ford motor company

Ford Motor Company

Company Profile

Publication Date: 20 Sep 2010

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Asia PacificAmericasEurope, Middle East & AfricaLevel 46245 5th Avenue119 Farringdon Road2 Park Street4th FloorLondonSydney, NSW 2000New York, NY 10016EC1R 3DAAustraliaUSAUnited Kingdom

t: +61 2 8705 6900t: +1 212 686 7400t: +44 20 7551 9000f: +61 2 8088 7405f: +1 212 686 2626f: +44 20 7551 9090e: [email protected]: [email protected]: [email protected]

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Ford Motor Company

TABLE OF CONTENTS

Company Overview..............................................................................................4

Key Facts...............................................................................................................4

Business Description...........................................................................................5

History...................................................................................................................7

Key Employees...................................................................................................11

Key Employee Biographies................................................................................13

Major Products and Services............................................................................19

Revenue Analysis...............................................................................................20

SWOT Analysis...................................................................................................22

Top Competitors.................................................................................................29

Company View.....................................................................................................30

Locations and Subsidiaries...............................................................................33


Ford Motor CompanyTABLE OF CONTENTS

COMPANY OVERVIEW

Ford Motor (Ford) is one of the largest automotive manufacturers in the world. It manufactures anddistributes automobiles across six continents. The company's automotive vehicle brands includeFord, Lincoln, Mercury and Volvo. The company primarily operates in the US and Europe. It isheadquartered in Dearborn, Michigan, and employs about 176,000 people.

The company recorded revenues of $118,308 million in the financial year ended December 2009(FY2009), a decrease of 18.5% compared to FY2008. The operating profit of the company was$4,004 million in FY2009, compared to an operating loss of $5,292 million in FY2008. The net profitwas $2,717 million in FY2009, compared to a net loss of $14,766 million in FY2008.

KEY FACTS

Ford Motor CompanyHead OfficeOne American RoadSuite 1026DearbornMichigan 48126USA

1 313 845 8540Phone

1 313 845 6073Fax

http://www.ford.comWeb Address

118,308.0Revenue / turnover(USD Mn)

DecemberFinancial Year End

176,000Employees

FNew York Ticker


Ford Motor CompanyCompany Overview

BUSINESS DESCRIPTION

Ford Motor (Ford) is one of the largest automotive manufacturers in the world. The companymanufactures and distributes automobiles across six continents. With 80 manufacturing facilitiesworldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury andVolvo.

The company conducts its business through two divisions: automotive and financial services. Withinthese divisions, Ford's automotive business is further classified into reportable segments basedupon its geographical and organizational structure.

The automotive business division consists of the design, development, manufacture, sale and serviceof cars, trucks and service parts. Through this division, Ford produces a wide range of vehiclesincluding cars for the small, medium, large and premium segments; trucks; buses/vans (includingminivans); full-size pickups; sport utility vehicles (SUV) and vehicles for the medium/heavy segments.In FY2009, the company sold approximately 4,817,000 vehicles at wholesale throughout the world.The company's automotive business is organized into the following segments: Ford North America,Ford South America, Ford Europe, Ford Asia Pacific and Africa, and Volvo.

The Ford North America segment primarily includes the sale of Ford, Lincoln and Mercury brandvehicles and related service parts in North America (the US, Canada and Mexico), together with theassociated costs to design, develop, manufacture and service these vehicles and parts.This segmentalso included the sale of Mazda6 vehicles through its consolidated subsidiary, AutoAllianceInternational (AAI). This business was sold in January 2010.

The Ford South America and Ford Europe segment includes primarily the sale of Ford brand vehiclesand related service parts in South America and in Europe (including all parts of Turkey and Russia),respectively. Ford Asia Pacific and Africa segment primarily includes the sale of Ford-brand vehiclesand related service parts in the Asia Pacific region and South Africa. The Volvo segment includesprimarily the sale of Volvo brand vehicles and related service parts throughout the world (includingin North America, South America, Europe, Asia Pacific, and Africa).

In addition to producing and selling cars and trucks, Ford also provides a range of after sales servicesand products through its dealer network. In addition to the products that are sold to dealers for retailsale, Ford also sells cars and trucks to its dealers for sale to fleet customers, including daily rentalcar companies, commercial fleet customers, leasing companies and governments. The companyprovides services such as maintenance and light repair, heavy repair, collision, vehicle accessoriesand extended service warranty. In North America, the company markets these products and servicesunder several brands, including Genuine Ford and Lincoln-Mercury Parts and Service, Ford CustomAccessories, Ford Extended Service Plan, and Motorcraft. At the end of December 2009, the numberof dealerships distributing Ford’s vehicle brands worldwide was approximately 17,107 (including11,682 for Ford, 2,269 for Volvo, 1,780 for Mercury, and 1,376 for Lincoln).


Ford Motor CompanyBusiness Description

The financial services division operates through the company subsidiary, Ford Motor Credit (FordCredit). Ford Credit offers a wide variety of automotive financing products to, and through automotivedealers throughout the world.The predominant share of Ford Credit's business consists of financingFord vehicles and supporting the company's dealers. Ford Credit's primary financial products fallinto three categories: retail financing, wholesale financing, and other financing.

Ford Credit also services the finance receivables and leases that it originates and purchases, makesloans to affiliates, purchases receivables from company subsidiaries, and provides selected insuranceservices. Ford Credit's revenues are earned primarily from payments made under retail installmentsale contracts and retail leases, and from payments made under wholesale and other dealer loanfinancing programs. Ford Credit does business in all states in the US and in all provinces in Canadathrough automotive dealer financing branches and regional business centers. Outside US, FCEBank (FCE) is Ford Credit's largest operation. FCE's primary business is to support the sale of Ford'svehicles in Europe through its dealer network. FCE offers a variety of retail, leasing and wholesalefinance plans in most countries in which it operates; FCE does business in the UK, Germany andmost other European countries. Ford Credit, through its subsidiaries, also operates in the Asia Pacificand Latin American regions. In addition, FCE, through its worldwide trade financing division, providesfinancing to dealers in countries where typically Ford has no established local presence.


Ford Motor CompanyBusiness Description

HISTORY

Ford Motor (Ford) was established in 1903 by Henry Ford and 11 other associates. In the sameyear, the company made its first shipment. In 1908, Ford launched its model 'T'.The company beganproducing trucks and tractors, in 1917. In 1925, Ford acquired the Lincoln Motor Company, branchingout into luxury cars.

In 1956, Ford went public. In the same decade, Ford produced one of its most successful cars, theThunderbird. The global expansion of Ford continued during 1960s when the company establishedFord Europe in 1967. Throughout the 1970s and 1980s, Ford continued to expand, with furthermoves into Europe and Asia. In 1987, Ford helped to form the Park Ridge in order to acquire theHertz car rental business.

