SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
X SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
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For the fiscal year ended December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
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For the transition period from to
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Commission file number 1-3950
FORD MOTOR COMPANY TAX-EFFICIENT
SAVINGS PLAN FOR HOURLY EMPLOYEES
(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>
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Required Information
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Financial Statements and Schedules
- ----------------------------------
Statement of Net Assets Available for Plan Benefits, as of December 31,
1997 and 1996.
Statement of Changes in Net Assets Available for Plan Benefits for the Year
Ended December 31, 1997.
Schedule I - Schedule of Assets Held for Investment Purposes as of December
31, 1997.
Schedule II - Reportable Transactions for the Year Ended December 31, 1997.
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
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Committee has duly caused this Annual Report to be signed by the undersigned
thereunto duly authorized.
FORD MOTOR COMPANY TAX-EFFICIENT
SAVINGS PLAN FOR HOURLY EMPLOYEES
By: /s/Lee Freeman
----------------------------------
Lee Freeman, Chairman
Tax-Efficient Savings Plan
for Hourly Employees Committee
June 29, 1998
<PAGE>
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EXHIBIT INDEX
-------------
Sequential
Page Number
Designation Description at Which Found
- ----------- ----------- --------------
Exhibit 23 Consent of Coopers & Lybrand L.L.P.
<PAGE>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
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, 1997 and 1996....................................3
Statement of Changes in Net Assets Available for Plan
Benefits for the Year Ended December 31, 1997.....................4-5
Notes to Financial Statements.........................................6-14
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes as of
December 31, 1997..............................................15-16
Item 27d - Reportable Transactions for the Year Ended
December 31, 1997...............................................17-18
<PAGE>
<PAGE>
Report of Independent Accountants
To the Board of Directors of
Ford Motor Company:
We have audited the accompanying statement of net assets available for plan
benefits of the Ford Motor Company Tax-Efficient Savings Plan for Hourly
Employees as of December 31, 1997 and 1996, and the related statement of changes
in net assets available for plan benefits for the year ended December 31, 1997.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits 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 audits provide 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 benefits of the Plan as of
December 31, 1997 and 1996, and the changes in net assets available for benefits
for the year ended December 31, 1997, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of the Ford
Motor Company Tax-Efficient Savings Plan for Hourly Employees as of December 31,
1997, 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 supplemental schedules have been subjected to the auditing procedures
applied in the audits 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 5, 1998
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<PAGE>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Statement of Net Assets Available for Plan Benefits
as of December 31, 1997 and 1996
<TABLE>
<CAPTION>
ASSETS 1997 1996
-------------------- -------------------
<S> <C> <C>
Investments, at fair value $ 2,782,405,146 $ 1,772,301,615
Loan funds receivable 145,886,364 114,521,429
Deposits with insurance companies under group contracts 70,682,995 149,003,575
-------------------- --------------------
Total assets $ 2,998,974,505 $ 2,035,826,619
==================== ====================
LIABILITIES AND PLAN EQUITY
Employee stock ownership plan, loan payable $ 38,190,886 $ 18,709,853
Employee stock ownership plan, interest payable 9,017 131,725
-------------------- --------------------
Total liabilities 38,199,903 18,841,578
-------------------- --------------------
Net assets available for plan benefits $ 2,960,774,602 $ 2,016,985,041
==================== ====================
The accompanying notes are an integral part of the financial statements.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1997
Common Stable Value
Stock Income Stock Income Income International
Fund Funds Fund Fund Funds Funds
---------------- --------------- --------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Interest and dividend income $ 44,089,878 $ 23,451,666 $ 7,314,291 $ 894,035 $ 2,180,643
Net appreciation (depreciation)
in fair value of investments 537,917,607 (176,988) $ 49,633,193 10 1,244,447 (739,462)
Loan repayment (principal) 17,022,772 28,176,219 3,696,826 563,446 780,026
