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Ford Motor Company STARTING OUR SECOND CENTURY 2002 Annual Report
STARTING OUR SECOND CENTURY
2002 ANNUAL REPORT

Table of contents

  • Page 1
    Ford Motor Company STARTING OUR SECOND CENTURY 2002 Annual Report STARTING OUR SECOND CENTURY 2002 ANNUAL REPORT

  • Page 2
    ...on the lives of everyday people than Ford. Ford Motor Company put the world on wheels with such great products as the Model T, and brought freedom and prosperity to millions with innovations that included the moving assembly line and the "$5 day." In this, our centennial year, we honor our past, but...

  • Page 3
    our future. The historic timeline and extended family photo album in this report celebrate a century of success. The editorial sections outlining our business today, from product development and manufacturing to financing and dealer sales and service, point to where we're going next. It's been a ...

  • Page 4
    ... to design exciting new products. 12 Build It. Efficient manufacturing facilities and our dedicated family of employees are key to our revitalization worldwide. 16 Deliver It. Customers rely on exceptional sales and service from a strong network of Ford Motor Company dealers, and on outstanding...

  • Page 5
    ... assets were held at the end of 2002 and 2001 to fund certain future employee benefit obligations in the near term. b/ Total Shareholder Return is from Bloomberg Total Return Analysis assuming dividends are reinvested in Ford stock. 2001 data have been reclassified for discontinued and held-for-sale...

  • Page 6
    Chairman's Message 4

  • Page 7
    ... place. To fulfill our commitment to delivering great products, we began the biggest wave of new vehicle introductions in our history in 2002. That included a new Ford Crown Victoria and Expedition, Mercury Grand Marquis, Lincoln Navigator and Town Car, Volvo XC90, Land Rover Range Rover and, in 5

  • Page 8
    ...These new and improved vehicles joined a lineup that already featured the best-selling car, truck and sport utility vehicle in the world - Ford Focus, F-Series and Explorer. An example of our drive for product leadership is the Lincoln brand, which a year ago had the oldest lineup in its history and...

  • Page 9
    ... than 65 new Ford, Lincoln and Mercury products in North America during the next five years. And we're on track to deliver 45 new products in five years in Europe. Our premium brands will introduce 35 new models globally in the next five years. And Mazda will introduce eight new products in Japan...

  • Page 10
    ... of a Land Rover, to the luxury of Aston Martin, Jaguar and Lincoln, to the smartly done difference of Mercury, Ford Motor Company products have character as distinctive as the customers who drive them. That's no accident. The 21st century Ford Motor Company is poised to embrace Henry Ford's vision...

  • Page 11
    MODEL A 1,700 early Model A's roll out of Ford's first factory on Mack Avenue in Detroit. EXPANSION WITHIN NORTH AMERICA Ford of Canada is incorporated. MODEL T INTRODUCED More than 15 million Model T's are produced between 1908 and 1927. EXPANSION IN EUROPE Ford's first factory outside of North ...

  • Page 12
    ... vehicles. This allows us to act economically by buying in quantity. It's a living, breathing way of making new cars and trucks. And it starts exactly as Henry Ford started 100 years ago - with imagination and a better idea. At Volvo Car Corporation's Design Studios in Volvo Versatility Concept Car...

  • Page 13
    EDSEL FORD SUCCEEDS HENRY FORD AS COMPANY PRESIDENT. LINCOLN PURCHASED Ford buys the Lincoln Motor Company for $8 million to enter the luxury auto market. THE FORD TRI-MOTOR Ford builds the first of 196 Ford Tri-Motor Airplanes, which are later used by America's first commercial airlines. ...

  • Page 14
    ...-priced car for this brand, costing half that of previous Lincolns. MERCURY DIVISION FORMED The Mercury line is introduced to fill the gap between economical Fords and luxury Lincolns. MERCURY EIGHT The Mercury Eight is the first effort of Ford's new in-house design department, and the first car...

  • Page 15
    ...OF DEMOCRACY Ford builds its first general-purpose vehicle (jeep) for the military. FIRST UAW-FORD LABOR AGREEMENT Ford Motor Company signs its first labor agreement with UAW-CIO, covering employees in North America. MILITARY PRODUCTION The company halts production of civilian vehicles to dedicate...

