Ford and Volkswagen to expand their global collaboration to advance autonomous driving, electrification and better serve customers DISCLAIMER – Ford Motor Company Statements included or incorporated by reference herein may constitute “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. 3 Ford and Volkswagen extend global alliance, Volkswagen simultaneously invests in Argo AI ANNOUNCED 2019 COMMERCIAL VAN AND PICKUP VOLKSWAGEN TO SUPPLY MEB PLATFORM TO FORD FULLY ELECTRIC VEHICLES EQUAL SHAREHOLDER WITH FORD; TRANSACTION REPRESENTS MORE THAN $7B VALUATION NEW COLLABORATION VOLKSWAGEN MAKES AUTONOMOUS DRIVING INVESTMENT 4 Alliance delivers significant strategic and economic benefits LEADING POSITIONS BROAD GEOGRAPHIC FOOTPRINT COST BENEFITS Alliance will be a leader in Light Commercial Vehicles and Medium Pickup Trucks Leading positions around the globe Shared investment and R&D spend, leading scale in areas of collaboration Significant economies of scale Automakers can serve global markets seamlessly Several hundred million dollars in joint synergies at peak cycle TECH AND CAPABILITY ACCESS Joint programs increase funding for next-gen technology and product enhancements Superior engineering power 5 Alliance strengthens complementary competitiveness for both OEMs Alliance of two key players 2018 vehicle1 sales (in mn units) 16.7 10.6 10.1 7.3 16.7mn Cars1 sold in 2018 Source: IHS Note: 1 Light vehicles; 2 As per FY2018; 7.0 61 Ford Manufacturing 5.2 5.1 123 sites2 3.4 3.1 2.8 No cross-ownership VW Manufacturing sites2 6 Autonomous vehicle development challenges 1 Development costs 2 Lack of global standards 3 High-quality sensing Collaboration positions OEMs to overcome autonomous vehicle development challenges Fleet management 4 Customer demand 5 Talent pool and intellectual capital 6 7 Volkswagen Mobility Ford AV LLC Leading SDS technology Best global talent pool Region-specific market solutions Largest OEM customers Unique AV Products Unique AV Products External Partners \ Customers External Partners \ Customers Collaboration with Argo AI aims for industry-leading Self-Driving System platform 8 Argo AI investment $500 MILLION IN CASH TO FORD IN EXCHANGE FOR ARGO AI SHARES $1 BILLION FUNDING COMMITMENT TO ARGO AI CONTRIBUTES $1.6 BILLION AUTONOMOUS INTELLIGENT DRIVING COMPANY Volkswagen will contribute its Autonomous Intelligent Driving company, funding to Argo AI and cash to Ford in exchange for an ownership stake in Argo AI equal to Ford’s position *Funding amounts based on $4.05 billion pre-money value for Argo AI 9 New collaboration to deliver significant global scale across the mobility industry SDS platform OEMs Leading SDS technology Global scale and reach: leading presence in Europe Best global talent pool: strengthening with 200+ AID employees Region-specific market solutions AV vehicles, hardware and infrastructure Largest OEM customers + technology validation OEM access and support for vehicle integration Incremental funding commitments Regulatory expertise and social acceptance Financial strength Commitment to electrification Extensive dealer network Focus and track-record on safety Investment reduces the time to market and significantly expands the market potential of Argo AI 10 EV collaboration positions companies to capitalize on technology paradigm shift • Targets of Paris Climate Agreement set regulatory framework for regions / countries • Existing fleet CO2 neutrality by 2050 • From Tank-to-Wheel to Lifecycle ~10-15% • Achieve significant share 10-20% “RATHER EARLY” “RATHER LATE” 2040 10-25% for “future technologies” (BEV, FCEV, PHEV) ~60% ~70% • Align platform strategy to >85% the future’s technology portfolio • Assess further measures BEV FCEV PHEV CONVENTIONAL ICE to achieve CO2 neutrality Product portfolio shift to electrified vehicles 11 BEV drive technology demands the least primary energy Primary energy demand in Wh/km for lifecycle Fossil Regenerative 1000 # 500 0 Fuel* Fuel Hybrid (Gasoline)* Fuel (eFuel) Gas (eCNG) Fuel cell (eH2) Plug-in hybrid (eFuel, Gasoline) Battery (BEV) CO2 and energy balance over lifecycle Vehicle development Vehicle production Example: A-Segment 200,000 km, CO2 and energy balance over lifecycle of vehicle and fuel/alternative * Not comparable on an energy use basis, not CO 2 neutral Fuel production Fuel consumption Recycling 12 E-Mobility will become the new business model of Volkswagen Broad product portfolio Transformation CO2-Emissions CO2 neutral cars “Zero Emission” in the existing fleet New Business Model BEV 2020 2050 13 Long wheelbase short overhang No center tunnel Spacious interior for driver and passengers Superior customer experience Big Wheels Volkswagen invested over $7bn to create a unique E-platform New Design Exceptional versatility Strong cost competitiveness Trunk volume ~ICE Central computing unit Various bodystyles Rear-wheel and fourwheel drive Enables high-volume zero-emission vehicles 14 MEB platform provides significant scale and cost advantages 600K ~15mn 600,000 platforms and associated components delivered by Volkswagen Represents Volkswagen annual volume $10-20bn of future sales over six years 2020 MEB platform contract 2023 Platform (“Skateboard”) 2025 2028 Top Hat Development Manufacturing and sale 15 The Argo AI difference Self-Driving Platform Designed for Scale Multi-city development approach Naturalistic driving Expertise and experience matters Investing for the future Development of production-quality code from outset Collaboration with automaker partners for fully-integrated, safe vehicles Collection of a wide range of local road infrastructure, driving behavior and traffic law data Accelerates time of learning for self-driving system Human-like driving characteristics for comfortable ride experience Safer performance due to blending in more naturally with local traffic behavior Engineering team consists of 70% advanced degrees and 10 years field experience average Leadership and management comprised of industry veterans with commercialization experience Creation of Carnegie Mellon Argo AI Center for Autonomous Vehicle Research In-house LiDAR development to push envelope of sensing capabilities 16 Multi-city development approach Currently testing in five cities; expanding to one more this year Miami Washington D.C. Pittsburgh Detroit Palo Alto Expanding to Europe next year Mapping: Diverse library of experiences allows for accelerated expansion into new cities The Advantages: Driving style: Ability to handle varied road actors and local driving behavior Safety: Diversity accelerates training of detection systems, prediction models and motion planning 17 Expertise and experience matters High quality, global workforce that promotes a culture of safety and transparency PhD or MS 70% Average Argo AI engineer has over 10 years of field experience Vast majority of Argo AI engineers have Advanced Degrees BS 30% 700+ 500 Approximately 700 employees globally with the addition of AID employees 18 Session - Ms Ford and Volkswagen collaboration creates global strategy to win in AVs, EVs and select vehicles 1 2 3 4 5 Global collaboration to expand to AV and EV, no cross-ownership Working toward AV leadership by strengthening Argo AI at more than $7bn valuation MEB platform aims to establish itself as an industry leader, win-win contract Collaboration to produce AVs, EVs, LCVs and pickups yielding synergies of several hundred million dollars / euros for each company at peak cycle Better addresses customer needs Creates new revenue opportunities Shared investment costs while maintaining independent companies and unique competitive advantages 20