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ONE Ford
Ford Motor Company / 2010 Annual Report

Table of contents

  • Page 1
    ONE Ford Ford Motor Company / 2010 Annual Report

  • Page 2
    ... includes Volvo for 2010. (b) Automotive gross cash includes cash and cash equivalents and net marketable securities. (c) Source: Capital IQ Shareholder Value Dividends per share Total shareholder returns % (c) $ - 68% $ 337% ONE FORD: ONE Ford expands on the company's four-point business plan...

  • Page 3
    ...164,000 employees and about 70 plants worldwide, the company's automotive brands include Ford and lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com. Ford Motor Company | 2010 Annual Report 1

  • Page 4
    ... the global economy improves and expands, we want to build on the solid foundation we have established. In the near term, we expect overall industry sales volumes to continue to grow worldwide in 2011. We plan to continue introducing best-in-class new products at a rapid pace. Increased sales volume...

  • Page 5
    ... year to serve as volunteers. last year some 27,000 Ford employees and retirees volunteered more than 112,000 hours to help people in their local communities. Ford Motor Company | 2010 Annual Report 3 Great Products In 2010 Ford launched 24 new or redesigned vehicles in key markets around the world...

  • Page 6
    ... to operate profitably at the current demand and the changing model mix; • Accelerate development of new products our customers want and value; • Finance our plan and improve our balance sheet; and • Work together effectively as one team, leveraging our global assets. We plan to build on...

  • Page 7
    ... Service James P. Tetreault North America Manufacturing Martin J. Mulloy labor Affairs Raymond F. Day Communications Frederiek Toney Global Ford Customer Service Division Raj Nair Engineering Roelant de Waard Marketing, Sales and Service, Ford of Europe Ford Motor Company | 2010 Annual Report...

  • Page 8
    Great Products C-MAX 6 Ford Motor Company | 2010 Annual Report

  • Page 9
    ... offers a full line of high-quality products with global appeal. Moving forward, the company is putting additional resources behind the lincoln luxury brand, offering advanced technologies and distinctive designs. Fusion Taurus CARS Throughout 2010 Ford continued market share growth in the car...

  • Page 10
    ... and MyFord Touch. The voice-activated technology also will be offered in Mandarin - a first for Ford Motor Company in the China market. Kuga was a hit in Europe, with the best full-year volume and share for Kuga since its launch in 2008. The focal point of Ford's latest investment in Brazil...

  • Page 11
    ...size van for 31 years running, E-Series marks its 50th anniversary in 2011 with premium technology to better serve customers including SyNC® and industry-exclusive Ford Work Solutions™. Now on the horizon for 180 global markets is the all-new Ranger. The latest in a wave of global products driven...

  • Page 12
    ... by expanded product development and marketing, sales and service teams to support the brand's growth. We will also continue to work with our dealers to better serve key luxury vehicle markets and upgrade the consumer experience to meet and exceed the luxury customer expectations. Plans also include...

  • Page 13
    ...four-wheel braking, slowing the vehicle by up to 10 mph in about one second. It debuted as standard equipment on the 2011 Ford Explorer and will be offered on 90 percent of the company's North American crossovers, sport utilities, trucks and vans by 2015. Ford Motor Company | 2010 Annual Report 11

  • Page 14
    ... communication and entertainment system, allowing voice-activated control. It is now installed on more than 3 million Ford Motor Company vehicles. And customers buying Ford vehicles are treating SyNC as a must-have, purchasing the system, when available, nearly 80 percent of the time on 2011 models...

  • Page 15
    ... at 40 mpg highway. Focus joins the Fusion Hybrid, Fiesta SFE, and lincoln MKZ Hybrid. In all, the company has 12 vehicles in the u.S. that lead their sales segments in fuel economy - a number no other automaker can match. Record investment in new engines, six-speed transmissions and fuel-saving...

  • Page 16
    Strong Business The all-new Focus 14 Ford Motor Company | 2010 Annual Report

  • Page 17
    ... initiatives and environmentally responsible processes and systems. Globally, we are committed to delivering a full lineup of Ford brand vehicles with best-in-class quality, fuel efficiency, safety and smart technology that customers want and value. Ford Motor Company | 2010 Annual Report 15

  • Page 18
    ... car products to more than 120 markets, brings new levels of fuel efficiency and smart technology to customers worldwide and extends the company's electrification strategy. The heart of Ford's manufacturing transformation is based on flexible operations, using reprogrammable tooling in body shops...

  • Page 19
    ... the balance sheet in 2010, and this will remain a key area of focus for us in 2011. We continue to manage the business for long term profitable growth. FORD CREDIT Ford Motor Credit Company is a strategic asset for Ford, providing financial services to Ford dealers and customers around the world...

  • Page 20
    Better World 18 Ford Motor Company | 2010 Annual Report

  • Page 21
    ...of dealership employees have participated in "Race for the Cure" events in their local communities. Pictured left is the Ford World Headquarters event in Dearborn, Michigan. FORD DRIVING SKILLS FOR LIFE The Ford Driving Skills for Life program has touched more than 340,000 U.S. high school students...

  • Page 22
    ... growing urban centers, and tailoring our products and services to increasingly diverse global markets are not peripheral to Ford's future success - they are central to it. Escape Hybrid Transit Connect Taxi SUSTAINABLE TECHNOLOGY AND FUEL ECONOMY Ford has significant history with alternative...

  • Page 23
    ... Operations Sector Statement of Operations Consolidated Balance Sheet Sector Balance Sheet Consolidated Statement of Cash Flows Sector Statement of Cash Flows Consolidated Statement of Equity Notes to the Financial Statements Report of Independent Registered Public Accounting Firm Selected Financial...

  • Page 24
    ... later of the date the related vehicle sales to our dealers are recorded or the date the incentive program is both approved and communicated. In order to compensate Ford Credit for the lower interest or lease rates offered to the retail customer, we pay the discounted value of the incentive directly...

  • Page 25
    ...our business and improve profitability as we expand around the world, invest in new products and technologies, respond to increasing industry sales volume and grow our market share. Automotive total costs and expenses for full-year 2010 was $113.5 billion (including about $8 billion related to Volvo...

