Ford 2004 Annual Report Download

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F O R W A R D
Ford Motor Company / 2004 Annual Report
F O R W A R D
Ford Motor Company / 2004 Annual Report

Table of contents

  • Page 1
    Ford Ford Motor Motor Company Company / / 2004 2004 Annual Annual Report Report F O F R O W R A W R A D R D

  • Page 2
    ... markets across six continents. With about 325,000 employees worldwide, our core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Our automotive-related services include Ford Motor Credit Company, Genuine Parts & Service and Hertz...

  • Page 3
    ...end of 2003 to fund certain future employee benefit obligations in the near term. b/ Automotive cash, marketable and loaned securities and assets held in a short-term VEBA trust less Automotive debt. c/ From Bloomberg Total Return Analysis assuming dividends are reinvested in Ford stock. Prior-year...

  • Page 4
    F O In 1932, forward-thinking Henry Ford succeeded in building the ï¬,athead V-8 engine - an engineering breakthrough that cast a single engine block as one piece. It took the automobile market by storm. 2

  • Page 5
    ... business structure is essential. Not just quality- and cost-awareness, but solid relationships with our employees, our dealers, our suppliers and every Ford stakeholder. We're proud to be a company with family-based values. We believe that strengthens our competitive advantage. R E W O R D And...

  • Page 6
    ... Improved per-unit revenue of $745 in North America, along with improved residual values. • Market share increases in Europe, South America and Asia. The Year Ahead Even with the positive momentum these accomplishments have given us, meeting our targets for 2005 will be a challenge. Our quality...

  • Page 7
    ... expenses related to health care, commodities and energy will make holding down costs difficult. In North America, which represents more than half of our worldwide volume, our market share was down in 2004, and competition remains intense. Despite these challenges, we plan to meet the priorities...

  • Page 8
    ... investing huge resources to advance and demonstrate hydrogen technology. Ford is a leader in hydrogen-powered Internal Combustion Engines (ICE). Our E-450 Hydrogen ICE shuttle buses are the first commercially available hydrogen vehicles in North America. We also are testing a state-of-the-art Ford...

  • Page 9
    ... • Promotes teamwork while embracing differences and diversity. A company with family-based values cares about its shareholders, customers, employees, dealers, business partners and the community. It works hard to earn the trust of all the members of this extended family, and maintain a culture in...

  • Page 10
    F O R E The Ford Focus, with a best-in-class five-star occupant protection rating from the European New Car Assessment Programme, offers a stylish and fun-to-drive ride for European customers. 8

  • Page 11
    ... processes, so we will have the products people want, when they want them, at margins that are both competitive and profitable. S T Ford Lio Ho Motor Company plant employees and officials in Taiwan hold a grand celebration to mark Job 1 for the all-new Ford Focus on Nov. 15, 2004. 9 9

  • Page 12
    F O Attention to detail in the 2006 Ford Fusion will offer customers in North America excellent quality and craftsmanship. 10

  • Page 13
    ...we are making headlines with innovations such as hybrid vehicles that offer all the advantages of their conventional cousins. R T Y Our one family of products that does not come on wheels - the financial-services family of Ford Motor Credit Company - offers a competitive way for our customers to...

  • Page 14
    F O R E Chicago Assembly Plant employees (from left) Liz Williams, Jeff Alliss, Rick Vasquez (in vehicle) and Sylvester Ware Jr. add a final touch of pride at the end of the line where the Mercury Montego, Ford Freestyle and Ford Five Hundred are built using the latest in ï¬,exible ...

  • Page 15
    ... and competitive pricing, it is likely that Ford and its suppliers will gradually increase their production in those parts of the world where markets are emerging. N T Robots weld the roofs of the new Volvo S40 and Volvo V50 at the Volvo Cars plant in Ghent, Belgium, where 5,300 employees work to...

  • Page 16
    F O R E New crash test dummies at the Dearborn Proving Ground in Michigan are loaded with the most advanced internal sensors and instrumentation, giving engineers detailed data to help improve passenger safety. 14

  • Page 17
    ...carbon dioxide) levels, Ford Escape Hybrid, for and eliminate tailpipe emissions, except for water. instance, does everything a regular Escape will do - but in city driving, it achieves up to 75 percent better fuel economy. Eight V-10 Ford E-450 hydrogen-powered shuttles will go into service in 2006...

