SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995 OR
-----------------------------
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-3950
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Ford Motor Company
------------------
(Exact name of registrant as specified in its charter)
Incorporated in Delaware 38-0549190
--------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
The American Road, Dearborn, Michigan 48121
- ---------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
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Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
---- -----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date: As of September 30, 1995, the Registrant had outstanding 1,019,513,149
shares of Common Stock and 70,852,076 shares of Class B Stock.
Page 1 of 22
Exhibit index located on sequential page number 18
3Q-95
<PAGE>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------- ---------------------
1995 1994 1995 1994
-------- -------- -------- ------
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - United States 869 992 3,038 3,167
- - Outside United States 566 584 1,978 1,979
----- ----- ----- -----
Total 1,435 1,576 5,016 5,146
===== ===== ===== =====
Sales and revenues (in millions)
- - Automotive $24,437 $24,926 $ 82,899 $79,371
- - Financial Services 6,981 5,696 19,691 15,425
------- ------- -------- -------
Total $31,418 $30,622 $102,590 $94,796
======= ======= ======== =======
Net income/(loss) (in millions)
- - Automotive $ (201) $ 619 $ 2,040 $ 2,794
- - Financial Services 558 505 1,439 945*
------- ------- -------- -------
Total $ 357 $ 1,124 $ 3,479 $ 3,739
======= ======= ======== =======
Capital expenditures (in millions)
- - Automotive $ 2,254 $ 2,426 $ 6,204 $ 5,906
- - Financial Services 76 50 223 171
------- ------- -------- -------
Total $ 2,330 $ 2,476 $ 6,427 $ 6,077
======= ======= ======== =======
Stockholders' equity at September 30
- - Total (in millions) $24,955 $19,985 $ 24,955 $19,985
- - After-tax return on Common and
Class B stockholders' equity 5.4% 26.7% 20.9% 33.1%
Automotive cash, cash equivalents,
and marketable securities at
September 30 (in millions) $12,241 $13,915 $ 12,241 $13,915
Automotive debt at September 30
(in millions) $ 6,829 $ 7,233 $ 6,829 $ 7,233
Automotive after-tax return on sales ** 2.5% 2.5% 3.5%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,083 1,014 1,049 1,006
- - Number outstanding at September 30 1,090 1,017 1,090 1,017
AMOUNTS PER SHARE OF COMMON AND
CLASS B STOCK AFTER PREFERRED
STOCK DIVIDENDS
Income/(Loss)
- - Automotive $ (0.24) $ 0.54 $ 1.76 $ 2.56
- - Financial Services 0.52 0.50 1.37 0.94
------- ------- -------- -------
Total $ 0.28 $ 1.04 $ 3.13 $ 3.50
======= ======= ======== =======
Income assuming full dilution $ 0.27 $ 0.93 $ 2.85 $ 3.13
Cash dividends per share of Common
and Class B Stock $ 0.31 $ 0.225 $ 0.88 $ 0.65
</TABLE>
- - - - - -
*Includes a loss of $440 million related to the disposition of Granite
Savings Bank (formerly First Nationwide Bank)
**Results in this period were a loss
Segment results for 1994 have been adjusted to reflect reclassification
of certain tax amounts to conform with the 1995 presentation.
-2-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended September 30, 1995 and 1994
(in thousands)
Third Quarter Nine Months
------------------------ -------------------------
1995 1994 1995 1994
---------- ---------- ---------- --------
<S> <C> <C> <C> <C>
North America
United States
Cars 377 470 1,333 1,506
Trucks 492 522 1,705 1,661
----- ----- ----- -----
Total United States 869 992 3,038 3,167
Canada 46 56 178 206
Mexico 3 20 21 65
----- ----- ----- -----
Total North America 918 1,068 3,237 3,438
Europe
Britain 105 122 371 411
Germany 93 73 325 282
France 40 41 124 135
Spain 33 40 129 122
Italy 31 34 139 140
Other countries 58 60 212 210
----- ----- ----- -----
Total Europe 360 370 1,300 1,300
Other international
Brazil 45 44 153 121
Australia 41 30 107 87
Taiwan 27 20 90 76
Japan 14 13 44 37
Argentina 13 17 34 41
Other countries 17 14 51 46
----- ----- ----- -----
Total other international 157 138 479 408
----- ----- ----- -----
Total worldwide vehicle unit sales 1,435 1,576 5,016 5,146
===== ===== ===== =====
</TABLE>
Vehicle unit sales are reported worldwide on a "where sold" basis
and include sales of all Ford-badged units, as well as units manufactured
by Ford and sold to other manufacturers.
Third Quarter 1994 and Nine Months 1994 unit sales have been restated to
reflect the country where sold and to include sales of all Ford-badged
units. Previously, factory unit sales were reported in North America
on a "where sold" basis and overseas on a "where produced" basis.
Also, Ford-badged unit sales of certain unconsolidated subsidiaries
(primarily Autolatina -- Brazil and Argentina) were not previously reported.
