James D. Farley
President and Chief Executive Officer at Ford Motor
Thanks, Lynn. Hello, everyone. The Ford team delivered a very solid second quarter in a challenging environment where we saw supply chain disruptions, a lot of new economic headwinds and uncertainty as a whole. Importantly, we achieved these results as we advance the Ford+ plan, which is the biggest opportunity to create value at Ford since we scaled the Model T. And at the core of Ford+ are three fundamental promises to our customers: distinctive and breakthrough products and experiences; and always on relationship with Ford every day, every hour, every minute; and ever-improving post-purchase user experiences powered by software.
Today, I'll give you an update on Ford+ and the early results of our decisions to reorganize the company into three distinct segments: Model e, Ford Blue and Ford Pro. Now let me start with the progress we're making to lead the electric vehicle and digital revolution. What's lost in the industry's arm race of claims regarding capital invested, the number of top hats we all have, the promises of future leadership is one fundamental question: who is and will be the best position to design truly distinctive and appealing products that people actually love? That's the question. Now we've been overwhelmed with the demand for our first-generation EVs, the Mustang Mach-E, the Lightning and the E-Transit.
These products are in the market now, and we have strong multiyear order banks. We're selling them as fast as we can make them. And you can't say that about many of the EVs coming to market now. We believe that these great new products will enable us to grab an outsized share of the rapidly growing EV market, combined with our healthy and vibrant shares of our ICE and growing hybrid markets. This month, we expect to produce 14,000 EVs globally. That's significantly higher than just a few months ago, and we have a clear path to reach a run rate of 60,000 EVs by the end of next year. And that will lead to a foundation to two million by late 2026.
In fact, our anticipated growth rate in EVs through 2026 is more than twice what we expect for the global EV industry in total. Now securing the raw materials to produce batteries at scale is critical to our plan. It's estimated that, at best, 50% of all raw materials required to meet the combined announced targets for all EV OEMs is actually available, 50%. And this is why speed to securing supply is so critical and strategic, so is diversifying our battery chemistries to increase our flexibility, supply and profit and to support different customer use cases. Last week, we announced a series of MOUs and agreements to fulfill our ambition -- ambitious needs that I covered, and we are working to complete definitive agreements where necessary.
Our Model e team moved quickly to capture these opportunities. To summarize, we've added battery chemistries and secure contracts, delivering 60 gigawatt hours of annual battery capacity, which will help us support fully the 600,000 units of that 2023 run rate of capacity. We now have lithium-ion phosphate, or LFP, battery packs coming for the Mach-E sold in North America next year and for Lightning in early 2024, creating more capacity for these high-demand products. We secured 70% of the battery capacity needed to support two million units by the end of 2026, and we struck a new deal with CATL on strategic cooperation for global battery supplies as well as deals for direct sourcing of critical battery raw materials in the U.S., Australia, Indonesia and more locations.
And we have a plan to localize 40-gigawatt hours per year LFP capacity in North America by 2026. These deals are a strong start as we fortify our EV supply chain that's aligned with our sustainability and human rights principles. Now let's talk about the progress we're making in building out and always on relationship with customers and that ever-improving user experience enabled by software after the customer buys a vehicle. Now along with product execution, these are really the relevant sustainable advantages we see to create, in today's hypercompetitive market, a difference where the real competition is not legacy OEMs, but pure-play EV companies, including emerging Chinese players.
For example, more than 55,000 Ford customers have already driven nearly 10 million miles with BlueCruise, our hands-free L2 system. That's just one year after the capacity was launched, and we started OTA-ing this to our vehicles. We're using the data we get through BlueCruise to continue to improve the customer experience. And as it happens, you can imagine a significant ADAS revenue and profit stream being created by giving customers the ability to work, watch a film or even take a nap during a long trip in their Ford. While the financial benefits of ADAS are clear, as is our Ford Pro services stack, they're relatively small now, but we're rapidly increasing the number of digital vehicles on the road as well as attach rates of the enabling services.
And over time, much of the SaaS revenue will be deferred on our balance sheet, providing an annuity-like revenue stream that is highly accretive, something this company and this industry has never seen. Now before I turn to Ford Blue, let me talk briefly about our connected EV dealer model in the U.S. Changes in the market have compelled Ford and our dealers to revisit how customers shop, buy and own, and how they will do this going forward. We're moving fast as the transition to these digital EV platforms allows us to help our dealers provide better customer ownership experience post purchase, and in turn, enables them to expand the revenue and profit pools, expanding and improving their returns.
