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Profitable Growth For PROFITABLE GROWTH FOR ALL Ford Motor Company / 2011 Annual Report OPERATING HIGHLIGHTS CONTENT 1 About the Revenues (a) 2011 2010 Company Worldwide wholesale unit volumes 2 A Message from the by automotive segment (in thousands) Executive Chairman Ford North America 2,686 2,413 Ford South America 506 489 3 A Message from the Ford Europe 1,602 1,573 President and CEO Ford Asia Pacific Africa 901 838 6 Board of Directors Volvo – 211 and Executives Total 5,695 5,524 7 Profitable Growth for All Revenues (in millions) Automotive $ 128,168 $ 119,280 8 Great Products Financial Services 8,096 9,674 18 Strong Business Total $ 136,264 $ 128,954 22 Better World Financial Results (a) 25 Financial Contents Income/(loss) before income taxes (in millions) 184 Shareholder Automotive $ 6,250 $ 4,146 Information Financial Services 2,431 3,003 Total $ 8,681 $ 7,149 185 Global Overview Amounts Attributable to Ford Motor Company (a) Net income/(loss) (in millions) $ 20,213 $ 6,561 Diluted net income/(loss) per share of Common and Class B Stock $ 4.94 $ 1.66 Cash and Spending (a) Automotive capital expenditures Amount (in billions) $ 4.3 $ 4.1 As a percentage of Automotive sales 3.3% 3.4% Automotive cash at year end (in billions) Automotive gross cash (b) $ 22.9 $ 20.5 – Cash net of Automotive debt 9.8 1.4 (a) Data presented includes Volvo Shareholder Value through August 2, 2010. (b) Automotive gross cash includes Dividends declared per share $ 0.05 $ - cash and cash equivalents and net marketable securities. Total shareholder returns % (c) (36)% 68% (c) Source: Standard & Poors ONE FORD: ONE Ford expands on the company’s four-point business ONE PLAN: plan for achieving success globally. It encourages focus, teamwork and • Aggressively restructure to operate profitably at the current demand and a single global approach, aligning employee efforts toward a common changing model mix. definition of success and optimizing their collective strengths worldwide. • Accelerate development of new products our customers want and value. The elements of ONE Ford are: • Finance our plan and improve our balance sheet. ONE TEAM: ONE Ford emphasizes the importance of working together • Work together eff ectively as one team. as one team to achieve automotive leadership, which is measured by ONE GOAL: The goal of ONE Ford is to create an exciting and viable the satisfaction of our customers, employees and essential business company with profitable growth for all. partners, such as our dealers, investors, suppliers, unions/councils and communities. Ford Motor Company | 2011 Annual Report 1 2 1) Ford Motor Company employees across the globe have been living the One Ford plan for the past several years. The ON THE COVER journey continues with the inception of Go Further, a global brand promise that gives One Ford a voice and takes the The all-new Ford Fusion will be the first sedan to offer One Ford plan to the next level, by communicating to gasoline, hybrid and plug-in hybrid powertrains, each with consumers the special attributes that distinguish Ford from other automakers. It means that we’re never going expected segment-leading fuel economy, underscoring Ford’s to rest on our laurels. We’re always going to go further for great products, strong business and a better world. commitment to give customers the power of choice. 2) Ford World Headquarters in Dearborn, Michigan. With seven must-have technologies, including a Lane Keeping System, adaptive cruise control, active park assist and MyFord Touch®, the Fusion shows how Ford is delivering ABOUT THE COMPANY features customers truly want and value. Ford Motor Company, a global automotive Fusion brings the broadest selection of fuel-efficient industry leader based in Dearborn, Michigan, powertrains in the midsize car segment. It offers hybrid and manufactures or distributes automobiles plug-in hybrid alternatives, a pair of EcoBoost® four-cylinder across six continents. With about 164,000 engines, and a non-turbocharged four-cylinder engine. It also employees and about 70 plants worldwide, offers an automatic start-stop system to shut off the engine the company’s automotive brands include at stationary idle. Drivers can select front-wheel-drive or Ford and Lincoln. The company provides all-wheel-drive applications, and between automatic and financial services through Ford Motor Credit manually shifted six-speed transmissions. Company. For more information regarding Ford and its products worldwide, please visit www.corporate.ford.com. For more information visit our interactive Annual Report at www.annualreport.ford.com Ford Motor Company | 2011 Annual Report 1 A MESSAGE FROM THE EXECUTIVE CHAIRMAN “We believe the result of our efforts will be continuing profitable growth for all of our stakeholders.” In 2011 Ford Motor Company completed its third year in a row of improved annual operating profits and announced