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 [NO FEE REQUIRED]
- -----
For the fiscal year ended December 31, 1996
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>
-2-
Required Information
- --------------------
Financial Statements
- --------------------
Statement of Net Assets Available for Plan Benefits, as of December 31,
1996 and 1995.
Statement of Changes in Net Assets Available for Plan Benefits for the Year
Ended December 31, 1996.
Schedule I - Schedule of Assets Held for Investment Purposes as of December
31, 1996.
Schedule II - Reportable Transactions for the Year Ended December 31, 1996.
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 30, 1997
<PAGE>
-3-
EXHIBIT INDEX
-------------
Sequential
Page Number
Designation Description at Which Found
- ----------- ----------- --------------
Exhibit 23 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
Financial Statements:
Statement of Net Assets Available for Plan Benefits as
of December 31, 1996 and 1995.........................................3-6
Statement of Changes in Net Assets Available for Plan Benefits
for the Years Ended December 31, 1996.................................7-9
Notes to Financial Statements.........................................10-17
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1996.............................................18
Item 27d - Schedule of Reportable Transactions for the Year
Ended December 31, 1996..........................................19-20
<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, 1996 and 1995 and the related statement of changes in net assets
available for plan benefits for the year ended December 31, 1996. 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, 1996 and 1995 and the changes in net assets available for plan
benefits for the year ended December 31, 1996, in conformity with generally
accepted accounting principles.
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, 1996 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
June 12, 1997
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits
December 31, 1996
-----------------------------------------------------------------------------------------
Participant-Directed
Retirement
Government
Money Growth and U.S. Equity
Ford Stock Market Intermediate Income Puritan Index
Fund Portfolio Bond Fund Portfolio Fund Portfolio Subtotal
ASSETS ---------- --------- ------------ ---------- -------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4):
Interest in common trust $ $ 906,832 $ 658,224 $ 311,302 $168,561 $ 2,343,094 $4,388,013
Common stock 570,338 570,338
Participant loans receivable 0
--------- --------- --------- --------- --------- ----------- ----------
Total investments 570,338 906,832 658,224 311,302 168,561 2,343,094 4,958,351
-------- --------- ---------- --------- --------- ----------- ----------
Receivables:
Accrued interest receivable 0
Accrued employee contributions 0
Accrued employer contributions 0
-------- --------- ---------- --------- ---------- ----------- ----------
Total receivables 0 0 0 0 0 0 0
-------- --------- ---------- --------- --------- ----------- ----------
Interfund transfers
--------- ---------- ---------- --------- --------- ----------- ----------
Total assets 570,338 906,832 658,224 311,302 168,561 2,343,094 4,958,351
--------- ---------- ---------- --------- --------- ----------- ----------
LIABILITIES
Accounts payable 0
--------- ---------- ---------- ---------- --------- ---------- ----------
Total liabilities 0 0
--------- ---------- ---------- ---------- --------- ---------- ----------
Net assets available for
plan benefits $ 570,338 $ 906,832 $ 658,224 $ 311,302 $ 168,561 $2,343,094 $4,958,351
========= ========== ========== ========== ========= ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits
December 31, 1996
Participant-Directed
----------------------------------------------------------------------------------------
International
Blue Chip Growth Growth and
Growth Company Magellan OTC Income
Fund Contrafund Fund Fund Portfolio Fund Subtotal
---------- ---------- ----------- ----------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value (Note 4):
Interest in common trust $ 335,913 $ 470,749 $ 255,573 $ 1,757,682 $ 301,316 $ 88,607 $ 3,209,840
Common stock 0
Participant loans receivable 0
----------- ---------- ---------- ----------- ---------- ---------- -----------
Total investments 335,913 470,749 255,573 1,757,682 301,316 88,607 3,209,840
----------- ----------- ---------- ----------- ---------- ---------- -----------
Receivables:
Acrued interest receivable 0
Accrued employee contributions 0
Accrued employer contributions 0
---------- ---------- --------- ---------- ---------- ----------- ----------