  • Page 16
    ... (used as a component of under-hood insulation), to metals, to tires. We don't keep these facts to ourselves. Studies show that, all other things being equal, customers prefer to deal with a company that is a good corporate citizen, so we continually strive to be that company. All-New Jaguar XJ...

  • Page 17
    F-1 TRUCK INTRODUCED Ford F-1 is Ford's first all-new vehicle after the war. F-Series is the most successful vehicle line in automotive history. 1949 FORD The '49 Ford, designed by a new team assembled by Henry Ford II, marks the beginning of a new era of product leadership for Ford. THE WOODIE ...

  • Page 18
    .... FORD GOES PUBLIC First shares of Ford Motor Company common stock are offered. CONTINENTAL MARK II Only 3,000 of these exclusive vehicles are built. At nearly $10,000 it is the most expensive American car on the market. 1957 MERCURY TURNPIKE CRUISER This all-new car is Ford's first product to...

  • Page 19
    ... Lifeguard Junior Rear Door Safety Locks. FORD FALCON The Ford Falcon enters the fast-growing field of compact cars and becomes a bestseller in its first year. FORD PARTS DIVISION FORMED Motorcraft supplies premium quality automotive parts for Ford, Lincoln and Mercury vehicles. 1959 1960 1961

  • Page 20
    ... cost of unexpected repairs. Our dealerships offer an after-sales experience that includes competitive prices, convenience and expert service and repairs. For millions of our customers, scheduling routine vehicle service and maintenance is now a matter of 24/7 simplicity, thanks to a dealer Web site...

  • Page 21
    ... and England, the 1968 Ford Escort is the first new model to emerge from the new Ford of Europe organization. MERCURY MARAUDER The late 1960s trend toward full-size specialty cars helps inspire the performance, luxury, and safety features of the 1969 Mercury Marauder. ASIA PACIFIC OPERATIONS...

  • Page 22
    ... Ford-brand vehicle. In 2002, Jaguar had its fifth record-breaking sales year in a row. And later in 2003, Ford Motor Company will manufacture its 300 millionth vehicle. Ford products are well-loved. Pick one - from the Ford Model T to Ford F-150, or the Jaguar XKE to the Land Rover Defender...

  • Page 23
    ... acquires Jaguar, increasing its presence in the global luxury market. MAZDA MIATA The automotive press raves about Mazda's MX-5 Miata when the sports car is unveiled. FORD EXPLORER In the early 1990s the Ford Explorer helps make SUV- sport utility vehicle - a household term. SAFETY FIRST Ford is...

  • Page 24
    ... all walks of life. We use that customer loyalty daily to help bolster our business. It's a large part of the reason why more people finance their cars and trucks with Ford Credit, a recognized leader in both customer and dealer satisfaction. And, to many people around the world, Hertz is synonymous...

  • Page 25
    ...begins transformation of the entire Ford Rouge Center, which will include a new vehicle assembly plant as part of the nation's largest industrial redevelopment project. FORD THUNDERBIRD Ford Thunderbird is named Motor Trend's Car of the Year for an unprecedented fourth time. 100th ANNIVERSARY June...

  • Page 26
    ...Aviator Navigator LS Town Car Monterey Marauder AMV8 Vantage Concept DB AR1 Opening of new production facility at Gaydon, Warwickshire XJ Saloon ** As an unconsolidated subsidiary, Mazda sales are not consolidated into Ford Motor Company vehicle unit sales. Only vehicles built by Ford for Mazda...

  • Page 27
    ... and Mercury dealership customers, commercial accounts, fleets of Ford Motor Company branded vehicles APCO Volvo, Land Rover, Mazda and competitive make dealers Major customers: Volvo, Land Rover, Mazda and competitive make dealership customers ESP & APCO Major competitors: Independent Service...

  • Page 28
    ..., culminating in vice president, Commercial Truck Vehicle Center in 1994-1995. In 1995, he became chairman of the board's Finance Committee, a position he held until becoming chief executive officer of the company. He was named chairman of the board's Environmental and Public Policy Committee in...

  • Page 29
    ... member of the Board of Trustees of the Center for the Study of the Presidency. He joined Ford's board in 1997. Nicholas V. Scheele Nicholas V. Scheele, 59, was named president and chief operating officer of the company on October 30, 2001. Prior to this appointment, he was chairman, Ford of Europe...