Loan repayment (interest) 3,371,984 4,279,674 696,731 102,450 145,625
Employee contributions 103,870,527 46,734,314 24,719,941 4,539,266 7,243,022
Transfers in from other plan 3,564,892 28,523,307 497,453 824,708 3,050,443
Withdrawal of participants' accounts (52,414,189) (35,705,141) (8,918,336) (6,522,360) (629,548) (669,552)
Net transfers between funds (43,600,975) 45,896,131 (12,609,337) (79,112,521) 387,059 10,644,027
Loan funds transferred (out) in (39,189,093) (24,500,287) (8,047,863) (1,056,334) (1,251,732)
Interest expense (930,961)
--------------- ------------ ------------ ------------- ----------- ------------
Net increase (decrease) in plan
equity for the year 573,702,442 116,678,895 49,668,608 (78,320,580) 6,869,529 21,383,040
Net assets available for plan
benefits, beginning of year 1,015,637,962 338,793,060 196,567,192 149,003,575 17,730,862 17,269,283
--------------- ------------ ------------ ------------- ----------- -------------
Net assets available for plan
benefits, end of year $ 1,589,340,404 $455,471,955 $ 246,235,800 $ 70,682,995 $ 24,600,391 $ 38,652,323
=============== ============ ============== ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
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<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Statement of Changes in Net Assets Available for Plan Benefits (Continued)
for the year ended December 31, 1997
Asset Growth and
Allocation Growth Income Loan
Funds Funds Funds Fund Total
---------------- --------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Interest and dividend income $ 1,125,242 $ 17,502,962 $ 6,552,574 $103,111,291
Net appreciation (depreciation)
in fair value of investments 909,107 17,712,009 17,098,435 623,598,358
Loan repayment (principal) 268,149 3,998,086 2,143,142 (56,648,666) -
Loan repayment (interest) 44,184 745,398 397,286 9,783,332
Employee contributions 2,774,747 40,423,583 22,625,254 252,930,654
Transfers in from other plan 1,436,321 14,019,754 12,585,647 4,754,984 69,257,509
Withdrawal of participants' accounts (333,966) (3,848,085) (2,724,051) (2,195,394) (113,960,622)
Net transfers between funds 2,771,933 35,086,708 40,536,975 -
Loan funds transferred (out) in (446,330) (7,157,009) (3,805,363) 85,454,011 -
Interest expense (930,961)
------------- ------------- -------------- ------------- -----------
Net increase (decrease) in plan equity for
the year 8,549,387 118,483,406 95,409,899 31,364,935 943,789,561
Net assets available for plan benefits,
beginning of year 6,169,392 110,910,281 50,382,005 114,521,429 2,016,985,041
------------- ------------- ------------- ------------ -------------
Net assets available for plan benefits,
end of year $ 14,718,779 $ 229,393,687 $ 145,791,904 $ 145,886,364 $2,960,774,602
============= ============= ============= ============= ==============
The accompanying notes are an integral part of the financial statements.
</TABLE>
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<PAGE>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Notes to Financial Statements
1. Description of the Plan:
The following description of the Ford Motor Company Tax-Efficient Savings
Plan for Hourly Employees (the "Plan") provides only general information.
The Plan was established effective January 1, 1985. The provisions of the
Plan are governed in all respects by the detailed terms and conditions
contained in the plan agreement. 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 hourly employees of Ford Motor Company (the
"Company") and to provide them with an opportunity to become
stockholders of the Company. The Plan includes provisions for voting
shares of Company stock. It is subject to certain provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA") applicable
to defined contribution pension plans.
b. Eligibility and Vesting: Hourly employees are eligible to participate
in the Plan three months after their original date of hire. Certain
other part-time and temporary employees may also be eligible to
participate in the Plan. Participation in the Plan is voluntary.
Employees vest 100 percent immediately in the Plan.
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 20 percent of their eligible wages. Participants may
also elect reductions in their distributions under the Company's
Profit Sharing Plan to be contributed to the Plan. Such contributions
are excluded from participants' taxable income.
d. Participant Accounts: Each participant's account is credited with the
participant's contributions and an allocation of plan earnings.
Allocations are based on participant earnings or account balances, as
defined. Plan administrative expenses are paid by the Company and not
charged to participants' accounts. The benefit to which a participant
is entitled is the benefit that can be provided from the participant's
account.
e. Distributions: Plan assets may not be withdrawn by participants until
the termination of their employment or until they reach 59-1/2, except
in the case of personal financial hardship.