Ford experienced further growth in the 1990s. In 1990, Ford acquired Jaguar.The company increasedits stake in Hertz to 100% in 1994.The company acquired the repair chain Kwik-Fit in 1999 and laterVolvo's passenger vehicle business. Ford spun off its Visteon automotive components business unitduring 2000. Ford also acquired Land Rover from BMW in the same year. In late 2002, the companyconcluded the sale of Collision Team of America (CTA) and Kwik-Fit.

The company expanded its presence in China during 2002 and 2003. The Changan Ford (a jointventure operation with Changan Automobile) assembly plant located in Chongqing became operationaland production of the Fiesta in China started in mid 2003. The company's Ford Services Thailandbecame operational later in 2003.

Ford sold Cosworth, its motor sport technology engineering company and Jaguar Racing, its FormulaOne team, in 2004. In the same year, the company recalled about 600,000 vehicles of its Escapeand Mazda Tribute SUVs. Subsequently, the company launched the 2005 F-Series Super Duty andalso introduced the Ford Expedition King Ranch.

In 2005, Ford recalled about 792,000 pickup trucks and sport utility vehicles, because of a fire riskfrom overheating of the speed control switch. The recall involved some of Ford's 2000 model-yearF-150 pickup trucks, Expedition and Navigator SUVs, and 2001 model-year F-Series Supercrewpickup trucks equipped with speed control. Further in 2005, the company made several acquisitions.This included the reacquisition of Visteon's 23 North American facilities in order to protect its supplyof components. Ford also acquired a minority interest in the Beanstalk Group, a majority ownedsubsidiary that licensed trademarks and subsequently sold 100% interest in the Beanstalk Group.

Further in 2005, Ford sold its subsidiary Hertz, to a private equity group for $5.6 billion. In the sameyear, the company sold its interests in Mahindra & Mahindra and Vastera. Subsequently, the companyexchanged its 8.3 million shares in Ballard Power Systems for an equity interest in NuCellSys, a50:50 joint venture with DaimlerChrysler.


Ford Motor CompanyHistory

In 2006, Ford became the first automotive manufacturer to commence the production of dedicatedhydrogen fueled V-10 engines. In the same year, British construction machinery group JCB announcedthat it was interested in buying carmaker Jaguar from Ford. Subsequently, Valeo ManagementServices signed a memorandum of understanding (MoU) with Ford to acquire its climate controlbusiness, including its plant in Plymouth Township, Michigan.

In 2007, Ford entered into a definitive agreement to sell Automobile Protection (APCO) to TridentIV, a private equity fund managed by Stone Point Capital. In the same year, Ford sold its sports carbusiness, Aston Martin, to a consortium comprised of David Richards, John Sinders, InvestmentDar and Adeem Investment. Later in the year, Ford signed a long-term agreement with Sonyelectronics division to offer Sony-branded audio systems in Ford and Mercury vehicles.

Further in 2007, Ford's Japanese affiliate Mazda and China's Changan Automotive Group beganfull production, at a new engine plant in eastern China's Nanjing. In the same year, Ford MazdaAutomobile (a China-based joint company of Ford Motor, Mazda Motor and Chongqing ChanganAutomobile) recalled 7,924 cars manufactured in China, due to the failure of power generator. Laterin the year, Ford and Mazda Motor announced plans for a new Thai car factory with an investmentof about $500 million. Subsequently, the company recalled about 1.2 million vans, sport utility vehiclesand heavy-duty pickup trucks due to a flaw in an engine sensor.

Ford sold its Jaguar Land Rover operations to Tata Motors in 2008. In the same year, the companyacquired 72.4% stake in Romania's state-owned Automobile Craiova assembly plant. Further in2008, the company announced an investment of $10 million to expand production at Ford Vietnam'sHaiduong assembly plant, increasing annual production capacity by 35%. Subsequently, Ford Motor,Automotive Components Holdings and Zeledyne sold the ACH Glass business and its three plants.

Further in 2008, Ford's southern African arm secured an export contract to supply the Ranger pickuptruck to African markets. In the same year, Western Power Distribution renewed its contract withFord to supply its light commercial vehicles and small business cars. Later in the same year, Fordstarted its operations at a new engine assembly plant near Chennai, India. Subsequently, thecompany sold its St. Louis Assembly Plant property in Hazelwood, Missouri, to Panattoni DevelopmentCompany. It also sold the Atlanta Assembly Plant property in Hapeville, Georgia, to JacobyDevelopment in the same year.

Subsequently in 2008, Ford, Automotive Components Holdings and Johnson Controls, terminatedtheir MoU for sale of the ACH interiors business and ACH's Saline, Michigan. In the same year, Fordannounced its plan to invest $75 million to prepare Michigan Truck Plant for small-vehicle production.

In 2008, Ford was awarded a $10 million grant by the US Department of Energy for research,development and demonstration of plug-in hybrid electric vehicles (PHEVs). In the same year, Fordunveiled its all-new 'CUSTOM' KA at Paris motor show and 2010 Mustang at the Los Angeles autoshow. Later in the year, Ford launched a brand new version of its customer website (www.ford.co.uk)to deliver an easily accessible, user-friendly and practical tool for car and light commercial vehiclebuyers across the UK.



In January 2009, Ford and Navistar International reached an agreement to restructure their ongoingbusiness relationship and settle all existing litigation between the companies. Further in January2009, the new Ford Fiesta started its production at the Changan Ford Mazda Automobilemanufacturing facility in Nanjing, China. In the same month, Ford announced to introduce an advanceddual-clutch PowerShift six-speed transmission in North America in 2010 for the small-car segment.

In February 2009, American Electric Power (AEP) joined with Ford and the Electric Power ResearchInstitute (EPRI) in a project designed to research and develop plug-in hybrid electric vehicles (PHEVs)as part of a complete vehicle, home and grid energy system. In the same month, the 2010 FordHarley-Davidson F-150 edition was unveiled at the Chicago Auto Show. Later in the same month,the United Auto Workers union and Ford reached a tentative agreement to modify certain operatingprovisions of the 2007 UAW-Ford National Labor Agreement.

Further in February 2009, Ford received a $55 million incentive from the Michigan EconomicDevelopment for its work in advanced battery and electrical vehicle development. In the same month,Smith Electric Vehicles, a trading division of Tanfield Group announced an electric vehicledevelopment collaboration with Ford. Smith Electric Vehicles will work with Ford to introduce abattery-electric light van.

In March 2009, the new Ford Fiesta won an award for its international product design. In the samemonth, the all-new 2010 Fusion and Fusion Hybrid received a 'Top Safety Pick' rating from theInsurance Institute for Highway Safety (IIHS).

In May 2009, Ford decided to invest $550 million to transform Michigan Assembly Plant (formerlyMichigan Truck Plant) from a large SUV factory into a modern, flexible small car plant. In the samemonth, Ford started the production of its advanced fuel-efficient EcoBoost engines at Cleveland.

In August 2009, Ford and its utility partners tested the vehicle-to-electric grid communications andcontrol systems, which enable electric vehicles to interface with the grid for optimal recharging. Inthe following month, Ford reached an agreement in principle to sell Wixom Assembly Plant to XtremePower of Austin, Texas, and Clairvoyant Energy of Santa Barbara, California. In the same month,Ford’s joint venture in China Changan Ford Mazda Automobile (CFMA) started building a new, andhighly flexible passenger car plant in Chongqing, China, scheduled for completion in 2012.