  • Page 18
    ...E Ford employees Staci and Calvin Washington often enjoy lunch with their children, Sydnei and Myles, at the Dearborn (Mich.) West UAW-Ford Family Service and Learning Center. This and a number of other U.S. centers, supported through a joint UAW-Ford effort, provide child care, family programs and...

  • Page 19
    ... level of inclusion to the people who work for them. Our global terms and conditions call on them to offer safe and fair working conditions, no matter where they may be. Ford employees repay that investment by serving as the heart of our company. From going the extra mile for customers, to raising...

  • Page 20
    WILLIAM CLAY FORD NAMED DIRECTOR EMERITUS A t the March 2005 board meeting William Clay Ford announced his intention to retire as a director after 57 years of service. At the Board's request, he was named Director Emeritus. "Ford Motor Company has always been part of my life and I continue to ...

  • Page 21
    ... and Strategy, Ford of Europe and Premier Automotive Group Mei Wei Cheng President, Ford Motor (China) Ltd. Bennie W. Fowler Jaguar and Land Rover Operations Antonio Maciel President, South America Susan M. Cischke Environmental and Safety Engineering Barbara L. Gasper Investor Relations Paul...

  • Page 22
    ... 2004 with $23.6 billion of automotive gross cash, including marketable and loaned securities and assets held in a short-term VEBA trust. Worldwide Vehicle Unit Sales in thousands 6,973 6,736 6,798 U.S. Market Share European Market Share 21.1% 20.5% 19.3% 10.8% 10.7% 11.0% 2002 2003 2004...

  • Page 23
    ... 95 Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk...Equity Notes to the Financial Statements Report of Independent Registered Public Accounting Firm Management's Reports Selected Financial Data Employment...

  • Page 24
    ... connection with special vehicle financing and leasing programs that it sponsors. Ford Credit records these payments as revenue over the term of the related finance receivable or operating lease. The Automotive sector records the estimated costs of marketing incentives, including dealer and retail...

  • Page 25
    ... engage in some amount of price discounting to increase, maintain or limit decreases in their respective market shares. In the last few years, we have implemented a strategy of de-emphasizing less profitable sales to daily rental car companies, which typically are associated with a large amount of...

  • Page 26
    ... exchange and excluding special items and discontinued operations). For 2005, we expect costs for pensions and health care, commodities, and depreciation and amortization will increase, compared with 2004. We expect quality-related costs (i.e., those related to warranty claims and additional service...

  • Page 27
    ... technology charges Ford Europe: improvement plans PAG: improvement plans Ford Asia Pacific and Africa: disposition of non-core businesses Other Automotive: disposition of non-core businesses Total Automotive sector Financial Services sector Property clean-up settlement Total Company $ (600) (182...

  • Page 28
    ... Taxes Americas - Ford North America - Ford South America Total Americas Ford Europe and PAG - Ford Europe - PAG Total Ford Europe and PAG Ford Asia Pacific and Africa/Mazda - Ford Asia Pacific and Africa - Mazda and Associated Operations Total Ford Asia Pacific and Africa/Mazda Other Automotive...

  • Page 29
    ... in hourly and salaried personnel as a result of the Ford Europe Improvement Plan, North American plant closings, and engineering efficiency actions, offset partially by higher costs to launch new vehicles in 2004. - Primarily administrative cost savings (largely personnel related), reduced parts...

  • Page 30
    ... exchange rates, as well as vehicle production reductions and employee separation charges at Jaguar related to the implementation of the PAG Improvement Plan and higher costs for launching new vehicles, offset partially by positive net pricing. Ford Asia Pacific and Africa/Mazda Segment Ford...

  • Page 31
    ... the charges related to the Ford Europe Improvement Plan discussed above (see "2004 compared with 2003 - Ford Europe and PAG Segment: Ford Europe"), unfavorable net pricing, a less favorable product mix, unfavorable changes in currency exchange rates and a larger reduction in dealer stocks, offset...

  • Page 32
    ... AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Ford Asia Pacific and Africa/Mazda Segment Ford Asia Pacific and Africa. The improvement in earnings primarily reï¬,ected favorable changes in currency exchange rates, higher vehicle unit sales and positive net pricing. Mazda. The...

  • Page 33
    ...'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Ford Credit's finance receivables, net of allowance for credit losses, and net investment in operating leases for its on-balance sheet, securitized off-balance sheet, managed and serviced portfolios are shown below...

