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Management’s Discussion and Analysis of Financial Condition and Results of Operations
34 Ford Motor Company | 2011 Annual Report
Finance Our Plan and Strengthen Our Balance Sheet
As discussed in more detail in "Liquidity and Capital Resources" below, during 2011 we generated positive Automotive
operating-related cash flow of $5.6 billion. We reduced Automotive debt substantially in recent years, and significantly
improved our net cash/(debt) position, as shown below (in billions):
Automotive gross cash
Less debt:
Revolving line of credit
VEBA debt
Unsecured convertible notes
Term loan
U.S. Dept. of Energy loans for advanced technology manufacturing/EXIM
All other debt
Total debt
Net cash/(debt)
December 31,
2011
$22.9
—
—
0.7
—
5.0
7.4
13.1
$9.8
December 31,
2010
$20.5
0.8
—
0.7
4.1
3.0
10.5
19.1
$1.4
December 31,
2009
$24.9
7.5
7.0
2.6
5.3
1.2
10.0
33.6
$(8.7)
Work Together Effectively as One Team
As part of the One Team approach, we have implemented a disciplined business plan process to regularly review our
business environment, risks and opportunities, strategy, and plan, and to identify areas of our plan that need special
attention while pursuing opportunities to improve our plan. Everyone is included and contributes, openness is
encouraged, our leaders are responsible and accountable, we use facts and data to make our decisions, high
performance teamwork is a performance criteria - and we follow this process every week, every month, and every quarter,
driving continuous improvement. We believe this process gives us a clear picture of our business in real time and the
ability to respond quickly and decisively to new issues and changing conditions - as we have done in the face of rapid
changes in the market and business environment in the last few years. As needed, we convene daily management
meetings to handle potentially acute situations, such as the aftermath of natural disasters in Asia Pacific. This allows us
to ensure that we are vigorously managing daily developments and moving decisively in response to changing conditions.
In addition, we are partnering with and enlisting all of our stakeholders to help us execute our plan to deal with our
business realities and create an exciting and viable Ford business going forward. We are reaching out and listening to
customers, dealers, employees, the UAW, suppliers, investors, communities, retirees, and federal, state and local
governments. Each of these constituencies is a critical part of the success of our business going forward. Realizing our
goal of profitable growth for all is as important to these stakeholders as it is to our shareholders.