Total receivables 0 0 0 0 0 0 0
---------- ---------- --------- ---------- ---------- ----------- ----------
Interfund transfers
---------- ---------- --------- ---------- ---------- ----------- ----------
Total assets 335,913 470,749 255,573 1,757,682 301,316 88,607 3,209,840
---------- ---------- --------- ---------- ---------- ----------- ----------
LIABILITIES
Accounts payable 0
---------- ---------- --------- ---------- ---------- ----------- ----------
Total liabilities 0 0
---------- ---------- ---------- ---------- --------- ---------- ----------
Net assets available
for plan benefits $ 335,913 $ 470,749 $ 255,573 $ 1,757,682 $ 301,316 $ 88,607 $ 3,209,840
========== ========== ========= =========== ========= ========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Net Assets Available for Plan Benefits
December 31, 1995
Participant-Directed
----------------------------------------------------------------------------------------
Asset Asset
Overseas Asset Manager Manager Cash/Loan
Fund Manager Growth Income Fund Subtotal Total
ASSETS ---------- --------- ---------- --------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4):
Interest in common trust $ 135,591 $ 37,968 $ 63,558 $ 40,679 $ 317,551 $ 595,347 $ 8,193,200
Common stock 570,338
Participant loans receivable 0
---------- --------- --------- --------- ---------- ---------- -----------
Total investments 135,591 37,968 63,558 40,679 317,551 595,347 8,763,538
---------- --------- --------- --------- ---------- ---------- -----------
Receivables:
Accrued interest receivable 0
Accrued employee contributions 0
Accrued employer contributions 0
---------- --------- ---------- --------- ---------- ---------- -----------
Total receivables 0 0 0 0 0 0 0
---------- --------- ---------- --------- ---------- ---------- -----------
Interfund transfers
---------- --------- ---------- --------- ---------- ---------- -----------
Total assets 135,591 37,968 63,558 40,679 317,551 595,347 8,763,538
---------- --------- --------- --------- ---------- ----------- -----------
LIABILITIES
Accounts payable 0
---------- --------- --------- --------- ----------- ----------- -----------
Total liabilities 0 0
---------- --------- --------- --------- ----------- ----------- -----------
Net assets available
for plan benefits $ 135,591 $ 37,968 $ 63,558 $ 40,679 $ 317,551 $ 595,347 $ 8,763,538
========== ========== ========= ========= ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1996
Participant-Directed
----------------------------------------------------------------------------------------
Short-Term
U.S.
Government Core Ford
Securities Intermediate 500 Index Equity Stock Cash/Loan
Fund Bond Fund Fund Fund Fund Fund Total
ASSETS ---------- --------- ------------ ----------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Note 4):
Interest in common trust $ 971,322 $ 688,091 $ 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 17,044 498 165,832
---------- ---------- ----------- ---------- ---------- ---------- ----------
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 $ 298,850 $ 122,619 $5,429,067
========== ========== =========== ========== ========== ========= ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1996
Participant-Directed
----------------------------------------------------------------------------------------
Retirement
Government
Money Intermediate Growth and U.S. Equity
Ford Stock Market Bond Income Puritan Index
Fund Portfolio Fund Portfolio Fund Portfolio Subtotal
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 153,873 $ 96,887 $ 69,911 $ 84,475 $ 32,753 $ 185,413 $ 623,312
Employer contributions 88,718 56,293 39,750 46,914 18,185 106,640 356,500
Rollover contributions 19,777 4,179 24,449 32,546 15,273 41,686 37,910
Interest and dividend income 20,083 50,356 43,172 10,184 12,073 13,129 148,997
Net appreciation (depreciation)
in fair value of investments (Note 4) 22,516 8,973 (25,419) 17,371 (824) 422,964 445,581
Loans - interest repayments 1,756 2,316 651 880 158 2,206 7,967
Loans - principal repayments 10,080 13,682 3,809 3,480 379 12,890 44,320
Transfers in (out) (8,270) (248,197) (113,570) 129,409 95,481 (358,306) (503,453)
---------- ---------- ---------- --------- --------- ---------- ---------
Total additions 308,533 (15,511) 42,753 325,259 173,478 426,622 1,261,134
---------- ---------- ---------- --------- --------- ---------- ---------
Deductions:
Distributions 15,767 59,244 13,785 2,134 1,423 52,696 145,049
Loans to participants 19,554 39,160 18,475 11,400 3,242 90,137 181,968
Forfeitures 1,724 (22,977) 4,161 423 252 7,264 (9,153)
Adjustments - (2,370) - - - - (2,370)
---------- ---------- ---------- --------- --------- ---------- ---------
