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Management’s Discussion and Analysis of Financial Condition and Results of Operations
68 Ford Motor Company | 2011 Annual Report
OUTLOOK
We are encouraged by our strong progress, and 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.
Our projected vehicle production for the first quarter of 2012 is as follows (in thousands):
Ford North America
Ford South America
Ford Europe
Ford Asia Pacific Africa
Total
First Quarter 2012 (a)
Planned Vehicle
Unit Production
675
100
410
215
1,400
Over/(Under)
First Quarter 2011
18
(12)
(36)
(21)
(51)
__________
(a) Includes production of Ford and JMC brand vehicles to be sold by our unconsolidated affiliates.
The year-over-year decline in planned production reflects lower industry demand in Europe and launch-related effects
of new products in Asia Pacific Africa. Our planned production level is consistent with our disciplined strategy to match
production with consumer demand.
We expect global economic growth to continue at a pace of about 3% during 2012. Economic growth in the United
States is expected to be in the range of 2% to 3% for the year. Growth in Europe, however, remains very challenging.
We expect weak conditions in Europe, with some markets doing better than others, while fiscal austerity programs are
implemented. Several key emerging markets, including China, Brazil, India, Indonesia, Thailand, and Turkey, have
entered cycles of fiscal policy easing to support economic growth.
Despite recent declines, we expect commodity prices over the longer term to continue to trend upward given global
demand growth.
Overall, we expect the global business environment will favor automotive industry growth in 2012, with global industry
sales volume projected to be about 80 million units, up from about 76 million units in 2011. In light of the volatile external
environment, however, 2012 industry sales volume could range between 75 million units and 85 million units.