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Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Motor Company | 2010 Annual Report 57
OUTLOOK
We are encouraged by our momentum, and we believe that our 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 achieve our objectives. For additional discussion of the economic environment and discussion and
assessment of the risks and opportunities to our planning assumptions, refer to "Critical Accounting Estimates."
Our projected vehicle production is as follows (in thousands):
First Quarter 2011
First Quarter 2011First Quarter 2011
First Quarter 2011
Planned Vehicle
Planned Vehicle Planned Vehicle
Planned Vehicle
Unit Production*
Unit Production*Unit Production*
Unit Production*
Over/(Un
Over/(UnOver/(Un
Over/(Under)
der) der)
der)
First
First First
First Quarter 20
Quarter 20Quarter 20
Quarter 201
1110
000
Ford North America................................
................................
650 76
Ford South America ................................
................................
116 6
Ford Europe................................
................................
442 —
Ford Asia Pacific Africa................................
................................
239 63
Total................................................................
................................
1,447 145
_________
* Includes production of Ford and JMC brand vehicles to be sold by our unconsolidated affiliates.
The year-over-year increase in planned first quarter 2011 production reflects the impact of economic recovery and
continued strong customer demand for our products.
Our planning assumptions and key metrics for 2011, and results from full-year 2010, include the following:
Industry Volume
Industry VolumeIndustry Volume
Industry Volume (a)
(a) (a)
(a) 2010
2010 2010
2010 Full
FullFull
Full-
---Year Plan
Year PlanYear Plan
Year Plan
2010 Full
2010 Full2010 Full
2010 Full-
---Year Results
Year ResultsYear Results
Year Results
2011
2011 2011
2011 Full
FullFull
Full-
---Year
Year Year
Year Plan
Plan Plan
Plan
(million units)
(million units)(million units)
(million units)
– United States ................................
................................
11.5 – 12.5 11.8 13.0 – 13.5
– Europe (b) ................................
................................
13.5 – 14.5 15.3 14.5 – 15.5
Operational Me
Operational MeOperational Me
Operational Metrics
tricstrics
trics
Compared with prior year:
– Quality................................................................
................................
Improve Improved Improve
– U.S. Market Share................................
................................
Equal / Improve 16.4% (up 1.1 ppt.) Equal / Improve
– U.S. Retail Share of Retail Market (c)
................................
Equal / Improve 14.1% (up 1.1 ppt.) Equal / Improve
– Europe Market Share (b)................................
................................
Equal 8.4% (down 0.7 ppt.) Equal / Improve
Financial
FinancialFinancial
Financial Metrics
Metrics Metrics
Metrics
Compared with prior year:
– Total Company Pre-Tax Operating Profit (d)
................................
Improve Improved Improve
– Automotive Structural Costs (e)
................................
Somewhat Higher $1.2 Billion Higher Higher
– Commodity Costs................................
................................
Somewhat Higher $1 Billion Higher Higher
– Automotive Operating Margin (d)
................................
– 6.1% Equal / Improve
– Automotive Operating-Related Cash Flow (f)
................................
Positive $4.4 Billion Improve
Absolute amount:
– Capital Spending ................................
................................
$4.5 Billion – $5 Billion $3.9 Billion $5 Billion – $5.5 Billion
__________
(a) Includes medium and heavy trucks.
(b) For the 19 markets we track in Europe.
(c) Estimate.
(d) Excludes special items; Automotive operating margin defined as Automotive pre-tax operating profit, excluding Other Automotive, divided
by Automotive revenue.
(e) Structural cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations.
(f) See "Liquidity and Capital Resources" discussion above for reconciliation of datapoints to U.S. GAAP.
In addition, as discussed in "Liquidity and Capital Resources" above, our ongoing annualized interest expense will be
reduced by about $1.2 billion as a result of the completion of $14.5 billion in Automotive debt reduction actions in 2010 and
the announced redemption and/or conversion of the $3 billion of debentures related to our Trust Preferred Securities that
will occur in March 2011. We expect these actions, which have partial-year impacts in both 2010 and 2011, to reduce our
Automotive interest expense in 2011 compared with 2010 by about $1 billion.