  • Page 30
    ...Fields joined Mazda Motor Corporation, working first as senior adviser and then as senior managing director of Marketing, Sales and Customer Service. James J. Padilla Executive Vice President and President, North America Roman J. Krygier Group Vice President, Manufacturing and Quality Mr. Padilla...

  • Page 31
    ... Europe Kathleen A. Ligocki Ford Customer Service Division Stephen G. Lyons President, Ford Division Malcolm S. Macdonald Finance and Treasurer Philip R. Martens Vehicle Product Development and Engineering J C. Mays Design Timothy J. O'Brien Corporate Relations Hans-Olov Olsson President, Volvo Cars...

  • Page 32
    ... with common parts and common vehicle platforms. This means Ford can significantly reduce manufacturing costs and deliver new products to our customers faster. Team Value Management A philosophy under which Ford's purchasing, engineering, manufacturing and finance staffs are effectively integrated...

  • Page 33
    Ford Motor Company Centennial Series 1903 - 2003 by Ken Eberts

  • Page 34
    Celebrate Our Century Take part in Ford Motor Company history. Join us in celebrating our 100th Anniversary, June 12-16, 2003 in Dearborn, Michigan. • Purchase tickets online at www.celebrateford100.com or call toll-free: 1-866-4-100-FORD (3673). Th e R o a d i s O u r s • 10 0 t h A n n i v...

  • Page 35
    ...and Qualitative Disclosures About Market Risk Management's Financial Responsibility and Report of Independent Accountants Sector Statement of ... Stockholders' Equity Notes to Financial Statements Common Stock Data and Summary of Vehicle Unit Sales Eleven-Year Financial Summary Employment and Payroll...

  • Page 36
    ... record. Ford ended the year with automotive gross cash, marketable securities and assets held in a VEBA trust of $25.3 billion, up $7.6 billion from 2001. Automotive capital spending in 2002 was $6.8 billion, up $475 million from 2001. Worldwide Vehicle Unit Sales In thousands U.S. Market Share...

  • Page 37
    ... of $4,106 million primarily related to our Revitalization Plan, or $2.81 per diluted share. Worldwide sales and revenues were $41.6 billion in the fourth quarter of 2002, up $869 million, reflecting primarily improvement in net pricing and mix. Unit sales of cars and trucks were 1,791,000, down...

  • Page 38
    ... actions involving our Ford-brand Europe and Premier Automotive Group operations, as well as a less favorable vehicle mix and lower production for dealer inventories. These were partially offset by a higher European market share (up 0.6 percentage points to 10.6%) for all vehicle brands. The fourth...

  • Page 39
    .... The increase is explained by higher Automotive revenues, reflecting higher unit sales volume and improved vehicle mix in North America, partially offset by lower financial services revenues resulting from increased sales of receivables. We sold 6,973,000 cars and trucks in 2002, down 35,000 units...

  • Page 40
    ... higher variable marketing costs. In 2002, approximately 17.1 million new cars and trucks were sold in the United States, down from 17.5 million units in 2001. Our share of those unit sales was 21.1% in 2002, down 1.7 percentage points from a year ago. The decline in market share reflected a number...

  • Page 41
    ... new cars and trucks were sold in our nineteen primary European markets, down from 17.9 million units in 2000. Our share of those unit sales was 10.7% in 2001, up 0.7 percentage points from a year ago, reflecting increased sales of new Ford-brand Mondeo and Transit models and our acquisition of Land...

  • Page 42
    ... restructuring actions at Mazda. New car and truck sales in Australia, our largest market in Rest of World, were approximately 773,000 units in 2001, down about 14,000 units from a year ago. In 2001, our combined car and truck market share in Australia was 15.1%, down 0.6 percentage points from 2000...

  • Page 43
    ... in accounting principle, was principally due to an improved car rental pricing environment and lower costs. Included in the $91 million loss for "minority interests and other" within the Financial Services sector for 2002 is an after-tax charge related to our equity interest in a partnership that...

  • Page 44
    ...flows before tax refunds Tax refunds Total operating related cash flows Divestitures and asset sales Acquisitions and capital contributions Financing related cash flows Convertible trust preferred securities Value Enhancement Plan Dividends to shareholders Net issuance/(purchase) of stock Changes in...