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<PAGE>
Notes to Financial Statements, Continued
1. Description of the Plan, continued:
f. Investment Programs and Participation: Participant contributions are
invested in accordance with the participant's election in one or more
of several investment programs. The types of investment programs, and
the number of participants in each program at December 31, 1997, are
as follows:
Participants
----------------
Ford Stock Fund 56,811
Interest Income Fund 36,638
Common Stock Fund 19,638
Other 95,335
The Ford Stock Fund is an investment in Ford common stock with a
portion of the Fund's assets being invested in short-term investments.
The Interest Income Fund is a broadly diversified, stable value
investment fund. The Interest Income Fund invests in a diversified
portfolio of fixed income securities, including investment contracts
with insurance companies and other organizations.
The Common Stock fund is a broadly diversified, passively managed
equity fund administered by Comerica Bank. Fund assets are invested
in stocks through a series of Comerica Bank commingled pools.
The Stable Value Income Fund, included in other above, which invests
in contracts with insurance companies and other organizations, was
eliminated as an investment option for participant contributions
effective January 1, 1996. Contributions to the Stable Value Income
Fund in 1995 were placed with the John Hancock Mutual Life Insurance
Company at an annual effective interest rate of 8.07 percent and
mature on June 30, 1998. The average investment yield for the Stable
Value Income Fund was 6.66% for the year ended December 31, 1997.
Upon maturity of the underlying investment contract, participants must
transfer their assets to other investment programs. Effective June
30, 1997, assets in the Stable Value Income Fund for 1994 matured and
were transferred to other investment programs including the Interest
Income Fund based on participants' elections.
Details of investments held at December 31, 1997 are set forth in the
Supplemental Schedule Item 27a - Schedule of Assets Held for
Investment Purposes.
g. Transfer of Assets: The Plan permits the transfer of assets among
investment programs, with certain restrictions related to transfers
from the Stable Value Income Fund.
h. Loans: The Plan permits loans to participants with certain
restrictions related to loans from the Stable Value Income Fund.
Monthly loan interest rates are based on the prime rate published in
The Wall Street Journal.
-7-
<PAGE>
1. Description of the Plan, continued:
i. Mergers: Effective August 1, 1997, Auto Alliance International, Inc.
401(k) Plan, a benefit plan for a subsidiary of the Company, was
merged into the Plan. As a result, net assets of $69,257,509 were
transferred into the Plan
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: The investment in the Ford Stock Fund and the investments
in all other funds except the Stable Value Income Fund are valued on
the basis of established year-end market prices. Investments in the
Stable Value Income Fund, primarily fixed rate insurance contracts,
are stated at contract value, which approximates fair value.
c. Contributions: Contributions to the Plan from employees are recorded
in the period that payroll deductions are made from plan participants.
d. Payment of Benefits: Benefits are recorded when paid.
e. Use of Estimates in the Preparation of Financial Statements: 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
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and
deductions during the reporting period. Actual results could differ
from those estimates.
f. Risks and Uncertainties: The Plan's invested assets ultimately consist
of stocks, bonds, fixed income securities, and other 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 plan
benefits and the statement of changes in net assets available for plan
benefits.
g. Other: Purchases and sales of investments are reflected on a
trade-date basis. Realized gains and losses on sales of investments
are determined using specific identification.
Dividend income is recorded on the ex-dividend date. Income from other
investments is recorded as earned on an accrual basis.
-8-
<PAGE>
2. Summary of Significant Accounting Policies, continued:
g. Other, continued: The Plan presents in the statement of changes in net
assets available for plan benefits the net appreciation (depreciation)
in the fair value of its investments which consists of the Plan's net
realized gains or losses and the unrealized appreciation
(depreciation) on those investments.
The Ford Stock Fund, the Interest Income Fund and the Common Stock
Fund, which each represent five percent or more of plan net assets at
December 31, 1997 are presented separately in the statement of changes
in net assets available for plan benefits. Other funds, which each
represent less than five percent of plan net assets, are combined
based on investment objective into the Stable Value Income Fund, the
Income Funds, the International Funds, the Asset Allocation Funds, the
Growth Funds and the Growth and Income Funds.
