ford motor company's value enhancement plan

5/28/2018 Ford Motor Company's Value Enhancement Plan

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Ford Motor Company's Value Enhancement PlanHarvard Business School Case N9-201-079

Copyright 2001 by the President and Fellows of Harvard College

This case was prepared as the basis for class discussion rather than toillustrate either effective or ineffective handling of an administrative situation.


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Price and Return Data for Exhibit 1

S & P Auto Index Ford Date Total Return Total Return Stock Price

12/31/1998 32.15 32.15 32.151/1/1999 32.15 32.15 32.15

1/4/1999 32.12 32.61 31.641/5/1999 32.56 33.60 32.601/6/1999 33.28 34.32 33.83

1/7/1999 33.22 34.21 33.861/8/1999 33.36 34.45 35.61

1/11/1999 33.07 34.84 35.341/12/1999 32.43 34.00 34.451/13/1999 32.30 33.13 33.621/14/1999 31.72 32.97 33.081/15/1999 32.53 34.00 33.971/18/1999 32.54 34.00 33.971/19/1999 32.77 34.81 35.03

1/20/1999 32.89 35.28 35.441/21/1999 32.33 35.63 34.001/22/1999 32.07 35.16 33.351/25/1999 32.30 34.86 33.421/26/1999 32.78 35.68 33.861/27/1999 32.55 35.71 33.041/28/1999 33.13 35.59 34.241/29/1999 33.50 35.58 33.66

2/1/1999 33.33 36.01 33.282/2/1999 33.04 35.47 32.32

2/3/1999 33.31 35.45 33.082/4/1999 32.69 34.63 31.67

2/5/1999 32.46 34.48 31.362/8/1999 32.57 34.51 32.152/9/1999 31.85 33.57 31.50

2/10/1999 32.05 33.73 32.222/11/1999 32.85 34.00 32.942/12/1999 32.22 33.69 31.712/15/1999 32.23 33.69 31.712/16/1999 32.53 33.39 31.472/17/1999 32.07 33.05 32.392/18/1999 32.42 33.78 32.91

2/19/1999 32.47 33.35 32.222/22/1999 33.33 34.15 33.112/23/1999 33.31 33.79 32.462/24/1999 32.85 34.45 32.602/25/1999 32.63 33.64 32.632/26/1999 32.45 33.45 32.49

3/1/1999 32.40 33.06 31.983/2/1999 32.12 32.68 31.303/3/1999 32.18 32.20 31.13

3/4/1999 32.68 32.73 31.983/5/1999 33.44 33.99 32.943/8/1999 33.63 33.75 32.91


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3/9/1999 33.55 33.93 31.643/10/1999 33.74 33.94 31.163/11/1999 34.03 35.23 31.74

3/12/1999 33.95 34.82 31.743/15/1999 34.28 35.32 32.053/16/1999 34.26 35.34 31.74

3/17/1999 34.04 35.51 31.433/18/1999 34.53 35.41 31.953/19/1999 34.08 35.33 32.083/22/1999 34.02 35.30 32.463/23/1999 33.11 33.42 31.163/24/1999 33.28 33.05 30.783/25/1999 33.84 33.72 31.983/26/1999 33.65 34.01 31.19

3/29/1999 34.37 34.18 31.303/30/1999 34.13 33.93 31.023/31/1999 33.75 34.23 31.06

4/1/1999 33.95 34.75 30.95

4/2/1999 33.95 34.75 30.954/5/1999 34.67 35.56 31.954/6/1999 34.59 36.44 31.914/7/1999 34.82 35.71 33.284/8/1999 35.28 36.32 33.354/9/1999 35.39 35.37 33.18

4/12/1999 35.66 35.76 33.694/13/1999 35.43 36.47 34.624/14/1999 34.87 36.58 34.384/15/1999 34.73 35.70 34.414/16/1999 34.63 36.31 35.544/19/1999 33.86 36.83 35.614/20/1999 34.30 36.78 34.994/21/1999 35.08 36.51 35.064/22/1999 35.68 36.43 35.064/23/1999 35.63 36.16 34.934/26/1999 35.72 36.55 35.17

4/27/1999 35.79 36.75 35.104/28/1999 35.48 36.24 35.134/29/1999 35.27 36.10 35.954/30/1999 35.07 35.92 35.03

5/3/1999 35.58 36.86 36.545/4/1999 34.99 35.88 35.135/5/1999 35.39 35.85 35.275/6/1999 35.00 35.94 34.24

5/7/1999 35.34 35.82 35.545/10/1999 35.22 35.37 35.105/11/1999 35.62 35.41 35.105/12/1999 35.84 35.95 35.345/13/1999 35.94 35.29 34.795/14/1999 35.16 34.14 33.285/17/1999 35.20 33.30 31.545/18/1999 35.04 33.95 31.955/19/1999 35.33 33.45 31.60