  • Page 26
    ... in those markets for our small car offerings (including the new Ford Fiesta and Focus models that are based on our global platforms). Although we expect positive contribution margins from higher small vehicle sales, one result of increased production of small vehicles may be that, over time, our...

  • Page 27
    ... Ford plan is the right strategy to achieve our objectives Aggressively restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; and Work together effectively...

  • Page 28
    Management's Discussion and Analysis of Financial Condition and Results of Operations Product Development. Our One Ford global product development system is fully operationalized, utilizing global platforms to deliver customer-focused programs rapidly and efficiently across multiple markets. Through...

  • Page 29
    ... fuel efficiently, and to increase safety belt usage. MyKey - which debuted on the 2010 Ford Focus and has quickly become standard on most Ford and Lincoln models - allows owners to program a key that can limit the vehicle's top speed and audio volume. Ford Motor Company | 2010 Annual Report 27

  • Page 30
    ... Ford Explorer, Edge, the new Fiesta and the redesigned Lincoln MKX and the MKZ Hybrid; for Europe, the redesigned Ford C-MAX and new Grand C-MAX; and for India, the new Ford Figo. In 2011, we plan a number of additional global product launches. Our product strategy ensures a single global product...

  • Page 31
    ...our products by customers, and our full pipeline of new products allow us to compete effectively in the global vehicle markets while we reduce our debt. Work Together Effectively as One Team As part of the One Team approach, we have implemented a disciplined business plan process to regularly review...

  • Page 32
    ... and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS On January 1, 2010, we adopted the new accounting standard regarding consolidation of VIEs. We have applied the standard retrospectively to periods covered in this Report, and present prior-year financial statement...

  • Page 33
    ... - Gain on purchase of Ford Holdings debt securities ...Ford Credit net operating lease impairment charge ...- Total Other Items - Financial Services sector ...- $ (1,151) Total ...2009 $ (140) (663) 40 (768) (1,531) 4,663 (281) (226) (96) 110 3 4,173 2,642 (132) 51 - (81) 2,561 $ 2008 (250) (1,610...

  • Page 34
    ... by the non-recurrence of prior-year reductions in dealer stocks). The increase in wholesales for Ford Asia Pacific Africa primarily reflects higher industry volume (primarily in China and India), increase in dealer stocks, and higher market share. 32 Ford Motor Company | 2010 Annual Report

  • Page 35
    ... in low-margin business, as well as the end of the favorable effect of government scrappage programs on our small car sales. In Asia Pacific Africa, the increase in market share primarily reflects share gains in India, as well as China, driven by new model introductions. Total costs and expenses...

  • Page 36
    ... 2009 data; even with retrospective application of the new accounting standard, AAI remains consolidated in 2008. Accordingly, 2009 data in this table exclude income from sales of Mazda6, whereas 2008 data in this table include income from these sales. 34 Ford Motor Company | 2010 Annual Report

  • Page 37
    ... unconsolidated affiliates; market share represents, in part, estimated vehicle sales; dealer-owned stocks include units distributed for other manufacturers. 2009 Over/(Under) 2008 1.1 pts. 0.5 0.5 - 0.1/- 2009 Over/(Under) 2008 (60) 8 (80) (14) (1)/(9) Ford Motor Company | 2010 Annual Report 35

  • Page 38
    ... at present-year exchange; in addition, costs that vary directly with volume, such as material, freight and warranty costs, are measured at present-year volume and mix. Excludes special items/other (primarily changes in Jaguar Land Rover costs and expenses reflecting the sale of these operations...

  • Page 39
    ... finance receivables sold in 2009, and lower losses on residual-based products. These factors are offset partially by lower volume. The change in unallocated risk management reflected net losses related to market valuation adjustments to derivatives. Ford Motor Company | 2010 Annual Report...

  • Page 40
    ...in whole-loan sale transactions where Ford Credit retains no interest, but which it continues to service of about $100 million at December 31, 2009. The decrease in receivables from year-end 2009 primarily reflects the discontinuation of financing for Jaguar, Land Rover, Mazda, and Volvo, and lower...

  • Page 41
    ...year-end 2009. See Note 7 of the Notes to the Financial Statements for additional information on the quality of Ford Credit's receivables. Residual Risk Ford Credit is exposed to residual risk on operating leases and similar balloon payment products where the customer may return the financed vehicle...

  • Page 42
    ... quarter 2010 vehicle mix for lease terms comprising 59% of Ford Credit's active Ford, Lincoln and Mercury brand U.S. operating lease portfolio (in thousands, except for percentages): Returns Returns 24-Month term ...39 71 36-Month term ...39-Month term ...49 Total returns ...159 Memo: Return rates...

  • Page 43
    ... or receivable recorded on the balance sheet at period-end. (c) Amount transferred to UAW-Ford TAA that, due to consolidation, was shown in Cash, marketable securities and loaned securities. (d) Pursuant to the Retiree Health Care Settlement Agreement (see Note 18 of the Notes to the Financial...

  • Page 44
    ... in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2008, in January 2009 we liquidated the assets in the TAA established pursuant to the Retiree Health Care Settlement Agreement, and...

  • Page 45
    ...unsecured credit agreements; domestic accounts receivable; domestic inventory; up to $4 billion of marketable securities or cash proceeds therefrom; 100% of the stock of our principal domestic subsidiaries, including Ford Credit (but excluding the assets of Ford Credit); Ford Motor Company of Canada...

  • Page 46
    ..., except percentages): Advance Rate 75% 60% 100% 75% 48% 40% 32% $ Eligible Value (a) U.S. receivables...$ 678 U.S. inventory...1,899 Pledge of Ford Motor Company of Canada, Limited intercompany notes (limited to its total tangible assets) ...391 Pledge of equity in Ford Credit and certain foreign...

  • Page 47
    ... revolving credit facility and Ex-Im Bank provided a guarantee to PEFCO for 100% of the outstanding principal amount of the loan, which is secured by our in-transit vehicle inventory to Canada and Mexico. Proceeds drawn on the facility will be used to finance vehicles exported for sale to Canada and...

  • Page 48
    ... transactions during 2010, which further reduced our Automotive debt: VEBA Trust Note Obligations: Pursuant to a March 2008 settlement agreement, the UAW VEBA Trust was created to assume responsibility for providing retiree health care benefits to eligible Ford-UAW employees and their dependents...