Ford and the United Auto Workers (UAW) union reached a tentative agreement on additionalmodifications to the 2007 UAW-Ford national labor agreement in October 2009, which will help Fordimprove its current and long-term competitiveness in the US. In the same month, Ford announcedthat Azure Dynamics Corporation joined in a collaborative effort to deliver a pure battery electricFord Transit Connect van for the US and Canadian markets in 2010.

Ford’s passenger vehicle joint venture in China recalled 11,112 Volvo S40 sedans in December2009 because of an oil pump flaw. In the same month, Ford confirmed that all substantive commercialterms relating to the potential sale of Volvo Car Corporation were settled between Ford and ZhejiangGeely Holding Group Company Limited.



In January 2010, Ford announced to invest an additional $450 million in its electric vehicle plan,paving the way to build a hybrid and plug-in hybrid vehicle in Michigan beginning in 2012.

In the following month, Ford decided to invest $155 million at its Cleveland operations to build a newfuel-efficient V-6 engine for the 2011 Mustang. The investment at Ford's Cleveland Engine Plantbrings the company's investment in powertrain engineering and facility upgrades in North Americato $1.8 billion to support its 2011 vehicle launches.

In March 2010, Ford entered into a definitive agreement to sell Volvo Car Corporation and relatedassets to Zhejiang Geely Holding Group Company Limited.The sale is expected to close in the thirdquarter of 2010. In the same month, the company decided to invest $135 million to design, engineerand produce key components for the company’s next-generation hybrid-electric vehicles. Fordengineers in Dearborn will design the battery packs while engineers in Livonia will design electric-drivetransaxles for the next-generation hybrids, based on Ford’s global C- and CD-car platforms, whichgo into production in North America in 2012.

Further in March 2010, the company introduced its first hybrid car under its brand Lincoln in the US.In the same month, the company launched Ford Figo, a new compact car in India.

Further in May 2010, Ford started the production of the all-new 2011 Ford Fiesta at its CuautitlanStamping and Assembly Plant (CSAP).

In May 2010, SimplexGrinnell, US based company specialized in fire protection systems andcommunication systems, purchased 200 Ford Fusion Hybrids to reduce greenhouse gas emissions,waste and water consumption by 25% over the next five years.

In June 2010, Ford announced a partnership with Coulomb Technologies to provide free in-homeChargePoint Networked Charging Stations for some of the company’s first electric vehicle customersunder the Ford Blue Oval ChargePoint Program.



KEY EMPLOYEES

CompensationBoardJob TitleName

16834274 USDExecutive BoardExecutive Chairman and Chairmanof the Board of Directors

William Clay Ford, Jr.

17916654 USDExecutive BoardPresident and Chief ExecutiveOfficer

Alan R. Mulally

98998 USDNon Executive BoardDirectorStephen G. Butler

94816 USDNon Executive BoardDirectorKimberly A. Casiano

45158 USDNon Executive BoardDirectorAnthony F. Earley, Jr.

574269 USDNon Executive BoardDirectorEdsel B. Ford II

45158 USDNon Executive BoardDirectorRichard A. Gephardt

84132 USDNon Executive BoardDirectorIrvine O. Hockaday, Jr.

90992 USDNon Executive BoardDirectorRichard A. Manoogian

93738 USDNon Executive BoardDirectorEllen R. Marram

111173 USDNon Executive BoardDirectorHomer A. Neal

93768 USDNon Executive BoardDirectorGerald L. Shaheen

110524 USDNon Executive BoardDirectorJohn L. Thornton

Non Executive BoardDirector EmeritusWilliam Clay Ford

Senior ManagementExecutive Vice President; Chairmanand Chief Executive Officer, FordMotor Credit Company

Michael E. Bannister

Senior ManagementExecutive Vice President and ChiefFinancial Officer

Lewis W. K. Booth

Senior ManagementExecutive Vice President andPresident, The Americas

Mark Fields

Senior ManagementChairman, Ford of Europe andExecutive Vice President, GlobalManufacturing and Labor Affairs

John Fleming

Senior ManagementGroup Vice President, GlobalPurchasing

Thomas K. Brown

Senior ManagementGroup Vice President, Sustainability,Environment and Safety Engineering

Susan M. Cischke

Senior ManagementGroup Vice President, GlobalMarketing and CMSA

James D. Farley

Senior ManagementGroup Vice President, HumanResources and Corporate Services

Felicia J. Fields

Senior ManagementGroup Vice President, QualityBennie W. Fowler


Ford Motor CompanyKey Employees

CompensationBoardJob TitleName

Senior ManagementGroup Vice President and President,Asia Pacific and Africa

Joseph R. Hinrichs

Senior ManagementGroup Vice President, GlobalProduct Development

Derrick M. Kuzak

Senior ManagementGroup Vice President and GeneralCounsel

David G. Leitch

Senior ManagementGroup Vice President, Design andChief Creative Officer

J C. Mays

Senior ManagementGroup Vice President, Governmentand Community Relations

Ziad S. Ojakli

Senior ManagementGroup Vice President and ChiefInformation Officer

Nicholas J. Smither


Ford Motor CompanyKey Employees

KEY EMPLOYEE BIOGRAPHIES

William Clay Ford, Jr.

Board: Executive BoardJob Title: Executive Chairman and Chairman of the Board of DirectorsSince: 2006Age: 52

Mr. Ford has been the Executive Chairman and Chairman of the Board of Directors at Ford MotorCompany since 2006. He held a number of management positions within Ford, including VicePresident of Commercial Truck Vehicle Center. From 1995 to 2001, Mr. Ford was the Chair of theFinance Committee. From 1999, he was elected the Chairman of the Board of Directors and from2001, he was elected the Chief Executive Officer of the company. Mr. Ford also is Vice Chairmanof The Detroit Lions, Chairman of the Detroit Economic Club, and Trustee of The Henry Ford. Healso is a Vice Chairman of Business Leaders for Michigan. He is currently a Director at eBay.

Alan R. Mulally

Board: Executive BoardJob Title: President and Chief Executive OfficerSince: 2006Age: 64

Mr. Mulally has been the President and Chief Executive Officer at Ford Motor Company since 2006.From 2001, Mr. Mulally had been the Executive Vice President at the Boeing Company and Presidentand Chief Executive Officer at Boeing Commercial Airplanes. Prior to that time, Mr. Mulally servedas the President and Chief Executive Officer at Boeing’s space and defense businesses. He hasserved as co-chair of the Washington Competitive Council, and served on the Advisory Boards ofNASA, the University of Washington, the University of Kansas, the Massachusetts Institute ofTechnology, and the US Air Force Scientific Advisory Board. He is a member of the U.S. NationalAcademy of Engineering and a fellow of England’s Royal Academy of Engineering.