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5/20/1999 35.19 33.56 31.745/21/1999 34.97 33.96 31.915/24/1999 34.35 33.88 30.75

5/25/1999 33.76 34.14 31.065/26/1999 34.30 34.15 31.575/27/1999 33.69 33.44 30.71

5/28/1999 34.23 33.51 31.305/31/1999 34.23 33.51 31.30

6/1/1999 34.03 34.01 31.506/2/1999 34.05 34.22 30.956/3/1999 34.17 34.07 31.026/4/1999 34.92 33.88 30.856/7/1999 35.10 34.38 31.236/8/1999 34.65 34.14 30.68

6/9/1999 34.68 33.98 30.276/10/1999 34.27 34.07 30.136/11/1999 34.03 34.07 29.796/14/1999 34.04 33.83 29.31

6/15/1999 34.23 33.76 29.006/16/1999 35.00 34.66 30.036/17/1999 35.25 34.39 29.936/18/1999 35.33 33.87 30.176/21/1999 35.50 33.97 30.106/22/1999 35.15 34.03 30.03

6/23/1999 35.08 33.59 28.976/24/1999 34.63 34.05 29.526/25/1999 34.62 34.16 29.286/28/1999 35.04 34.24 29.116/29/1999 35.57 34.52 29.346/30/1999 36.13 35.16 30.92

7/1/1999 36.35 35.66 32.087/2/1999 36.62 36.00 31.477/5/1999 36.62 36.00 31.477/6/1999 36.54 36.52 31.607/7/1999 36.75 36.21 31.50

7/8/1999 36.71 35.52 30.957/9/1999 36.95 35.48 30.68

7/12/1999 36.84 35.99 30.547/13/1999 36.70 35.64 29.317/14/1999 36.82 36.18 29.007/15/1999 37.12 36.33 29.317/16/1999 37.36 36.38 29.627/19/1999 37.07 36.40 29.55

7/20/1999 36.27 35.54 29.147/21/1999 36.33 35.69 29.797/22/1999 35.85 35.27 29.557/23/1999 35.74 34.93 29.287/26/1999 35.50 34.88 29.077/27/1999 35.90 35.36 29.247/28/1999 35.97 35.47 29.217/29/1999 35.33 34.22 28.497/30/1999 35.01 33.56 26.57


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8/2/1999 34.99 33.85 27.058/3/1999 34.84 34.05 27.438/4/1999 34.40 33.89 26.91

8/5/1999 34.62 33.56 26.788/6/1999 34.27 32.95 26.378/9/1999 34.20 33.46 26.30

8/10/1999 33.77 32.75 25.418/11/1999 34.32 32.98 26.198/12/1999 34.22 32.77 25.898/13/1999 35.00 33.98 26.648/16/1999 35.08 33.59 26.648/17/1999 35.44 33.83 26.988/18/1999 35.14 33.88 27.878/19/1999 34.90 33.91 27.60

8/20/1999 35.24 34.34 28.328/23/1999 35.87 34.25 28.358/24/1999 35.96 34.09 28.018/25/1999 36.44 34.45 28.49

8/26/1999 35.92 33.81 28.288/27/1999 35.56 33.63 28.288/30/1999 34.92 33.48 27.808/31/1999 34.83 33.52 28.56

9/1/1999 35.11 34.01 28.429/2/1999 34.80 33.76 27.91

9/3/1999 35.80 34.18 28.759/6/1999 35.81 34.18 28.759/7/1999 35.63 34.09 27.989/8/1999 35.46 33.59 27.629/9/1999 35.56 33.62 27.36

9/10/1999 35.66 33.43 27.809/13/1999 35.47 33.82 28.399/14/1999 35.26 33.87 28.049/15/1999 34.78 33.34 27.269/16/1999 34.80 33.74 27.369/17/1999 35.24 33.68 27.36

9/20/1999 35.25 33.92 27.369/21/1999 34.51 33.46 26.789/22/1999 34.59 33.00 27.299/23/1999 33.80 32.43 26.959/24/1999 33.72 32.22 27.229/27/1999 33.88 32.38 27.539/28/1999 33.85 31.79 27.369/29/1999 33.49 31.70 27.19

9/30/1999 33.87 32.15 27.5310/1/1999 33.87 32.46 27.7410/4/1999 34.45 33.04 28.1110/5/1999 34.37 33.42 28.3910/6/1999 35.00 33.81 29.0410/7/1999 34.80 33.95 28.1510/8/1999 35.29 34.42 28.56

10/11/1999 35.27 34.51 29.0410/12/1999 34.68 33.82 29.00


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10/13/1999 33.96 33.29 28.9010/14/1999 33.90 33.57 29.0710/15/1999 32.95 32.72 27.70