-3-
<PAGE>
<TABLE>
<CAPTION>
Part I. Financial Information
------------------------------
Item 1. Financial Statements
- -----------------------------
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended September 30, 1995 and 1994
(in millions)
Third Quarter Nine Months
------------------------- -------------------------
1995 1994 1995 1994
------- ------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
AUTOMOTIVE
Sales $24,437 $24,926 $82,899 $79,371
Costs and expenses (Note 2)
Costs of sales 23,260 22,800 75,129 71,019
Selling, administrative, and other expenses 1,381 1,137 4,418 3,838
------- ------- ------- -------
Total costs and expenses 24,641 23,937 79,547 74,857
Operating (loss)/income (204) 989 3,352 4,514
Interest income 171 126 594 417
Interest expense 151 190 491 529
------- ------- ------- -------
Net interest income/(expense) 20 (64) 103 (112)
Equity in net (loss)/income of
affiliated companies (190) 84 (151) 193
Net expense from transactions with
Financial Services (42) (9) (101) (28)
------- ------- ------- -------
(Loss)/Income before income taxes - Automotive (416) 1,000 3,203 4,567
FINANCIAL SERVICES
Revenues 6,981 5,696 19,691 15,425
Costs and expenses
Interest expense 2,437 1,774 6,948 5,040
Depreciation 1,715 1,390 4,836 3,490
Operating and other expenses 1,421 1,245 4,049 3,292
Provision for credit and insurance losses 472 400 1,337 1,153
Loss on disposition of Granite Savings Bank
(formerly First Nationwide Bank) - - - 475
------- ------- ------- -------
Total costs and expenses 6,045 4,809 17,170 13,450
Net revenue from transactions with Automotive 42 9 101 28
------- ------- ------- -------
Income before income taxes - Financial Services 978 896 2,622 2,003
------- ------- ------- -------
TOTAL COMPANY
Income before income taxes 562 1,896 5,825 6,570
Provision for income taxes 157 737 2,198 2,723
------- ------- ------- -------
Income before minority interests 405 1,159 3,627 3,847
Minority interests in net income of subsidiaries 48 35 148 108
------- ------- ------- -------
Net income 357 1,124 3,479 3,739
Preferred stock dividend requirements 55 72 196 216
------- ------- ------- -------
Income attributable to Common and Class B Stock $ 302 $ 1,052 $ 3,283 $ 3,523
======= ======= ======= =======
Average number of shares of Common and Class B
Stock outstanding 1,083 1,014 1,049 1,006
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
AFTER PREFERRED STOCK DIVIDENDS
Income $ 0.28 $ 1.04 $ 3.13 $ 3.50
======= ======= ======= =======
Income assuming full dilution $ 0.27 $ 0.93 $ 2.85 $ 3.13
Cash dividends $ 0.31 $ 0.225 $ 0.88 $ 0.65
</TABLE>
The accompanying notes are part of the financial statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
September 30, December 31,
1995 1994
------------- ------------
<S> <C> <C>
ASSETS (unaudited)
Automotive
Cash and cash equivalents $ 6,621 $ 4,481
Marketable securities 5,620 7,602
-------- --------
Total cash, cash equivalents, and marketable securities 12,241 12,083
Receivables 2,886 2,548
Inventories (Note 3) 6,845 6,487
Deferred income taxes 2,980 3,062
Other current assets 1,917 2,006
Net current receivable from Financial Services 283 677
-------- --------
Total current assets 27,152 26,863
Equity in net assets of affiliated companies 3,454 3,554
Net property 29,972 27,048
Deferred income taxes 4,088 4,414
Other assets 7,149 6,760
-------- --------
Total Automotive assets 71,815 68,639
Financial Services
Cash and cash equivalents 1,943 1,739
Investments in securities 7,187 6,105
Net receivables and lease investments 144,117 130,356
Other assets 13,514 12,783
-------- --------
Total Financial Services assets 166,761 150,983
-------- --------
Total assets $238,576 $219,622
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 10,637 $ 10,777
Other payables 1,994 2,280
Accrued liabilities 13,170 11,943
Income taxes payable 431 316
Debt payable within one year 793 155
-------- --------
Total current liabilities 27,025 25,471
Long-term debt 6,036 7,103
Other liabilities 25,706 24,920
Deferred income taxes 1,166 1,216
-------- --------
Total Automotive liabilities 59,933 58,710
Financial Services
Payables 2,953 2,361
Debt 135,912 123,713
Deferred income taxes 3,735 2,958
Other liabilities and deferred income 8,829 7,669
Net payable to Automotive 283 677
-------- --------
Total Financial Services liabilities 151,712 137,378
Preferred stockholders' equity in a subsidiary company 1,976 1,875
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate
liquidation preference of $2.6 billion and $3.4 billion) * *
Common Stock, par value $1.00 per share (1,020 and 952 million shares issued) 1,020 952
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 5,531 5,273
Foreign currency translation adjustments and other 800 189
Earnings retained for use in business 17,533 15,174
-------- --------
Total stockholders' equity 24,955 21,659
-------- --------
Total liabilities and stockholders' equity $238,576 $219,622
======== ========
</TABLE>
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 1995 and 1994
(in millions)
Nine Months 1995 Nine Months 1994
---------------------- ---------------------
Financial Financial
Automotive Services Automotive Services
---------- --------- ---------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 4,481 $ 1,739 $ 5,667 $ 2,555
Cash flows from operating activities before securities trading 6,796 9,171 10,717 6,852
Net sales/(purchases) of trading securities 1,982 256 (2,765) (18)
-------- -------- -------- --------
Net cash flows from operating activities 8,778 9,427 7,952 6,834
Cash flows from investing activities
Capital expenditures (6,204) (223) (5,906) (171)
Acquisitions of other companies - - - (426)
Acquisitions of receivables and lease investments - (71,414) - (64,310)
Collections of receivables and lease investments - 51,210 - 43,134
Proceeds from sales of receivables and lease investments - 2,728 - 2,526
Net acquisitions of daily rental vehicles - (1,672) - (1,013)
Purchases of securities (47) (4,748) (116) (9,515)
Sales and maturities of securities 50 3,748 252 8,970
Investing activity with Financial Services (237) - 9 -
Other (400) (171) 407 (536)
-------- -------- -------- --------
Net cash used in investing activities (6,838) (20,542) (5,354) (21,341)
Cash flows from financing activities
Cash dividends (1,120) - (869) -
Issuance of Common Stock 326 - 375 -
Changes in short-term debt 665 2,481 (795) 8,024
Proceeds from issuance of other debt 0 16,532 158 15,265
Principal payments on other debt (207) (7,931) (41) (10,262)
Financing activity with Automotive - 237 - (9)
Receipts from annuity contracts - 276 - 875
Other 6 139 (20) (389)
-------- -------- -------- -------
Net cash (used in)/provided by financing activities (330) 11,734 (1,192) 13,504
Effect of exchange rate changes on cash 136 (21) 441 169
Net transactions with Automotive/Financial Services 394 (394) (321) 321
-------- -------- -------- --------
Net increase/(decrease) in cash and cash equivalents 2,140 204 1,526 (513)
-------- -------- -------- --------
Cash and cash equivalents at September 30 $ 6,621 $ 1,943 $ 7,193 $ 2,042
======== ======== ======== ========
</TABLE>
The accompanying notes are part of the financial statements.