  • Page 49
    ... sheet, primarily by working to ensure our underlying business generates positive Automotive operating-related cash flow that can be used to reduce debt even as we continue to invest in the growth of our business. Financial Services Sector Ford Credit Funding Strategy. Ford Credit's funding strategy...

  • Page 50
    ... rulemaking is complete. Government-Sponsored Securitization Funding Programs U.S. Federal Reserve's Term Asset-Backed Securities Loan Facility ("TALF"). TALF began in March 2009 to make credit available by restoring liquidity in the asset-backed securitization market. TALF expired in March 2010. At...

  • Page 51
    .... In 2010, Ford Credit completed about $8 billion of private term funding transactions (excluding Ford Credit's on-balance sheet asset-backed commercial paper program) primarily reflecting securitization transactions across all regions and asset classes. Ford Motor Company | 2010 Annual Report 49

  • Page 52
    ...cash, cash equivalents, and marketable securities, but excluding marketable securities related to insurance activities and cash and cash equivalents to support on-balance sheet securitization transactions). At December 31, 2010, Ford Credit's liquidity available for use was higher than year-end 2009...

  • Page 53
    ... Ford Credit's capital structure. Ford Credit refers to its shareholder's interest as equity. Ford Credit calculates leverage on a financial statement basis and on a managed basis using the following formulas: Financial Statement Leverage = Total Debt Equity Securitized Off-Balance Sheet Receivables...

  • Page 54
    ...both public and private transactions in capital markets worldwide. Ford Credit completed its first securitization transaction in 1988, and regularly securitizes assets, purchased or originated, in the United States, Canada, Mexico, and European countries. 52 Ford Motor Company | 2010 Annual Report

  • Page 55
    Management's Discussion and Analysis of Financial Condition and Results of Operations All of Ford Credit's securitization transactions involve sales to consolidated entities or Ford Credit maintains control over the assets, and, therefore, the securitized assets and related debt remain on its ...

  • Page 56
    Management's Discussion and Analysis of Financial Condition and Results of Operations Ford Credit is engaged as servicer to collect and service the securitized assets. Its servicing duties include collecting payments on the securitized assets and preparing monthly investor reports on the performance...

  • Page 57
    ... liabilities related to Ford Credit's on-balance sheet securitization transactions are as follows (in billions): 2010 Total outstanding principal amount of finance receivables and net investment in operating leases $ 60.7 included in on-balance sheet securitizations ...Cash balances to be used only...

  • Page 58
    ... and Analysis of Financial Condition and Results of Operations The following ratings actions have been taken by these NRSROs since the filing of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2010: Ford On January 28, 2011, Moody's affirmed Ford Motor Company's ratings and...

  • Page 59
    ... One Ford plan - to aggressively restructure our business to operate profitably, accelerate development of new products customers want and value, finance our plan and strengthen our balance sheet, and work together effectively as one team leveraging our global assets - provides the right strategy to...

  • Page 60
    ...strengthen our balance sheet in the coming year. We expect each of our operating segments to be profitable for full-year 2011. We expect to build on our 2010 performance with continued improvement in total Company pre-tax operating profit and Automotive operating-related cash flow in 2011. With this...

  • Page 61
    ...than-expected credit losses; Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; Collection and servicing problems related to finance receivables and net investment in operating leases; Lower-than-anticipated residual values or...

  • Page 62
    ... of regulatory premiums and levies, and tax efficiency). Retirement rates. Retirement rates are developed to reflect actual and projected plan experience. Mortality rates. Mortality rates are developed to reflect actual and projected plan experience. 60 Ford Motor Company | 2010 Annual Report

  • Page 63
    ... Financial Statements for more information regarding costs and assumptions for employee retirement benefits. Sensitivity Analysis. The December 31, 2010 pension funded status and 2011 expense are affected by yearend 2010 assumptions. These sensitivities may be asymmetric and are specific to the time...

  • Page 64
    ... carryforwards. These strategies would be a source of additional positive evidence and, depending on their nature, could be heavily weighted. • See Note 23 of the Notes to the Financial Statements for more information regarding deferred tax assets. 62 Ford Motor Company | 2010 Annual Report

  • Page 65
    ... in a large negative effective tax rate and very high earnings per share from net income attributable to Ford. Rather than allow this abnormal effective tax rate to impact our earnings per share from operating profit excluding special items ("operating earnings per share"), we intend to classify...

  • Page 66
    ... customer has the option to buy the leased vehicle at the end of the lease or to return the vehicle to the dealer. Ford Credit's North America operating lease activity was as follows for each of the last three years (in thousands, except percentages): 2010 Vehicle return volume ...281 Return rate...

  • Page 67
    ... operating leases on our balance sheet, in each case under the Financial Services sector. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED For information on accounting standards issued but not yet adopted, see Note 3 of the Notes to the Financial Statements. Ford Motor Company | 2010 Annual Report...

  • Page 68
    ...(excluding capital leases) ...Interest payments relating to long-term debt (c) ...Capital leases...OffOff-balance sheet Purchase obligations ...Operating leases ...Total Financial Services sector ...Intersector elimination (d)...Total Company...$ 2011 1,168 867 21 1,944 183 4,183 $ 2012 - 2013 4,833...

  • Page 69
    ... 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 70
    ... of certain exposures in order to manage this risk. Exposures primarily relate to investments in fixed income instruments and derivative contracts used for managing interest rate, foreign currency exchange rate and commodity price risk. We, together with Ford Credit, establish exposure limits for...

  • Page 71
    ... six years and generally require customers to make equal monthly payments over the life of the contract. Wholesale receivables are originated to finance new and used vehicles held in dealers' inventory and generally require dealers to pay a floating rate. Ford Motor Company | 2010 Annual Report 69

  • Page 72
    ...(either monthly or quarterly depending on the market). 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 82% of its total on-balance sheet finance...

  • Page 73
    ... - an agreement to buy or sell an amount of funds in an agreed currency at a certain time in the future for a certain price. As a result of this policy, Ford Credit believes its market risk exposure relating to changes in currency exchange rates is insignificant. The fair value of Ford Credit's net...