10/18/1999 33.13 33.12 28.5210/19/1999 33.33 33.48 28.9310/20/1999 34.07 33.95 29.11

10/21/1999 33.92 33.82 29.1110/22/1999 34.40 34.49 29.5210/25/1999 34.19 34.36 29.6210/26/1999 33.88 34.62 29.5810/27/1999 34.27 34.64 29.3110/28/1999 35.48 35.05 29.8910/29/1999 36.02 35.80 30.0611/1/1999 35.79 35.18 29.93

11/2/1999 35.63 35.01 29.7911/3/1999 35.82 35.09 29.4511/4/1999 36.02 35.52 29.0711/5/1999 36.23 35.47 29.41

11/8/1999 36.41 35.42 29.3811/9/1999 36.10 35.25 29.6211/10/1999 36.32 35.73 29.4511/11/1999 36.53 34.87 29.1711/12/1999 36.92 34.96 29.2411/15/1999 36.88 34.93 29.93

11/16/1999 37.56 35.29 29.9311/17/1999 37.31 35.01 28.8311/18/1999 37.69 35.20 27.8011/19/1999 37.61 35.26 27.6311/22/1999 37.59 35.90 27.7711/23/1999 37.16 36.15 27.7011/24/1999 37.49 36.12 28.2511/25/1999 37.49 36.12 28.2511/26/1999 37.48 35.74 27.7411/29/1999 37.25 35.79 28.1111/30/1999 36.75 34.90 27.67

12/1/1999 36.98 34.91 27.7412/2/1999 37.28 34.95 27.6712/3/1999 37.93 35.83 28.6612/6/1999 37.67 35.93 28.6912/7/1999 37.29 35.09 27.4612/8/1999 37.15 34.99 27.6412/9/1999 37.27 35.17 27.56

12/10/1999 37.51 35.59 26.81

12/13/1999 37.46 35.79 26.7812/14/1999 37.14 35.66 26.5712/15/1999 37.41 36.46 27.0812/16/1999 37.56 38.47 27.2212/17/1999 37.62 40.03 27.4312/20/1999 37.54 41.12 27.8012/21/1999 37.95 40.01 27.8012/22/1999 38.03 40.38 27.9412/23/1999 38.62 40.85 28.93


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12/24/1999 38.62 40.85 28.9312/27/1999 38.59 39.60 28.6912/28/1999 38.60 41.52 28.87

12/29/1999 38.76 41.59 28.9712/30/1999 38.79 41.74 29.3412/31/1999 38.91 42.12 29.21

1/3/2000 38.54 42.19 28.691/4/2000 37.07 40.53 27.741/5/2000 37.14 40.68 27.841/6/2000 37.18 38.95 27.871/7/2000 38.19 40.04 29.93

1/10/2000 38.62 40.94 29.381/11/2000 38.11 39.84 28.591/12/2000 37.95 40.26 29.41

1/13/2000 38.41 40.50 29.071/14/2000 38.82 41.80 28.351/17/2000 38.83 41.80 28.351/18/2000 38.56 40.98 29.72

1/19/2000 38.58 39.82 29.281/20/2000 38.31 40.36 28.421/21/2000 38.20 40.76 27.631/24/2000 37.15 40.39 28.011/25/2000 37.37 39.10 27.461/26/2000 37.22 39.62 26.30

1/27/2000 37.07 40.66 27.361/28/2000 36.06 39.66 26.851/31/2000 36.97 40.14 27.26

2/1/2000 37.36 41.41 27.292/2/2000 37.36 40.30 26.642/3/2000 37.78 40.37 26.712/4/2000 37.77 41.06 26.332/7/2000 37.77 41.03 26.262/8/2000 38.23 40.64 26.372/9/2000 37.44 40.44 25.85

2/10/2000 37.58 40.04 25.75

2/11/2000 36.79 39.01 25.272/14/2000 36.87 39.00 25.782/15/2000 37.19 38.42 25.412/16/2000 36.81 38.03 25.372/17/2000 36.83 38.57 25.132/18/2000 35.71 38.05 23.762/21/2000 35.71 38.05 23.762/22/2000 35.87 37.47 24.14

2/23/2000 36.10 37.59 23.562/24/2000 35.91 37.75 23.282/25/2000 35.38 38.31 23.522/28/2000 35.77 38.85 23.392/29/2000 36.26 38.42 22.80

3/1/2000 36.60 38.00 23.013/2/2000 36.67 37.65 22.673/3/2000 37.40 38.04 23.393/6/2000 36.93 37.69 22.98


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3/7/2000 35.98 37.70 22.533/8/2000 36.28 38.43 23.323/9/2000 37.21 39.08 22.80