-6-
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein
are unaudited, but in the opinion of management reflect those
adjustments necessary for a fair presentation of such
information. Results for interim periods should not be
considered indicative of results for a full year. Reference
should be made to the financial statements contained in the
registrant's Annual Report on Form 10-K (the "10-K Report")
for the year ended December 31, 1994. For purposes hereof,
"Ford" or the "Company" means Ford Motor Company and its
majority-owned subsidiaries unless the context requires
otherwise. Certain amounts for prior periods have been
reclassified to conform with presentations adopted in 1995.
2. Selected Automotive costs and expenses are summarized as
follows (in millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
----------------------- ----------------------
1995 1994 1995 1994
------ ------ ------ -------
<S> <C> <C> <C> <C>
Depreciation $622 $555 $1,816 $1,700
Amortization 731 408 2,072 1,532
</TABLE>
3. Automotive inventories are summarized as follows (in millions):
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------- -------------
<S> <C> <C>
Raw materials, work in process and supplies $3,426 $3,192
Finished products 3,419 3,295
------ ------
Total inventories $6,845 $6,487
====== ======
U.S. inventories $2,987 $2,917
</TABLE>
-7-
<PAGE>
Coopers & Lybrand L.L.P.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders
Ford Motor Company
We have reviewed the consolidated balance sheet of Ford Motor
Company and Subsidiaries at September 30, 1995 and the related
consolidated statement of income and condensed consolidated statement
of cash flows for the periods set forth in the Quarterly Report on
Form 10-Q for the quarter ended September 30, 1995. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally
of applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of
an opinion regarding the financial statements taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the financial statements referred to above
for them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet at December 31,
1994 and the related consolidated statements of income, stockholders'
equity and cash flows for the year then ended (not presented herein);
and in our report dated January 27, 1995, we expressed an unqualified
opinion on those consolidated financial statements.
/s/ COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
October 18, 1995
-8-<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
- ----------------------------------------------------------
RESULTS OF OPERATIONS: THIRD QUARTER 1995 COMPARED WITH THIRD
QUARTER 1994
Overview
- --------
Ford Motor Company earned $357 million, or $0.28 per share of
Common and Class B Stock, in the third quarter of 1995. This
compares with $1,124 million, or $1.04 per share, in the third
quarter of 1994. Fully diluted earnings per share were $0.27 in
the third quarter of 1995, compared with $0.93 a year ago. The
Company's worldwide sales and revenues were $31.4 billion,
compared with $30.6 billion a year ago. Vehicle unit sales of
cars and trucks were 1,435,000, down 141,000 units, or 9%.
Stockholders' equity was $25 billion at September 30, 1995.
Automotive Operations
- ---------------------
Ford's worldwide Automotive operations incurred a loss of $201
million in the third quarter of 1995 on sales of $24.4 billion,
compared with a net income of $619 million in the third quarter
of 1994 on sales of $24.9 billion. Overall, the decline in
earnings reflected lower volume in the U.S. and losses in Europe
and Brazil.
In the U.S., Ford's Automotive operations earned $187 million in
the third quarter of 1995 on sales of $16.8 billion, compared
with $553 million a year ago on sales of $17.8 billion. The
decline in earnings was explained by lower unit volume
(reflecting unusually high production in the year ago period and
units lost because of major new product launches and component
shortages) and costs associated with introducing new products
(mainly the new Taurus and Sable); cost efficiencies were a
partial offset. U.S. Automotive after-tax return on sales was
1.1% in the third quarter of 1995, down two points from a year
ago.
In the third quarter of 1995, the seasonally-adjusted annual
selling rate for the U.S. car and truck industry was 15.2 million
units, compared with 14.8 million units in the third quarter of
1994. Ford's car market share was 19.8% in the third quarter of
1995, down one point from a year ago. Ford's truck share was
31.6%, up 4/10 of a point from a year ago. Ford's combined car
and truck share was 24.7%, down 4/10 of a point from a year ago.
The decline in share reflected primarily lower sales of the
Taurus and Sable because of model changeover and lower sales of
the Escort, offset partially by higher sales of the Explorer and
F-Series trucks.
Outside the U.S., Automotive operations incurred a loss of $388
million in the third quarter of 1995 on sales of $7.6 billion,
compared with a net income of $66 million a year ago on sales of
$7.1 billion. The decline reflected primarily losses in Europe
and Brazil.
In Europe, Automotive operations incurred a loss of $320 million,
compared with a loss of $37 million a year ago. The larger loss
reflected primarily lower unit volume and higher marketing costs,
costs associated with introducing new products (the Galaxy
minivan and Fiesta), and unfavorable foreign exchange effects.
In the third quarter of 1995, the seasonally-adjusted annual
selling rate for the European car and truck industry was
13 million units, compared with 12.7 million units in the third
quarter of 1994. Ford's car share was 13.3% in the third quarter
of 1995, equal to a year ago. Ford's truck share was 15.4%, up
one point from a year ago. Ford's combined car and truck share
was 12.9%, up 1/10 of a point from a year ago.
Outside the U.S. and Europe, Ford incurred a loss of $68 million in the
third quarter of 1995, compared with a profit of $103 million a year earlier.
