SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
__X__ EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
_____ EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission file number 1-3950
PRIMUS AUTOMOTIVE FINANCIAL SERVICES, INC. PRIME ACCOUNT
(Full title of the plan)
FORD MOTOR COMPANY
The American Road
Dearborn, Michigan 48121
(Name of issuer of the securities held
pursuant to the plan and the address of
its principal executive office)
<PAGE>
Required Information
- --------------------
Financial Statements
--------------------
Statement of Net Assets Available for Plan Benefits, as of
December 31, 1995 and 1994.
Statement of Changes in Net Assets Available for Plan
Benefits for the Year Ended December 31, 1995.
Schedule I - Schedule of Assets Held for Investment Purposes
as of December 31, 1995.
Schedule II - Reportable Transactions for the Year Ended
December 31, 1995.
Exhibit
- -------
Designation Description Method of Filing
- ----------- ------------- ----------------
Exhibit 23 Consent of Coopers Filed with this Report.
& Lybrand L.L.P.
Signature
Pursuant to the requirements of the Securities Exchange Act of
1934, the Primus Automotive Financial Services, Inc. Prime
Account Committee has duly caused this Annual Report to be signed
by the undersigned thereunto duly authorized.
PRIMUS AUTOMOTIVE FINANCIAL SERVICES, INC.
PRIME ACCOUNT COMMITTEE
By: /s/Dennis Delaney
---------------------------------
Dennis Delaney, Chairman
Primus Automotive Financial Services, Inc.
Prime Account Committee
June 27, 1996
<PAGE>
EXHIBIT INDEX
Sequential
Page Number
Designation Description at Which Found
Exhibit 23.1 Consent of Coopers &
Lybrand L.L.P.
<PAGE>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Index of Financial Statements and Supplemental Schedules
Pages
Report of Independent Accountants 2-3
Financial Statements:
Statement of Net Assets Available for Plan Benefits
as of December 31, 1995 and 1994 4-5
Statement of Changes in Net Assets Available
for Plan Benefits for the Years Ended
December 31, 1995 6
Notes to Financial Statements 7-12
Supplemental Schedules:
Schedule I - Item 27a - Schedule of Assets Held
for Investment Purposes as of December 31, 1995 13
Schedule II - Item 27d - Schedule of Reportable
Transactions for the Year Ended December 31, 1995 14-15
<PAGE>
Report of Independent Accountants
To the Boards of Directors of
Ford Motor Company and
PRIMUS Automotive Financial Services, Inc.:
We have audited the accompanying statements of net assets
available for plan benefits of the PRIMUS Prime Account 401(k)
Tax-Deferred Savings Plan as of December 31, 1995 and 1994 and
the related statement of changes in net assets available for plan
benefits for the year ended December 31, 1995. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for plan benefits of the Plan as of December 31, 1995
and 1994 and the changes in net assets available for plan
benefits for the year ended December 31, 1995, in conformity with
generally accepted accounting principles.
2
<PAGE>
Our audit was performed for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplemental schedules of the PRIMUS Prime Account 401(k) Tax-
Deferred Savings Plan as of December 31, 1995 are presented for
the purpose of additional analysis and are not a required part of
the basic financial statements, but are supplementary information
required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statement of
net assets available for plan benefits and the statement of
changes in net assets available for plan benefits is presented
for purposes of additional analysis rather than to present the
net assets available for plan benefits and changes in net assets
available for plan benefits of each fund. The supplemental
schedules and fund information have been subjected to the
auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated, in all
material respects, in relation to the basic financial statements
taken as a whole.
/s/Coopers & Lybrand L.L.P.
