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Management’s Discussion and Analysis of Financial Condition and Results of Operations
32 Ford Motor Company | 2010 Annual Report
AUTOMOTIVE SECTOR RESULTS OF OPERATIONS
2010 Compared with 2009
Details by segment or business unit of Income/(Loss) before income taxes are shown below (in millions):
2010
20102010
2010
2009
20092009
2009
2010
20102010
2010
Over/(Under)
Over/(Under)Over/(Under)
Over/(Under)
2009
20092009
2009
Ford North America................................................................................................
................................
$ 5,409 $ (639) $ 6,048
Ford South America ................................................................................................
................................
1,010 765 245
Ford Europe................................................................................................
................................
182 (144) 326
Ford Asia Pacific Africa................................................................
................................
189 (86) 275
Volvo................................................................................................
................................
— (662) 662
Other Automotive ................................................................................................
................................
(1,493) (1,091) (402)
Total Automotive Excluding Special Items ................................................................
................................
5,297 (1,857) 7,154
Special Items ................................................................................................
................................
(1,151) 2,642 (3,793)
Total Automotive sector ................................................................
................................
$ 4,146 $ 785 $ 3,361
Details by segment of Automotive revenue ("sales") and wholesale unit volumes are shown below:
Sales (a)
Sales (a)Sales (a)
Sales (a)
(in billions)
(in billions) (in billions)
(in billions)
Wholesales (b)
Wholesales (b)Wholesales (b)
Wholesales (b)
(in thousands)
(in thousands)(in thousands)
(in thousands)
2010
20102010
2010
2009
20092009
2009
2010
20102010
2010
Over/(Under)
Over/(Under)Over/(Under)
Over/(Under)
2009
20092009
2009
2010
20102010
2010
2009
20092009
2009
2010
20102010
2010
Over/(Under)
Over/(Under)Over/(Under)
Over/(Under)
2009
20092009
2009
Ford North America ................................
................................
$ 64.4 $ 49.7 $ 14.7 30% 2,413 1,927 486 25%
Ford South America................................
................................
9.9 7.9 2.0 25 489 443 46 10
Ford Europe (c)................................
................................
29.5 28.3 1.2 4 1,573 1,568 5 —
Ford Asia Pacific Africa (d) ................................
................................
7.4 5.6 1.8 33 838 604 234 39
Volvo................................................................
................................
— 12.4 (12.4) — — 324 (324) —
Total Automotive Excluding Special Items
................................
111.2 103.9 7.3 7 5,313 4,866 447 9
Special Items – Volvo................................
................................
8.1 — 8.1 — 211 — 211 —
Total Automotive sector
................................
$ 119.3 $ 103.9 $ 15.4 15 5,524 4,866 658 14
__________
(a) 2010 over/(under) 2009 sales percentages are computed using unrounded sales numbers.
(b) Wholesale unit volumes include all Ford-brand units (whether produced by Ford or by an unconsolidated affiliate), units manufactured by
Ford that are sold to other manufacturers, units distributed for other manufacturers, and local-brand vehicles produced by our Chinese
unconsolidated affiliate Jiangling Motors Corporation ("JMC"). Revenue from certain vehicles in wholesale unit volumes (specifically, Ford-
brand vehicles produced and distributed by our unconsolidated affiliates, as well as JMC-brand vehicles) is not included in our revenue.
Vehicles sold to daily rental car companies that are subject to a guaranteed repurchase option, as well as other sales of finished vehicles for
which the recognition of revenue is deferred (e.g., consignments), also are included in wholesale unit volumes.
(c) Included in wholesale unit volumes are Ford-brand vehicles sold in Turkey by our unconsolidated affiliate, Ford Otosan, totaling about
67,000 units and 51,000 units in 2010 and 2009, respectively. "Sales" above do not include revenue from those units.
(d) Included in wholesale unit volumes of Ford Asia Pacific Africa are Ford-brand and JMC-brand vehicles sold in China by our unconsolidated
affiliates totaling about 483,000 units and 345,000 units in 2010 and 2009, respectively. "Sales" above does not include revenue from these
units.
The increase in sales for total Automotive sector primarily reflects higher volumes and favorable net pricing, offset
partially by lower Volvo sales reflecting the sale of Volvo on August 2, 2010.
The increase in wholesales for total Automotive sector reflects higher wholesales in Ford North America and Ford
Asia Pacific Africa, offset partially by lower Volvo wholesales (reflecting the sale of Volvo). The increase in wholesales
for Ford North America primarily reflects higher U.S. industry volume, market share, and the non-recurrence of prior-year
reductions in dealer stocks. The increase in wholesales for Ford South America primarily reflects higher industry volume,
offset partially by lower market share and the non-recurrence of prior-year increases in dealer stocks. The increase in
wholesales for Ford Europe primarily reflects higher wholesales in Turkey, Russia, and other eastern European markets,
offset partially by lower wholesales in the 19 markets that we track (primarily lower market share and industry volume,
offset partially 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.