The loss was more than accounted for by operations in Brazil, where
higher import duties and a market shift to small cars resulted in excess
inventories and higher marketing costs. These conditions are expected to
continue for the balance 1995 and into next year. Business conditions
have been and are expected to continue to be volatile and subject
to rapid change, which can affect Ford's future earnings.
-9-
<PAGE>
<PAGE>
Ford and Volkswagen AG have agreed on a separation process
leading toward dissolution of their Autolatina joint venture in
Brazil and Argentina, which is expected to occur by year-end 1995.
Historically, earnings in Brazil and Argentina have represented a
significant portion of Ford's Automotive earnings outside the U.S.
and Europe. The long-term effect, if any, of the dissolution of
Autolatina on Ford's future results will depend on Ford's ability
to compete on its own in these historically volatile markets.
From now through early next year, Ford is launching the new
Taurus, Sable, F-150 pick-up truck, Escort and Tracer in North
America, and the Galaxy minivan and Fiesta in Europe. In the
U.S., the new products will represent about 35% of Ford's volume
compared to more typical years when new products represent about
10% to 15% of volume. In Europe, the Fiesta is Ford's highest
volume product.
Worldwide Automotive results in the fourth quarter of 1995 are
expected to be better than the third quarter of 1995, but worse
than the fourth quarter of 1994. Lower production in North
America, the continuation of major new product launches in North
America (the F-150 pick-up truck) and in Europe (the Fiesta),
higher costs associated with additional reductions in personnel,
and continued adverse foreign exchange effects are expected to
result in lower earnings in the fourth quarter compared with a
year ago.
Financial Services Operations
- -----------------------------
The Company's Financial Services operations earned a record
$558 million in the third quarter of 1995, compared with
$505 million in the third quarter of 1994. The increase resulted
primarily from record earnings at Ford Credit, The Associates,
USL Capital and Hertz, offset partially by lower earnings at
American Road.
Ford Credit's consolidated net income was a record $357 million
in the third quarter of 1995, compared with $315 million a year
ago. Ford Credit's financing operations earned $290 million in
the third quarter of 1995, compared with $254 million a year ago.
The increase reflected primarily higher levels of earning assets
and a lower effective tax rate resulting from prior-year tax
adjustments; lower net interest margins were a partial offset.
Depreciation costs increased as a result of continued growth in
operating leases; the related lease revenues more than offset the
increased depreciation. Ford Credit's results also included $68
million from equity in the net income of affiliated companies,
primarily Ford Holdings. Ford Holdings is a holding company that
owns primarily The Associates, USL Capital, and American Road.
The international operations managed by Ford Credit, but not
included in its consolidated results, earned $69 million in the
third quarter of 1995, compared with $62 million a year ago,
reflecting primarily higher levels of earning assets, offset
partially by lower net interest margins.
The Associates earned a record $171 million in the U.S. in the
third quarter of 1995, compared with $151 million a year ago.
The increase reflected higher levels of earning assets and
improved net interest margins. The international operations
managed by The Associates, but not included in its consolidated
results, earned $32 million in the third quarter of 1995,
compared with $17 million a year ago.
USL Capital earned a record $31 million in the third quarter of
1995, compared with $27 million a year ago. The improvement
resulted primarily from higher levels of earning assets. Hertz
earned a record $65 million in the third quarter of 1995,
compared with $61 million in the third quarter of 1994. The
increase reflected primarily higher volume in construction
equipment rentals and sales. American Road earned $9 million in
the third quarter of 1995, compared with $14 million a year ago.
The decrease reflected lower investment income.
Ford has announced that it is reviewing alternative strategies
for the non-automotive affiliates of the Financial Services
operations. Alternatives being reviewed include the sale by
Ford Holdings of a portion of The Associates and sale of all
or a portion of USL Capital. No decisions have been made at this time.
-10-
<PAGE>
<PAGE>
Ford Holdings has announced its intention to exchange for cash its
outstanding preferred stock (totaling about $2 billion) by means
of a cash-out merger, subject to approval by the holders of a majority
of the voting power of the outstanding capital stock of Ford Holdings.
Because Ford directly or indirectly owns all the outstanding common stock
of Ford Holdings, representing 75% of the combined voting power of all
classes of capital stock of Ford Holdings, stockholder approval is assured.
As provided in the terms of the preferred stock, Ford Holdings will pay the
preferred stockholders the liquidation preference of the stock, i.e., the
price at which the stock was originally issued, plus accured dividends.
Ford Holdings expects to fund the cash-out merger primarily with bank
loans. It is anticipated that the merger will become effective by the
end of 1995. Ford Holdings has filed with the Securities and Exchange
Commission (the "Commission") a Schedule 13E-3 and a Schedule 14C relating
to the merger, which are being reviewed by the Commission.
FIRST NINE MONTHS 1995 COMPARED WITH FIRST NINE MONTHS 1994
Overview
- --------
Ford earned $3,479 million, or $3.13 per share of Common and
Class B Stock, in the first nine months of 1995. This compares
with $3,739 million, or $3.50 per share, in the first nine months
of 1994. Ford's results a year ago included a charge of
$440 million related to the disposition of First Nationwide Bank.
Fully diluted earnings per share were $2.85 in the first nine
months of 1995, compared with $3.13 a year ago. The Company's
worldwide sales and revenues were $102.6 billion, up $7.8 billion
from a year ago. Vehicle unit sales of cars and trucks were
5,016,000, down 130,000 units.
Automotive Operations
- ---------------------
Net income from Ford's worldwide Automotive operations was
$2,040 million in the first nine months of 1995 on sales of $82.9
billion, compared with $2,794 million in the first nine months of
1994 on sales of $79.4 billion.