Total deductions 37,045 73,057 36,421 13,957 4,917 150,097 315,494
---------- ---------- ---------- --------- --------- ---------- ---------
Net additions (deductions) 271,488 (88,568) 6,332 311,302 168,561 276,525 945,640
Net assets available for plan benefits,
beginning of year 298,850 995,400 651,892 - - 2,066,569 4,012,711
---------- ---------- ---------- --------- --------- ---------- ---------
Net assets available for plan benefits,
end of year $ 570,338 $ 906,832 $ 658,224 $ 311,302 $ 168,561 $ 2,343,094 $ 4,958,351
========== ========== ========== ========= ========= =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1996
Participant-Directed
----------------------------------------------------------------------------------------
Blue Chip Growth International
Growth Company Magellan OTC Growth and
Fund Contrafund Fund Fund Portfolio Income Fund Subtotal
---------- ---------- ----------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 128,904 $ 123,100 $ 89,760 $ 367,199 $ 85,987 $ 18,313 $ 813,263
Employer contributions 75,573 65,087 48,836 215,234 46,207 10,235 461,172
Rollover contributions 7,851 19,561 26,696 28,576 15,849 2,188 100,721
Interest and dividend income 16,263 19,527 9,749 223,129 26,144 2,815 297,627
Net appreciation (depreciation)
in fair value of investments(Note 4) 10,433 27,203 6,730 (54,947) 1,473 2,048 (7,060)
Loans - interest repayments 1,019 716 678 4,358 639 60 7,470
Loans - principal repayments 3,716 3,427 3,614 19,445 2,065 252 32,519
Transfers in (out) 104,215 234,789 88,030 (219,820) 135,261 53,133 395,608
---------- ---------- --------- ---------- --------- ---------- ----------
Total additions 347,974 493,410 274,093 583,174 313,625 89,044 2,101,320
---------- ---------- --------- ---------- --------- ---------- ----------
Deductions:
Distributions 2,299 12,286 9,861 46,993 2,932 33 74,404
Loans to participants 9,150 9,624 8,168 65,714 8,858 404 101,918
Forfeitures 612 751 491 6,522 519 - 8,895
Adjustments - - - - - - -
---------- ---------- ---------- ---------- --------- ---------- ----------
Total deductions 12,061 22,661 18,520 119,229 12,309 437 185,217
---------- ---------- ---------- ---------- --------- --------- ----------
Net additions (deductions) 335,913 470,749 255,573 463,945 301,316 88,607 1,916,103
Net assets available for plan benefits,
beginning of year - - - 1,293,737 - - 1,293,737
---------- ---------- ---------- ---------- --------- --------- ----------
Net assets available for plan benefits,
end of year $ 335,913 $ 470,749 $ 255,573 $ 1,757,682 $ 301,316 $ 88,607 $ 3,209,840
=========== ========== ========== =========== ========== ========= ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1996
Participant-Directed
----------------------------------------------------------------------------------------
Asset Asset
Overseas Asset Manager Manager Cash/Loan
Fund Manager Growth Income Fund Subtotal Total
---------- ---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Employee contributions $ 34,370 $ 16,409 $ 20,999 $ 7,455 - $ 79,233 $ 1,515,808
Employer contributions 17,675 9,563 12,384 5,254 - 44,876 862,548
Rollover contributions 11,306 8,982 2,303 2,996 - 25,587 264,218
Interest and dividend income 7,964 2,442 5,231 2,307 - 17,944 464,568
Net appreciation (depreciation)in
fair value of investments (Note 4) 495 119 853 226 - 1,693 440,214
Loans - interest repayments 32 32 891 103 - 1,058 16,495
Loans - principal repayments 107 66 2,125 486 $ (79,623) (76,839) -
Transfers in (out) 65,169 751 19,247 22,678 - 107,845 -
---------- --------- ---------- ---------- ---------- ---------- -----------
Total additions 137,118 38,364 64,033 41,505 (79,623) 201,397 3,563,851
---------- --------- ---------- ---------- ---------- ---------- -----------
Deductions:
Distributions 416 92 217 262 11,310 12,297 231,750
Loans to participants 1,017 277 195 490 (285,865) (283,886) -
Forfeitures 94 27 63 74 - 258 -
Adjustments - - - - - - (2,370)
---------- --------- ---------- ---------- ---------- ---------- -----------
Total deductions 1,527 395 475 826 (274,555) (271,331) 229,380
---------- --------- ---------- ---------- ---------- ---------- -----------
Net additions (deductions) 135,591 37,968 63,558 40,679 194,932 472,728 3,334,471
Net assets available for plan benefits,
beginning of year - - - - 122,619 122,619 5,429,067
---------- --------- ---------- ---------- ---------- ---------- ----------
Net assets available for
plan benefits, end of year $ 135,591 $ 37,968 $ 63,558 $ 40,679 $ 317,551 $ 595,347 $8,763,538
========== ========== ========== ========= ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k)
Tax-Deferred Savings Plan
Notes to Financial Statements
1. Description of the Plan:
The Plan became effective April 1, 1992.