  • Page 34
    ...'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following table shows actual credit losses net of recoveries, which are referred to as charge-offs, for Ford Credit's worldwide on-balance sheet, reacquired, securitized off-balance sheet and managed receivables, for...

  • Page 35
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Shown below is an analysis of Ford Credit's allowance for credit losses related to finance receivables and operating leases for the years ended December 31 (dollar amounts in billions): Allowance for Credit Losses...

  • Page 36
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In addition, credit losses related to the off-balance sheet securitized receivables are included in the initial and ongoing valuation of Ford Credit's residual interest in the securitization transaction (see "Off-...

  • Page 37
    ...are shown below (in millions): Income/(Loss) Before Income Taxes 2003 Ford Credit Hertz * Other Financial Services Total Financial Services sector * Includes amortization expense related to intangibles recognized upon consolidation of Hertz. 2002 $ 1,979 200 (61) 2,118 2003 Over/(Under) 2002 $ 977...

  • Page 38
    ... funded pension plan and long-term VEBA contributions and tax refunds were $1.0 billion positive. Other operating-related changes, primarily timing differences between expense or revenue recognition and the corresponding cash payments for costs such as health care, pension, marketing, and warranty...

  • Page 39
    ... 2005, we intend, depending on market conditions, to continue repurchasing our outstanding debt securities from time to time and to continue making contributions to our funded pension plans and VEBA. Such debt repurchases likely would be concentrated in, but not limited to, the following four debt...

  • Page 40
    ...investors. Ford Credit issues commercial paper in the United States, Europe, Canada and other international markets. In addition to its commercial paper programs, Ford Credit also obtains short-term funding from the sale of ï¬,oating rate demand notes, which may be redeemed at any time at the option...

  • Page 41
    ... Credit's short-term credit ratings have declined, asset-backed commercial paper programs have become more cost-effective compared with unsecured commercial paper, and allow Ford Credit access to a larger investor base. As a result of Ford Credit's funding strategy and the reduction in its managed...

  • Page 42
    ...'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following table illustrates the calculation of Ford Credit's managed leverage (in billions, except for ratios): 2004 Total debt Securitized off-balance sheet receivables outstanding a/ Retained interest in securitized...

  • Page 43
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Hertz has an asset-backed securitization ("ABS") program for its domestic car rental ï¬,eet to reduce its borrowing costs and enhance its financing ï¬,exibility. As of December 31, 2004, $898 million was ...

  • Page 44
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The ratings and trend assigned to Ford and Ford Credit by DBRS have been in effect since April 2003 and were confirmed by DBRS in October 2004. DBRS changed the trend of the long-term rating for Hertz to Stable ...

  • Page 45
    ... debt or securitization markets around the world at competitive rates or in sufficient amounts; • higher-than-expected credit losses; • lower-than-anticipated residual values for leased vehicles; • increased price competition in the rental car industry and/or a general decline in business...

  • Page 46
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Warranty and Additional Service Actions Nature of Estimates Required. The estimated warranty and additional service action costs are accrued for each vehicle at the time of sale. Estimates are principally based on ...

  • Page 47
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The foregoing indicates that changes in the discount rate and return on assets can have a significant effect on the funded status of our pension plans, stockholders' equity and expense. As stated above, we base ...

  • Page 48
    ... to Operating Leases - Financial Services Sector Accumulated depreciation on vehicles subject to operating leases reduces the value of the leased vehicles in our operating lease portfolio from their original acquisition value to their expected residual value at the end of the lease term. We monitor...

  • Page 49
    ... for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. This statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. In...

  • Page 50
    ... credit and payment enhancements to reduce the risk of loss, allows the SPE to issue senior asset-backed securities that generally receive the highest short-term credit ratings and among the highest long-term credit ratings, thereby providing Ford Credit with a cost-effective source of funding. Ford...

  • Page 51
    ... available to sell, the performance of receivables sold in previous transactions, general demand for the type of receivables Ford Credit offers, market capacity for Ford Credit-sponsored investments, accounting and regulatory changes, Ford Credit's credit ratings and Ford Credit's ability to...

  • Page 52
    ... the following: 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...

  • Page 53
    .... Interest rate risk relates to the gain or loss we could incur in our Automotive investment portfolio due to a change in interest rates. Our interest rate sensitivity analysis on the investment portfolio includes cash and cash equivalents, marketable and loaned securities and short-term VEBA assets...