Certain amounts in the previously issued 1996 financial statements
have been reclassified to conform with the current year presentation.
3. Employee Stock Ownership Plan:
Effective January 1, 1989, the Company, by action of the Board of
Directors, established within the Plan an Employee Stock Ownership Plan
("ESOP"). All shares of Company stock in the Plan at any time including
all shares allocated to participants' accounts and shares held in an ESOP
suspense account are included in the ESOP, along with other assets
attributable to post-1988 contributions to the Plan.
The Plan obtained loans from the Company to purchase shares of company
stock for quarterly distribution. Loans totaling $1,354,238 and
$38,190,886 were obtained on April 29, 1997 and December 30, 1997,
respectively. Both loans bear an annual interest rate of 8.5 percent. The
April loan was payable in three equal quarterly installments of $464,744
beginning June 2, 1997 and was paid off on December 1, 1997. The loan
obtained in December is payable in eight equal quarterly installments of
$5,212,722 beginning March 2, 1998. The 1996 ESOP loans were paid off on
December 1, 1997.
-9-
<PAGE>
3. Employee Stock Ownership Plan, continued:
The Company shares are held in a suspense account within the Plan until
quarterly loan payments are made. A percentage of shares equivalent to
the percentage of principal and interest paid down by the quarterly
payment are released for distribution when each quarterly dividend
payment is made. The trustee purchases additional shares to the extent
that shares released from the suspense account are not adequate to
satisfy the requirement for dividend shares allocated to participants'
accounts. There were no unallocated ESOP shares as of December 31, 1997.
The December 30, 1997 loan proceeds were used to purchase 764,599 shares
at a cost of $33,735,729 in March 1998. The Plan held 627,518 unallocated
ESOP shares as of December 31, 1996.
Cash dividends earned on Company stock held in the Plan generally are
used to make quarterly loan payments. If cash is not available to make
the full payment, the trustee may sell shares held in the suspense
account or the Company, at its option, may elect to make additional
contributions to the Plan. If cash exceeds the loan payment amounts, the
cash is used to reduce the Company's contribution for additional share
requirements.
The following highlights certain ESOP activity:
1997
Loan
Activity
----------------
Shares purchased with loan cash 39,263
Cost of shares purchased with loan cash $ 1,354,209
Loan principal paid 20,064,091
Loan interest paid and accrued 1,062,686
-10-
<PAGE>
4.Asset Value Per Fund Unit:
The number of units and the asset value per unit of the Plan's
investments at December 31, 1997 are as follows:
<TABLE>
<CAPTION>
Asset
Number Value
of Units Per Unit
----------------- -----------
<S> <C> <C>
Stable Value Income Fund:
John Hancock Mutual Life Insurance Company 70,682,995 $ 1.00
Interest Income Fund 455,471,947 1.00
T. Rowe Price Spectrum Growth Fund 160,230 15.93
Scudder International Fund 38,270 45.75
Vanguard Life Strategy Conservative Fund 36,270 13.40
T. Rowe Price Spectrum Income Fund 146,964 11.66
Scudder International Bond Fund 31,551 10.16
Vanguard Life Strategy Moderate Fund 76,923 14.81
T. Rowe Price New Horizons Fund 742,136 23.30
Scudder Global Fund 35,994 28.28
Vanguard Life Strategy Growth Fund 140,532 16.04
T. Rowe Price International Stock Fund 403,865 13.42
Scudder International Discovery Fund 38,532 19.84
Vanguard Index Trust 500 Fund 438,360 90.07
T. Rowe Price International Discovery Fund 17,820 15.05
Scudder Income Fund 58,969 13.47
Vanguard Index Trust Value Fund 162,557 20.85
T. Rowe Price New Asia Fund 368,758 5.74
Scudder Growth and Income Fund 352,699 27.33
Vanguard Index Trust Growth Fund 489,746 22.53
T. Rowe Price High Yield Fund 295,227 8.74