Detroit, Michigan
May 31, 1996
3
<PAGE>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits
December 31, 1995
<TABLE>
<CAPTION>
Short-Term
U. S.
Government Core Ford
Securities Intermediate 500 Index Equity Stock Cash/Loan
ASSETS Fund Bond Fund Fund Fund Fund Fund Total
------------ ------------- ----------- ------------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Note 4):
Interest in common/collective
trusts $ 971,322 $ 668,091 $1,980,703 $ 1,201,173 $ 58,007 $58,498 $4,937,794
Common stock 221,067 221,067
Participant loans receivable 10,627 5,482 28,958 22,443 57,142 124,652
--------- ---------- --------- ----------- --------- ------- ---------
Total investments 981,949 673,573 2,009,661 1,223,616 279,074 115,640 5,283,513
--------- ---------- --------- ----------- -------- ------- ---------
Receivables:
Accrued interest receivable 4,547 498 5,045
Accrued employee contributions 6,315 5,793 18,614 11,348 5,413 47,483
Accrued employer contributions 16,277 14,592 44,505 26,299 11,631 113,304
--------- --------- --------- -------- ------- ------- --------
Total receivables 27,139 20,385 63,119 37,647 17,044 496 165,832
--------- -------- --------- -------- -------- ------- -------
Interfund transfers (13,688) (42,066) (6,211) 32,474 2,732 26,759 -
--------- -------- -------- -------- -------- ------- -------
Total assets 995,400 651,892 2,066,569 1,293,737 298,850 142,897 5,449,345
--------- --------- --------- ---------- ------- ------- ---------
LIABILITIES
Accounts payable 20,278 20,278
--------- --------- --------- ---------- -------- ------- ---------
Total liabilities - - - - - 20,278 20,278
--------- --------- --------- ---------- -------- ------- ---------
Net assets available for
plan benefits $ 995,400 $651,892 $2,066,569 $1,293,737 $289,850 $122,619 $5,429,067
========= ========== ========== ========== ======== ======== ==========
The accompanying note are an integral part of the financial statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Short-Term
U. S.
Government Core
Securities Intermediate 500 Index Equity Cash/Loan
ASSETS Fund Bond Fund Fund Fund Fund Total
------------ ------------- ------------ ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Interest in common/collective
trusts $ 803,014 $ 358,739 $ 791,890 $ 633,451 $ 88,305 $ 2,675,399
Participant loans receivable 14,839 4,329 9,978 9,350 4,686 43,182
--------- ---------- --------- --------- -------- -----------
Total investments 817,853 363,068 801,868 642,801 92,991 2,718,581
--------- ---------- ---------- --------- -------- -----------
Receivables:
Accrued interest receivable 3,443 435 3,878
Accrued employee contributions 6,956 5,777 15,543 10,826 39,102
Rollover receivables 1,207 48,917 46,976 1,148 96,248
--------- --------- --------- -------- ------- ----------
Total receivables 11,606 52,694 62,519 11,974 435 139,228
--------- --------- --------- -------- ------- ----------
Interfund transfers 651 4,541 13,155 6,332 (24,679) -
--------- -------- --------- -------- -------- ----------
Total assets 830,110 420,303 677,542 661,107 68,747 2,857,809
--------- --------- --------- ------- ------- ----------
LIABILITIES
Accounts payable 11,311 11,311
--------- ----------- --------- -------- ------- ----------
Total liabilities - - - - 11,311 11,311
-------- ----------- ---------- --------- ------- ---------
Net assets available for
plan benefits $ 830,110 $420,303 $877,542 $661,107 $57,436 $2,846,498
========= ========= ======== ======== ======= ==========
The accompanying note are an integral part of the financial statements.
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
Short-Term
U. S.
Government Core Ford
Securities Intermediate 500 Index Equity Stock Cash/Loan
ASSETS Fund Bond Fund Fund Fund Fund Fund Total
------------ ------------ ----------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $181,219 $152,431 $435,515 $305,384 $31,279 $1,105,828
Employer contributions 112,770 92,183 251,592 175,385 17,603 649,533
Rollover contributions 42,309 1,815 97,999 7,356 12,569 162,048
Interest and dividend income 51,171 886 5,100 2,160 2,379 61,696
Net appreciation
(depreciation) in fair
value of investments
(Note 4) - 69,727 412,030 256,150 (7,692) 730,215
Interest income on loans 1,934 566 2,206 1,485 309 6,500
--------- --------- --------- -------- ------- ------- -------
Total additions 389,403 317,608 1,204,442 747,920 56,447 - 2,715,820
--------- ---------- ---------- -------- ------- ------- ---------
Deductions:
Benefits 83,728 7,528 13,595 16,050 $ 2,101 123,002
Other expenses 2,351 1,414 3,660 2,228 596 10,249
--------- --------- --------- -------- -------- -------- -------
Total deductions 86,079 8,942 17,255 18,278 596 2,101 133,251
--------- -------- --------- -------- -------- -------- -------
Net additions before fund
transfers 303,324 308,666 1,187,187 729,642 55,851 (2,101) 2,582,569
Net transfers between funds (138,034) (77,077) 1,840 (97,012) 242,999 67,284 -
-------- -------- ---------- --------- -------- ------- -------
Net additions 165,290 231,589 1,189,027 632,630 298,850 65,183 2,582,569
Net assets available for plan
benefits, beginning of year 830,110 420,303 877,542 661,107 - 57,436 2,846,498
--------- -------- --------- -------- -------- ------- --------
Net assets available for
plan benefits, end of year $995,400 $651,892 $2,066,569 $1,293,737 $298,850 $122,619 $5,429,067
========= ========= =========== =========== ======== ========= ==========
The accompanying note are an integral part of the financial statements.