  • Page 54
    ..."Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Liquidity and Capital Resources - Financial Services Sector - Ford Credit". A discussion of Ford Credit's market risks is included below. Foreign Currency Risk. To meet funding objectives, Ford...

  • Page 55
    ... of interest rate risk are reported to the Treasurer each month. The process described above is used to measure and manage the interest rate risk of Ford Credit's operations in the United States, Canada and the United Kingdom, which together represented approximately 80% of its total on-balance...

  • Page 56
    ...), net Equity in net income/(loss) of affiliated companies Income/(loss) before income taxes - Automotive FINANCIAL SERVICES Revenues (Note 2) Costs and expenses (Note 2) Interest expense Depreciation Operating and other expenses Provision for credit and insurance losses Total costs and expenses...

  • Page 57
    ... (in millions, except per share amounts) Sales and revenues Automotive sales Financial Services revenues Total sales and revenues Costs and expenses Cost of sales Selling, administrative and other expenses Interest expense Provision for credit and insurance losses Total costs and expenses Automotive...

  • Page 58
    ... in sold receivables (Note 12) Goodwill and other intangible assets (Note 9) Assets of discontinued/held-for-sale operations Other assets Receivable from Automotive (Note 1) Total Financial Services assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Automotive Trade payables Other payables...

  • Page 59
    ..., net Net investment in operating leases Retained interest in sold receivables Inventories Equity in net assets of affiliated companies Net property Deferred income taxes Goodwill and other intangible assets Assets of discontinued/held-for-sale operations Other assets Total assets LIABILITIES AND...

  • Page 60
    ...(increase)/decrease in wholesale receivables Net acquisitions of daily rental vehicles Purchases of securities Sales and maturities of securities Proceeds from sales of finance receivables and operating leases Proceeds from sale of businesses Net investing activity with Financial Services Cash paid...

  • Page 61
    ... Cash ï¬,ows from investing activities Capital expenditures Acquisitions of retail and other finance receivables and operating leases Collections of retail and other finance receivables and operating leases Net acquisitions of daily rental vehicles Purchases of securities Sales and maturities of...

  • Page 62
    ... EQUITY Ford Motor Company and Subsidiaries For the Years Ended December 31, 2004, 2003 and 2002 (in millions) Capital in Excess of Par Capital Value of Retained Stock Stock Earnings $ 19 $ 6,001 $ 10,502 (980) Accumulated Other Comprehensive Income/(Loss) Foreign Minimum Derivative Currency Pension...

  • Page 63
    ... the Automotive sector's obligation to repurchase such vehicles from daily rental car companies, including Hertz. These vehicles are subsequently sold at auction by Ford Credit. d/ Primarily amounts due Ford Credit from the Automotive sector under a tax sharing agreement. e/ Net result of all other...

  • Page 64
    ...dealers) and ownership is transferred. Sales to daily rental car companies with a guaranteed repurchase option are accounted for as operating leases. The lease revenue is recognized over the term of the lease and a gain or loss on the remaining residual value is recognized when the vehicles are sold...

  • Page 65
    ...ows from the asset group are less than the carrying value. Stock Options Effective January 1, 2003, we adopted the fair value recognition provisions of Statement of Financial Accounting Standards ("SFAS") No. 123, Accounting for Stock-Based Compensation, for stock-based employee compensation. Under...

  • Page 66
    ... Stock dividends, as reported Add: Employee stock option expense included in reported net income, net of related tax effects Deduct: Total employee stock option expense determined under fair value method for all awards, net of related tax effects Pro forma net income/(loss) Amounts per share...

  • Page 67
    ... (in millions): Deferred tax assets Employee benefit plans Dealer and customer allowances and claims Tax credit carryforwards Other foreign deferred tax assets Allowance for credit losses All other Total deferred tax assets Deferred tax liabilities Leasing transactions Depreciation and amortization...

  • Page 68
    ... between the selling price of these assets, less costs to sell them, and their recorded book value. During the fourth quarter of 2004, management committed to a plan to sell Triad Financial Corporation, our operation in the U.S. that specializes in automobile retail installment sales contracts with...

  • Page 69
    ... Losses $ 69 6 4 10 $ 79 $ 4 Book/Fair Value $ 13,134 1,403 446 1,849 $ 14,983 Automotive sector Trading Available-for-sale: U.S. government and agency Other debt securities Subtotal Total Financial Services sector Trading Available-for-sale: Other debt securities Equity Subtotal Held-to-maturity...