3/10/2000 37.03 39.59 22.503/13/2000 36.73 39.46 23.323/14/2000 36.08 39.40 22.05

3/15/2000 36.96 40.08 24.143/16/2000 38.73 42.15 24.003/17/2000 38.89 41.28 24.453/20/2000 38.68 40.97 23.973/21/2000 39.67 41.32 25.103/22/2000 39.85 41.11 24.073/23/2000 40.56 42.52 24.383/24/2000 40.57 42.62 24.45

3/27/2000 40.47 43.39 24.213/28/2000 40.05 43.29 24.383/29/2000 40.07 43.14 24.553/30/2000 39.52 42.93 25.54

3/31/2000 39.81 44.02 25.174/3/2000 40.01 44.86 25.754/4/2000 39.71 44.27 26.884/5/2000 39.52 44.12 27.024/6/2000 39.89 43.39 27.364/7/2000 40.29 43.18 26.50

4/10/2000 39.98 44.51 27.984/11/2000 39.87 44.66 28.454/12/2000 38.99 44.84 29.384/13/2000 38.28 45.23 29.824/14/2000 36.05 43.19 28.154/17/2000 37.25 44.05 31.264/18/2000 38.32 45.31 30.274/19/2000 37.94 44.96 30.134/20/2000 38.13 45.04 30.204/21/2000 38.13 45.04 30.204/24/2000 38.01 44.86 30.30

4/25/2000 39.28 45.79 30.134/26/2000 38.84 45.00 30.134/27/2000 38.95 45.12 30.204/28/2000 38.62 44.57 30.00

5/1/2000 39.04 45.23 29.625/2/2000 38.46 45.15 29.175/3/2000 37.63 43.73 28.935/4/2000 37.48 43.63 28.83

5/5/2000 38.10 43.61 28.975/8/2000 37.88 43.15 29.345/9/2000 37.56 43.42 29.07

5/10/2000 36.79 42.23 28.635/11/2000 37.45 41.97 29.005/12/2000 37.80 42.35 29.245/15/2000 38.63 42.13 28.695/16/2000 39.00 42.34 29.145/17/2000 38.52 41.19 28.69


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5/18/2000 38.24 43.11 29.385/19/2000 37.43 42.41 29.285/22/2000 37.27 39.71 28.08

5/23/2000 36.56 39.64 28.155/24/2000 37.23 39.76 28.455/25/2000 36.76 39.18 27.77

5/26/2000 36.67 38.71 26.405/29/2000 36.67 38.71 26.405/30/2000 37.86 39.29 26.885/31/2000 37.81 38.20 26.61

6/1/2000 38.56 38.32 27.126/2/2000 39.32 38.31 26.506/5/2000 39.07 39.32 27.876/6/2000 38.81 38.98 27.39

6/7/2000 39.17 39.55 27.086/8/2000 38.91 39.02 26.856/9/2000 38.79 38.74 27.19

6/12/2000 38.50 38.90 27.36

6/13/2000 39.13 38.15 27.366/14/2000 39.16 36.88 26.436/15/2000 39.38 35.95 25.206/16/2000 39.00 35.28 24.656/19/2000 39.57 36.17 24.416/20/2000 39.31 36.11 23.46

6/21/2000 39.39 36.30 23.936/22/2000 38.68 35.68 23.936/23/2000 38.39 35.90 24.356/26/2000 38.76 35.39 23.496/27/2000 38.64 35.84 23.496/28/2000 38.75 36.25 23.936/29/2000 38.42 36.36 24.736/30/2000 38.75 35.99 24.59

7/3/2000 39.15 35.65 25.137/4/2000 39.15 35.65 25.137/5/2000 38.53 35.54 25.59

7/6/2000 38.81 35.78 26.487/7/2000 39.41 35.83 26.45

7/10/2000 39.32 37.13 26.737/11/2000 39.46 37.05 27.277/12/2000 39.79 37.23 27.567/13/2000 39.87 36.42 27.567/14/2000 40.24 36.33 27.167/17/2000 40.26 35.56 26.52

7/18/2000 39.81 35.05 26.917/19/2000 39.50 35.08 27.207/20/2000 39.87 34.85 27.097/21/2000 39.46 34.68 27.097/24/2000 39.04 34.30 26.667/25/2000 39.31 34.49 27.067/26/2000 38.72 34.52 26.737/27/2000 38.65 34.06 26.817/28/2000 37.86 33.82 26.38


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Exhibit 3. Ford Shares Outstanding (Adjusted for stock splits)

Total Shares Common Shares A Shares B Shares Common SharesYear Outstanding (Voting) (Held by Ford (Held by Ford Owned by Ford