Stephen G. Butler

Board: Non Executive BoardJob Title: DirectorSince: 2004Age: 62

Mr. Butler has been a Non Executive Director at Ford Motor Company since 2004. He served asthe Chairman and Chief Executive Officer at KPMG from 1996 until his retirement in 2002. Mr. Butler


Ford Motor CompanyKey Employee Biographies

held a variety of management positions, both in the US and internationally, during his 33-year careerat KPMG. He is currently a Director at Cooper Industries and ConAgra Foods.

Kimberly A. Casiano


Ms. Casiano has been a Non Executive Director at Ford Motor Company since 2003. She establishedKimberly Casiano & Associates in January 2010, where she is the President. The firm providesadvisory services in marketing, communications, public affairs, advocacy, and diversity to target theUS Hispanic market. From 1994 to 2009, Ms. Casiano was the President and Chief Operating Officerat Casiano Communications, a publishing and direct marketing company. From 1987 to 1994, sheheld a number of management positions within Casiano Communications in the periodicals andmagazines and the bilingual direct marketing and call center divisions of the company. Ms. Casianois a member of the Board of Directors at Mutual of America, the Board of Trustees of the HispanicCollege Fund, and the Board of Advisors of the Moffitt Cancer Center.

Anthony F. Earley, Jr.


Mr. Earley has been a Non Executive Director at Ford Motor Company since 2009. He has beenthe Chairman and Chief Executive Officer at DTE Energy since 1998. Mr. Earley joined DTE Energyin 1994 as the President and Chief Operating Officer. Prior to that time, Mr. Earley served as thePresident and Chief Operating Officer at the Long Island Lighting Company, an electric and gasutility in New York. He is a Director at the Nuclear Energy Institute and the Edison Electric Institute.

Mr. Earley also serves as a Director for several charitable organizations including CornerstoneSchools, Detroit Zoological Society, Business Leaders for Michigan, and United Way for SoutheasternMichigan. He served on Advisory Boards of the New York Stock Exchange and the University ofNotre Dame. Mr. Earley also served as an officer in the US Navy nuclear submarine program wherehe was qualified as a chief engineer officer. Within the past five years, Mr. Earley served on theBoard of Comerica. He currently serves as a Director at DTE Energy and Masco Corporation.

Edsel B. Ford II

Board: Non Executive BoardJob Title: Director



Since: 1988Age: 61

Mr. Ford has been a Non Executive Director at Ford Motor Company since 1988. He is a retiredVice President at Ford Motor Company and former President and Chief Operating Officer at FordMotor Credit Company. He presently serves as a consultant to the company. He also currently servesas a Director at International Speedway Corporation.

Richard A. Gephardt


Mr. Gephardt has been a Non Executive Director at Ford Motor Company since 2009. He has beenthe President and Chief Executive Officer at Gephardt Group, a multi-disciplined consulting firm,since 2005. He also serves as a Strategic Advisor since 2005 for the Government Affairs practicegroup of DLA Piper, one of the world’s largest legal services providers, and as a consultant toGoldman Sachs since 2005. Mr. Gephardt is the former Majority Leader of the US House ofRepresentatives and served 14 terms in Congress from 1976 to 2005.

He is also a member of the Professional Advisory Board at St. Jude Children’s Research Hospital.Within the past five years, Mr. Gephardt served on the Board at Dana Holding Corporation. He alsoserves as a Director at Centene Corporation, CenturyLink, Spirit Aerosystems Holding, and UnitedStates Steel Corporation.

Irvine O. Hockaday, Jr.


Mr. Hockaday has been a Non Executive Director at Ford Motor Company since 1987. He wasPresident and Chief Executive Officer at Hallmark Cards since 1986, and a Director since 1978. Heretired in 2001. Within the past five years, Mr. Hockaday served on the Boards at Aquila, Dow Jones& Company, and Sprint Corp. Currently he serves as a Director at Crown Media Holdings and TheEstee Lauder Companies.

Richard A. Manoogian

Board: Non Executive BoardJob Title: Director



Since: 2001Age: 73

Mr. Manoogian has been a Non Executive Director at Ford Motor Company since 2001. He hasbeen with Masco since 1958, became the Vice President and a member of the Board in 1964,President in 1968 and Chairman in 1985. Mr. Manoogian served as the Chief Executive Officer atMasco from 1985 until he transitioned to Executive Chairman in 2007. In 2009, Mr. Manoogian retiredfrom the position of Executive Chairman at Masco. He is a member of the Board of Business Leadersfor Michigan, The Henry Ford, and the Detroit Economic Club. Within the past five years, Mr.Manoogian served on the Boards at Metaldyne Corporation and JPMorgan Chase & Co. Currentlyhe serves as a Director at Masco Corporation.

Ellen R. Marram


Ms. Marram has been a Non Executive Director at Ford Motor Company since 1988. She is thePresident at the Barnegat Group, a business advisory firm. From 2000 to 2005, Ms. Marram wasthe Managing Director at North Castle Partners, a private equity firm. She served as the Presidentand Chief Executive Officer at efdex from 1999 to 2000. Previously, she served as the Presidentand Chief Executive Officer at Tropicana Beverage Group from 1997 to 1998, and had previouslyserved as the President of the Group, as well as the Executive Vice President at The SeagramCompany and Joseph E. Seagram & Sons. Before joining Seagram in 1993, she served as Presidentand Chief Executive Officer at Nabisco Biscuit Company and Senior Vice President of the NabiscoFoods Group from 1988 to 1993. Within the past five years, Ms. Marram served on the Board atCadbury Schweppes. She currently serves as a Director at The New York Times Company and EliLilly and Company.

Homer A. Neal


Dr. Neal has been a Non Executive Director at Ford Motor Company since 1997. He is a Directorat University of Michigan ATLAS Project, Samuel A. Goudsmit Distinguished Professor of Physics,Interim President Emeritus and Vice President for Research Emeritus at the University of Michigan.He joined the University as Chairman of its Physics Department in 1987 and in 1993 was namedthe Vice President of Research. Dr. Neal served as Interim President of the University of Michiganfrom 1996 to 1997. He has served as a member of the US National Science Board, the Advisory



Board of the Oak Ridge National Laboratory, as a Trustee of the Center for Strategic and InternationalStudies and as a member of the Board of Regents of the Smithsonian Institution.

Dr. Neal currently is a member of the Board of Trustees of the Richard Lounsbery Foundation anda member of the Advisory Board for the Lawrence Berkeley National Laboratory. He is also a memberof the Board of Physics and Astronomy of the National Academy of Sciences and a member of theCouncil of the Smithsonian National Museum of African American History and Culture.

Gerald L. Shaheen


Mr. Shaheen has been a Non Executive Director at Ford Motor Company since 2007. He wasappointed the Group President at Caterpillar in 1998 and had responsibility for the design,development and production of the company’s large construction and mining equipment, as well asmarketing and sales operations in North America, Caterpillar’s components business, and its researchand development division. Mr. Shaheen joined Caterpillar in 1967 and held a variety of managementpositions. He retired from Caterpillar in 2008. He is a Board member and past Chairman of the USChamber of Commerce, a board member of the National Chamber Foundation, and Chairman ofthe Board of Trustees of Bradley University. Within the past five years, Mr. Shaheen served on theboard at National City Corporation. He also serves as a Director at AGCO Corporation.