  • Page 74
    Consolidated Statement of Operations FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2010, 2009 and 2008 (in millions, except per share amounts) 2010 Sales and revenues $ 119,280 Automotive sales...Financial Services revenues ...9,674 Total sales and revenues ...128,954 Costs ...

  • Page 75
    Sector Statement of Operations FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2010, 2009 and 2008 (in millions, except per share amounts) 2010 2010 AUTOMOTIVE Sales...$ 119,280 Sales Costs and expenses Cost of sales ...104,451 Selling, administrative and other expenses ...9,040...

  • Page 76
    ... ...19 106 Net property ...31 154 Deferred income taxes ...- - Other assets ...28 56 LIABILITIES Payables...16 23 Accrued liabilities and deferred revenue...222 560 Debt ...40,247 46,167 The accompanying notes are part of the financial statements. 74 Ford Motor Company | 2010 Annual Report

  • Page 77
    ...181 Other assets ...2,019 Total Automotive assets ...64,606 Financial Services 8,504 Cash and cash equivalents ...6,759 Marketable securities (Note 6) ...73,265 Finance receivables, net (Note 7) ...10,393 Net investment in operating leases (Note 8) ...128 Equity in net assets of affiliated companies...

  • Page 78
    .../transfer of cash equivalents to the UAW Voluntary Employee (7,302) Benefit Association ("VEBA") Trust (Note 18) ...Other...100 Net cash (used in)/provided by financing activities ...(24,421) Effect of exchange rate changes on cash ...(53) Cumulative correction of Financial Services prior-period...

  • Page 79
    Sector Statement of Cash Flows FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2010, 2009 and 2008 (in millions) Cash flows from operating activities of continuing ops. Net cash provided by/(used in) operating activities $ 6,363 (Note 27) ...Cash flows from investing activities...

  • Page 80
    ... value option standard for financial assets and liabilities (net of $0 of tax)...- - Common Stock issued for debt conversion, 2 1,191 employee benefit plans, and other...ESOP loan, treasury stock/other ...- - - - Cash dividends ...Balance at end of year ...$ 24 $10,875 YEAR ENDED DECEMBER 31, 2009...

  • Page 81
    ... Issued Accounting Standards...87 Fair Value Measurements ...88 Restricted Cash ...98 Marketable and Other Securities ...99 Finance Receivables ...100 Net Investment in Operating Leases ...107 Allowance for Credit Losses ...109 Inventories ...112 Equity in Net Assets of Affiliated Companies ...112...

  • Page 82
    ...-for-sale operations see Note 24. In the first quarter of 2009, our wholly-owned subsidiary Ford Motor Credit Company LLC ("Ford Credit") recorded a $630 million cumulative adjustment to correct for the overstatement of Financial Services sector cash and cash equivalents and certain accounts payable...

  • Page 83
    ...accounting for convertible debt instruments (in millions, except per share information). The "revised" and "as originally reported" numbers in the following tables also assume the retrospective application of the new accounting standard on VIE consolidation. Revised 2008 2008 Statement of Operations...

  • Page 84
    ...total sector and consolidated cash flows. Automotive Acquisition of Financial Services Debt. During 2008 and 2009, we issued 159,913,115 shares of Ford Common Stock through an equity distribution agreement and used the proceeds of $1 billion to purchase $1,048 million of Ford Credit debt and related...

  • Page 85
    ...flows. (e) See "Debt Reduction Actions" above for further discussion. Cash flows related to these transactions are reported as financing activities on the consolidated statement of cash flows and investing activities on the sector statement of cash flows. Ford Motor Company | 2010 Annual Report 83

  • Page 86
    ... dealerships that are partially or wholly owned by Ford and consolidated as VIEs, and also certain overseas affiliates. Sale-leaseback agreement between Automotive and Financial Services sectors relating to vehicles that we lease to our employees. Primarily used vehicles purchased by Ford Credit...

  • Page 87
    ... to return eligible parts for credit, we reduce the related revenue for expected returns. We sell vehicles to daily rental companies subject to guaranteed repurchase options. These vehicles are accounted for as operating leases. At the time of sale, the proceeds are recorded as deferred revenue in...

  • Page 88
    ..., investments in marketable securities, and other miscellaneous receivables is reported in Financial Services other income/(loss), net. Retail and Lease Incentives We offer special retail and lease incentives to dealers' customers who choose to finance or lease Ford-brand vehicles from Ford Credit...

  • Page 89
    ...to, sales, use, value-added, and some excise taxes. We report the collection of these taxes on a net basis (excluded from revenues). NOTE 3. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED Financial Services - Insurance. In October 2010, the Financial Accounting Standards Board ("FASB") issued a new...

  • Page 90
    ...as Marketable securities. Time deposits, certificates of deposit, and money market accounts are reported at par value, which approximates fair value. For other investment securities, we generally measure fair value based on a market approach using prices obtained from pricing services. We review all...

  • Page 91
    ... on an income approach using discounted cash flow models. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, our own credit risk and the contractual terms of the debt instruments. For asset-backed debt issued...

  • Page 92
    ...2010; see Note 1 for additional detail. Other liquid investments include certificates of deposit and time deposits with a maturity of more than 90 days at date of purchase. See Note 26 for additional information regarding derivative financial instruments. 90 Ford Motor Company | 2010 Annual Report

  • Page 93
    ..." in this table excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $5.7 billion as of December 31, 2010 for the Financial Services sector, which approximates fair value. In addition to these...

  • Page 94
    ...time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $2.1 billion as of December 31, 2009 for the Automotive sector, which approximates fair value. In addition to these cash equivalents, we also had cash on hand...

  • Page 95
    ... time deposits with a maturity of more than 90 days at date of purchase. Retained interest in securitized assets is reported in Other assets on our consolidated balance sheet. See Note 26 for additional information regarding derivative financial instruments. Ford Motor Company | 2010 Annual Report...

  • Page 96
    ... Services Sector Marketable securities - Foreign $ 5 $ government agencies/ Corporate debt...Derivative financial instruments, net...(74) Retained interest in securitized assets ...92 Total Level 3 fair value ...$ 23 $ (a) (b) Fair Value at December 31, 2008 Fair Value at December 31, 2009...

