Ford 2012 Annual Report Download - page 145

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Ford Motor Company | 2012 Annual Report 143
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 25. DISPOSITIONS AND OTHER CHANGES IN INVESTMENTS IN AFFILIATES (Continued)
CFMA. Our Chinese joint venture CFMA, whose members include Chongqing Changan Automobile Co., Ltd.
("Changan") (50% partner), Mazda (15% partner) and us (35% partner), produces and distributes in China an expanding
variety of Ford passenger car models, as well as Mazda and Volvo models. On November 30, 2012, CFMA transferred its
Nanjing operations to Changan Mazda Automobile Ltd. ("CMA"), and CFMA was renamed CAF. Immediately after the
split, Ford and Mazda fully exchanged their respective interest in the two joint ventures. As a result, Ford now owns a
50% interest in CAF and Mazda owns a 50% interest in CMA; Changan remains a 50% partner in each joint venture.
CMA will continue to assemble vehicles for CAF as a contract manufacturer until 2014.
Upon the exchange, we de-recognized the historical carrying value of our equity investment in CMA of $115 million,
increased our equity investment in CAF by the fair value of the interest received of $740 million, and recognized a fourth
quarter 2012 pre-tax gain of $625 million in Automotive interest income and other income/(expense), net.
Financial Services Sector
Dispositions
Asia Pacific Markets. In 2011, Ford Credit recorded foreign currency translation adjustments of $60 million (including
$72 million recorded in the fourth quarter of 2011), related to the strategic decision to exit retail and wholesale financing in
certain Asia Pacific markets. These adjustments decreased Accumulated other comprehensive income (foreign currency
translation) and increased pre-tax income, which was recorded to Financial Services other income/loss, net.
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