John L.Thornton


Mr. Thornton has been a Non Executive Director at Ford Motor Company since 1996. He retired asthe President and Co-Chief Operating Officer at The Goldman Sachs Group in 2003. He wasappointed to that post in 1999 and formerly served as the Chairman at Goldman Sachs Asia from1996 to 1998. He was previously the Co-Chief Executive at Goldman Sachs International, the firm’sbusiness in Europe, the Middle East, and Africa. Mr. Thornton was elected as the Non ExecutiveChairman at HSBC North America Holdings in 2008. He also is the Chairman of the Board of Trusteesof the Brookings Institution. Within the past five years, Mr. Thornton served on the Boards at ChinaNetcom Group Corp. and Industrial Commercial Bank of China Limited.

James D. Farley

Board: Senior Management



Job Title: Group Vice President, Global Marketing and CMSASince: 2007Age: 47

Mr. Farley has been the Group Vice President of Global Marketing and CMSA at Ford Motor Companysince 2007. Prior to joining Ford, Mr. Farley was the Group Vice President and General Manager atLexus, responsible for all sales, marketing and customer satisfaction activities for Toyota’s luxurybrand. Before leading Lexus, he served as the Group Vice President at Toyota Division marketingand was responsible for all Toyota Division market planning, advertising, merchandising, salespromotion, incentives and Internet activities.

David G. Leitch

Board: Senior ManagementJob Title: Group Vice President and General CounselSince: 2005Age: 49

Mr. Leitch has been the Group Vice President and General Counsel at Ford Motor Company since2005. He served as the Deputy Assistant and Deputy Counsel to President George W. Bush from2002 to 2005. From 2001 to 2002, he served as the Chief Counsel for the Federal AviationAdministration, overseeing a staff of 290 in Washington and the agency's 11 regional offices. Priorto 2001, Mr. Leitch was a partner at Hogan & Hartson in Washington, where his practice focusedon appellate litigation in state and federal court.



MAJOR PRODUCTS AND SERVICES

Ford Motor (Ford) is one of the largest automotive manufacturers in the world. It manufactures and distributes automobiles across six continents. The company's key products and services include the following:

Automotive:

Passenger cars TrucksBuses and vans Sport utility vehiclesVehicle accessoriesAfter sales vehicle parts and productsExtended repair service productsMaintenance and vehicle repair services

Financial services:

Retail financingWholesale financingThird-party claim management services

Brands:

FordMercuryLincolnVolvo


Ford Motor CompanyMajor Products and Services

REVENUE ANALYSIS

Overview

Ford Motor Company (Ford) recorded revenues of $118,308 million in FY2009, a decrease of 18.5%compared with FY2008. For FY2009, the US, the company's largest geographic market, accountedfor 46% of the total revenues.

Ford Motor generates revenues through two business divisions: automotive (89.5% of the totalrevenues in FY2009) and financial services (10.5%).

Revenues by division

In FY2009, the automotive division recorded revenues of $105,893 million, a decrease of 18%compared to FY2008.

The financial services division recorded revenues of $12,415 million in FY2009, a decrease of 22.2%compared to FY2008.

Revenues by Geography

The US, Ford Motor's largest geographical market, accounted for 46% of the total revenues inFY2009. Revenues from the US reached $54,377 million in FY2009, a decrease of 10.1% comparedto FY2008.

The UK accounted for 7.1% of the total revenues in FY2009. Revenues from the UK reached $8,448million in FY2009, a decrease of 41.4% compared to FY2008.

Canada accounted for 6.7% of the total revenues in FY2009. Revenues from Canada reached $7,974million in FY2009, an increase of 0.1% over 2008.

Germany accounted for 6.6% of the total revenues in FY2009. Revenues from Germany reached$7,843 million in FY2009, a decrease of 14.2% compared to FY2008.

Italy accounted for 3.8% of the total revenues in FY2009. Revenues from Italy reached $4,529 millionin FY2009, a decrease of 10.4% compared to FY2008.

France accounted for 2.6% of the total revenues in FY2009. Revenues from France reached $3,102million in FY2009, a decrease of 12.7% compared to FY2008.

Spain accounted for 1.8% of the total revenues in FY2009. Revenues from Spain reached $2,174million in FY2009, a decrease of 38.8% compared to FY2008.


Ford Motor CompanyRevenue Analysis

Russia accounted for 1.3% of the total revenues in FY2009. Revenues from Russia reached $1,573million in FY2009, a decrease of 69.8% compared to FY2008.

Belgium accounted for 1.2% of the total revenues in FY2009. Revenues from Belgium reached$1,460 million in FY2009, a decrease of 28% compared to FY2008.

Mexico and others accounted for 1.1% of the total revenues in FY2009. Revenues from Mexico andothers reached $1,336 million in FY2009, a decrease of 39.9% compared to FY2008.

Other European countries accounted for 7.6% of the total revenues in FY2009. Revenues from otherEuropean countries reached $8,976 million in FY2009, a decrease of 32.4% compared to FY2008.

All other countries accounted for 14% of the total revenues in FY2009. Revenues from all othercountries reached $16,516 million in FY2009, a decrease of 9.3% compared to FY2008.


Ford Motor CompanyRevenue Analysis

SWOT ANALYSIS

Ford Motor (Ford) is one of the largest automotive manufacturers in the world. The company hasstrong engineering capability. The company's strong engineering capabilities allow it to broaden itsproduct portfolio and remain in the forefront of the automotive industry. However, intense competitioncould have a substantial adverse effect on Ford’s financial condition and results of operations

WeaknessesStrengths

Product recallsStrong engineering capabilityScrutiny for pedal acceleration problemsExtensive dealer networkPoor cash flowsDiversified product base

Strong market position

ThreatsOpportunities

Intense price competitionGrowing Asia Pacific new cars marketStringent regulationsIncreasing demand for hybrid electric

vehicles Supplier distressStrategic investments

Strengths

Strong engineering capability

The company engages in engineering, research and development primarily to improve theperformance (including fuel efficiency), safety, customer satisfaction, and to develop new products.The company operates over 65 engineering, research and development centers worldwide. Fordmaintains extensive engineering, research and design centers in Dearborn, Michigan; Dunton,England; Gothenburg, Sweden (part of the company’s held-for-sale Volvo operations); and Aachenand Merkenich, Germany. In FY2009, Ford recorded $4.9 billion of engineering, research, anddevelopment costs.