  • Page 97
    ... $ Total Level 3 fair value ...Financial Services Sector Marketable securities - Foreign $ - $ government agencies/ Corporate debt...Derivative financial instruments, net...(2) 653 Retained interest in securitized assets ...Total Level 3 fair value ...$ 651 $ (a) (b) Fair Value at January 1, 2008...

  • Page 98
    ... (58) (85) "Other Comprehensive Income/(Loss)" represents foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates. See Note 26 for detail on financial statement presentation by hedge designation. 96 Ford Motor Company | 2010 Annual Report

  • Page 99
    ... costs to sell. The collateral for retail receivables is the vehicle being financed and for dealer loans is real estate or other property. See Note 9 for additional information related to the development of Ford Credit's allowance for credit losses. Ford Motor Company | 2010 Annual Report 97

  • Page 100
    ... in Financial Services provision for credit and insurance losses. An impairment charge was recorded during the second quarter of 2008 related to certain vehicle lines in Ford Credit's North America operating lease portfolio in Selling, administrative and other expenses on our consolidated statement...

  • Page 101
    ... significant influence are recorded at cost and included in Other assets. These cost method investments were as follows at December 31 (in millions): 2010 Automotive sector ...$ 92 Financial Services sector ...5 Total Company ...$ 97 $ $ 2009 96 5 101 Ford Motor Company | 2010 Annual Report 99

  • Page 102
    ...-offs and any unamortized deferred fees or costs. At December 31, 2010, the recorded investment in Ford Credit's finance receivables excluded $176 million of accrued uncollected interest receivable, which we report in Other assets on the balance sheet. 100 Ford Motor Company | 2010 Annual Report

  • Page 103
    ... from collection of these receivables can be used only for payment of the related debt and obligations; they are not available to pay the other obligations of our Financial Services sector or the claims of its other creditors (see Notes 13 and 19). Ford Motor Company | 2010 Annual Report 101

  • Page 104
    ... leases were as follows (in millions): 2011 - $7; 2012 - $1; thereafter - $0. At December 31, 2010, future minimum rentals from International direct financing leases were as follows (in millions): 2011 - $812; 2012 - $520; 2013 - $445; thereafter - $203. 102 Ford Motor Company | 2010 Annual Report

  • Page 105
    ..., Ford Credit reviews the credit quality of retail and direct financing lease receivables based on customer payment activity. As each customer develops a payment history, Ford Credit uses an internally developed behavioral scoring model to assist in determining the best collection strategies...

  • Page 106
    ... Total recorded investment in retail receivables and direct financing leases ... $ Non-Consumer Credit Quality. For all classes of non-consumer receivables, Ford Credit extends commercial credit to dealers primarily in the form of approved lines of credit to purchase new Ford and Lincoln vehicles...

  • Page 107
    ... Performance of non-consumer receivables is evaluated based on Ford Credit's internal dealer risk rating analysis, as payment for wholesale receivables generally is not required until the dealer has sold the vehicle inventory. Wholesale and dealer loan receivables with the same dealer customer share...

  • Page 108
    ... Losses Average Recorded Investment Financing Revenue Collected $ 8 2 - $ - - - $ 19 9 - $ 2 - - - 64 - - 10 - - 69 - - 3 - 22 1 - - - - 29 2 - 2 - - 5 - - 2 - - 8 - - - - - $ 35 67 - 102 $ 2 10 - 12 $ 56 80 - 136 $ 4 3 - 7 106 Ford Motor Company | 2010 Annual Report

  • Page 109
    ...-line method over the term of the lease to reduce the asset to its estimated residual value. Estimated residual values are based on assumptions for used vehicle prices at lease termination and the number of vehicles that are expected to be returned. Ford Motor Company | 2010 Annual Report 107

  • Page 110
    ... the 2008 impairment of vehicles subject to operating leases at Ford Credit. See Note 15 for additional details. (b) Includes Ford Credit's operating lease assets of $6.2 billion and $10.4 billion at December 31, 2010 and 2009, respectively, for which the related cash flows have been used to secure...

  • Page 111
    ... impairment...Recorded investment ...$ Ending balance, net of allowance for credit losses...$ Financial Services Sector The allowance for credit losses represents Ford Credit's estimate of the probable loss on the collection of finance receivables and operating leases as of the balance sheet date...

  • Page 112
    ...based on historical LTR ratios, expected future cash flows, and the fair value of collateral. Collective Allowance for Credit Losses. Ford Credit estimates an allowance for non-consumer receivables that are not specifically identified as impaired using a LTR model for each financing product based on...

  • Page 113
    ... 102 24,402 24,332 $ $ $ 73,940 102 74,042 73,265 $ $ $ 10,480 - 10,480 10,393 (a) Represents principally amounts related to translation adjustments. (b) Finance receivables and net investment in operating leases before allowance for credit losses. Ford Motor Company | 2010 Annual Report 111

  • Page 114
    ... prevailing in prior years as compared with the cost of purchases, the effect of which decreased Automotive cost of sales by about $4 million and $33 million, respectively. NOTE 11. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES We use the equity method of accounting for our investments in entities...

  • Page 115
    Notes to the Financial Statements NOTE 11. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES (Continued) We received $337 million, $299 million, and $411 million of dividends from these affiliated companies for the years ended December 31, 2010, 2009, and 2008, respectively. NOTE 12. SIGNIFICANT ...

  • Page 116
    ... liabilities and deferred revenue ...- Debt ...- Total liabilities ...$ 16 $ 2009 27 34 106 154 1 322 23 32 14 69 $ $ $ The financial performance of the consolidated VIEs reflected on our statement of operations as of December 31, 2010, 2009, and 2008 includes consolidated sales of $58 million...

  • Page 117
    ... who obtain funding from government programs. We have deemed most of these special purpose entities to be VIEs. The asset-backed securities are secured by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by our Financial Services sector...

  • Page 118
    ... that are not needed to pay liabilities of the consolidated VIEs. The assets and debt reflected on our consolidated balance sheet are as follows (in billions): December 31, 31, 2010 Finance Receivables, Net and Net Investment in Cash and Cash Operating Leases Equivalents $ 33.9 16.6 50.5 6.1 56...

  • Page 119
    ... AND LEASE COMMITMENTS Net Property Net property includes land, buildings and land improvements, machinery and equipment, special tools, and other assets that we use in our normal operations. These assets are recorded at cost, net of accumulated depreciation and impairments. We capitalize new assets...