Foundation, Family, Super Family BoardNon voting) voting) Members

1956 1,215,308,138 256,629,510 812,975,378 145,703,250 231957 1,225,925,325 270,078,323 812,975,378 142,871,625 1,625,625

1958 1,232,141,468 277,571,340 812,975,378 141,594,750 2,822,445

1959 1,234,384,088 371,137,298 721,659,128 141,587,663 1,650,353

1960 1,235,626,830 376,066,170 717,981,660 141,579,000 1,440,855

1961 1,237,900,478 467,862,728 628,470,788 141,566,963 839,745

1962 1,241,012,880 530,671,793 568,778,288 141,562,800 1,709,550

1963 1,244,410,335 581,380,729 522,405,281 140,624,325 1,215,596

1964 1,247,509,148 588,804,210 520,692,255 138,012,683 3,033,641

1965 1,250,714,430 674,903,081 437,812,504 137,998,845 2,888,010

1966 1,236,529,924 712,698,221 385,839,608 137,992,095 2,932,706

1967 1,233,429,671 733,178,790 363,052,755 137,198,126 2,964,150

1968 1,232,027,505 760,368,578 334,681,459 136,977,469 1,579,8041969 1,229,813,168 790,385,501 302,459,231 136,968,435 1,557,709

1970 1,227,018,803 818,028,146 272,105,348 136,885,309 1,565,235

1971 1,172,092,826 846,098,708 189,462,195 136,531,924 918,956

1972 1,132,758,619 876,225,566 120,372,739 136,160,314 950,456

1973 1,115,889,941 904,308,480 75,480,334 136,101,128 883,496

1974 1,052,884,496 916,878,803 136,005,694 927,990

1975 1,060,925,006 925,261,121 135,663,885 968,096

1976 1,063,522,631 928,122,131 135,400,500 904,500

1977 1,069,687,422 937,929,591 131,757,831 738,324

1978 1,079,343,765 950,151,546 129,192,219 968,652

1979 1,084,753,620 959,332,149 125,421,471 747,351

1980 1,091,700,000 966,600,000 125,100,000 400,707

1981 1,085,400,000 971,100,000 114,300,000 492,120

1982 1,085,400,000 980,100,000 105,300,000 522,054

1983 1,098,000,000 1,009,200,000 88,800,000 288,426

1984 1,095,000,000 1,011,600,000 83,400,000 424,302

1985 1,116,600,000 1,033,800,000 82,800,000 470,796

1986 1,073,600,000 996,400,000 77,200,000 482,072

1987 1,015,000,000 939,600,000 75,400,000 238,114

1988 982,000,000 907,600,000 74,400,000 695,870

1989 945,600,000 874,800,000 70,800,000 733,230

1990 946,200,000 875,400,000 70,800,000 646,672

1991 966,000,000 896,000,000 70,000,000 855,296

1992 978,000,000 908,000,000 70,000,000 646,672

1993 998,000,000 928,000,000 70,000,000 1,080,2821994 1,023,000,000 952,000,000 71,000,000 560,590

1995 1,160,000,000 1,089,000,000 71,000,000 1,262,366

1996 1,189,000,000 1,118,000,000 71,000,000 1,908,274

1997 1,203,000,000 1,132,000,000 71,000,000 1,987,399

1998 1,222,000,000 1,151,000,000 71,000,000 2,127,601

1999 1,222,000,000 1,151,000,000 71,000,000 2,317,054

Sources: Ford Motor Company annual reports and proxy statements; historical archives maintained by


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Elizabeth Adkins and James Sharon, Dearborn, Michigan; company investor relations


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Exhibit 6. Miscellaneous Ford financial information, 1986-1999 (consolidated, as of December 31,

1999 1998a

1997 1996 1995 1994

Selected Income Statement ItemsTotal revenues 162,558 144,416 153,627 146,991 137,137 128,439Automotive revenues 136,973 119,083 122,935 118,023 110,496 107,137

Gross profit 33,855 32,291 33,997 29,055 27,824 25,408Depreciation & amortization 15,193 14,329 13,583 12,791 11,719 9,336

Operating profit 18,662 17,962 20,414 16,264 16,105 16,072Pretax income 11,026 25,395 10,939 6,793 6,705 8,789Income taxes 3,670 3,176 3,741 2,166 2,379 3,329Net income 7,237 6,116 6,920 4,446 4,139 5,308

Selected Cash Flow ItemsCapital expenditures 10,274 10,407 9,675 10,410 10,456 9,470Net common equity issued (371) (932) 295 192 (1,274) 715Cash dividends 2,290 5,348 2,020 1,800 1,559 1,205