The following description of the PRIMUS Automotive Financial Services,
Inc. (the "Company") Prime Account 401(k) Tax-Deferred Savings Plan (the
"Plan") provides only general information. Participants should refer to
the plan agreement for a more comprehensive of the Plan's provisions.
a. General: 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"). It is subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA"). With certain exceptions, regular full-time employees having
at least twelve months of continuous service are eligible to
participate in the Plan. All full-time employees are eligible to
participate in the discretionary portion of the Plan. Participation in
the Plan is voluntary.
b. 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. The
Company, 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.
c. Participant Accounts: Each participant's account is credited with the
participant's contribution and allocations of the Company's
contribution and Plan earnings. Plan administrative expenses are paid
primarily by the Company. Allocations are based on the participant's
earnings or account balances, as defined. Forfeited balances of
terminated participants' nonvested accounts are used to reduce future
Company contributions. The benefit to which a participant is entitled
is the benefit that can be provided from the participant's vested
account.
d. Vesting : Participants are vested in their contributions plus actual
earnings thereon. Vesting in the Company's matching and discretionary
contribution portion of their account plus actual earnings thereon is
based on continuous service. The Company's matching contributions are
vested 20 percent, 50 percent and 100 percent for one, two and three
years of service, respectively. A participant becomes fully vested in
company matching contributions automatically upon retirement due to
disability, upon death or upon termination of the Plan.
<PAGE>
1. Description of the Plan, continued:
e. Investment Programs and Participation: Participant contributions are
invested in accordance with the participant's election in any of
sixteen investment funds. These investment options as of December 31,
1996 are as follows:
(1) Ford Stock Fund: The Fund consists of shares of the common
stock, $1.00 par value, of Ford and a small portion in
short-term investments. The value of the fund primarily 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) Fidelity Retirement Government Money Market Portfolio: A money
market mutual fund with a goal to preserve your investment, keep
a stable price and provide current income. This fund may be
appropriate for participants who are seeking high-quality money
market securities for which U. S. government or its agencies
guarantee timely payment of principal and interest.
(3) Fidelity Intermediate Bond Fund: This is an income mutual fund
with a goal to provide high current income. It invests in U. S.
and foreign bonds. Select bonds are considered medium to high
quality with an average maturity of 3-10 years. This fund may be
appropriate for someone who is looking for income in the short
term or to balance more growth-oriented choices in a portfolio.
(4) Fidelity Growth and Income Portfolio: This fund is a growth and
income mutual fund with a goal to provide a high total return
from a combination of current income and capital growth. It
invests primarily in U. S. and foreign stocks that pay current
dividends and show potential earnings growth. May also invest in
some bonds. May be appropriate for the investor who is willing to
ride out stock market ups and downs to try to get potentially
high long-term return.
(5) Fidelity Puritan Fund: This fund is a growth and income mutual
fund with a goal to provide income while preserving investment.
It invests in a wide variety of U. S. and foreign securities. It
includes all types of bonds of any quality as well as common and
preferred stock. May be appropriate for someone looking for
income and who plans to invest long-term.
(6) Fidelity U. S. Equity Index Portfolio: This fund is a growth and
income mutual fund with a goal to duplicate the composition and
return of the Standard and Poor's composite index of 500 stocks.
It invests primarily in the 500 companies that make up the S&P
500. May be appropriate for someone who wants to try to achieve
roughly the same performance as the overall U. S. stock market.
