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36 Ford Motor Company | 2012 Annual Report
Management's Discussion and Analysis of Financial Condition and Results of Operations
Ford Credit's North America segment accounted for 98% of its total operating leases at December 31, 2012. The
following table shows operating lease placement, termination, and return volumes for this segment for the years ending
December 31 (in thousands, except for percentages):
2012 2011 2010
Placements 257 219 120
Terminations 126 246 408
Returns 76 144 281
Memo:
Return Rates 60% 59% 69%
In 2012, placement volumes were up 38,000 units compared with 2011, primarily reflecting higher industry sales.
Termination volumes decreased by 120,000 units compared with last year, reflecting lower placement volumes in 2009.
Return volumes decreased 68,000 units compared with last year, primarily reflecting lower terminations.
U.S. Ford and Lincoln Brand Operating Lease Experience. The following chart shows annual return volumes and
auction values at incurred vehicle mix for vehicles returned in the respective periods. In 2012, Ford Credit's U.S. lease
originations represented about 15% of total U.S. retail sales of Ford and Lincoln brand vehicles, and the U.S. operating
lease portfolio accounted for about 89% of Ford Credit's total investment in operating leases at December 31, 2012.
Ford Credit's lease return volumes in 2012 were about 30% lower than 2011, reflecting primarily the lower lease
placements in 2009. Its 2012 lease return rate was 62%, up 6 percentage points compared with 2011, reflecting a higher
mix of 24 month contracts.
In 2012, Ford Credit's auction values for vehicles subject to 36-month leases continued to increase, up $995 per unit
from 2011. The increase primarily reflects vehicles with higher content, including a higher mix of Lincolns.
Ford Credit's worldwide net investment in operating leases was $14.7 billion at the end of 2012, up from $11.1 billion
in 2011.