In August 2009, Ford and its utility partners tested the vehicle-to-electric grid communications andcontrol systems, which enable electric vehicles to interface with the grid for optimal recharging. Fordis also leading the way in leveraging the growing consumer trend of smartphone applications withan innovative approach to control the applications through SYNC. This application programminginterface (API) brings popular applications such as Pandora internet radio, Stitcher smart radio andthe Twitter client OpenBeak into the car. In this context, in April 2010, Ford introduced MyFord Touchand the next-generation of SYNC technology that would help in accessing and personalizing vehiclesettings and functions using a mix of graphic, touch, and voice user interfaces.The company's strong


Ford Motor CompanySWOT Analysis

engineering capabilities allow it to broaden its product portfolio and remain in the forefront of theautomotive industry.

Extensive dealer network

Ford has an extensive dealer network. It manufactures and distributes automobiles across sixcontinents. Dealers are a source of strength in North America and around the world, especially inrural areas and small towns where they represent the face of Ford. Substantially all of the company’scars, trucks and parts are marketed through retail dealers in North America, and through distributorsand dealers outside of North America, majority of which are independently owned. Ford's core andaffiliated automotive brands include Ford, Lincoln, Mercury and Volvo. Ford network is comprisedof 11,682 dealers and has presence in 110 markets; Lincoln has 1,376 dealers in 30 markets; Mercuryhas 1,780 dealers in 20 markets; and Volvo has 2,269 dealers in 103 markets. An extensive networkserving more than 100 countries enables Ford to meet the demand for its products in multiple regionsin a cost efficient way.

Diversified product base

Ford has a diversified product portfolio. It is present in almost all the segments of automobiles. Fordproduces a wide range of vehicles including cars for the small, medium, large and premium segments;trucks; and trucks by compact pickup, bus/van (including minivans), full-size pickup, crossover utilityvehicles (CUVs) and traditional sport utility vehicles (SUVs), and medium/heavy segments. In FY2009,the company sold approximately 4,817,000 vehicles at wholesale throughout the world.The company’svehicle brands included Ford, Mercury, Lincoln, and Volvo. Out of the total vehicles sold in 2009,Ford North America sold 1,959,000 vehicles (including sales of Mazda6 by Ford’s consolidatedsubsidiary, AAI, which was sold in January 2010), Ford South America sold 443,000 vehicles, FordEurope sold 1,568,000 vehicles, Ford Asia Pacific and Africa sold 523,000 vehicles and Volvo sold324,000 vehicles, respectively.

A diverse product portfolio allows Ford to record steady revenue and provides cross sellingopportunities.

Strong market position

Ford is one of the leading automobile manufacturers in the world. In FY2009, the company had a15.3% (third place) market share in the combined car and truck market share in the US. Althoughthe General Motors had a better market share in FY2009 compared to Ford, General Motors’ marketshare declined more than 10% compared to FY2009. Similarly, Toyota had a better market sharethan Ford in FY2009, but Toyota’s market share increased slightly (1.8%) compared to Ford, whereasFord’s market share increased considerably (7.7%) from 14.2% in 2008 to 15.3% in FY2009. Themarket share for Volvo vehicles in the US was approximately 0.6% in 2009, up 0.1% points from2008.This increase in market share primarily reflected the introduction of the new XC60 and improvedsales of the V50.



The improvement in the company’s overall market share was primarily due to the result of severalfactors, including favorable acceptance of its redesigned products, product focus on industry growthsegments, and customers' increasing awareness and acceptance of Ford’s commitment to leadershipin quality, fuel efficiency, safety, smart technologies and value.

Further, in terms of revenues, Ford was ranked eight among the largest American corporations inthe 2009 Fortune 500 companies list. The company can leverage its strong brand name and marketleadership position to gain competitive advantage and also expand into international markets.

Weaknesses

Product recalls

Ford announced recalls that cover some of its most popular models due to manufacturing and designproblems. For instance, in June 2010, Ford recalled more than 200,000 sedans in China. Fordconfirmed problems with the ignition operation of some vehicles after carrying out several tests underdifferent conditions. Ford has also offered to fix over 200,000 cars by installing new engine calibrationsoftware to correct the problem.

Similarly in May 2010, the Brazilian unit of Ford Motor recalled about 170,000 of its popular KAmodels in Argentina and Brazil because of a wiring problem. Some 155,000 cars of this model havebeen sold in Brazil, according to Brazil's National Federation of Motor Vehicles Distribution. At least14,369 were sold in Argentina between 2008 and 2009. Altogether, including the latest Fordannouncement, recalls have affected nearly 700,000 Brazilian-made motor vehicles so far in 2010,with problems ranging from faulty ball bearings to bad window switches.

Significant product recalls indicates decline in product quality which could negatively affect theconsumer confidence in Ford’s products and could strain its sales.

Scrutiny for pedal acceleration problems

Ford Fusion, Ford Escape and Mercury Milan are under scrutiny of the US regulatory authorities fora possible pedal acceleration problem. In 2010, the US Safety regulators have initiated a preliminaryinvestigation in the models manufactured under the brand Ford Fusion having gas pedals that canget trapped in floor mats during acceleration. So far the National Highway Traffic Safety Administration(NHTSA) in the US has received three complaints about Ford Fusion models of accelerator pedalsbeing trapped by unsecured 'all-weather' floormats in the current production model year of the Fusion.All three complaints have been verified which has led to investigation of 2,49,301 models of FordFusion in the country.

Such scrutinies may lead to penalizations which could affect the operating results of the company.

Poor cash flows



In FY2009, Ford witnessed decline in its cash flows compared to 2008.The cash and cash equivalentsdecreased 2.8% to reach $21,441 million in FY2009 compared to $22,048 million in 2008. Poor cashposition implies ineffective cost management and poor decision making by Ford's management. Acontinuation of this trend could reduce availability of resources for the company to pursue growthplans.

Opportunities

Growing Asia Pacific new cars market

The Asia-Pacific new cars market witnessed a strong growth in recent years and the trend is likelyto continue in the future.The Asia-Pacific new cars market generated total revenues of $285.5 billionin 2009, representing a compound annual growth rate (CAGR) of 3.8% for the period spanning2005-09. In comparison, the Chinese and Indian markets grew with CAGRs of 17.3% and 8.9%respectively, over the same period, to reach respective values of $98.7 billion and $25.9 billion in2009.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.3% for thefive-year period 2009-2014, which is expected to drive the market to a value of $368.9 billion by theend of 2014. Comparatively, the Chinese and Indian markets would grow with CAGRs of 12% and10% respectively, over the same period, to reach respective values of $177.6 billion and $41.6 billionin 2014.

China and India are the key emerging markets that would continue to drive economic growth in theAsia Pacific region. In FY2009, Ford’s combined car and truck share in Chinese and Indian market(including sales of Ford-brand vehicles, and market share for certain unconsolidated affiliatesparticularly in China) was 1.9% and 1.3%, respectively. In line with these trends, Ford is strategicallyinvesting to improve its manufacturing capacity in Asia Pacific. At the company’s joint ventureassembly facility in Rayong, Thailand, Ford invested $500 million in an expansion for the productionof small passenger cars. In India, Ford invested $500 million to significantly increase its presencethrough expansion of its current manufacturing facility in Chennai to begin production of its new FordFigo, and construction of a fully-integrated and flexible engine manufacturing plant. Further inSeptember 2009, Ford also broke ground on a new plant in Chongqing, China to meet anticipateddemand and grow Ford-brand market share. Therefore, the company is well positioned to capitalizeon the growing Asia Pacific new cars markets.