</TABLE>
6
<PAGE>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Notes to Financial Statements
1. Summary of Significant Accounting Policies:
a. Investments: The Plan allows its participants to direct
their share of contributions and earnings to five different
investment mediums, a Short-Term U. S. Government Securities
Fund, an Intermediate Bond Fund, a 500 Index Fund, a Core Equity
Fund and a Ford Stock Fund, which are held by Comerica Bank and
are stated at fair value as of December 31, 1995 and 1994. These
investment mediums are offered by Comerica Bank, the Plan's
trustee.
b. Contributions: Contributions to the Plan are recorded in
the period that payroll deductions are made from plan
participants.
c. Payment of Benefits: Benefits are recorded when paid.
d. Use of Estimates: The preparation of financial statements
in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during
the reporting period. Actual results could differ from
estimates.
e. Other: Purchases and sales of securities are reflected on a
trade-date basis. Gains and losses on sales of securities are
based on average cost.
Dividend income is recorded on the ex-dividend date; income
from other investments is recorded as earned.
The Plan presents in the statements of changes in net assets
available for plan benefits the net appreciation (depreciation)
in the fair value of its investments, which includes realized
gains or losses and the unrealized appreciation (depreciation) on
those investments.
Substantially all costs and expenses incurred with the
operation of the Plan are borne by PRIMUS Automotive Financial
Services, Inc. ("PRIMUS").
Certain amounts in the previously issued 1994 financial
statements have been reclassified to conform with the current
year presentation.
7
<PAGE>
Notes to Financial Statements, Continued:
2. Description of the Plan:
The Plan became effective April 1, 1992.
The following description of the Plan provides only general
information. The provisions of the Plan are governed in all
respects by the detailed terms and conditions contained in the
Plan itself. Participants should refer to the plan agreement for
a complete description of the Plan's provisions.
a. Type and Purpose of the Plan: The Plan is a defined
contribution plan established to encourage and facilitate
systematic savings and investment by eligible employees and to
provide them with an opportunity to become stockholders of Ford
Motor Company ("Ford"). The Plan includes provisions for voting
shares of Ford common stock.
b. Eligibility: With certain exceptions, regular full-time
employees having at least twelve months of continuous service are
eligible to participate in the Plan. Participation in the Plan
is voluntary.
c. Contributions: Under the Plan and subject to limits
required to be imposed by the Internal Revenue Code, participants
may elect to contribute up to 11 percent of their pre-tax
earnings, not to exceed 25 percent of annual earnings including
overtime and bonuses.
PRIMUS, at its discretion, may match at the rate of 100
percent of the first 2 percent and 50 percent of the next 4
percent of the participants' pre-tax contributions.
d. Transfer of Assets: The Plan permits the transfer of assets
among investment elections as of the first day of each plan year
quarter.
e. Investment Programs and Participation: Participant
contributions are invested in accordance with the participant's
election in any of five investment funds. These investment
options as of December 31, 1995 are as follows:
(1) Ford Stock Fund: The Fund consists of shares of the common
stock, $1.00 par value, of Ford. The value of the fund rises or
falls depending upon the stock's performance in the market. Ford
stock is subject to economic factors, the stock market in general
and factors affecting Ford in particular.
(2) Short-Term U. S. Government Securities Fund: The Short-Term
U. S. Government Securities Fund seeks to provide as high a level
of current interest income as is consistent with maintaining
liquidity and stability of principal. This Fund may be an
appropriate retirement investment for participants who are
looking for basic preservation of capital with a low risk level.
8
<PAGE>
Notes to Financial Statements, Continued:
2. Description of the Plan, continued:
e. Investment Programs and Participation, continued:
(3) Intermediate Bond Fund: The Intermediate Bond Fund seeks a
competitive rate of return which, over time, exceeds the rate of
inflation and the rate provided by money market investments. The
Intermediate Bond Fund has an intermediate term weighted average
maturity that ranges from three to seven years. The Fund's
investment philosophy is based on a total rate of return approach
emphasizing high quality and active trading.
