earlier in th