In the U.S., Ford's Automotive operations earned $1,675 million
in the first nine months of 1995 on sales of $55.7 billion,
compared with $2,257 million a year ago on sales of
$54.9 billion. The decline in earnings reflected primarily lower
unit volume, costs associated with introducing new products, and
unfavorable foreign exchange effects. U.S. Automotive after-tax
return on sales was 3%, down 1.1 points from a year ago.
In the first nine months of 1995, the seasonally-adjusted annual
selling rate for the U.S. car and truck industry was 15 million
units, compared with 15.3 million units a year ago. The Company
expects U.S. car and truck industry sales to total 15.1 million
units for the full year, compared with 15.4 million units in
1994. Ford's car share was 21% in the first nine months of 1995,
down 2/10 of a point from a year ago. Ford's truck share was
32.2%, up 2 points from a year ago. Ford's combined car and
truck share was 25.8%, up 9/10 of a point from a year ago.
Outside the U.S., Automotive operations earned $365 million in
the first nine months of 1995 on sales of $27.2 billion, compared
with $537 million a year ago on sales of $24.5 billion. The
decline reflected primarily lower results in Brazil.
Ford's European Automotive operations earned $164 million in the
first nine months of 1995, compared with $183 million a year ago.
The decline reflected primarily lower unit volume. In the first
nine months of 1995, the seasonally-adjusted annual selling rate
for the European car and truck industry was 13.4 million units,
compared with 13.2 million units a year ago. The Company expects
European car and truck industry sales to total 13.4 million units
for the full year, compared with 13.3 million units in 1994.
Ford's car share was 12.2% in the first nine months of 1995, up
2/10 of a point from a year ago. Ford's truck share was 15.2%,
up 6/10 of a point from a year ago. Ford's combined car and
truck share was 12.5%, up 2/10 of a point from the first nine
months of 1994.
-11-
<PAGE>
<PAGE>
Financial Services Operations
- -----------------------------
The Company's Financial Services operations earned a record
$1,439 million in the first nine months of 1995, compared with
$945 million in the first nine months of 1994. The improvement
was explained by the nonrecurrence of the $440 million charge to
net income in the first quarter of 1994 for disposition of First
Nationwide Bank, as well as increased earnings from ongoing
operations.
Ford Credit's consolidated net income was a record $986 million
in the first nine months of 1995, compared with $982 million a
year ago. Ford Credit's financing operations earned
$812 million, compared with $816 million a year ago. The decline
for financing operations reflected primarily lower net interest
margins, offset partially by higher levels of earning assets.
Ford Credit's results also included $175 million from equity in
the net income of affiliated companies, primarily Ford Holdings.
The international operations managed by Ford Credit, but not
included in its consolidated results, earned $200 million in the
first nine months of 1995, compared with $175 million a year ago.
The Associates earned a record $464 million in the U.S. in the
first nine months of 1995, compared with $400 million a year ago.
The increase reflected higher levels of earning assets and
improved net interest margins. The international operations
managed by The Associates, but not included in its consolidated
results, earned $81 million in the first nine months of 1995,
compared with $56 million a year ago.
USL Capital earned a record $87 million in the first nine months
of 1995, compared with $75 million a year ago. The improvement
reflected primarily higher levels of earning assets and higher
gains on asset sales. Hertz earned $84 million in the first nine
months of 1995, compared with $88 million a year ago. The
decrease reflected primarily increased depreciation and borrowing
costs. American Road earned $5 million in the first nine months
of 1995, compared with $44 million a year ago. The decrease
reflected lower underwriting results in floor plan products and
the dissolution of an operating subsidiary.
LIQUIDITY AND CAPITAL RESOURCES
Automotive Operations
- ---------------------
Cash, cash equivalents and marketable securities of the Company's
Automotive operations were $12.2 billion at September 30, 1995,
up $158 million from December 31, 1994. The Company paid $1,120
million in cash dividends on its Common Stock, Class B Stock
and Preferred Stock during the first nine months of 1995.
Automotive capital expenditures were $6.2 billion in the first
nine months of 1995, up $298 million from the same period a year
ago. Automotive capital spending is projected to increase
further during the fourth quarter of 1995 compared with the third
quarter of 1995 as a result of increases in both product and
nonproduct spending. The higher product spending reflects a
record pace of new-model introductions and increased capacity for
selected components and vehicles, while the higher nonproduct
spending reflects continuing efforts to improve quality and
efficiency.
Automotive debt at September 30, 1995 totaled $6.8 billion, which
was 21% of total capitalization (stockholders' equity and
Automotive debt), compared with $7.3 billion, or 25% of total
capitalization, at December 31, 1994. The decrease in Automotive
debt reflected primarily the assumption of debt by a Financial
Services subsidiary.
At September 30, 1995, Ford had long-term contractually committed
global credit agreements
under which $8.4 billion is available from various banks at least
through June 30, 2000. The entire
$8.4 billion may be used, at Ford's option, by any affiliate of
Ford; however, any borrowing by an affiliate will be guaranteed
by Ford. In addition, Ford has the ability to transfer on a
nonguaranteed basis the entire $8.4 billion in varying portions
to Ford Credit and Ford Credit Europe. These facilities were
unused at September 30, 1995.
-12-
<PAGE>
Financial Services Operations
- -----------------------------
Financial Services' cash, cash equivalents and investments in
securities totaled $9.1 billion at September 30, 1995, up
$1.3 billion from December 31, 1994.
Net receivables and lease investments were $144.1 billion at
September 30, 1995, up $13.8 billion from December 31, 1994. The
increase reflected continued growth in earning assets at Ford
Credit and The Associates.
Total debt was $135.9 billion at September 30, 1995, up
$12.2 billion from December 31, 1994. The increase resulted from
higher debt levels required to finance growth in earning assets
at Ford Credit and The Associates.