Scudder Greater Europe Growth Fund 232,140 20.58
Vanguard Explorer Fund 29,121 55.30
T. Rowe Price New Era Fund 90,952 25.95
Scudder Japan Fund 101,712 6.77
Vanguard Trustees International Fund 26,750 22.64
T. Rowe Price Latin America Fund 748,195 10.77
Wells Fargo Bond Fund 952,823 14.03
Ford Stock Fund 100,527,540 15.81
Comerica Common Stock Fund 5,010,904 49.14
Associates Stock Fund 705,897 14.99
Fidelity Fund 235,065 29.81
Fidelity Puritan Fund 331,635 19.38
Fidelity Trend Fund 12,958 54.10
Fidelity Magellan Fund 493,622 95.27
</TABLE>
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<PAGE>
4. Asset Value Per Fund Unit, continued:
<TABLE>
<CAPTION>
Asset
Number Value
of Units Per Unit
------------- -----------
<S> <C> <C>
Fidelity Contra Fund 1,357,933 $ 46.63
Fidelity Equity Income Fund 291,883 52.41
Fidelity Growth Company 396,374 43.32
Fidelity Investment Grade Bond Fund 187,564 7.28
Fidelity Growth and Income Portfolio 1,354,021 38.10
Fidelity Value Fund 222,370 54.04
Fidelity Government Securities Fund 118,775 9.91
Fidelity Retirement Growth Fund 235,835 16.85
Fidelity Overseas Fund 132,944 32.54
Fidelity Europe Fund 112,142 29.94
Fidelity Pacific Basin Fund 55,906 12.23
Fidelity Real Estate Investment Portfolio 298,788 20.45
Fidelity Balanced Fund 75,893 15.27
Fidelity International Growth and Income Fund 69,269 19.70
Fidelity Capital Appreciation Fund 122,155 19.38
Fidelity Canada Fund 21,553 16.53
Fidelity Utilities Fund 148,177 19.46
Fidelity Asset Manager Fund 226,669 18.35
Fidelity Worldwide Fund 194,140 15.95
Fidelity Stock Selector Fund 298,690 27.13
Fidelity Asset Manager Growth Fund 290,538 18.48
Fidelity Asset Manager Income Fund 107,625 12.18
Fidelity Dividend Growth Fund 1,068,396 23.27
Fidelity New Markets Income Fund 238,631 12.96
Fidelity Global Balanced Fund 17,428 14.63
Fidelity Small Capital Stock Fund 437,732 15.93
Fidelity Global Bond Fund 20,720 9.09
</TABLE>
5. Tax Status:
The Internal Revenue Service has determined and informed the Company by
letter dated January 26, 1995, that the Plan and the related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (the "Code"). The Plan has since been amended, however, the Plan
sponsor believes that the Plan is currently designed and being operated
in compliance with the Code. Therefore, no provision for income taxes has
been included in the Plan's financial statements.
-12-
<PAGE>
6. Plan Termination:
The Company, by action of the Board of Directors, may terminate the Plan
at any time. Termination of the Plan would not affect the rights of a
participant as to the continuance of investment, distribution or
withdrawal of the securities, cash and cash value of the Ford Stock Fund
units in the account of the participant as of the effective date of such
termination. There are currently no plans to terminate the Plan.
7. Other:
Differences between the data shown on pages 3 and 4 of this report and
the 1997 Form 5500 filed with the Department of Labor are principally
attributable to adjustments made by the plan administrator to
conform the financial statements to the accrual basis of accounting.
8. Subsequent Event:
On March 2, 1998, the Board of Directors of the Company approved the
spin-off of all of the Company's 80.7 percent interest in the Associates
First Capital Corporation (the "Associates") by declaring a dividend on
the Company's outstanding shares of Common and Class B stock. The Board
of Directors also declared a dividend in cash on shares of Company stock
held in employee savings plans. The cash distribution was equal on a per
share basis to the value of the Associates stock that was distributed to
Ford Common and Class B stockholders, i.e., $22.12 for each share of
Company stock owned as of the record date. Both the spin-off dividend and
the cash dividend were payable on April 7, 1998 to stockholders of record
on March 12, 1998.