  • Page 45
    ..., debt-to-equity limitations, minimum net worth requirements and credit rating triggers that would limit out ability to borrow). Approximately $100 million of these facilities were in use at December 31, 2002. Other Securities -Ford Motor Company Capital Trust I and Ford Motor Company Capital Trust...

  • Page 46
    ... 2003, Ford Credit plans to have commercial paper outstanding at levels of around $5 billion to $7 billion, net of overborrowings. Ford Credit also obtains short-term funding through the issuance of variable denomination, floating rate demand notes through its Ford Money Market Account program. At...

  • Page 47
    ... business practice, to fund international needs. Hertz also is active in the domestic medium-term and long-term debt markets. During 2002, Hertz launched an asset-backed securitization program for its domestic car rental fleet to reduce its borrowing costs and enhance its financing resources. As of...

  • Page 48
    ... pension funds, the target asset allocation is 70% equities and 30% fixed income securities. On December 31, 2002, the market value of our U.S. pension fund assets was less than the projected benefit obligations (calculated using a discount rate of 6.75%, which is reduced from 7.25% used at year-end...

  • Page 49
    ... employment-related matters; financial matters; and dealer, supplier, and other commercial contractual relationships. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a third party claim. SALES OF RECEIVABLES BY FORD CREDIT Securitizations...

  • Page 50
    ...to Future Sales of Receivables Some of Ford Credit's securitization programs contain structural features that could prevent further funding if the credit losses or delinquencies on a pool of sold receivables or on Ford Credit's overall managed portfolio exceed specified levels or if payment rates on...

  • Page 51
    ... to obtain low cost, high quality parts and vehicles, world-class niche product development capabilities and the ability to leverage the technical expertise of our joint venture partners. These investments may involve a transfer of assets in exchange for an equity interest. In some cases, we have...

  • Page 52
    ... Retirement rates • Inflation • Expected return on plan assets • Mortality rates We base the discount rate assumption on investment yields available at year-end on corporate long-term bonds rated AA. Our inflation assumption is based on an evaluation of external market indicators. The salary...

  • Page 53
    ...at year-end on corporate long-term bonds rated AA. Our inflation assumption is based on an evaluation of external market indicators. The salary growth assumptions reflect our long-term actual experience, the near-term outlook and assumed inflation. The expected return on plan assets reflects history...

  • Page 54
    ... rates for our leased vehicles, industry-wide used vehicle prices, our marketing plans and vehicle quality data. Sensitivity Analysis: The largest impact of changes in assumptions is on Ford Credit's U.S. retail operating leases of Ford, Lincoln and Mercury brand vehicles. If future auction values...

  • Page 55
    ... are as follows: Planning Assumptions Industry Volume U.S. Europe Net Pricing U.S. Europe Physicals Quality Market Share Automotive: Cost Performance (at constant volume and mix) Capital Spending Financial Results Automotive Income Before Taxes Operating Cash Flow* Ford Credit 16.5 million units...

  • Page 56
    ... experience for our post retirement benefit plans (e.g., investment returns, interest rates, health care cost trends, benefit improvements); • currency or commodity price fluctuations; • a market shift from truck sales in the U.S.; • economic difficulties in South America or Asia; • reduced...

  • Page 57
    ...: purchases and sales of finished vehicles and production parts, debt and other payables, subsidiary dividends, and investments in foreign operations. These expenditures and receipts create exposures to changes in exchange rates. We also are exposed to changes in prices of commodities used in...

  • Page 58
    ... on an investment or a derivative contract. Exposures primarily relate to investments in fixed-income instruments and derivative contracts used for managing interest rate, currency and commodity risk. We, together with Ford Credit, establish exposure limits for each counterparty to minimize risk...

  • Page 59
    .... Fixed-rate retail installment sale and lease contracts are originated principally with maturities ranging between two and six years and generally require customers to make equal monthly payments over the life of the contract. Ford Credit's funding sources consist primarily of short and long-term...

  • Page 60
    ...and the base case over a one year horizon represent an estimate of the sensitivity of Ford Credit's pre-tax earnings over the following year. This sensitivity as of year-end 2001 and 2002 is as follows: Pre-tax earnings impact given a one percentage point increase in interest rates (in millions) Pre...

