We use the equity method of accounting for our investments in entities over which we do not have control, but over whose operating and financial policies we are able to exercise significant influence.

Our carrying value and ownership percentages of our equity method investments at December 31 were as follows (in millions, except percentages):


	Investment Balance				Ownership Percentage
	2023		2024		2024
BlueOval SK, LLC	$	3,254	$	4,154	50	%
Ford Otomotiv Sanayi Anonim Sirketi	807		1,028		41
Jiangling Motors Corporation, Limited (a)	495		521		32
Changan Ford Automobile Corporation, Limited (b)	225		356		50
AutoAlliance (Thailand) Co., Ltd.	344		339		50
Ionity Holding GmbH & Co. KG	96		114		15
FFS Finance South Africa (Pty) Limited	65		76		50
Other	262		233		Various
Total	$	5,548	$	6,821

__________

(a)In 2023, Jiangling Motors Corporation, Limited recorded restructuring charges, our share of which was $12 million. These charges are included in Equity in net income/(loss) of affiliated companies.

(b)In 2023 and 2024, Changan Ford Automobile Corporation, Limited recorded long-lived asset and other asset impairment charges as well as restructuring charges, our share of which was $432 million and $16 million, respectively. These charges are included in Equity in net income/(loss) of affiliated companies.

An aggregate summary of the balance sheets and income statements of our equity method investees, on a standalone basis, as reported by those investees at December 31 is below (in millions). Our investment in each equity method investee is reported in Equity in net assets of affiliated companies, and our proportionate share of each of the entities’ income/(loss) is reported in Equity in net income/(loss) of affiliated companies.


Summarized Balance Sheet	2023		2024
Current assets	$	11,223	$	11,965
Non-current assets	16,907		22,603
Total assets	$	28,130	$	34,568

Current liabilities	$	11,232	$	10,653
Non-current liabilities	6,572		11,635
Total liabilities	$	17,804	$	22,288

Equity attributable to noncontrolling interests	$	61	$	113


	For the years ended December 31,
Summarized Income Statement	2022		2023		2024
Total revenue	$	27,153	$	31,052	$	34,025
Income/(Loss) before income taxes (a)	(1,806)		991		1,315
Net income/(loss) (a)	(1,769)		1,207		1,582

Net income/(loss) attributable to noncontrolling interests	(8)		(63)		(37)

In the ordinary course of business, we buy/sell various products and services including vehicles, parts, and components to/from our equity method investees. In addition, we receive royalty income.

Transactions with equity method investees reported for the years ended or at December 31 were as follows (in millions):


	For the years ended December 31,
Income Statement	2022		2023		2024
Sales	$	4,369	$	5,237	$	6,049
Purchases	9,670		13,457		16,629
Royalty income	483		329		363

In the third quarter of 2022, Ford made the strategic decision to shift our capital spending from L4 technology being developed by Argo AI to advanced L2/L3 systems. We determined that Argo AI no longer had value as a going concern, and as a result, we reassessed the carrying value of our investment as of September 30, 2022. Our valuation assumed an orderly conclusion of operations at Argo AI, in which the cash required to satisfy the remaining obligations would consume all of Argo AI’s remaining capital. In addition, we assessed whether Argo AI’s technology components had value in isolation, and we concluded that the cost to integrate into anticipated technology ecosystems would be prohibitive. Accordingly, we recorded a $2.7 billion pre-tax impairment in the third quarter of 2022. The non-cash charge was reported in Equity in net income/(loss) of affiliated companies.

In the fourth quarter of 2022, Ford and Volkswagen AG, who held equal interests that together comprised a majority ownership of Argo AI, initiated the process of exiting the joint development of highly automated driving technology (L4) through Argo AI. Argo AI concluded winding down its operations and was dissolved in 2024.