Participants with assets in the Ford Stock Fund under the Plan had the
option to take all or part of the cash distribution out of the Plan in
cash. They also could elect to reinvest all or a portion of the cash
distribution in the Plan's investment options, except the Associates
Stock Fund or the Stable Value Income Fund. If no election was made, the
cash distribution was invested according to the participant's asset
allocation at the close of the market on March 11, 1998.
$449,842,433 of the amount of the cash distribution attributable to the
Ford Stock Fund under the Plan was invested in the Ford Stock Fund,
$140,962,490 was invested in other Plan options and $109,011,027 was
paid out in cash directly to Plan participants.
-13-
<PAGE>
9. Subsequent Event, continued:
During the period between the record date and the distribution date,
participants' Ford Stock Fund account balances under the Plan did not
include the value of the cash distribution. Following payment of the cash
distribution, the Ford Stock Fund held a much higher level of short-term
cash instruments until the proceeds of the cash distribution could be
reinvested in Ford Common Stock in an expeditious and prudent manner.
As of March 3, 1998, the Associates Stock Fund became a "sell-only" fund,
and after December 31, 1999, will be closed.
-14-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1997
(in thousands)
(c)
Description of Investment,
(b) Including Maturity Date,
Identity of Issuer, Rate of Interest, Collateral, (e)
Lessor, Borrower Par or Maturity Value (d) Current
(a) or Similar Party Cost Value
- ----- -------------------------- ------------------------------------------------------- --------------- ----------------
<S> <C> <C> <C>
John Hancock Mutual Life
Insurance Company 6/30/98 Maturity, 8.07% interest rate $ 70,682,995 $ 70,682,995
Fidelity Investments Interest Income Fund, 455,471,947 shares 455,471,947 455,471,947
Fidelity Investments T. Rowe Price Spectrum Growth Fund, 160,230 shares 2,533,407 2,552,470
Fidelity Investments Scudder International Fund, 38,270 shares 1,882,417 1,750,845
Fidelity Investments Vanguard Life Strategy Conservative Fund, 36,270 460,080 486,015
shares
Fidelity Investments T. Rowe Price Spectrum Income Fund, 146,964 shares 1,676,581 1,713,598
Fidelity Investments Scudder International Bond Fund, 31,551 shares 337,430 320,558
Fidelity Investments Vanguard Life Strategy Moderate Fund, 76,923 shares 1,032,880 1,139,227
Fidelity Investments T. Rowe Price New Horizons Fund, 742,136 shares 16,661,282 17,291,772
Fidelity Investments Scudder Global Fund, 35,994 shares 1,102,551 1,017,906
Fidelity Investments Vanguard Life Strategy Growth Fund, 140,532 shares 2,061,544 2,254,136
Fidelity Investments T. Rowe Price International Stock Fund, 403,865 shares 5,649,958 5,419,873
Fidelity Investments Scudder International Discovery Fund, 38,532 shares 777,194 764,477
Fidelity Investments Vanguard Index Trust 500 Fund, 438,360 shares 33,468,661 39,483,100
Fidelity Investments T. Rowe Price International Discovery Fund, 17,820 295,252 268,189
shares
Fidelity Investments Scudder Income Fund, 58,969 shares 785,974 794,307
Fidelity Investments Vanguard Index Trust Value Fund, 162,557 shares 3,072,961 3,389,320
Fidelity Investments T. Rowe Price New Asia Fund, 368,758 shares 2,858,697 2,116,671
Fidelity Investments Scudder Growth and Income Fund, 352,699 shares 9,321,540 9,639,261
Fidelity Investments Vanguard Index Trust Growth Fund, 489,746 shares 9,904,191 11,033,972
Fidelity Investments T. Rowe Price High Yield Fund, 295,227 shares 2,505,252 2,580,281
