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36 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
North America accounted for 99% of Ford Credit’s total operating leases at December 31, 2013. The following table
shows operating lease placement, termination, and return volumes for this operation for the years ending December 31 (in
thousands, except for percentages):
2013 2012 2011
Placements 365 257 219
Terminations 174 126 246
Returns 117 76 144
Memo:
Return Rates 67% 60% 59%
In 2013, placement volumes were up 108,000 units compared with 2012, primarily reflecting changes in Ford’s
marketing programs and higher industry sales. Termination volumes increased by 48,000 units compared with 2012,
reflecting higher placements in 2011 relative to prior years. Return volumes increased 41,000 units compared with 2012,
reflecting higher terminations and higher return rates.
U.S. Ford and Lincoln Brand Operating Lease Experience. The following charts show annual return volumes and
auction values at incurred vehicle mix for vehicles returned in the respective periods. In 2013, Ford Credit’s U.S. lease
originations represented about 18% of total U.S. retail sales of Ford and Lincoln brand vehicles, and the U.S. operating
lease portfolio accounted for about 88% of Ford Credit’s total net investment in operating leases at December 31, 2013.
Ford Credit’s lease return volumes in 2013 were up significantly from 2012, reflecting primarily the higher lease
placements in 2011 relative to prior years. Its 2013 lease return rate was 71%, up 9 percentage points compared with
2012 reflecting lower auction values.
In 2013, Ford Credit’s auction values for both 24-month and 36-month vehicles declined, consistent with industry
trends.
Ford Credit’s worldwide net investment in operating leases was $18.3 billion at the end of 2013, up from $13.6 billion
in 2012.