the reinstatement of paying quarterly dividends for the first time in over five years. In 2012 we will go further to meet the needs of our customers, the challenges of our industry and the issues confronting our world. We believe the result of our efforts will be continuing profitable growth for all of our stakeholders. In the coming year we expect overall industry sales volumes to grow worldwide and we will continue to introduce great products at a rapid pace. At the same time, we will continue our efforts to improve our cost structure and strengthen our balance sheet. The automobile industry continues to face a number of challenges, including ongoing economic uncertainty, rising fuel and commodity costs, and the need to reduce CO2 emissions. In addition, growing worldwide sales volumes, particularly in developing markets, are raising concerns about traffic congestion in major cities. We plan to meet these challenges head on, with best-in-class vehicles that lead in quality, fuel efficiency, safety, smart design and value. We now offer advanced fuel-saving technologies across a full line of vehicles, as well as a variety of electrified vehicles. By next year our innovative EcoBoost engine, which delivers up to 20 percent better fuel economy without sacrificing performance, will be available in more than 90 percent of our North America vehicle portfolio and nearly 80 percent of our vehicles globally. We also are intensifying our efforts to develop vehicles that communicate with each other and the world around them to improve safety and reduce traffic congestion. Last year we doubled our investment in the development of wirelessly connected intelligent vehicles and we became the first automaker to build prototypes for demonstration across the U.S. As we did to address concerns about sustainability, our “Blueprint for Mobility” plan directs our future efforts and investments in this area, so that we will be the leader in wireless communication technology. I am proud of the outstanding job that has been done by our employees around the world. Working together as a global team has enabled us to reward our shareholders and other stakeholders. But the success we have achieved so far is just a starting point, not a finish line. In 2012 we will go further to build great products, a strong business and a better world. Thank you for your continued support of our efforts. William Clay Ford, Jr. Executive Chairman March 14, 2012 2 Ford Motor Company | 2011 Annual Report A MESSAGE FROM THE PRESIDENT AND CEO “We believe the challenges we face as a society present us with an opportunity to add value for everyone, including our shareholders.” Ford Motor Company continued on its path of profitable growth in 2011. Around the world we are delivering best-in-class vehicles to our customers. Our cost structure has been dramatically improved and our balance sheet greatly strengthened. We have taken a leadership role in addressing issues of global concern. Now we want to go further. Ford is a growing company operating in a rapidly expanding global automotive market. We have increased our product investments to meet this rising demand. We are confident that we will continue to increase our worldwide sales and improve our operating margins. The result will be profitable growth for all of our stakeholders. Let me explain how we will achieve this goal. Great Products Success in the automobile industry begins with great products. More than five years ago we consolidated our regional automotive operations into one global product development organization to fully leverage our worldwide resources and maximize economies of scale. We continued to invest heavily in new products, even as we faced difficult economic conditions. As a result, we now have a full family of outstanding vehicles with segment-leading quality, fuel efficiency, safety, smart design and value. In 2011 these exciting new products helped us achieve our third consecutive year of higher market share in the United States. We also had a higher share in Asia Pacific Africa and three consecutive quarters of year- over-year share gains in Europe. Our product momentum will continue in 2012 with the launch of a number of new vehicles, including the introduction of the all-new Ford Fusion and Mondeo, Escape and Kuga, EcoSport in South America, and the B-MAX in Europe. Industry-wide vehicle sales are expected to rise significantly in the next few years, driven by accelerated expansion in developing markets, recovery in mature markets, and sales of smaller and more fuel-efficient vehicles. We expect our sales to increase to about 8 million units by mid-decade, up about 50 percent from 5.3 million units in 2010. Because of significant growth in the region, by 2020 nearly one-third of our sales will come from Asia Pacific Africa, more than doubling the current percentage of global sales volume we achieve in this region.
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