Increasing demand for hybrid electric vehicles

Worldwide demand for light hybrid electric vehicles (HEVs) is expected to increase. By 2015, it isexpected that the US will be the largest market for HEVs and plug-in hybrid electric vehicles (PHEVs),selling approximately 640,000 vehicles in small car and small SUV segments combined. China isexpected to be the second-largest market with more than 560,000 hybrid vehicles sold in 2015. Bythat time, there will be an estimated total of 1.7 million PHEVs on the world’s roadways. Global



problems that include the environmental challenges of global warming and the need to conserveresources and energy are the key drivers for the company's to develop HEVs.

In order to meet the demand Ford is continuously focused on developing new high technologyproducts for hybrid electric vehicles. The company is introducing EcoBoost engines, six-speedtransmissions and other fuel saving technologies across a wide range of vehicles. In 2009, Fordplans to double its hybrid models and volumes in the US. In 2009, the company also announced anaggressive electric vehicle strategy that would bring at least four new electric vehicles to market inthe US within the next three years. Furthermore, in March 2010, Lincoln, Ford’s brand introducedits first hybrid, the new 2011 Lincoln MKZ Hybrid in the US. Later in the year, the Ford Transit ConnectElectric, a small, all-electric commercial van would be introduced to the market, aimed at commercialvehicle owners.

In 2011, Ford is expected to begin the production of a zero-emission Ford Focus Electric vehicle atits Michigan Assembly Plant. At the same facility, the company would produce the next-generationhybrid vehicle and plug-in hybrid, in 2012. Electric vehicle projects also are underway in Germanyand the UK.

A positive outlook for light hybrid electric vehicles market would boost demand for Ford's products.

Strategic investments

Ford is planning to invest aggressively to enhance its production facilities. In this context, in March2010, the company decided to invest $135 million to design, engineer and produce key componentsfor the company’s next-generation hybrid-electric vehicles. Ford engineers in Dearborn would designthe battery packs while engineers in Livonia would design electric-drive transaxles for thenext-generation hybrids, based on Ford’s global C- and CD-car platforms, which go into productionin North America in 2012. Ford’s Rawsonville Plant in Ypsilanti, Michigan, would assemble the batterypacks beginning in 2012, moving work to Michigan that is currently performed in Mexico by a supplier.Ford’s Van Dyke Transmission Plant in Sterling Heights, Michigan, would build the electric drivetransaxles beginning in 2012 from a supplier facility in Japan.

Similarly, in February 2010, Ford decided to invest $155 million at its Cleveland operations to builda new fuel-efficient V-6 engine for the 2011 Mustang. The investment at Ford's Cleveland EnginePlant brings the company's investment in powertrain engineering and facility upgrades in NorthAmerica to $1.8 billion to support its 2011 vehicle launches.

Further in March 2009, Ford decided to invest $550 million to transform its Michigan Assembly Plantinto a lean, green and flexible manufacturing complex that would build Ford’s next-generation Focusglobal small car along with a new battery-electric version of the Focus for the North American market.The plant, formerly the production site for Ford Expedition and Lincoln Navigators SUVs, is one ofthree North American light truck plants Ford is retooling to build fuel-efficient global small cars in thecoming years.The new Focus would begin rolling off the line in 2010 and the battery-electric versionof the Focus, Ford’s first all-electric passenger car would debut in 2011.



Such strategic investments would enhance the production facilities of Ford and helps it to manufacturemore efficient products to its customers.

Threats

Intense price competition

The global automotive industry is intensely competitive, with manufacturing capacity far exceedingcurrent demand. According to CSM Worldwide's January 2010 report, the global automotive industryis estimated to have had excess capacity of 29 million units in 2009. Industry overcapacity hasresulted in many manufacturers offering marketing incentives on vehicles in an attempt to maintainand grow market share; these incentives historically have included a combination of subsidizedfinancing or leasing programs, price rebates, and other incentives. As a result, Ford is not necessarilyable to set its prices to offset higher costs of marketing incentives or other cost increases, or theimpact of adverse currency fluctuations in either the US or European markets.

While Ford and its domestic competitors have initiated plans to reduce capacity significantly,successful reductions may require further cooperation of organized labor, take several years tocomplete, or only partially address the industry's overcapacity problems, particularly in light of recent,dramatic decreases in industry sales volume. A continuation or increase in excess capacity couldhave a substantial adverse effect on Ford’s financial condition and results of operations.

Stringent regulations

The worldwide automotive industry is governed by a substantial amount of governmental regulation,which often differs by state, region, and country. Governmental regulation has arisen, and proposalsfor additional regulation are advanced, primarily out of concern for the environment (includingconcerns about the possibility of global climate change and its impact), vehicle safety, and energyindependence.

In addition, many governments regulate local product content and/or impose import requirementsas a means of creating jobs, protecting domestic producers, and influencing their balance of payments.In recent years, Ford has made significant changes to its product cycle plan to improve the overallfuel economy of vehicles the company produce, thereby reducing their GHG emissions.

The cost to comply with existing governmental regulations is substantial, and future, additionalregulations (already enacted, adopted or proposed) could have a substantial adverse impact onFord’s financial condition and results of operations.

Supplier distress

Automotive industry is highly interdependent, with broad overlap of supplier and dealer networksamong manufacturers. The interdependency is such that any uncontrolled bankruptcy or insolvency



of a major competitor or major suppliers could threaten supplier or dealer network and thus couldpose a threat to Ford as well. Even in the absence of such an event, the company’s supply basehas experienced increased economic distress due to the sudden and substantial drop in industrysales volumes that has affected all manufacturers. Dramatically lower industry sales volume madeexisting debt obligations and fixed cost levels difficult for many suppliers to manage.

These factors have increased pressure on the supply base. As a result, suppliers not only have beenless willing to reduce prices, but some have requested direct or indirect price increases, as well asnew and shorter payment terms. Suppliers also are exiting certain lines of business or closingfacilities, which results in additional costs associated with transitioning to new suppliers. This maycause supply disruptions to Ford’s production during any such transitional period. In addition, Fordhas taken and may continue to take actions to provide financial assistance to certain suppliers toensure an uninterrupted supply of materials and components.

Such actions could increase the company’s operating costs and affect its liquidity which may leadto low profit margins.



TOP COMPETITORS

The following companies are the major competitors of Ford Motor Company

General Motors CorporationHonda Motor Co., Ltd.Nissan Motor Co., Ltd.Suzuki Motor CorporationToyota Motor CorporationVolkswagen AGChrysler Group LLCFiat S.p.A.PSA Peugeot Citroen S.A.Renault SA


Ford Motor CompanyTop Competitors

COMPANY VIEW

A statement by Alan R. Mulally, President and Chief Executive Officer at Ford Motor Company isgiven below. The statement has been taken from the company’s annual report for FY2009.