  • Page 70
    ... Total Financial Services sector Other debt securities Equity securities Total $ $ We also hold an additional $2.5 billion investment in marketable securities as of December 31, 2004 in a Voluntary Employees Beneficiary Association trust ("VEBA"), which assets are used to fund certain employee...

  • Page 71
    ... TO THE FINANCIAL STATEMENTS NOTE 7. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES Mazda-related Investments. We have a 33.4% ownership interest in Mazda Motor Corporation ("Mazda") and we account for this investment under the equity method. The carrying value of our investment in Mazda was $767...

  • Page 72
    ...The Americas $ 154 34 188 Ford Europe/PAG $ 4,951 11 286 5,248 Ford Asia Pacific and Africa/Mazda $ 72 (64) (8) Financial Services Sector Ford Credit $ 68 (48) 20 $ Hertz 640 8 648 Beginning balance, December 31, 2003* Goodwill acquired Goodwill impairment Exchange translation/other Ending balance...

  • Page 73
    ... $1.5; 2007 - $1; thereafter - $0.4. NOTE 11. NET INVESTMENT IN OPERATING LEASES - FINANCIAL SERVICES SECTOR The net investment in operating leases at December 31 was as follows (in millions): Vehicles and other equipment, at cost Accumulated depreciation Allowances for credit losses Net investment...

  • Page 74
    ... fair value. For wholesale receivables, book value approximates fair value because of their short-term maturities. The fair value of subordinated and senior securities is estimated based on market prices. In determining the fair value of residual interest in securitization transactions, we discount...

  • Page 75
    ... of 0.8% to 1.5% (which represents expected payments earlier than scheduled maturity dates) and credit losses of 0.8% to 2.8% over the life of sold receivables. The weighted-average life of the underlying assets was 50.2 months. Our wholesale transactions included discount rates of 11% to 12%. Cash...

  • Page 76
    ... revenue Deferred income taxes Employee benefit plans Postretirement benefits other than pensions Accrued interest Other Total accrued liabilities Other Liabilities (Non-current) Postretirement benefits other than pensions Dealer and customer allowances and claims Employee benefit plans Pension...

  • Page 77
    ...,006 14,139 22,635 b/ Based on quoted market prices or current rates for similar debt with the same remaining maturities. Subordinated Indebtedness Ford Motor Company Capital Trust II, a subsidiary trust ("Trust II"), has outstanding 6.50% Cumulative Convertible Trust Preferred Securities with an...

  • Page 78
    ... a German company, to which we transferred our Cologne forging operations. Tekfor produces transmission and chassis components for use in our vehicles. Tekfor was formed and consolidated in the second quarter of 2003. We hold equity interests in certain Ford and/or Lincoln Mercury dealerships. As of...

  • Page 79
    ... dealers by allowing a participating dealership operator to become the sole owner of a Ford and/or Lincoln Mercury dealership corporation by purchasing equity from us using the operator's share of dealership net profits. We supply and finance the majority of vehicles and parts to these dealerships...

  • Page 80
    ...829 * Not included in calculation of diluted earnings per share due to their antidilutive effect are 282 million shares related to convertible preferred securities in 2003 and 2002. NOTE 18. STOCK OPTIONS We have stock options outstanding under two Long-term Incentive Plans ("LTIP"), the 1990 LTIP...

  • Page 81
    ... at fair value on our 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. The objective of our risk management program is to manage the...

  • Page 82
    ... debt, also reported in Cost of sales. Financial Services Sector Ford Credit's overall risk management objective is to maximize financing income while limiting the effect of changes in foreign currencies and interest rates. Ford Credit faces exposure to currency exchange rates if a mismatch...

  • Page 83
    ... and Financial Services sectors, existing net gains of $786 million from OCI to net income during the next twelve months as the underlying exposures are realized. Fair Value of Derivative Instruments. The fair value of derivatives reï¬,ects the price that a third party would be willing to pay or...

  • Page 84
    ... of $40 million related to hourly and salaried employee separation programs in Canada and Mexico were recognized in the Americas segment in 2004. In 2003, we initiated planned shift pattern changes at our Genk vehicle assembly plant and manufacturing, engineering and staff efficiency actions in...