  • Page 61
    ... Allan Gilmour Group Vice President and Chief Financial Officer REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Stockholders Ford Motor Company: In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of income, stockholders' equity and...

  • Page 62
    SECTOR STATEMENT OF INCOME FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2002, 2001 and 2000 (in millions, except per share amounts) 2002 AUTOMOTIVE Sales (Note 1) Costs and expenses (Note 1) Costs of sales Selling, administrative and other expenses Total costs and expenses ...

  • Page 63
    ... STATEMENT OF INCOME FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2002, 2001 and 2000 (in millions, except per share amounts) 2002 Sales (Note 1) Revenues and other interest income Total sales and revenues Costs and expenses Costs of sales Selling, administrative and other...

  • Page 64
    ... Trade payables Other payables Accrued liabilities (Note 11) Debt payable within one year (Note 12) Total current liabilities Long-term debt (Note 12) Other liabilities (Note 11) Deferred income taxes Liabilities of discontinued and held-for-sale operations (Note 3) Payable to Financial Services...

  • Page 65
    ... Marketable securities Receivables, less allowances of $374 and $240 Net investment in operating leases Finance receivables, net Retained interest in sold receivables Inventories Equity in net assets of affiliated companies Net property Deferred income taxes Goodwill Other intangible assets Assets...

  • Page 66
    ... dividends Net sales/(purchases) of Common Stock Proceeds from mandatorily redeemable convertible preferred securities (Note 14) Preferred Stock - Series B redemption Net changes in short-term debt Proceeds from issuance of other debt Principal payments on other debt Value Enhancement Plan payments...

  • Page 67
    ... Cash dividends Net sales/(purchases) of Common Stock Proceeds from mandatorily redeemable convertible preferred securities Preferred Stock - Series B redemption Changes in short-term debt Proceeds from issuance of other debt Principal payments on other debt Value Enhancement Plan payments Net debt...

  • Page 68
    ... Minimum pension liability (net of tax of $36) Net holding gain (net of tax of $15) Comprehensive income Common Stock issued for employee benefit plans and other ESOP loan and treasury stock Value Enhancement Plan Stock dividend (Spin-off of Visteon) Cash dividends Balance at end of year $ 1,222...

  • Page 69
    ... time vehicles are sold to dealers. Estimates are established using historical information on the nature, frequency, and average cost of warranty claims. Additional service actions include costs related to product recalls and other service actions outside the contractual warranty coverage. Fees or...

  • Page 70
    ... fair value are recorded, net of tax, as a component of other comprehensive income. FOREIGN CURRENCY TRANSLATION Results of operations and cash flows are, in most cases, translated at average-period exchange rates and assets and liabilities are translated at end-of-period exchange rates. Translation...

  • Page 71
    ... and other support cost payments from Automotive for providing special vehicle financing for low-interest-rate marketing programs. Ford Credit records these transactions as revenue over the life of the contract. Amounts recorded as revenue by the Financial Services sector, and billed to the...

  • Page 72
    ...Effective Rate Deferred taxes at December 31 (in millions) Deferred tax assets Employee benefit plans Dealer and customer allowances and claims Tax credit carryforwards Allowance for credit losses Other foreign deferred tax assets All other Total deferred tax assets Deferred tax liabilities Leasing...

  • Page 73
    ... sold our all-makes vehicle fleet leasing operations in New Zealand and Australia. In addition, we completed the sale of the European operation of this business in the first quarter of 2003 and have classified these assets as held-for-sale under SFAS No. 144. Ford Credit has recognized an after-tax...

  • Page 74
    ... October 2, 2002, we purchased ¥ 20 billion (equivalent of U.S. $164 million) aggregate principal amount of convertible bonds issued by Mazda Motor Corporation. The bonds are accounted for as an available-for-sale security and included in Equity in net assets of affiliated companies. As of December...

  • Page 75
    ...): Average Life (Years) 2002 2001 Land Buildings and land improvements Machinery, equipment and other Construction in progress Total land, plant and equipment Accumulated depreciation Net land, plant and equipment Special tools, net of amortization Net property Property-related expenses were...