Ford Motor Company emerged from the challenging business environment of 2009 with the strongestproof yet that our ONE Ford plan is working. We reported full year 2009 net income of $2.7 billion,which was the company’s first full year of positive net income since 2005 and a $17.5 billionimprovement over the previous year.We achieved a pre-tax operating profit, excluding special items,of $472 million in 2009, which was a $7.3 billion improvement over 2008.

We still face significant challenges, but by following the ONE Ford plan we put in place three and ahalf years ago we are forging a path toward profitable growth. Our plan remains unchanged:

• Aggressively restructure to operate profitably at the current lower demand and the changing modelmix.

• Accelerate the development of high-quality, fuel-efficient, safe new products that customers wantand value.

• Finance our plan and improve our balance sheet.

• Work together as one team, leveraging our global assets.

ONE Ford helped us achieve profitability and grow our business despite a global recession. In everypart of the world we are providing customers with great products, building a stronger business andcontributing to a better world.

Great Products

In 2007 we created a single global product development organization to maximize economies ofscale and share best practices and ideas. That allows us to fully leverage our resources so that wecan offer a full range of vehicles with the best quality, fuel-efficiency, safety, smart design and value.

Taking full advantage of our global scale and talent to build products customers want and value isalready paying off for us in markets around the world. And within the next four years, all Ford vehiclescompeting in global product segments will be common in North America, South America, Europeand Asia Pacific Africa.

In 2009 our strong products drove full year market share gains in North America, Europe and SouthAmerica while maintaining share in the rapidly growing Asia Pacific Africa region.


Ford Motor CompanyCompany View

In the U.S., Ford F-Series was the best-selling truck for the 33rd year in a row in 2009. In the utilitiessegment, the Ford brand was the top-selling brand of crossovers in the U.S., led by the Ford Escape.Every consumer metric about the Ford brand – including favorable opinion, consideration, shoppingand intention to buy – ended the year at record levels. Full-year total market share was 15.3 percent,more than one point higher than 2008, marking the company’s first full-year U.S. market shareincrease since 1995.

In Canada, Ford was the best-selling brand in 2009, and the Ford F-Series was the best-selling truckfor the 44th year in a row. Led by the Fiesta, Focus and Ka, Ford strengthened its position as Europe’ssecond highest-selling brand in 2009. Ford Europe’s market share of 9.1 percent was a half pointincrease for the year and set an 11-year high.

In South America, Ford Brazil achieved its best ever full-year sales in 2009 by selling 325,000vehicles, a 15 percent increase over the previous year. Ford Asia Pacific Africa’s sales were up 14percent in 2009, and set a full-year record. Ford sales in China, up 45 percent, led the increase inthe region.

More great products are on the way this year, including the new Ford Fiesta in the U.S., freshenedversions of the Ford S-MAX and Galaxy in Europe, and the new Ford Figo in India.

Strong Business

Ford has completed major cost reduction actions over the past four years to substantially restructureits business, including personnel levels, facilities and related costs, and the settlement of the UnitedAuto Workers retiree health care Voluntary Employee Beneficiary Association (VEBA) agreement.We also obtained capital and liquidity ahead of the financial market crisis, which helped us maintainour investments in new products during a difficult economic period.

In 2009, we achieved $5.1 billion in Automotive structural cost reductions, exceeding our target of$4 billion. For the full year, Automotive operating-related cash flow was negative $300 million; animprovement of $19.2 billion over 2008. We finished the year with $25.5 billion in Automotive grosscash, which was up from $23.8 billion at the end of the third quarter of 2009.

Ford Motor Credit Company reported net income of $1.3 billion in 2009, an improvement of $2.8billion from a net loss of $1.5 billion a year earlier. Contributing to this improvement was thenon-recurrence of an impairment charge for operating leases and lower depreciation expense forleased vehicles due to higher resale values.

Our intense focus on improving our cost structure and strengthening our balance sheet will continuegoing forward. Among other actions, we anticipate completing the sale of Volvo Cars to ZhejiangGeely Holding Group Co. Ltd. in the second quarter of 2010.

Better World



Great companies are driven by purpose as well as profit. Ford has a proud heritage of improvingpeople’s lives and making their world a better place. We want to build on this heritage by being agood neighbor locally and a trusted corporate citizen globally, operating responsibly and sustainablywherever we do business.

A central element of our efforts is providing affordable fuel economy for millions of customers, notjust expensive, low-volume niche vehicles. To do that we have introduced innovative fuel-savingtechnologies across a wide range of vehicles.

We now have more fuel-saving six-speed transmissions on the road than any other manufacturer.We are also the leading U.S.- based producer of hybrid-electric vehicles, with record sales that wereup 72 percent in 2009. The EcoBoost engine technology we introduced last year delivers up to 20percent better fuel economy and will be offered on a wide range of vehicles with projected productionreaching half a million annually in North America within 5 years. In that same time period, we willintroduce a series of four new electric, next-generation hybrid and plug-in hybrid vehicles that useadvanced lithium ion batteries.

In 2009, a U.S. Environmental Protection Agency report showed that Ford Motor Company improvedits combined car and truck fuel economy by nearly 20 percent during the 5-year period 2004-2009,almost double the improvement of the next closest competitor.

Giving back to the community also is an important part of our efforts to help build a better world.Ford Motor Company Fund and Community Services, our philanthropic organization, celebrated its60th anniversary in 2009. Our Ford Volunteer Corps, which was established in 2005, encouragessalaried employees to take two work days per year to serve as volunteers. Last year 16,000 Fordemployees and retirees volunteered more than 77,000 hours to help people in their local communities.

Looking Forward

We are more convinced than ever that Ford has the right plan to lead us through near-term economicpressures and continue to deliver profitable growth. We expect to be profitable for the full year in2010 on a pre-tax basis, excluding special items. That includes full year profitability for our FordNorth America and total Automotive operations, with positive Automotive operating-related cashflow.

The entire extended Ford team is absolutely committed to building on our progress and workingtogether as a lean global enterprise focused on delivering great products. By doing that, we willcreate an exciting and viable company with profitable growth for all.

As always, we thank you for your support of our efforts.



LOCATIONS AND SUBSIDIARIESHead Office

Ford Motor CompanyOne American RoadSuite 1026DearbornMichigan 48126USAP:1 313 845 8540F:1 313 845 6073http://www.ford.com

Other Locations and Subsidiaries

LincolnFord Motor Company of Canada, Ltd.DearbornOakvilleMichigan 48121Ontario L6J 5E4USACAN

Volvo Cars of North America, LLCMercury1 Volvo DriveDearbornRockleighMichigan 48121New Jersey 07647USAUSA

Ford CreditFord Motor Co LtdAbbot HouseBrentwoodEverard CloseCM14 9HESt AlbansGBRAL1 2RWGBR

Ford-Werke GmbHFord India P Ltd,Postfach 71 02 65S.P. Koil Post50 742 CologneChengalpattu 603204DEUTamil Nadu

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