  • Page 120
    ...preferences combined with lower-than-anticipated U.S. industry demand and greater-than-anticipated escalation of commodity costs resulted in impairment charges related to Ford North America's long-lived assets and Ford Credit's operating lease portfolio. 118 Ford Motor Company | 2010 Annual Report

  • Page 121
    ... 2008 long-lived asset impairment (in millions): Ford North America Land...$ - 698 Buildings and land improvements ...Machinery, equipment and other...2,833 Special tools ...1,769 $ 5,300 Total... Financial Services Sector Certain Vehicle Line Operating Leases. The shift in consumer preferences...

  • Page 122
    ... 18. RETIREMENT BENEFITS We provide pension benefits and OPEB, such as health care and life insurance, to employees in many of our operations around the world. Plan obligations are measured based on the present value of projected future benefit payments for all participants for services rendered to...

  • Page 123
    ... and future salaried retirees. Salaried employees hired on or after January 1, 2004 are not eligible for retiree basic life insurance. Ongoing expense was reduced by about $125 million annually beginning in 2009 as a result of this benefit change. Ford Motor Company | 2010 Annual Report 121

  • Page 124
    ... Options (Binomial) Model. Inputs to the fair value measurement included an exercise price of $9.20 per share, and a market price of $10 per share (the closing sale price of Ford Common Stock on December 31, 2009). The fair value of the warrants reflected a risk-free rate based on a three-year...

  • Page 125
    ... 2010 2010 Worldwide OPEB 2009 2008 $ 408 899 (130) (913) 82 2 244 $ 592 $ 326 1,456 (265) (900) 267 13 (2,714) $(1,817) 314 1,249 (1,337) 75 246 26 - 573 54 338 - (617) 96 1 (30) $ (158) * Includes Jaguar Land Rover for 2008, and Volvo for 2008 - 2010. Ford Motor Company | 2010 Annual Report...

  • Page 126
    ... Plan participant contributions ...23 Benefits paid ...(3,704) Settlements ...- Foreign exchange translation ...- - Divestiture ...Other ...(66) Fair value of plan assets at December 31 ...$ 39,960 Funded status at December 31 ...$ (6,687) Amounts Recognized on the Balance Sheet (a) Prepaid assets...

  • Page 127
    ... Volvo). During 2011, we expect to contribute from Automotive cash and cash equivalents $1.2 billion to our worldwide funded plans, and to make $400 million of benefit payments directly by the Company for unfunded plans, for a total of $1.6 billion. Based on current assumptions and regulations...

  • Page 128
    ... assets relate to equity, interest rate, and operating risk. In order to ensure assets are sufficient to pay benefits, a portion of plan assets is allocated to equity investments that are expected over time to earn higher returns with more volatility than fixed income investments which more closely...

  • Page 129
    ...asset value ("NAV"). Alternative investments are valued based on year-end reported net asset value, with adjustments as appropriate for lagged reporting of 1-6 months. Equities. Equity securities are valued based on quoted prices and are primarily exchange-traded. Securities for which official close...

  • Page 130
    ... of the underlying assets held by the insurance company (primarily bonds) at the guaranteed rate of return. The adjustment to market asset prices to recognize contractual returns is a significant unobservable input; therefore the contract is Level 3. 128 Ford Motor Company | 2010 Annual Report

  • Page 131
    .... (g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits. (h) Primarily cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. $ $ Ford Motor Company | 2010 Annual Report 129

  • Page 132
    ... liquidity to plan investment managers. (h) Primarily Ford-Werke GmbH ("Ford-Werke") plan assets (insurance contract valued at $3,371 million) and cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. $ $ 130 Ford Motor Company | 2010 Annual Report

  • Page 133
    .... (g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits. (h) Primarily cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. $ $ Ford Motor Company | 2010 Annual Report 131

  • Page 134
    ... liquidity to plan investment managers. (h) Primarily Ford-Werke GmbH ("Ford-Werke") plan assets (insurance contracts valued at $3,480 million) and cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. $ $ 132 Ford Motor Company | 2010 Annual Report

  • Page 135
    ... 50 125 Asset Category Equity U.S. companies...$ 15 $ International companies ...92 Commingled funds ...3 Derivative financial - instruments ...Total equity ...110 Fixed Income U.S. government ...- U.S. governmentsponsored enterprises ...7 Government - non-U.S...256 Corporate bonds Investment grade...

  • Page 136
    ...380 5,323 Asset Category Equity U.S. companies...$ - $ International companies ...21 Commingled funds ...- 21 Total equity ...Fixed Income U.S. government ...- U.S. governmentsponsored enterprises ...- Government - non-U.S...77 Corporate bonds Investment grade ...28 High yield ...19 7 Other credit...

  • Page 137
    ... 212 Asset Category Equity U.S. companies...$ 2 $ International companies ...13 Commingled funds ...4 19 Total equity ...Fixed Income U.S. government ...19 Government-sponsored 12 enterprises ...Government - non-U.S...254 Corporate bonds Investment grade ...371 High yield ...66 Other credit ...29...

  • Page 138
    ... its fair value for disclosures. The fair value of debt is estimated based on quoted market prices, current market rates for similar debt with approximately the same remaining maturities, or discounted cash flow models utilizing current market rates. 136 Ford Motor Company | 2010 Annual Report

  • Page 139
    ... Ford Interest Advantage program consists of Ford Credit's floating rate demand notes. Adjustments related to designated fair value hedges of unsecured debt. Debt related to Ford's acquisition of Ford Credit debt securities; see Note 1 for additional detail. Ford Motor Company | 2010 Annual Report...

  • Page 140
    ......- - 140 77 Secured term loan...Secured revolving loan...838 - U.S. DOE loans...- 138 1,071 192 Short-term and other debt (b)...2,049 407 Total Automotive debt ...Financial Services Sector Unsecured debt...14,850 7,136 Asset-backed debt ...24,765 11,750 Unamortized discount (a) ...2 (120) 35...

  • Page 141
    ...other non-operating income/(expense), net. 2008 Debt for Equity Exchanges. During the first half of 2008, we issued an aggregate of 46,437,906 shares of Ford Common Stock, par value $0.01 per share, in exchange for $431 million principal amount of our outstanding public unsecured debt securities. As...