Selected Balance Sheet ItemsCash and marketable securities 25,173 24,956 22,453 19,103 15,096 13,822Net PPE 42,317 37,320 34,594 33,527 31,273 27,048Automotive assets 105,181 88,744 85,079 79,658 72,772 68,639Financial Services assets 171,048 148,801 194,018 183,209 170,511 150,983Automotive L.T. debt 10,542 8,713 7,047 6,495 5,475 7,103Financial Services L.T. debt 67,517 55,468 73,198 70,641 68,259 58,104Shareholders equity 27,537 23,409 30,734 26,762 24,547 21,659

Equity market capitalization 64,379 70,867 57,709 37,876 33,084 28,165

EPS (fully diluted) 5.86 4.86 5.62 3.64 3.33 4.44Dividends per share 1.88 1.72 1.65 1.47 1.23 0.91

Sources Company SEC filings and casewriter adjustments.

a1998 profits exclude a $15,955 million non-cash gain related to the spinoff to shareholders of Associate

with the Associates First Capital spinoff.


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figures in $ millions except per share items).

1993 1992 1991 1990 1989 1988 1987 1986

108,521 100,132 88,286 97,650 96,146 92,446 79,893 69,69491,568 84,407 72,051 81,844 82,879 82,193 71,797 62,868

18,228 13,877 11,762 15,420 18,209 17,240 12,650 10,1387,468 6,756 5,778 4,880 4,229 3,792 3,460 3,152

10,760 7,121 5,984 10,540 13,980 13,448 9,190 6,9864,003 (127) (2,587) 1,495 6,030 8,343 7,885 5,6201,350 295 (395) 530 2,113 2,999 3,226 2,3242,529 (502)b (2,258) 860 3,835 5,300 4,625 3,285

6,814 5,790 5,847 7,163 6,767 4,782 3,612 3,353394 1,325 - - (895) (816) (1,342) (700)

1,086 977 927 1,389 1,404 1,114 805 591

12,307 12,217 12,928 8,247 7,102 10,477 10,684 9,76923,059 22,160 22,522 22,208 18,605 15,992 14,034 13,20161,737 57,170 52,397 50,824 45,819 43,128 39,734 34,021

137,201 123,375 122,032 122,839 115,074 100,239 76,260 59,2117,084 7,068 6,539 4,553 1,137 1,336 2,058 2,467

47,900 42,369 43,680 40,779 37,784 30,777 26,009 19,12815,574 14,753 22,690 23,238 22,728 21,529 18,493 14,860

31,788 20,706 13,416 12,439 20,367 24,483 18,884 8,527

2.10 (7.81) (2.40) 0.92 4.06 5.40 4.46 3.030.80 0.80 0.98 1.50 1.50 1.15 0.79 0.56

First Capital; 1998 dividends include a special $3.2 billion dividend paid in conjunction .


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Exhibit 7. Ford Motor Company condensed statement of Changes in Cash and Marketable Securi

1999 1998b

1997 1996

Net income 7,237 6,116 6,920 4,446Depreciation and amortization 15,193 14,329 13,583 12,791

Decrease (increase) in net working capitalc 5,856 8,348 9,723 6,999Operating Cash Flow 28,286 28,793 30,226 24,236

Capital expenditures (10,274) (10,407) (9,675) (10,410)Increase (decrease) in Financial Services (23,645) (21,088) (25,735) (22,174)

receivablesd

Net other investments (6,363) (801) (666) 777Investing Cash Flow (40,282) (32,296) (36,076) (31,807)

Net common equity Issued (371) (932) 295 192Cash dividends (2,290) (5,348) (2,020) (1,800)Net increase (decrease) in debt 16,369 13,920 10,920 12,196Financing activities, other (1,495) (1,634) 5 990

Financing Cash Flow 12,213 6,006 9,200 11,578

Net Change in Cash and MarketableSecurities = Operating + Investing +Financing Cash Flows 217 2,503 3,350 4,007

Sources: Company SEC filings and casewriter adjustments.aThe accounting rules for marketable securities are somewhat complex. Depending on the type of securit

Investing Cash Flow. Changes to the account balances will, again, depending on the type and purpose o

equity. Because Ford treats marketable securities similar to cash (and most of the balance is treated asthis view, the purchase (sale) of, and changes in, marketable securities are included in the Operating Cab1998 profits exclude a $15,995 million non-cash gain related to the spinoff to shareholders of AssociatescThe net change in current assets minus current liabilities. This includes adjustments for the effects of fordThe account, Financial Services receivables, represents primarily the value of the outstanding loans and


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ies, 1986-1999 (consolidated, figures in $ millions)a.