<PAGE>
1. Description of the Plan, continued:
e. Investment Programs and Participation, continued:
(7) Fidelity Blue Chip Growth Fund: This fund is a growth mutual
fund with a goal to increase the value of the investment over
the long-term through capital growth. It invests primarily in
common stocks of well known, established growth companies. May
be appropriate for someone who prefers stocks of "household
name" companies and established companies with strong earnings
and future growth potential.
(8) Fidelity Contrafund: This fund is a growth mutual fund with a
goal to increase the value of investment over the long-term
through capital growth. It invests primarily in common stocks
the funds manager believes are undervalued and also in
companies that are currently out of public favor but show
potential for capital growth. Such stocks may be subject to
more frequent and greater price changes. May be appropriate
for someone who wants to invest in the stock market over the
long term and who is comfortable with the ups and downs of the
stock market.
(9) Fidelity Growth Company Fund: This fund is a growth mutual
fund with a goal to increase the value of investment over the
long term through capital growth. It invests primarily in
stocks of companies with earnings or gross sales that indicate
the potential for above average growth. May be appropriate for
someone who is interested in capital growth rather than
current income and is willing to ride out stock market ups and
downs to try to get a higher return over the long term.
(10) Fidelity Magellan Fund: This fund is a growth mutual fund with
a goal to increase the value of investment over the long term
through capital growth. It invests primarily in common stocks
of small, medium and large foreign and U. S. companies with
investments that are broadly diversified across many different
kinds of companies and industries. May be appropriate for
someone who will be invested in the fund over the long term
and who is comfortable with the ups and downs of the overall
stock market.
(11) Fidelity OTC Portfolio: This fund is a growth mutual fund with
a goal to increase the value of investment over the long term
through aggressive capital growth. It invests primarily in
stocks traded in the "over-the-counter" (OTC) market, but may
also include preferred stocks, debt securities, and other
types of investments. May be appropriate for someone who has a
long term investing horizon and who is comfortable with the
ups and downs of the stock market.
<PAGE>
1..Description of the Plan, continued:
e. Investment Programs and Participation, continued:
(12) Fidelity International Growth and Income Fund: This fund is a
growth and income mutual fund that invests internationally with a
goal to increase the value of investment over the long term
through capital growth while also providing current income. It
invests primarily in stock that the fund manager feels have
growth possibilities. It will keep at least 25 percent of assets
invested in bonds for income. Investments may be made in assets
in one country but will generally be spread in investments across
at least six different countries. May be appropriate for someone
who wants to complement the performance of U. S. investments with
that of investments overseas which may behave quite differently.
(13) Fidelity Overseas Fund: This fund is a growth mutual fund that
invests internationally with a goal to increase the value of
investment over the long term through capital growth. It
investment primarily in stocks and bonds of companies whose
principal business activities are outside the U. S. Sixty-five
percent of the fund's total assets will be invested in securities
from at least three different countries outside of North America.
May be appropriate for someone who wants to complement the
performance of U. S. investments with that of investments
overseas which may behave differently.
(14) Fidelity Asset Manager: This fund is an asset allocation mutual
fund with a goal to provide high total return with reduced risk
over the long term. It invests in stocks, bonds and short term
instruments of U. S. and foreign issuers including those in
emerging markets. The manager of this fund may gradually shift
assets from one type to another, based on the current outlook of
the various markets. May be appropriate for someone who wants to
diversify among stocks, bonds and short term instruments and who
can tolerate ups and downs in share price, but does not want the
burden of selecting individual securities.
(15) Fidelity Asset Manager Growth: This fund is an asset allocation
mutual fund with a goal to provide high total return. It invests
in stocks, bonds and short term instruments of U. S. and foreign
issuers. The manager of this fund may gradually shift assets from
one type to another, based on the current outlook of the various
markets. May be appropriate for someone who wants to diversify
among stocks, bonds and short term instruments and who can
tolerate ups and downs in share price, but does not want the
burden of selecting individual
securities.