  • Page 85
    ... a discontinued operation due to our continued involvement as an equity investor in the acquisition company. In 2003, we recognized pre-tax income of $49 million related to the acceleration of payments received on the note. Financial Services Sector During 2004, Ford Credit announced a sales branch...

  • Page 86
    ... in plan assets. Pursuant to the agreement, the expense associated with service after June 30, 2000 for Visteon Hourly Employees is charged to Visteon. Postretirement health care and life insurance expense for former salaried Ford employees who transferred to Visteon and met certain age and service...

  • Page 87
    ... in Plan Assets Fair value of plan assets at January 1 Actual return on plan assets Company contributions Plan participant contributions Benefits paid Foreign exchange translation Visteon Promissory Notes/Other Fair value of plan assets at December 31 Funded status Unamortized prior service costs...

  • Page 88
    ... to be required to pay any variable-rate premiums for our major plans to the Pension Benefit Guaranty Corporation in 2005. Health Care and Life Insurance. In 2004, we contributed $2.8 billion to our previously established VEBA for U.S. hourly retiree health care and life insurance benefits. During...

  • Page 89
    ... annual rate of return on pension plan assets was 11.20% and 8.41% for U.S. and the U.K. plans, respectively. Health Care and Life Insurance. VEBA assets totaling $6.8 billion at December 31, 2004 include $5.2 billion of long-term investments, which are managed in a strategy similar to the pension...

  • Page 90
    NOTES TO THE FINANCIAL STATEMENTS NOTE 23. Segment Information (Continued) Automotive Sector Ford Asia Ford Pacific Europe & Africa and PAG /Mazda Other $ 54,163 2,630 (785) 2,634 6 $ 6,956 113 82 221 174 $ (276) 981 1,221 - (in millions) 2004 Revenues External customer Intersegment Income Income...

  • Page 91
    ... affiliates Equity in net income/(loss) Investment in Total assets at year end (in millions) Ford Credit Financial Services Sector a/ Other $ 433 13 84 35 109 71 1,881 $ Elims - $ (13) Total 24,518 497 5,008 6,628 5,850 458 (2) 170 188,919 $ Total Company Elims b/ (6,828) Total $171,652...

  • Page 92
    ... CONTINGENCIES Lease Commitments We lease land, buildings and equipment under agreements that expire in various years. Minimum rental commitments under non-cancelable operating leases were as follows (in millions): Automotive sector Financial Services sector $ 2005 472 391 $ 2006 338 327 $ 2007 281...

  • Page 93
    ... sold to a dealer. Included in the warranty cost accruals are costs for basic warranty coverages on vehicles sold. Additional service actions such as product recalls and other customer service actions are not included in the warranty reconciliation below, but are also accrued for at the time of sale...

  • Page 94
    ... express opinions on management's assessment and on the effectiveness of the Company's internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board...

  • Page 95
    ... registered public accounting firm, as stated in their report included herein. NEW YORK STOCK EXCHANGE REQUIRED DISCLOSURES On May 25, 2004, our Chief Executive Officer certified that he was not aware of any violation by the Company of the New York Stock Exchange's Corporate Governance listing...

  • Page 96
    ... dividends b/ Common stock price range (NYSE Composite) High Low Average number of shares of Common and Class B stock outstanding (in millions) SECTOR BALANCE SHEET DATA AT YEAR-END Assets Automotive sector Financial Services sector Total assets Long-term Debt Automotive sector Financial Services...

  • Page 97
    ... 2003 was: Automotive sector The Americas Ford North America Ford South America Ford Europe and PAG Ford Europe Premier Automotive Group Ford Asia Pacific and Africa Financial Services sector Ford Motor Credit Company The Hertz Corporation Other Financial Services Total 2004 122,877 12,222 69,149...

  • Page 98
    ...of purchasing, holding and selling Ford Common Stock. Company Information The URL to our online Investor Center is www.shareholder.ford.com. Alternatively, individual investors may contact: Ford Motor Company Shareholder Relations One American Road Dearborn, Michigan 48126-2798 Security analysts and...

  • Page 99
    ... and maintenance programs Ford Extended Service Plan (ESP) • Major customers include Ford, Lincoln and Mercury vehicle dealers, commercial customers and ï¬,eets of Ford Motor Company vehicles Automobile Protection Corporation (APCO) • Major customers include Mazda, Volvo, Jaguar, Land Rover and...

  • Page 100
    W W W. F O R D . C O M Ford Motor Company • One American Road • Dearborn, Michigan 48126