We're working with our dealers to create a retail model better than what's offered by any traditional OEM and better than the startups who are now scrambling to develop sales and service networks to support customers in an attempt to sustain and grow share in UIO. In the U.S. alone, if we can help our dealers increase service loyalty by just 20 points, that's $2.4 billion incremental revenue for them every year. Now since March, we've conducted more than 30 workshops in the U.S. and Canada, reaching hundreds of our dealers.
I have personally been involved in many of these meetings. What is clear to me but not yet visible to the market is that our dealers are embracing this change. They know the competitive threat is real, and they want Ford and their dealership to lead and win. And we have more to share as this develops. Now turning to Ford Blue. The team is motivated by this sharpening focus on our ICE and hybrid products. We've added new talent and leadership to drive performance and focus in our trucks, our great family lineup and our enthusiast vehicles we're so proud of.
We've revealed new vehicles like the Bronco Raptor, the Bronco Everglades, the F-150 Raptor R, which my kids think sounds great. In the third quarter, we'll unveil an all-new seventh generation Mustang at the North America International Auto Show in Detroit. It is a stunning car, and I'm so excited to share it with the world. And also this fall, we'll be introducing an all-new Super Duty pickup, the workhorse at Ford, and it sets a standard in our industry. There's much more to come. Our design center is filled with new products and derivatives that will further strengthen our hit vehicles in the ICE and hybrid franchises like F-150 and Bronco and Maverick, the brand-new global Ranger that's launching in Thailand, and our new Everest. In short, our hottest and freshest lineup in recent history is getting even better.
Now in commercial vehicle market, Ford Pro, our industry-leading global business, is leading the change into an electric software-driven world. Other OEMs are talking about large numbers of future electric orders. We're actually taking orders for manufacturing and selling commercial vehicles now. Through the second quarter, we've sold more than 3,000 E-Transit in the U.S. That's a market share of 95% in the full-sized electric van market, 95%. In fact, our next two competitors combined sold just 159 vehicles.
Beyond the vehicles, we're also rolling out our Ford Pro charging commercial solutions and the very exciting and fast-growing e-telematics software solutions. And boy, are they paying off. And in Europe, where we continue to be the leading commercial vehicle brand, we already received 8,000 orders for our two-tonne E-Transit, and our new one-tonne E-Transit Custom goes on sale next year. Now our Ford Pro software business is growing quickly. Paid telematics subscriptions globally have grown over 40% sequentially for the last two quarters. Turning to quality. We made solid progress in initial quality, as you've seen in the recent J.D. Power's IQS study, and our launches have improved.
However, we continue to be hampered by recalls and customer satisfaction actions. Yes, this affects our cost, but more importantly, it falls short on our most fundamental commitment to our customers. Quality is our number one priority. In fact, we recently brought on Josh Halliburton from J.D. Power to head quality. Now the team is focused on three critical areas: prevention, detection and remediation. We've instituted more robust engineering sign-off processes for the vehicles that are in the product development factory as we speak. We're driving much more frequent alignment with our supply base on quality.
And when identified issues, we take actions quickly to resolve them, to protect our customer's experience, including by making much more frequent use of over-the-air updates. And boy, has that worked for us. We have more work to do in this space, and we will keep you updated. Overall, we're pleased with the progress this year, but we are not nearly satisfied. We remain clear-eyed and determined to move with speed and determination on a Ford+ transformation.
The underlying strength of our business supports our 2022 adjusted EBIT guidance range of $11.5 billion to $12.5 billion, unchanged from April. Before I turn it over to John, I want to end with this. There's context that's critical to how we think about implementing our Ford+ plan. Traditionally, the auto industry has cut costs, often indiscriminately. As an effect, of course, from lower auto demands through economic softness and shift for customer preferences. What we're undertaking forward is totally different than that. We're reshaping virtually every aspect of the way we've done business for a century. And we're doing that for a new industry based on new technology, new skills and a new promise for customer value. And yet, cost reduction will happen in our ICE business because that's primarily what is made up of Ford today.
But we're modernizing to take out unnecessary costs, redesigning work and strategically investing across all of our auto businesses, ICE and hybrid, then EVs and then Ford Pro, while at the same time, transforming every function that supports them. Sweeping strategic change generates interest and speculation in the media, which we understand. However, we're going to comment on Ford+ actions we're taking and how they're going to strengthen our company on our own schedule. John?