1995 1994 1993 1992 1991 1990 1989 1988 1987

4,139 5,308 2,529 -502 -2,258 860 3,835 5,300 4,62511,719 9,336 7,468 6,756 5,778 4,880 4,229 3,792 3,460

4,446 6,065 2,606 5,730 7,874 1,426 -207 761 6,00320,304 20,709 12,603 11,984 11,394 7,166 7,857 9,853 14,088

(10,456) (9,470) (6,814) (5,790) (5,847) (7,163) (6,767) (4,782) (3,612)(25,689) (27,337) (19,001) (6,656) (239) (6,620) 2,012 (13,368) (15,561)

638 41 2,358 (365) (2,097) (13) (4,516) (145) (4,549)(35,507) (36,766) (23,457) (12,811) (8,183) (13,796) (9,270) (18,295) (23,722)

(1,274) 715 394 1,325 0 0 (895) (816) (1,342)(1,559) (1,205) (1,086) (977) (927) (1,389) (1,404) (1,114) (805)18,785 17,399 14,384 2,841 2,424 9,280 3,029 12,118 12,044

525 663 (2,748) (3,073) (27) (116) (2,691) (1,953) 652

16,477 17,572 10,944 116 1,470 7,775 (1,960) 8,236 10,549

1,274 1,515 90 (711) 4,681 1,145 (3,375) (207) 915

, and the purpose of the purchase, a purchase (or sale) will flow through either Operating or t

the security, flow through either the income statement, or a separate component of stockholders

perational flows), this exhibit treats marketable securities as part of working capital. Consistent with h Flow statement, except for those explicitly listed in the SEC filings under Investing Cash Flow.

First Capital.

ign currency exchange rate fluctuations.

leases on the vehicle purchases (and leases) that the Financial Services division has financed. An incr


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1986

3,2853,152

5,64812,085

(3,353)(12,216)

(907)(16,476)

(700)(591)

9,353(492)

7,570

3,179

ase in receivables suggests that the division has funded net new loans and leases.


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Exhibit 8. Miscellaneous General Motors financial information (Consolidated, as of December 31, figures in $ Million

1999 1998 1997 1996 1995 1994 1993

Selected Income Statement Items

Total Sales 176,558 155,445 178,174 164,013 168,829 154,951 138,220

Automotive sales 156,107 137,161 153,683 145,341 143,666

Gross Profit 30,904 24,988 31,954 26,238 28,779 25,497 20,266

Depreciation & Amortization 12,318 11,147 11,803 7,145 12,021 10,251 9,442Operating Profit 18,586 13,841 20,151 19,093 16,758 15,246 10,824

Pretax Income 9,047 4,944 7,714 6,620 9,776 8,353 2,575

Income Taxes 3,118 1,636 1,069 1,723 2,844 2,695 110

Net Income 6,002 2,956 6,698 4,963 6,881 4,901 2,466

Selected Cash Flow Items

Capital Expenditures 7,384 8,231 8,647 9,949 10,077 7,225 6,470

Net Common Issuance (1,865) (2,746) (3,751) 229 (1,176) 1,185 594

Cash Dividends 1,367 1,388 1,620 1,530 1,328 1,112 1,084

Selected Balance Sheet Items

Cash and Equivalents 12,140 10,276 22,984 22,262 16,643 16,076 17,962Net PPE 38,523 37,176 34,567 37,504 37,740 34,780 34,225

Total Assetsa

274,730 246,688 221,767 216,965 217,123 198,599 188,201

Automotive Assets 125,561 114,594 115,761 110,247 91,162 88,065 81,009

Financial Services Assets 149,169 132,094 109,319 98,578 94,470 84,555 79,352

Total Debt 129,697 114,871 93,027 85,300 83,324 73,730 70,441

Automotive L.T. Debt 7,415 7,118 5,491 5,192 5,968 6,082 6,218

Shareholders Equity 20,644 15,052 17,506 23,418 23,346 13,274 6,048

Equity Market Cap. 45,024 46,874 42,127 42,182 39,815 31,777 39,516

EPS (fully diluted) 9.18 4.18 8.62 6.02 7.21 5.15 2.13

DPS 2.00 2.00 2.00 1.60 1.10 0.80 0.80

Sources: Company SEC filings.

aTotal assets can differ from the sum of Automotive and Financial assets due to eliminations and other adjustments.


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except per share items).