  • Page 142
    ... to adjustment) of 108.6957 shares per $1,000 principal amount of 2036 Convertible Notes (which is equal to a conversion price of $9.20 per share, representing a 25% conversion premium based on the closing price of $7.36 per share on December 6, 2006). 140 Ford Motor Company | 2010 Annual Report

  • Page 143
    ...7,253,035 shares of Ford Common Stock. As a result of the conversion we retrospectively recorded a pre-tax gain of $29 million, net of unamortized discounts, premiums, and fees, in Automotive interest income and other non-operating income/(expense), net. Ford Motor Company | 2010 Annual Report 141

  • Page 144
    ...2011, at a price of $100.66 per $100...year earnings per share calculation. To the extent the Trust Preferred Securities are redeemed and not converted, the amount of dilutive shares outstanding will be reduced. Secured Term Loan and Revolving Loan Pursuant to our Credit Agreement, at December 31, 2010...

  • Page 145
    ...closing thereof to partially prepay certain outstanding term loans under the Credit Agreement, we paid $288 million to the term loan lenders on August 3, 2010 following completion of the sale of Volvo. Upon settlement of the final true-up of the purchase price adjustments, we will be required to pay...

  • Page 146
    ... income/(expense), net. In third quarter of 2009, Ford Leasing purchased from the lenders under the Credit Agreement $45 million principal amount of our secured term loan thereunder for an aggregate cost of $37 million. Ford Holdings elected to receive the $37 million from Ford Leasing as a dividend...

  • Page 147
    ... Agreement contains cross-payment and cross-acceleration defaults with respect to other debt for borrowed money and a change in control default, as well as events of default specific to the facility. EIB Credit Facility On July 12, 2010, Ford Motor Company Limited, our operating subsidiary...

  • Page 148
    ... million related to Ford Credit), net of unamortized premiums and discounts, in Financial Services other income/(loss), net in 2009. Asset-Backed Debt Our Financial Services sector transfers finance receivables and net investments in operating leases in structured transactions to fund operations and...

  • Page 149
    ...and liabilities related to our Financial Services sector's secured debt arrangements that are included in our financial statements for the years ended December 31 (in billions): Cash and Cash Equivalents 3.3 0.8 4.1 0.2 3.5 0.8 4.3 2010 Finance Receivables, Net and Net Investment in Operating Leases...

  • Page 150
    ... terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on Ford Credit's experience and knowledge as servicer of the related assets, it does not expect any of these programs to be terminated due to such events. 148 Ford Motor Company | 2010 Annual Report

  • Page 151
    ...-for-sale operations, equity and cost investments, and other dispositions...9 Gains/(Losses) on extinguishment of debt *...(139) Investment and other income related to sales of receivables ...2 Insurance premiums earned, net...98 Other...237 Total...$ 315 $ 2009 107 42 16 71 (25) 100 241 552 $ 2008...

  • Page 152
    ... closing stock price as of December 31 to the applicable number of units. The fair value and intrinsic value of RSU-stock during 2010, 2009, and 2008 were as follows (in millions, except RSU per unit amounts): 2009 2008 $ 171 2.13 66 95 $ 115 6.04 40 12 150 Ford Motor Company | 2010 Annual Report

  • Page 153
    ... 31, 2008 due to our stock closing at a market price lower than any of the outstanding option prices. We received approximately $307 million from the exercise of stock options in 2010. The tax benefit realized was de minimis. An equivalent of about $307 million in new issues were used to settle...

  • Page 154
    ... of stock options at the time of grant using the Black-Scholes option-pricing model was as follows: 2010 Fair value per stock option ...$ 7.21 $ Assumptions: Annualized dividend yield...-% Expected volatility ...53.4% Risk-free interest rate...3.0% 6.9 Expected stock option term (in years) ...2009...

  • Page 155
    ...Financial Statements NOTE 22. EMPLOYEE SEPARATION ACTIONS As part of our plan to realign our vehicle assembly capacity to operate profitably at the current demand and changing model mix, we have implemented a number of different employee separation plans. The accounting for employee separation plans...

  • Page 156
    ... Ford Asia Pacific Africa...1 2009 109 105 20 17 $ 2008 38 184 - 91 The charges above exclude costs for pension and OPEB. Financial Services Sector Separation Actions In the first quarter of 2010, Ford Credit announced plans to restructure its U.S. operations to meet changing business conditions...

  • Page 157
    ... (117) 417 36 336 94 (433) (59) (398) (62) 35.0% 0.9 0.2 1.0 15.1 0.5 (0.5) 0.5 (0.2) (52.1) 0.4% $ $ No provision for deferred taxes has been made on $812 million of unremitted earnings that are permanently invested in our non-U.S. operating assets. Ford Motor Company | 2010 Annual Report 155

  • Page 158
    ... In connection with the tax benefit preservation plan, our Board of Directors declared a dividend of one preferred share purchase right for each share of Ford Common Stock and Class B Stock outstanding as of the close of business on September 25, 2009. In accordance with the Plan, shares held by any...

  • Page 159
    ... unrecognized tax benefits at December 31, 2010 and 2009 that would affect the effective tax rate if recognized was $510 million and $745 million, respectively. The U.S. and Canadian governments have reached agreement on our transfer pricing methodologies. The agreement covers a number of years and...

  • Page 160
    ...of $650 million related to our total investment in Volvo. The impairment was recorded in Automotive cost of sales. On March 28, 2010, we entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group Company Limited ("Geely"). As part of the agreement with Geely...

  • Page 161
    ... agreement, at closing, we received $1.3 billion in cash, recorded a note receivable in the amount of $200 million, recorded a $126 million receivable for additional purchase price adjustments (relating to our best estimate of additional proceeds, pension liabilities, debt, cash and working capital...

  • Page 162
    ... longer had the intent to hold for the foreseeable future or until maturity or payoff. A valuation allowance of $52 million was recorded in Financial Services other income/(loss), net related to these assets. The receivables were sold on October 1, 2009. 160 Ford Motor Company | 2010 Annual Report

  • Page 163
    ... financing of Ford, Mazda and Volvo vehicles. As a result of the sale, we received $165 million in proceeds and recognized a de minimis pre-tax gain in Financial Services other income/(loss), net. Discontinued Operations Triad Financial Corporation ("Triad"). In 2005, Ford Credit completed the sale...

