SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report July 11, 1996
(Date of earliest event reported)
FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3950 38-0549190
(Commission File Number) (IRS Employer Identification No.)
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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Item 5. Other Events.
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News releases each dated July 11, 1996, one relating to a
dividend increase for the third quarter of 1996 and the other
relating to one-time actions for the second quarter of 1996,
are filed as Exhibits 20.A and 20.B, respectively, and are
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
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EXHIBITS
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 20.A News release dated Filed with this Report.
July 11, 1996 relating
to to dividend increase.
Exhibit 20.B News release dated Filed with this Report.
July 11, 1996 relating
to one-time actions.
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 on the
date indicated.
FORD MOTOR COMPANY
(Registrant)
Date: July 11, 1996 By:/s/Peter Sherry, Jr.
------------------------
Peter Sherry, Jr.
Assistant Secretary
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EXHIBIT INDEX
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DESIGNATION DESCRIPTION PAGE
- ----------- ----------- ----
Exhibit 20.A News release dated
July 11, 1996 relating
to dividend increase.
Exhibit 20.B News release dated
July 11, 1996 relating
to one-time actions
Exhibit 20.A
FORD LOGO Global News Public Affairs
Ford Motor Company
The American Road
Room 904
Dearborn, MI 48121
Telephone: (313) 322-9600
Fax: (313) 845-0570
(313) 337-1764
NEWS
IMMEDIATE RELEASE
Contact: Christian Vinyard
(313) 322-9600
Ford Raises Common Stock Dividend for Third Quarter
DEARBORN, Mich., July 11 -- The Board of Directors of Ford
Motor Company today declared a third-quarter dividend of 38.5
cents a share on the company's Class B and common stock, a
dividend of $1.05 a share on the depositary shares representing
the company's Series A Cumulative Convertible Preferred Stock,
and a dividend of 51.5625 cents a share on the depositary shares
representing the company's Series B Cumulative Preferred Stock.
The Class B and common stock dividends represent a 10
percent increase over the 35 cents that has been paid since the
fourth quarter of 1995.
"This is the fifth increase in the dividend since the first
quarter of 1994," said Chairman and Chief Executive Officer Alex
Trotman. "This action reflects continuing improvement in our
operations and the strength of our balance sheet."
Since the first quarter of 1994, the cumulative increase in
Ford's dividend on Class B and common stock has been 92.5
percent.
The dividend on the Series A Preferred Stock equals the
quarterly amount of the annual cumulative dividend of $4.20 per
depositary share. The dividend on the Series B Preferred Stock
equals the quarterly amount of the annual cumulative dividend of
$2.0625 per depositary share.
The third-quarter dividends are payable September 3, 1996,
to stockholders of record on August 2, 1996.
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Exhibit 20.B
FORD LOGO
Global News Public Affairs
Ford Motor Company
The American Road
Room 904
Dearborn, MI 48121
Telephone: (313) 322-9600
Fax: (313) 845-0570
(313) 337-1764
NEWS
IMMEDIATE RELEASE
Contact: Christian Vinyard
(313) 322-9600
Ford Outlines One-Time Actions for Second Quarter;
Takes Steps to Assume Control of Budget Rent a Car
DEARBORN, Mich., July 11 -- Ford Motor Company today
announced a series of separate actions concerning Associates
First Capital Corporation (NYSE: AFS) and Budget Rent a Car
Corporation that will result in a one-time after-tax net gain in
the second quarter of $213 million and ultimately give Ford
management control over the rental car company.
David N. McCammon, vice president - Finance, reported that
the recent initial public offering of 19.3 percent of The
Associates will result in a one-time after-tax gain of $650
million.
Ford also will write down to market value loans it made to
Budget in recent years along with its investment in Budget's non-
voting preferred shares, resulting in a one-time after-tax charge
against earnings of $437 million.
Taken together, the two actions will produce a one-time
after-tax gain of 18 cents per fully diluted share for the second
quarter.
"This is the prudent thing to do," McCammon said. "We have
concluded that Ford's investment in Budget should be recognized
in terms of its market valuation."
Ford also will notify the Federal Trade Commission and the
U.S. Justice Department, as provided under the Hart-Scott-Rodino
Act, that following government review, it intends to acquire the
common stock in Budget Rent a Car.
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Ford has had a relationship with Budget for more than 25
years that involves both the sale and financing of cars and
trucks. In 1989, Ford acquired non-voting preferred shares in
Budget.
"The rental car business can continue to be a good one for Ford,"
McCammon said. "Hertz has posted record profits in each of the
last three years and is clearly the industry leader. The steps
we're outlining today will allow Budget to realize its full
potential," he said.
Ford purchased part of Hertz in 1987 and took complete ownership in
1994. Last year, Hertz earned $105 million after taxes. "We
are pleased with our investment in Hertz," McCammon said. "It
has demonstrated that maintaining our ownership position in
the rental car business can be beneficial to Ford."
In late 1995, Budget's board installed new senior management and
elected Jack Frazee chairman and chief executive officer.
"Budget's new management is well on its way to achieving
profitability this year," McCammon said. "We're very confident
in the direction and pace of progress that is under way at
Budget," he added.
Ford purchased The Associates in 1989 for $3.35 billion. The
initial public offering was completed in May and The Associates
became the third largest domestic IPO in history. Today, The
Associates has a market value of about $13 billion and is the
largest publicly traded finance company as well as a member of
the Fortune 500.
"Obviously, Ford's acquisition of The Associates has been an
outstanding investment," McCammon said.
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July 11, 1996