<PAGE>
1. Description of the Plan, continued:
e. Investment Programs and Participation, continued:
(16) Fidelity Asset Manager Income: This fund is an asset allocation
mutual fund with a goal to provide high current income. It
invests in stocks, bonds and short term instruments of U. S. and
foreign issuers. The manager of the fund may gradually shift
assets from one type to another based on the current outlook of
the various markets. May be appropriate for someone who is
looking for immediate income but who also wants the opportunity
to benefit if the stock market does well.
f. Participant Loans: Participants may borrow from their fund accounts a
minimum of $1,000 and to a maximum of $50,000. Loan interest rates are
set monthly but will not change during the term of the loan. Loan
transactions are treated as a transfer to/from the investment fund
from/to the Cash/Loan Fund. The interest rate will be the prime rate
as quoted in The Wall Street Journal in the "Money Rates" section of
the paper as of the last business day of the month preceding the month
in which the loan was taken.
Principal and interest are paid ratably through payroll deductions.
g. Payment of Benefits: Benefits are payable upon termination or upon
normal retirement at age 65 in a cash lump-sum payment.
2. Summary of Significant Accounting Policies:
a. Basis of Accounting: The financial statements of the Plan are
prepared under the accrual method of accounting.
b. Investments: During 1995, the plan allowed its participants to direct
their share of contributions and earnings to five different investment
mediums which were held by Comerica Bank. These investment mediums
were offered by Comerica Bank, the Plan's trustee, and stated at fair
value as of December 31, 1995. On January 1, 1996, all investments
under the Plan were transferred to Fidelity Investments.
Since the transfer, the Plan allows its participants to direct their
share of contributions and earnings to sixteen different investment
mediums, which are held by Fidelity Investments and are stated at fair
value as of December 31, 1996. These investment mediums are offered by
Fidelity Investments, the Plan's trustee.
<PAGE>
2. Summary of Significant Accounting Policies, continued:
b. Investments, continued: Purchases and sales of securities are recorded
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 and interest income is recorded on the accrual basis. 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 consist of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments
c. Payment of Benefits: Benefits are recorded when paid.
d. Contributions: Contributions from employees and the Company are
recorded in the period that payroll deductions are made from Plan
participants.
e. 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 the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
f. Risks and Uncertainties: The Plan provides for various investment
options in any combination of either equity or fixed income investment
securities. Investment securities are exposed to various risks, such
as interest rate, market and credit. Due to the level of risk
associated with certain investment securities and the level of
uncertainty related to changes in the value of investment securities,
it is at least reasonably possible that changes in risks in the near
term would materially affect participants' account balances and the
amounts reported in the statement of net assets available for benefits
and the statement of changes in net assets available for benefits.
3. Plan Termination:
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions of
ERISA. In the event of Plan termination, 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.
<PAGE>
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, 1996:
Net
Appreciation
(Depreciation)
in Fair Value
--------------
Ford Stock Fund $ 22,516
Retirement Government Money Market Portfolio 8,973
Intermediate Bond Fund (25,419)
Growth and Income Portfolio 17,371
Puritan Fund (824)
U. S. Equity Index Portfolio 422,964
Blue Chip Growth Fund 10,433
Contrafund 27,203
Growth Company Fund 6,730
Magellan Fund (54,947)
OTC Portfolio 1,473
International Growth and Income Fund 2,048
Overseas Fund 495
Asset Manager 119
Asset Manager Growth 853
Asset Manager Income 226
-------------
$ 440,214
=============
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, 1996:
Ford Stock Fund $ 570,338
Retirement Government Money Market Portfolio 906,832
Intermediate Bond Fund 658,224
U. S. Equity Index Portfolio 2,343,094
Contrafund 470,749
Magellan Fund 1,757,682
----------
$ 6,706,919
===========
<PAGE>
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, 1996 is as follows:
Market
Number of Value
Shares or per Share
Units or Unit
Ford Stock Fund 55,211.863 $ 10.33
Retirement Government Money Market Portfolio 906,832.720 1.00
Intermediate Bond 65,299.708 10.08
Growth and Income Portfolio 10,130.270 30.73
Puritan Fund 9,777.262 17.24
U. S. Equity Index Portfolio 115,423.361 20.30
Blue Chip Growth Fund 10,275.745 32.69
Contrafund 11,168.432 42.15
Growth Company Fund 6,316.644 40.46
Magellan Fund 21,793.943 80.65
OTC Portfolio 9,211.691 32.71
International Growth and Income Fund 4,532.287 19.55
Overseas Fund 4,396.575 30.84
Asset Manager 2,305.332 16.47
Asset Manager Growth 3,887.347 16.35
Asset Manager Income 3,503.626 11.61
5. Tax Status:
The Internal Revenue Service has determined and informed the Company by a
letter dated November 20, 1995, that the Plan is in accordance with the
applicable sections of the Internal Revenue Code. The Plan has been
amended since receiving the determination letter. However, the Plan
administrator believes the Plan is designed and is currently being
operated in compliance with the applicable requirements of the Internal
Revenue Code.