  • Page 164
    ... principal amount of our outstanding public unsecured debt securities. On May 18, 2009, we issued 345,000,000 shares of Ford Common Stock pursuant to a public offering at a price of $4.75 per share, resulting in total gross proceeds of $1.6 billion. 162 Ford Motor Company | 2010 Annual Report

  • Page 165
    ... to the Financial Statements NOTE 25. CAPITAL STOCK AND AMOUNTS PER SHARE (Continued) As discussed in Note 1, we issued shares of Ford Common Stock from time to time pursuant to an equity distribution agreement and used the proceeds to purchase outstanding Ford Credit debt securities maturing prior...

  • Page 166
    ...-counter customized derivative transactions and are not exchange-traded. We review our hedging program, derivative positions, and overall risk management strategy on a regular basis. Overall Derivative Financial Instruments and Hedge Accounting. All derivatives are recognized on the balance sheet at...

  • Page 167
    ... related to Volvo. For 2010 and 2009, hedge ineffectiveness reflects change in fair value on derivatives of $117 million gain and $46 million loss, respectively, and change in fair value on hedged debt of $123 million loss and $33 million gain, respectively. Ford Motor Company | 2010 Annual Report...

  • Page 168
    ... ...52,999 Foreign exchange contracts...3,835 Cross-currency interest rate swap contracts ...1,472 Total derivatives not designated as hedging instruments ...58,306 Total Financial Services sector derivative instruments...$ 67,132 $ 1,261 $ 591 166 Ford Motor Company | 2010 Annual Report

  • Page 169
    ... based on our net position with regard to foreign currency and commodity derivative contracts. We posted $11 and $64 million as of December 31, 2010 and December 31, 2009, respectively, which is reported in Other assets on our consolidated balance sheet. Ford Motor Company | 2010 Annual Report 167

  • Page 170
    ...) from equity investments in excess of dividends received...(38) Foreign currency adjustments ...415 Net (gain)/loss on sale of businesses...29 Stock option expense...27 Cash changes in operating assets and liabilities were as follows: Provision for deferred income taxes...590 Decrease/(Increase) in...

  • Page 171
    ...: 1) Mazda, 2) Volvo, and 3) Jaguar Land Rover. Ford North America segment includes primarily the sale of Ford, Lincoln, and Mercury brand vehicles and related service parts and accessories in North America (the United States, Canada and Mexico). From the first quarter of 2008, until the sale of...

  • Page 172
    ... Financial Services. Ford Credit provides vehicle-related financing, leasing, and insurance. Other Financial Services includes a variety of businesses including holding companies, real estate, and the financing and leasing of some Volvo vehicles in Europe. Special Items In the second quarter of 2010...

  • Page 173
    ...to the Financial Statements NOTE 28. SEGMENT INFORMATION (Continued) (In millions) Automotive Sector Operating Segments Ford North America Ford South America Ford Asia Pacific Africa Reconciling Items Ford Other Special Volvo Total Europe Automotive Items Mazda 2010 Sales/Revenues External customer...

  • Page 174
    ... income reflected on this line for Financial Services sector is non-financing-related. Interest income in the normal course of business for Financial Services sector is reported in Financial Services revenues. (c) As reported on our sector balance sheet. 172 Ford Motor Company | 2010 Annual Report

  • Page 175
    ... of the new accounting standard on VIE consolidation. (In millions, except per share amounts) Fourth Quarter Automotive Sector Sales ...$ 30,230 Operating income/(loss) ...608 Income/(Loss) before income taxes ...(272) Financial Services Sector Revenues ...2,198 552 Income/(Loss) before income taxes...

  • Page 176
    ... to Ford Credit's acquisition of $2.2 billion principal amount of our secured term loan for $1.1 billion of cash, a $292 million reduction of expense related to a change in benefits and our ability to redeploy employees, and a $650 million impairment charge related to our total investment in Volvo...

  • Page 177
    ...pre-existing warranties...203 Foreign currency translation and other...(50) Ending balance ...$ 2,646 $ 2009 2009 3,239 (2,484) 1,652 584 156 3,147 $ Excluded from the table above are costs accrued for product recalls and customer satisfaction actions. Ford Motor Company | 2010 Annual Report 175

  • Page 178
    ... Public Accounting Firm To the Board of Directors and Stockholders of Ford Motor Company: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of equity, and of cash flows present fairly, in all material respects, the financial position...

  • Page 179
    ...1.66 Cash dividends ...$ - Common Stock price range (NYSE Composite Intraday) High ...$ 17.42 Low...9.75 Average number of shares of Ford Common and Class B Stock outstanding (in millions)...3,449 SECTOR BALANCE SHEET DATA AT YEARYEAR-END Assets Automotive sector...$ 64,606 Financial Services sector...

  • Page 180
    ...-over-year decrease in employment primarily reflects completion of the sale of Volvo, as well as Ford Credit global personnel-reduction programs, offset partially by increases in North America and Asia Pacific Africa largely to support increased production. Substantially all of the hourly employees...

  • Page 181
    ... Stock Exchange Corporate Governance listing standards, other than has been notified to the Exchange pursuant to Section 303A.12 (b), of which there was none. We have filed with the Securities and Exchange Commission, as exhibits to our Annual Report on Form 10-K for the year ended December 31, 2010...

  • Page 182
    ... CORPORATE HEADQUARTERS Ford Motor Company One American Road Dearborn, MI 48126 (313) 322-3000 SHAREHOLDER ACCOUNT ASSISTANCE Computershare Trust Company, our transfer agent, maintains the records for our registered stockholders and can help you with a variety of stockholder-related services...

  • Page 183
    ... "contact us" Financial Services Operations - A leading automotive financial services company founded in 1959 - Provides a wide variety of dealer and customer financing products and services globally in support of Ford Motor Company vehicle sales Customer Services Operations Service A total service...

  • Page 184
    Ford Motor Company One American Road Dearborn, Michigan 48126 www.fordmotorcompany.com Printed in U.S.A. 10% post-consumer waste paper. Please recycle.