  • Page 76
    ... $294 million in the Financial Services sector, related to the impairment of goodwill in Hertz' industrial and construction equipment rental business. Our policy is to test annually for impairment during the second quarter. If SFAS No. 142 had been in effect for the year ended December 31, 2001, our...

  • Page 77
    ... only strips represent the present value of monthly collections on the sold receivables in excess of amounts needed by the SPE (securitization trust) to pay interest and principal to investors and servicing fees to Ford Credit. Investments in subordinated securities and restricted cash are senior...

  • Page 78
    ... based on the credit quality of our present portfolio, trends in historical and projected used vehicle values, general economic measures and our processes for servicing receivables. Finance receivables and lease investments are charged to the allowance for credit losses when an account is deemed to...

  • Page 79
    ... Years 9.4% 8.8% 2003 2004 2005 2006 2007 Thereafter Long-term debt maturities Automotive Financial Services $ 119 23,249 $ 203 30,164 $ 250 26,038 $ 353 14,095 $ 126 9,284 $ 12,675 26,948 27 3 a/ Includes the effect of interest rate swaps. b/ Based on quoted market prices or current rates...

  • Page 80
    ... loss related to variable interest entities is equal to our investment and retained interests. NOTE 14. COMPANY-OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES OF A SUBSIDIARY TRUST Ford Motor Company Capital Trust I, a subsidiary trust (Trust), has outstanding 9% Trust Originated Preferred...

  • Page 81
    ... into shares of Ford Common Stock at a rate of 2.8249 shares for each Preferred Security (equivalent to a conversion price of $17.70 per share). Conversion of all shares of such securities would result in the issuance of 282.5 million shares of Ford Common Stock. Changes to the number of shares of...

  • Page 82
    ... value of stock options at the time of grant using the Black-Scholes option pricing model was as follows: 2002 2001 2000 Fair value per option Assumptions: Annualized dividend yield Expected volatility Risk-free interest rate Expected option term (in years) * Adjusted for the Value Enhancement Plan...

  • Page 83
    ... at fair value on the balance sheet, including embedded derivatives. Our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices and interest rates. As an integral part of our overall risk management program, we use...

  • Page 84
    ... 21 Net losses/(earnings) from equity investments in excess of dividends remitted 134 Provision for credit/insurance losses Foreign currency adjustments 51 Loss on sale of business 519 Provision for deferred income taxes (1,377) Decrease/(increase) in accounts 2,570 receivable other current assets...

  • Page 85
    ... hourly and 60 salaried) related to the planned transfer of the Transit vehicle production to the Ford Otosan (Turkey) joint venture, die-casting rationalization and other manufacturing actions. PREMIER AUTOMOTIVE GROUP CHARGES We recorded a restructuring pre-tax charge in Automotive cost of sales...

  • Page 86
    ..., and the General Retirement Plan covers substantially all other Ford employees in the U.S. The hourly plan provides noncontributory benefits related to employee service. The salaried plan provides similar noncontributory benefits and contributory benefits related to pay and service. Other U.S. and...

  • Page 87
    ... Visteon and for salaried Visteon employees who met certain age and service conditions at June 30, 2000 are charged to Visteon. A portion of U.S. hourly and salary retiree health and life insurance benefits has been prepaid. At December 31, 2002, the market value of this pre-funding was $2.8 billion...

  • Page 88
    ... of plan assets Weighted Average Assumptions as of December 31 Discount rate Expected return on assets Average rate of increase in compensation Initial health care cost trend rate Ultimate health care cost trend rate Number of years to ultimate trend rate * Payment of retiree health care benefits...

  • Page 89
    ...) consists of the design, development, manufacture, sale and service of cars and trucks. The Financial Services sector primarily includes two segments, Ford Credit and Hertz. Ford Credit provides vehicle-related financing, leasing, and insurance. Hertz rents cars, light trucks and industrial and...

  • Page 90
    ... 2001 Second Quarter Third Quarter Fourth Quarter Automotive Sales Operating income/(loss) Financial Services Revenues Income/(loss) before income taxes Total Company Income/(loss) from continuing operations Common and Class B per share Basic income/(loss) from continuing operations Diluted income...

