Ford 2012 Annual Report Download - page 26

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24 Ford Motor Company | 2012 Annual Report
Management's Discussion and Analysis of Financial Condition and Results of Operations
Ford South America Segment. The charts below detail key metrics, and the change in 2012 pre-tax results compared
with 2011 by causal factor.
As shown above, all four key metrics decreased for 2012 compared with 2011. The decrease in pre-tax profit for 2012
compared with 2011 primarily reflects higher costs and unfavorable exchange, primarily in Brazil, offset partially by higher
net pricing.
For 2013, we expect Ford South America results to be about breakeven. Although results will benefit from new
products recently launched or to be launched during the year, the competitive environment and currency risks across the
region, especially in Venezuela, are expected to impact our profits adversely. In addition, government actions to
incentivize local production and balance trade are driving trade frictions between South American countries and also with
Mexico, resulting in business environment instability and new trade barriers.