Chief Financial Officer at Ford Motor
Yeah. It's going to be part for me to mention it right now, John, with a number. So I'm not going to put a number out there at this point, but I can talk about how we're thinking about it and the power in the leverage that we believe we have to pull. And it's a combination of both of the key things you talk about. One, there is one of the most exciting things for me about this business right now. And if you were to ask me five years ago that we would have this opportunity to expand our business and the way we do now with connectivity in the services and experiences to get higher margin, additional revenue on top of the hardware that we sell, it would have been hard for me to get my head around that 5 to 10 years ago. But I see the power in that. Now we're just getting started. So I think a big part of driving margins over time will be the connected vehicles, the services and experiences, the cars continuously getting better over time.
And you'll see that with the BEVs, of course, but you're also going to see that on our ICE vehicles. We have a million vehicles in the field today that are OTI capable, and we're continuing to improve our, what we call, our network architecture on the vehicle, so that there is more capability that we can provide over time. So you're going to see top line growth there and you're going to see growth there in the services and experiences that have a higher margin, typical SaaS type business.
Now let's step back into the other areas of the business, where I think there's opportunities. One of the things we're learning as we're looking at the BEV business and thinking about that as a mass scaling, low complexity business, there is a lot of goodness in there throughout the whole industrial system, a whole development process, what kind of cost structure we'd have from distribution et cetera, et cetera. And we're starting to see that. We're taking those learnings and we're starting to apply that to our ICE business as well, and there is opportunity there.
One of the things we looked at this year is, Kumar said, well, if a lower complexity is being received better by the consumer and it's easier from going online, in ordering your vehicle and it's a better experience, can we reduce the order complexity on our ICE vehicles? So he and his team had often looked at that, and starting this year, on appointing model year vehicles, our dealers now have, our customers as well and online, they have a 7%, 8% reduction on order book configurations in our ICE business across most of our vehicles, that's substantial. And you can take that, now, that 7%, 8% reduction in complexity and you start to bring that back through the whole system, you can see the power of that. You engineering less parts, your engineering less configurations, your testing less vehicles, et cetera, et cetera, et cetera. So there is in a tremendous amount of efficiency that will eventually work through our development process and our cost structure.
The other thing we've talked about already is lower stock and Kumar talked about having a third of our orders from customers online. We learn what turns faster, we learn what customers want, goes back to reducing complexity in order book configurations and that of course not having that stock in the field is an efficiency that we're going to start to see more of and continue through what we've experienced so far on that, the goodness of that. And I think that the other thing you'll see as we move forward with the ICE business is we'll be able to think about our investments differently, especially with the connected vehicles, and we'll be able to offer our consumers a newer experience with the vehicle without necessarily changing the sheet metal or having a complete freshening, where we would have invested. So we will be able to take our ICE business and really manage that as those vehicles start to unwind as a larger percentage of the industry as they start to decline, invest less, keep the product structure through our digital fresh links and through digital experiences and then generate more cash flow and higher margins as we move forward, not saying we're going to stop investing in our ICE business, but we can invest in less for say, a smarter way.
And then the other area that we're thinking through with our ICE business that has potential opportunity is the penetration of our service business. If we have a lower complexity product lineup, if we have a simpler product lineup, how can we leverage that to generate more service parts flow-through from a standpoint of capturing post warranty business? So improving our loyalty, especially with our ongoing customer relationship with those customers, where we're interacting with them through our connected services, can we increase our post warranty loyalty rate and, therefore, keep them in our ecosystem longer and grow our top line revenue through a total process of a lifetime revenue? So that's what we're doing on the ICE business and then of course, we've talked about what we're going to do on the BEV businesses, the scaling, we're going to look at, John, what we can do around, as Kumar said, leveraging the connectivity of the vehicle to lower not only warranty cost, but also saving in our assembly process and then of course distribution.
So I think there's a lot of different levers that we can pull. We're working through that. There's a lot of learnings coming out of the BEV that we can apply to the ICE, and we have this top line growth opportunity through connectivity. So I think those are the three things that we're going to lean into that we have given us confidence over time. We believe that we can continuously improve the margins in this business.