At September 30, 1995, Financial Services had a total of $47.8
billion of contractually committed support facilities. Of these
facilities, $23.9 billion (excluding the $8.4 billion of the Ford
credit facilities) are contractually committed global credit
agreements under which $19.8 billion and $4.1 billion are
available to Ford Credit and Ford Credit Europe, respectively,
from various banks; 62% and 75%, respectively, of such facilities
are available through June 30, 2000. The entire $19.8 billion
may be used, at Ford Credit's option, by any subsidiary of Ford
Credit, and the entire $4.1 billion may be used, at Ford Credit
Europe's option, by any subsidiary of Ford Credit Europe. Any
borrowings by such subsidiaries will be guaranteed by Ford Credit
or Ford Credit Europe, as the case may be. At September 30,
1995, $127 million and $670 million of the Ford Credit and Ford
Credit Europe global facilities, respectively, were in use.
Other than the global credit agreements, the remaining portion of
the Financial Services' support facilities at September 30, 1995
consisted of $21.6 billion of contractually committed support
facilities available to various affiliates in the U.S. and $2.3
billion of contractually committed support facilities available
to various affiliates outside the U.S; at September 30, 1995,
approximately $900 million of these facilities were in use.
ACCOUNTING CHANGES
The Emerging Issues Task Force (the "EITF") of the Financial
Accounting Standards Board is considering an accounting issue
that concerns timing of revenue recognition when a manufacturer
conditionally guarantees the resale value of a product or agrees
to repurchase the product at a fixed price (Issue 95-1). For
Ford, this issue affects primarily sales through dealers to
certain daily rental companies where the daily rental company has
an option to require Ford to repurchase vehicles. Ford
recognizes revenue upon the sale of vehicles to dealers,
including vehicles that subsequently are sold to daily rental
companies. If the EITF determines such sales should be accounted
for as operating leases, with revenue and income deferred and
recognized over the term of the lease, Ford would be required to
change its accounting for such transactions. The effect of this
change, if required, on Ford's financial results is not expected
to be material relative to full year 1995 earnings, but it could
be material in the quarter in which the accounting change is
made. If required, the change could be made either on a
prospective basis or on a one-time cumulative basis; in either
case, there would be no effect on Ford's cash flow.
OTHER FINANCIAL INFORMATION
Coopers & Lybrand L.L.P., Ford's independent public accountants,
performed a limited review of the financial data presented on
pages 4 through 7 inclusive. The review was performed in
accordance with standards for such reviews established by the
American Institute of Certified Public Accountants. The review
did not constitute an audit; accordingly, Coopers & Lybrand
L.L.P. did not express an opinion on the aforementioned data.
The financial data include any material adjustments or
disclosures proposed by Coopers & Lybrand L.L.P. as a result of
their review.
-13-
<PAGE>
Part II. Other Information
---------------------------
Item 1. Legal Proceedings
- --------------------------
Product Matters
- ---------------
With respect to the lawsuits for damages arising out of
automobile accidents where plaintiffs claim that the injuries
resulted from (or were aggravated by) alleged defects in the
occupant restraint systems in vehicle lines of various model
years, referred to in the second paragraph on page 23 of the 10-K
Report, on page 12 of Ford's quarterly report on Form 10-Q for
the quarter ended March 31, 1995 (the "First Quarter 10-Q
Report"), and on page 14 of Ford's quarterly report on
Form 10-Q for the quarter ended June 30, 1995 (the "Second
Quarter 10-Q Report"), the damages specified by the plaintiffs in
these actions, including both actual and punitive damages,
aggregated approximately $584 million at September 30, 1995.
With respect to the lawsuits for damages involving the alleged
propensity of Bronco II utility vehicles to roll over, referred
to in the third paragraph on page 23 of the 10-K Report, on page
12 of the First Quarter 10-Q Report, and on page 14 of the Second
Quarter 10-Q Report, the damages specified in these actions,
including both actual and punitive damages, aggregated
approximately $1.2 billion at September 30, 1995.
With respect to the lawsuits for damages involving asbestos,
referred to in the fifth paragraph on page 23 of the 10-K Report,
on page 12 of the First Quarter 10-Q Report, and on page 14 of
the Second Quarter 10-Q Report, the damages specified by
plaintiffs in these actions, including both actual and punitive
damages, aggregated approximately $551 million at September 30,
1995.
In most of the actions described in the foregoing paragraphs, no
dollar amount of damages is specified or the specific amount
referred to is only the jurisdictional minimum. It has been
Ford's experience that in cases that allege a specific amount of
damages in excess of the jurisdictional minimum, such amounts, on
average, bear little relation to the actual amounts of damages
paid by Ford in such cases, which generally are, on average,
substantially less than the amounts originally claimed. Ford
believes that, based on its analysis, any resulting liability or
loss from the foregoing matters and those matters described in
the 10-K Report on pages 23 and 24 would not materially affect
Ford's consolidated financial statements.
Environmental Matters
- ---------------------
Ford has resolved by settlement agreement the notice referred to
in the first paragraph under the caption "Environmental Matters"
on page 23 of the 10-K Report. In a separate matter potentially
involving monetary sanctions exceeding $100,000, Ford has
received a notice that a government environmental enforcement
agency believes a Ford facility may have violated regulations
relating to the management of certain materials.
-14-
<PAGE>
Other Matters
- -------------
With respect to the three purported class action lawsuits that
allege defects in the paint processes used with respect to
certain vehicles manufactured by Ford, referred to in the third
full paragraph on page 24 of the 10-K Report, the two lawsuits
(one of which was pending in Louisiana and the other in Alabama)
that are nationwide in scope have been consolidated for pretrial
proceedings in the U.S. District Court for the Eastern District
of Louisiana. In addition, two additional purported class action
lawsuits alleging similar facts relating to Ford's paint processes
have been filed. One such lawsuit was filed in the federal district
court located in Minneapolis, Minnesota and the other was filed in
state court in Milwaukee, Wisconsin. Both lawsuits will be
consolidated with the two lawsuits mentioned above in the U.S.
District Court for the Eastern District of Louisiana.