<PAGE>
<TABLE>
<CAPTION>
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, 1996
(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>
* Ford Motor Company Ford Motor Company Common Stock, 55,212 shares $ 562,183 $ 570,338
* Fidelity Retirement Government Money Market Portfolio,
906,832 units 906,832 906,832
* Fidelity Intermediate Bond Fund, 65,300 units 674,121 658,224
* Fidelity Growth and Income Portfolio, 10,130 units 295,118 311,302
* Fidelity Puritan Fund, 9,777 units 169,241 168,561
* Fidelity U. S. Equity Index Portfolio, 115,423 units 1,956,733 2,343,094
* Fidelity Blue Chip Growth Fund, 10,276 units 325,042 335,913
* Fidelity Contrafund, 11,168 units 445,251 470,749
* Fidelity Growth Company Fund, 6,316 units 249,678 255,573
* Fidelity Magellan Fund, 21,794 units 1,785,539 1,757,682
* Fidelity OTC Portfolio, 9,212 units 300,167 301,316
* Fidelity International Growth and Income Fund, 4,532 units 86,590 88,607
* Fidelity Overseas Fund, 4,397 units 135,093 135,591
* Fidelity Asset Manager, 2,305 units 37,853 37,968
* Fidelity Asset Manager Growth, 3,887 units 62,734 63,558
* Fidelity Asset Manager Income, 3,504 units 40,463 40,679
Plan participants Loans receivable (6-9 percent) - 317,551
------------- ------------
$ 8,032,638 $ 8,763,538
============= ============
*Party-in-interest
</TABLE>
<PAGE>
<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, 1996
(h)
Current
(f) 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 current value of plan
assets.
None.
REPORTING
CRITERION II: Any series of transactions
in other than securities in
excess of five percent of the
current value of plan assets.
None.
REPORTING
CRITERION III: Any series of transactions
in securities in excess of
five percent of current value
of plan assets.
Ford Motor Company Ford Motor Company Common Stock:
115 Purchases $ 378,740 $ 378,740 $ 378,740
Fidelity Retirement Government Money
Market Portfolio:
126 Purchases 1,373,299 1,373,299 1,373,299
88 Sales $466,466 466,466 -
Fidelity Intermediate Bond Fund:
108 Purchases 893,703 893,703 893,703
70 Sales 214,699 219,611 $(4,912)
Fidelity Growth and Income Portfolio:
100 Purchases 350,870 350,870 350,870
Fidelity U. S. Equity Index Portfolio:
124 Purchases 2,472,344 2,472,344 2,472,344
93 Sales 555,274 515,611 39,663
Fidelity Blue Chip Fund Growth:
79 Purchases 380,101 380,101 380,101
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRIMUS Automotive Financial Services, Inc. Prime Account 401(k) Tax-Deferred Savings Plan
Item 27d - Schedule of Reportable Transactions, Continued
(h)
Current
(f) 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 III,
Continued:
Fidelity Contrafund:
101 Purchases $ 500,270 $ 500,270 $ 500,270
Fidelity Growth Company Fund:
87 Purchases 285,516 285,516 285,516
Fidelity Magellan Fund:
132 Purchases 2,222,955 2,222,955 2,222,955
106 Sales $416,116 437,415 $(21,299)
Fidelity OTC Portfolio:
78 Purchases 329,020 329,020 329,020
REPORTING
CRITERION IV: Any transaction 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.
</TABLE>
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>
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
Statements of our report dated June 12, 1997, to the Board 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, 1996 and 1995, and for
the year ended December 31, 1996, which is included in this Annual Report on
Form 11-K.
400 Renaissance Center
Detroit, Michigan 48243
June 25, 1997