(4) 500 Index Fund: The 500 Index Fund seeks to participate in
the long-term growth of the stock market by generating total
returns that tract the total returns of the Standard & Poor's
("S&P") 500 index. The 500 Index Fund is benchmarked to the S&P
500 universe. In addition to the S&P 500 stocks, the Fund
purchases S&P 500 index futures to reduce the impact of cash
holdings on fund performance and to provide liquidity and
flexibility to the management of the Fund. This Fund may be
appropriate for the more aggressive investor seeking capital
gains.
(5) Core Equity Fund: The Core Equity Fund's objectives are to
participate in the long-term capital appreciation of the stock
market and to maintain a growth stream of income. The Fund
invests in the common stocks of high quality companies with
consistent and superior earnings per share.
f. Vesting and Distributions: Employee contributions and
investment earnings are fully vested. PRIMUS matching
contributions vest 20 percent, 50 percent and 100 percent for
one, two and three years of service, respectively. A participant
becomes fully vested in PRIMUS matching contributions
automatically upon retirement due to disability, upon death or
upon termination of the Plan. Benefits are payable upon
termination or upon normal retirement at age 65 in a cash lump-
sum payment.
g. Participant Loans: As described in the plan document,
participants may borrow from their respective accounts an amount
from $1,000 to $50,000. Loans to participants bear interest at a
reasonable rate which is equal to that charged by the trustee for
commercial loans made under similar circumstances, on the date
the loan is approved by the plan administrator. A portion of the
participant's account balance serves as collateral.
9
<PAGE>
3. Forfeitures:
The Plan permits PRIMUS to use forfeited amounts from
participants' accounts to reduce the PRIMUS' contributions to the
Plan. During 1995, forfeited PRIMUS contributions were $5,222.
4. Investments:
a. Net Appreciation (Depreciation ) in the Fair Value of
Investments: The net appreciation (depreciation) in the fair
value of investments (including investments bought and sold, as
well as held, during the year) for the year ended December 31,
1995:
Net
Appreciation
(Depreciation)
in Fair Value
---------------
[S] [C]
Intermediate Bond Fund $ 69,727
500 Index Fund 412,030
Core Equity Fund 256,150
Ford Stock Fund (7,692)
----------
$ 730,215
=========
b. Fair Value of Individual Investments: The fair value of
individual investments representing five percent or more of the
Plan's net assets are as follows as of December 31, 1995:
Short-Term Government Securities Fund $ 971,322
Intermediate Bond Fund 668,091
500 Index Fund 1,980,703
Core Equity Fund 1,201,174
Ford Stock Fund 221,067
10
<PAGE>
Notes to Financial Statements, Continued
4. Investments, continued:
c. Asset Value per Unit: The number of shares or units
contained in each investment fund, the aggregate cost of shares
of units and market value per share or unit as of December 31,
1995 is as follows:
<TABLE>
<CAPTION>
Aggregate Market
Number of Cost Value
Shares or of Shares per Share
Units or Units or Unit
------------- ------------ -----------
<S> <C> <C> <C>
Short-Term Government Securities Fund 1,087,827 $1,087,827 $ 100.00
Intermediate Bond Fund 46,532 634,346 14.36
500 Index Fund 7,800 1,538,108 253.95
Core Equity Fund 8,252 982,409 145.56
Ford Stock Fund 7,656 228,759 28.88
</TABLE>
5. Tax Status:
The Plan obtained its latest determination letter on November 20,
1995, in which the Internal Revenue Service stated that the Plan
was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving
the determination letter. However, the plan administrator
believes that the Plan is currently designed and being operated
in compliance with the applicable requirements of the Internal
Revenue Code. Therefore, the plan committee believes that the
Plan was qualified, and the related trust was tax-exempt as of
the financial statement date.
6. Plan Termination:
Although it has not expressed any intent to do so, PRIMUS has the
right under the Plan to terminate the Plan subject to the
provisions of ERISA. In the event PRIMUS terminates the Plan,
the plan committee will direct the trustee to distribute the
assets of the Plan to the participants, former participants and
beneficiaries in accordance with their interests under the Plan.
11
<PAGE>
Notes to Financial Statements, Continued
7. Other:
The differences between the data shown on pages 4 and 6 of this
report and the 1995 Form 5500 filed with the Department of Labor
are principally attributable to adjustments made by the plan
committee to conform to the accrual basis of accounting.
8. Subsequent Event:
As of January 1, 1996, the Plan changed trustees from Comerica
Bank to Fidelity Management Trust Company.