  • Page 91
    ...the UAW remain Ford employees, with the former affiliate agreeing to reimburse Ford for the costs of those employees. Ford retains certain pension and postretirement benefit obligations for qualified salaried and hourly employees who are working or who have worked for Visteon. GUARANTEES On November...

  • Page 92
    ... December 31, 2002 ending balance $ 4,739 (3,508) 3,489 595 86 $ 5,401 Extended Service Plan: Generally, extended service plans are separate contracts with retail customers who pay fees to extend warranty coverage beyond the base warranty period. Under these plans, contract fees are recognized in...

  • Page 93
    ... Brazil 148 Australia 117 Taiwan 65 25 Argentina Japan 32 Other countries 181 Total other international 568 Total worldwide vehicle unit sales 6,973 * Vehicle unit sales generally are reported worldwide on a "where sold" basis and include sales of all Ford Motor Company-badged units, as...

  • Page 94
    ...loss) from continuing operations Financial Services sector Revenues Income/(loss) before income taxes Income/(loss) from continuing operations a/, b/, c/ Total Company Income/(loss) before income taxes Provision/(credit) for income taxes Minority interests in net income of subsidiaries Income/(loss...

  • Page 95
    ... 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 TOTAL COMPANY BALANCE SHEET DATA AT YEAR-END Automotive sector Financial Services sector Total assets Long-term debt Automotive sector Financial Services sector Stockholders' equity $ 107,790 $ 88,319 $ 94,312 $ 99,201 $ 83,911 $ 80,339...

  • Page 96
    ...AND PAYROLL DATA In 2002, average-year worldwide working employment decreased approximately two percent reflecting a reduction in employment in our Automotive sector in North America and Europe and the partial-year effect of the sale of our Kwik-Fit subsidiary. Worldwide payroll was $18.3 billion in...

  • Page 97
    A Ce n t u r y of Su c c e s s

  • Page 98
    ... the millions of employees - extending over many generations - dealers, suppliers, and countless others around the globe whose contributions and efforts have strengthened the company throughout every era. We recognize that, along with our shareholders and customers, we all share a certain sense of...

  • Page 99
    Above: Henry Ford in the 20 millionth Ford - a 1931 Model A Town Sedan. Right: Henry Ford's son, Edsel. Below: Workers at the Highland Park, Mich., plant assemble the Model T. A3

  • Page 100
    ...Lincoln Continental reflected the design influence of Edsel Ford, who helped give the Lincoln line its signature style and elegance. Below: (From left) Edsel and Eleanor Ford with their children: Henry II, Benson, Josephine and William Clay. Left: Henry watches his grandson, Henry II, autograph the...

  • Page 101
    Left: (From left) Henry Ford II, Benson Ford and William Clay Ford, with portraits of their father, Edsel B. Ford (left) and grandfather, Henry Ford, in the background. Below: The Rouge Plant assembly line in 1946. Below: A 1942 Ford Super Deluxe with the Rouge complex in the background. Right: A ...

  • Page 102
    Above: The sporty 1955 Thunderbird, now an American classic, had 4,000 orders waiting for it on its first day of production. Right: Henry Ford II with Ford Rouge workers. Below: An aerial view of the Ford Rotunda (foreground), across the street from the former company headquarters on Schaefer Road, ...

  • Page 103
    Above: Ford Vice President John Bugas (center) and UAW President Walter Reuther (right) sign the 1955 UAW-Ford agreement. Below left: Ford telephone operators at the Central Office building in Dearborn, Mich. Below right: Edsel B. Ford II in a replica of the 1901 Sweepstakes Racecar. A7

  • Page 104
    ..., Sr. and Bill Ford. Above: An early Ford franchise. Above Left: Ford Motor Company's World Headquarters in Dearborn, Mich. Above Right: From Ford Motor Company office buildings to assembly plants around the world, people continue to be our most valued resource. Above: Members of the Ford family in...

  • Page 105
    ... be mailed to each shareholder at the end of April. Annual Report Credits The Ford Motor Company Annual Report is designed, written and produced each year by a cross-functional Ford team. The 2002 team members are: Editor: Frank Sopata, Manager, Shareholder Relations Editorial Services: Kim Boscan...

  • Page 106
    " I will build a motorcar for the great multitude." Henr y Ford www.ford.com Ford Motor Company â- One American Road â- Dearborn, Michigan 48126