-15-
<PAGE>
Supplemental Schedule
<TABLE>
<CAPTION>
Ford Motor Company
CONDENSED FINANCIAL INFORMATION OF SUBSIDIARY
---------------------------------------------
(in millions)
FORD CAPITAL B.V.
September 30, December 31,
1995 1994
------------- ------------
(unaudited)
<S> <C> <C>
Current assets $1,210 $1,048
Noncurrent assets 4,676 4,845
------ ------
Total assets $5,886 $5,89
====== ======
Current liabilities $ 547 $ 486
Noncurrent liabilities 4,719 4,909
Minority interests in net
assets of subsidiaries 21 12
Stockholder's equity 599 48
------ ------
Total liabilities and
stockholder's equity $5,886 $5,893
====== ======
</TABLE>
<TABLE>
<CAPTION>
Third Quarter Nine Months
------------------------ ------------------------
1995 1994 1995 1994
---------- ---------- ---------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Sales and other revenue $614 $543 $1,960 $1,746
Operating income 61 40 190 137
Income before income taxes 46 18 145 114
Net income 25 13 108 91
</TABLE>
Ford Capital B.V., a wholly-owned subsidiary of Ford Motor
Company, was established primarily for the purpose of raising
funds through the issuance of commercial paper and debt
securities. Ford Capital B.V. also holds shares of the capital
stock of Ford Nederland B.V., Ford Motor Company (Belgium) B.V.,
and Ford Motor Company A/S (Denmark). Substantially all of the
assets of Ford Capital B.V., other than its ownership interests
in subsidiaries, represent receivables from Ford Motor Company or
its consolidated subsidiaries.
-16-
<PAGE>
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
Please refer to the Exhibit Index on page 18.
(b) Reports on Form 8-K
The Registrant filed the following Current Reports
on Form 8-K during the quarter ended September
30, 1995:
Current Report on Form 8-K dated July 19, 1995
included information relating to Ford's second
quarter 1995 financial results.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
FORD MOTOR COMPANY
--------------------------------
(Registrant)
Date: November 9, 1995 By: /s/ D. R. Coulson
------------------ --------------------------------
D. R. Coulson
Director of Accounting
Ford Automotive Operations
(principal accounting officer)
-17-
<PAGE>
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Sequential
Page Number
Designation Description at Which Found
- ------------ ----------------------------------------------------------- ------------
<S> <C> <C>
Exhibit 11 Ford Motor Company and Subsidiaries Computation of Primary 19-20
and Fully Diluted Earnings Per Share in Accordance with
Opinion 15 of the Accounting Principles Board.
Exhibit 12 Ford Motor Company and Subsidiaries Calculation of Ratio of 21
Earnings to Combined Fixed Charges and Preferred Stock
Dividends.
Exhibit 15 Letter of Coopers & Lybrand L.L.P., Independent Public 22
Accountants, dated November 8, 1995 relating to Financial
Information.
</TABLE>
-18-
<PAGE>
Exhibit 11
Page 1 of 2
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
-----------------------------------------------------------
IN ACCORDANCE WITH OPINION 15 OF THE ACCOUNTING PRINCIPLES BOARD
----------------------------------------------------------------
Third Quarter 1995 Third Quarter 1994
------------------------------- -------------------------------
Income Income
Attributable Attributable
Avg. Shares to Common Avg. Shares to Common
of Common and Class B Stock of Common and Class B Stock
and Class B ------------------ and Class B -----------------
Stock Per Stock Per
Outstanding Total Share Outstanding Total Share
----------- --------- ------- ----------- ------- -------
(Mils.) (Mils.) (Mils.) (Mils.)
<S> <C> <C> <C> <C> <C> <C>
Preliminary Earnings Per Share Calculation 1,083 $ 302 $0.28 1,014 $1,052 $1.04
I. Primary Earnings Per Share
. Assuming exercise of options 47 42
. Assuming purchase of shares with proceeds of options (31) (25)
. Assuming issuance of shares contingently issuable 2 2
. Uncommitted ESOP shares (2) (4)
----- -----
Net Common Stock Equivalents 16 15
----- -----
Primary Earnings Per Share Calculation 1,099 $ 302 $0.27a/ 1,029 $1,052 $1.02a/
===== ====== ===== ===== ====== =====
II. Fully Diluted Earnings Per Share
--------------------------------
Primary Earnings Per Share Calculation 1,099 $ 302 $0.27 1,029 $1,052 $1.02
. Assuming conversion of convertible preferred stock 101 32b/ 150 48b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 1 0
----- ------ ----- ------
Fully Diluted Earnings Per Share Calculation 1,201 $ 334 $0.27d/ 1,179 $1,100 $0.93
===== ====== ===== ===== ====== =====
</TABLE>
- - - - - -
a/ The effect of common stock equivalents and/or other dilutive
securities was not material in this period; therefore, the amount
presented on the income statement is the Preliminary Earnings Per
Share Calculation.
b/ Reflects the elimination of preferred dividends upon conversion.
c/ Incremental effect of dividing assumed option proceeds by the
ending price, rather than the average price, of Common Stock
for each period when the ending price exceeds the average price.
d/ The effect on earnings per share of the assumed conversion of
convertible preferred stock was anti-dilutive and, accordingly,
is excluded in the Fully Diluted Earnings Per Share Calculation
for the period indicated.
-19-
<PAGE>
<TABLE>
<CAPTION>
Exhibit 11
Page 2 of 2
Ford Motor Company and Subsidiaries
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
-----------------------------------------------------------
IN ACCORDANCE WITH OPINION 15 OF THE ACCOUNTING PRINCIPLES BOARD
----------------------------------------------------------------
Nine Months 1995 Nine Months 1994
-------------------------------- --------------------------------
Income Income
Attributable Attributable
Avg. Shares to Common Avg. Shares to Common
of Common and Class B Stock of Common and Class B Stock
and Class B ----------------- and Class B -----------------
Stock Per Stock Per
Outstanding Total Share Outstanding Total Share
------------ --------- ----- ------------ ------- -------
(Mils.) (Mils.) (Mils.) (Mils.)