1992 1991 1990 1989 1988 1987 1986

132,429 123,056 124,705 126,932 123,642 101,782 102,813

15,743 14,688 17,230 19,946 19,146 14,578 13,615

8,959 7,916 7,362 7,168 7,081 6,112 6,5946,784 6,772 9,868 12,778 12,065 2,569 1,431

(3,333) (5,892) (2,217) 6,398 6,735 3,491 2,644

(713) (900) (231) 2,174 2,103 (60) (300)

(23,498) (4,453) (1,986) 4,224 4,856 3,551 2,945

6,590 7,300 7,588 7,505 5,627 7,057 11,712

5,549 2,497 14 (1,482) (534) 422 (352)

1,377 1,162 1,957 1,964 1,658 1,668 1,663

15,275 10,092 7,821 10,213 10,181 7,744 7,31535,350 36,826 36,145 33,995 31,931 32,040 30,376

191,013 184,326 180,237 173,297 164,063 168,102 146,222

83,617 72,677 69,264 64,598 60,420 58,860 46,708

83,610 91,415 92,966 89,852 84,445 98,527 90,781

82,952 94,022 95,634 93,425 88,130 85,797 80,604

6,857 6,405 4,615 4,255 4,243 3,949 4,007

6,991 28,617 32,154 36,633 35,672 33,225 30,678

22,795 17,930 20,817 25,590 25,589 19,056 20,932

(38.28) (7.97) (4.09) 6.33 7.17 5.03 4.11

1.40 1.60 3.00 3.00 2.50 2.50 2.50


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Exhibit 9. Miscellaneous DaimlerChrylser financial information (Consolidated, as of December 31, figures in $ Millions ex

1999 1998 1997a

1996 1995 1994 1993

Selected Income Statement Items

Total Sales 151,035 154,615 61,147 61,397 53,195 52,235 43,600

Gross Profit 41,404 41,524 9,447 10,825 7,827 10,270 7,841

Depreciation & Amortization. 9,415 8,601 2,696 2,312 2,220 1,955 1,640

Operating Profit 8,557 8,049 6,751 8,513 5,607 8,315 6,201

Pretax Income 9,724 9,567 4,557 6,092 3,449 5,830 3,838

Income Taxes 4,565 3,607 1,752 2,372 1,328 2,117 1,423

Net Income 5,785 5,656 2,805 3,720 2,121 3,713 2,415

Selected Cash Flow Items

Capital Expenditures 29,657 19,659 7,150 5,429 4,109 4,024 2,995

Net Common Issuance 165 4,782 (2,130) (241) (1,047) 0 1,952

Cash Dividends 2,395 7,572 1,096 963 710 399 281

Selected Balance Sheet Items

Cash and Equivalents 9,163 21,998 7,848 7,752 8,125 8,371 5,095

Net PPE 64,129 51,852 22,540 18,829 16,161 14,482 12,774Total Assets

b175,889 159,738 60,418 56,184 53,756 49,539 43,830

Automotive Assets 101,424 103,513 44,483 41,251 38,358 36,001 32,492

Financial Services Assets 74,466 56,225 19,599 17,721 17,835 16,648 14,251

Automotive L.T. Debt 4,431 4,247 2,258 1,709 2,215 2,098 2,516

Financial Services L.T. Debt 60,509 43,189 6,748 5,475 7,643 5,552 4,355

Shareholders Equity 36,313 35,629 11,362 11,571 10,959 10,692 6,834

Equity Market Cap. 78,254 96,228 22,815 23,183 20,855 17,398 18,836

EPS (fully diluted) 5.73 5.75 4.09 4.74 2.56 4.55 (3.81)

DPS 2.50 11.97 1.60 1.40 1.00 0.55 0.33

Sources:Company SEC filings

aIn 1998, Chrysler Corporation merged with Daimler Benz to form DaimlerChrysler. Figures prior to 1998 are from Chrysle

bTotal assets can differ from the sum of Automotive and Financial assets due to eliminations and other adjustments.


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cept per share items).

1992 1991 1990 1989 1988 1987 1986

36,897 29,370 30,620 34,922 34,148 28,308 22,977

5,114 3,211 4,303 5,717 5,849 5,533 2,965

1,610 1,465 1,398 1,341 1,146 891 585

3,504 1,746 2,905 4,376 4,703 4,642 2,380

934 (810) 147 596 1,654 2,149 2,297

429 (272) 79 237 604 859 908

505 (538) 68 359 1,050 1,290 1,389

2,289 2,348 2,262 1,665 1,690 1,975 2,061

0 385 0 0 0 118 0

225 169 269 268 225 219 176

3,649 3,035 3,355 2,564 3,255 2,410 2,679

11,531 10,508 9,468 9,876 9,698 8,312 6,11840,653 43,076 46,374 51,038 48,567 37,417 25,945

25,144 23,050 22,218 21,670 19,718 17,472 11,482

17,548 21,280 24,702 30,090 28,750 25,277 21,028

3,707 3,506 3,898 3,249 3,314 3,333 2,334

9,727 11,474 15,094 13,753 13,315 10,885 9,100

7,536 6,109 6,849 7,233 7,582 6,503 5,281

9,469 3,435 2,838 4,239 6,002 4,894 5,345

1.07 (1.64) 0.15 0.77 2.33 2.94 3.13

0.30 0.30 0.60 0.60 0.50 0.50 0.40

.

ford motor company's value enhancement plan

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