12
<PAGE>
Schedule I
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1995
<TABLE>
<CAPTION>
(c)
(b) Description of Investment,
Identity of Issuer Including Maturity Date, (e)
Borrower, Lessor Rate of Interest, Collateral, (d) Current
(a) or Similar Party Par or Maturity Value Cost Value
- ---- -------------------- -------------------------------- ---------------- --------------
<S> <C> <C> <C> <C>
* Comerica Bank Short-Term Government Fund
Series 2, 971,322 units $ 971,322 $ 971,322
* Comerica Bank Intermediate Bond Fund H
46,532 units 634,346 668,091
* Comerica Bank 500 Index Fund, 7,800 units 1,538,108 1,980,703
* Comerica Bank Core Growth Stock Fund E,
8,252 units 982,409 1,201,174
* Comerica Bank Short-Term Investment Fund,
116,505 units 116,505 116,505
* Ford Motor Company Ford Motor Company Common
Stock, 7,656 shares 228,759 221,067
Plan participants Loans receivable (6-9 percent) - 122,619
---------- ----------
$4,471,449 $5,281,481
========== ==========
</TABLE>
*party-in-interest
13
<PAGE>
Schedule II
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1995
(h)
(f) Current Value
(a) (c) (d) (e) Expenses (g) of Asset on (i)
Identity of (b) Purchase Selling Lease Incurred with Cost Transaction Net Gain
Party Involved Description of Asset Price Price Rental Transaction* of Asset Date or (Loss)
- --------------- ------------------------ ------------ ----------- ------ ------------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REPORTING
CRITERION I: Any single transaction in
- ----------- excess of five percent of
of current value of plan
assets.
Comerica Bank Purchased 39,989 units,
intermediate Bond
Fund H $558,817 $558,817 $558,817
Comerica Bank Sold 39,989 units,
intermediate Bond
Fund H $558,817 543,443 558,817 $15,374
Comerica Bank Sold 171,534 units, short-
term fund 171,534 171,534 171,534 -
Comerica Bank Sold 173,784 units, short-
term fund 173,784 173,784 173,784 -
Comerica Bank Sold 155,680 units, short-
term fund 155,680 155,680 155,680 -
Comerica Bank Sold 203,896 units, short-
term fund 203,896 203,896 203,896 -
REPORTING
CRITERION II: Any series of transactions in
- ------------- other that securities in
excess of five percent of
current value of plan
assets.
None.
REPORTING
CRITERION III: Any series of transactions in
- ------------- securities within the plan year
with or in conjunction with
the same persons that, when
aggregated, involves more than
five percent of current
value of plan assets. (Note A)
Comerica Bank Purchased 3,402 units, Core
Growth Stock Fund E 434,507 434,507 434,507
Purchased 7,656 shares, Ford
Motor Company Common Stock 228,759 228,759 228,759
Purchased 22,353 units,
Intermediate Bond Fund H 301,581 301,581 301,581
Purchased 2,223,694 units,
Short-Term Fund 2,223,694 2,223,694 2,223,694
Sold 1,490,601 units,
Short-Term Fund 1,490,601 1,490,601 1,490,601 -
Purchased 165,359 units,
Short-Term Government
Fund Service 2 165,359 165,359 165,359
Sold 333,667 units, Short-Term
Government Fund Series 2 333,667 333,667 333,667 -
Comerica Bank Purchased 3,511 units, 500
Index Fund 776,783 776,783 776,783
REPORTING
CRITERION IV: Any single transactions within
------------ the plan year with respect to
securities with or in conjunction
with a person with whom any prior
or subsequent single five percent
security transactions within the
plan year took place.
None.
Note A: Transactions already reported under Criterion I are not reported
here.
*Information regarding expenses incurred with each transaction was not
available from the Trustee.
<PAGE>
</TABLE>
Exhibit 23
Consent of Independent Accountants
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement
No. 33-58861
We consent to the incorporation by reference in the above
Registration Statement of our report dated May 31, 1996, to the
Boards of Directors of Ford Motor Company and PRIMUS Automotive
Financial Services, Inc. with respect to the financial statements
of the PRIMUS Automotive Financial Services, Inc. Prime Account
401(k) Tax Deferred Savings Plan at December 31, 1995 and 1994,
and for the year ended December 31, 1995, which is included in
this Annual Report on Form 11-K.
400 Renaissance Center
Detroit, Michigan 48243
June 21, 1996