<S> <C> <C> <C> <C> <C> <C>
Preliminary Earnings Per Share Calculation 1,049 $3,283 $3.13 1,006 $3,523 $3.50
I. Primary Earnings Per Share
--------------------------
. Assuming exercise of options 33 44
. Assuming purchase of shares with proceeds of options (18) (25)
. Assuming issuance of shares contingently issuable 2 2
. Uncommitted ESOP shares (3) (5)
----- -----
Net Common Stock Equivalents 14 16
----- -----
Primary Earnings Per Share Calculation 1,063 $3,283 $3.09a/ 1,022 $3,523 $3.45a/
===== ====== ===== ===== ====== =====
II. Fully Diluted Earnings Per Share
--------------------------------
Primary Earnings Per Share Calculation 1,063 $3,283 $3.09 1,022 $3,523 $3.45
. Assuming conversion of convertible preferred stock 130 125b/ 150 145b/
. Reduction in shares assumed to be purchased
with option proceeds c/ 3 0
----- ------ ----- ------
Fully Diluted Earnings Per Share Calculation 1,196 $3,408 $2.85 1,172 $3,668 $3.13
===== ====== ===== ===== ====== =====
</TABLE>
- - - - - -
a/ The effect of common stock equivalents and/or other dilutive
securities was not material in this period; therefore, the amount
presented on the income statement is the Preliminary Earnings
Per Share Calculation.
b/ Reflects the elimination of preferred dividends upon conversion.
c/ Incremental effect of dividing assumed option proceeds by the ending
price, rather than the average price, of Common Stock for each period
when the ending price exceeds the average price.
-20-
<PAGE>
Exhibit 12
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
----------------------------------------------------------------------------------------
(in millions)
Nine For the Years Ended December 31
Months ------------------------------------------------------------
1995 1994 1993 1992 1991 1990
-------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Earnings
- --------
Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 5,825 $ 8,789 $ 4,003 $ (127) $(2,587) $ 1,495
Equity in net (income)/loss of
affiliates plus dividends from
affiliates 176 (182) (98) 26 69 171
Adjusted fixed charges a/ 7,727 8,122 7,648 8,113 9,360 9,690
------- ------- ------- ------- ------- -------
Earnings $13,728 $16,729 $11,553 $ 8,012 $ 6,842 $11,356
======= ======= ======= ======= ======= =====
Combined Fixed Charges and
Preferred Stock Dividends
- --------------------------
Interest expense b/ $ 7,486 $ 7,787 $ 7,351 $ 7,987 $ 9,326 $ 9,647
Interest portion of rental expense c/ 199 265 266 185 124 105
Preferred stock dividend requirements
of majority-owned subsidiaries d/ 151 160 115 77 56 83
------- ------- ------- ------- ------- ----
Fixed charges 7,836 8,212 7,732 8,249 9,506 9,835
Ford preferred stock dividend
requirements e/ 311 472 442 317 26 0
------- ------- ------- ------- ------- ---
Total combined fixed charges
and preferred stock dividends $ 8,147 $ 8,684 $ 8,174 $ 8,566 $ 9,532 $ 9,835
======= ======= ======= ======= ======= =====
Ratios
- ------
Ratio of earnings to fixed charges 1.8 2.0 1.5 f/ g/ 1.2
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.7 1.9 1.4 h/ i/ 1.2
</TABLE>
- - - - - -
a/ Fixed charges, as shown below, adjusted to exclude the amount of
interest capitalized during the period and preferred stock dividend
requirements of majority-owned subsidiaries.
b/ Includes interest, whether expensed or capitalized, and amortization
of debt expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc.,
increased to an amount representing the pre-tax earnings which
would be required to cover such dividend requirements based on
Ford's effective income tax rates for all periods except 1992.
The U.S. statutory rate of 34% was used for 1992.
e/ Preferred stock dividend requirements of Ford Motor Company,
increased to an amount representing the pre-tax earnings
which would be required to cover such dividend requirements
based on Ford's effective income tax rates for all periods
except 1992. The U.S. statutory rate of 34% was used for 1992.
f/ Earnings inadequate to cover fixed charges by $237 million.
g/ Earnings inadequate to cover fixed charges by $2,664 million.
h/ Earnings inadequate to cover combined fixed charges and preferred
stock dividends by $554 million.
i/ Earnings inadequate to cover combined fixed charges and preferred
stock dividends by $2,690 million.
-21-
<PAGE>
Exhibit 15
Coopers & Lybrand L.L.P.
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement Nos. 2-95018,
2-95020, 33-9722, 33-14951, 33-19036, 33-36043, 33-36061,
33-39402, 33-50087, 33-50194, 33-50238, 33-54304, 33-54344,
33-54348, 33-54275, 33-54283, 33-54735, 33-54737, 33-55847,
33-56785, 33-58255, 33-58785, 33-58861, and 33-61107 on Form
S-8; 2-42133, 33-32641, 33-40638, 33-43085, 33-45887,
33-55474, and 33-55171 on Form S-3; and 33-62761 on Form S-4
We are aware that our report dated October 18, 1995 accompanying
the unaudited interim financial information of Ford Motor Company
for the periods ended September 30, 1995 and 1994 and included in
the Ford Motor Company Quarterly Report on Form 10-Q for the
quarter ended September 30, 1995 will be incorporated by reference
in the Registration Statements. Pursuant to Rule 436(c) under the
Securities Act of 1933, this report should not be considered a part
of the Registration Statements prepared or certified by us within
the meaning of Sections 7 and 11 of that Act.
/s/ COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Detroit, Michigan
November 8, 1995