Fidelity Investments Scudder Greater Europe Growth Fund, 232,140 shares 4,458,120 4,777,433
Fidelity Investments Vanguard Explorer Fund, 29,121 shares 1,651,176 1,610,405
Fidelity Investments T. Rowe Price New Era Fund, 90,952 shares 2,488,489 2,360,194
Fidelity Investments Scudder Japan Fund, 101,712 shares 861,321 688,593
Fidelity Investments Vanguard Trustees International Fund, 26,750 shares 767,966 605,610
Fidelity Investments T. Rowe Price Latin America Fund, 748,195 shares 7,845,662 8,058,061
Wells Fargo Institutional
Trust Company Bond Fund, 952,823 shares 11,324,506 13,368,108
* Ford Motor Company Ford Stock Fund, 100,527,540 shares 892,111,726 1,589,340,411
Comerica Bank, N. A. Common Stock Fund, 5,010,904 shares 134,632,619 246,235,802
* Ford Motor Company Associates Stock Fund, 705,897 shares 8,295,448 10,581,400
Fidelity Investments Fidelity Fund, 235,065 shares 6,403,702 7,007,280
Fidelity Investments Fidelity Puritan Fund, 331,635 shares 6,076,189 6,427,089
Fidelity Investments Fidelity Trend Fund, 12,958 shares 77,0736 701,054
Fidelity Investments Fidelity Magellan Fund, 493,622 shares 43,487,368 47,027,388
Fidelity Investments Fidelity Contra Fund, 1,357,933 shares 58,853,016 63,320,394
Fidelity Investments Fidelity Equity Income Fund, 291,883 shares 13,542,915 15,297,585
Fidelity Investments Fidelity Growth Company Fund, 396,374 shares 16,627,446 17,170,924
Fidelity Investments Fidelity Investment Grade Bond Fund, 187,564 shares 1,340,907 1,365,469
Fidelity Investments Fidelity Growth and Income Portfolio, 1,354,021 shares 44,878,120 51,588,191
Fidelity Investments Fidelity Value Fund, 222,370 shares 12,385,426 12,016,892
Fidelity Investments Fidelity Government Securities Fund, 118,775 shares 1,153,055 1,177,062
Fidelity Investments Fidelity Retirement Growth Fund, 235,835 shares 4,389,696 3,973,827
</TABLE>
-15-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
(in thousands)
(c)
Description of Investment,
(b) Including Maturity Date,
Identity of Issuer, Rate of Interest, Collateral, (e)
Lessor, Borrower Par or Maturity Value (d) Current
(a) or Similar Party Cost Value
- ----- ----------------------------- ------------------------------------------------------- --------------- ----------------
<S> <C> <C> <C> <C>
Fidelity Investments Fidelity Overseas Fund, 132,944 shares $ 4,326,428 $ 4,326,012
Fidelity Investments Fidelity Europe Fund, 112,142 shares 3,186,525 3,357,520
Fidelity Investments Fidelity Pacific Basin Fund, 55,906 shares 824,646 683,729
Fidelity Investments Fidelity Real Estate Investment Portfolio Fund,
298,788 shares 5,598,815 6,110,219
Fidelity Investments Fidelity Balanced Fund, 75,893 shares 1,118,070 1,158,879
Fidelity Investments Fidelity International Growth and Income Fund, 69,269
shares 1,413,145 1,364,602
Fidelity Investments Fidelity Capital Appreciation Fund, 122,155 shares 2,421,546 2,367,370
Fidelity Investments Fidelity Canada Fund, 21,553 shares 403,422 356,273
Fidelity Investments Fidelity Utilities Fund, 148,177 shares 2,650,727 2,883,531
Fidelity Investments Fidelity Asset Manager Fund, 226,669 shares 3,918,399 4,159,375
Fidelity Investments Fidelity Worldwide Fund, 194,140 shares 3,146,570 3,096,533
Fidelity Investments Fidelity Stock Selector Fund, 298,690 shares 7,778,933 8,103,469
Fidelity Investments Fidelity Asset Manager Growth Fund, 290,538 shares 5,153,147 5,369,150
Fidelity Investments Fidelity Asset Manager Income Fund, 107,625 shares 1,285,250 1,310,867
Fidelity Investments Fidelity Dividend Growth Fund, 1,068,396 shares 22,650,711 24,861,567
Fidelity Investments Fidelity New Markets Income Fund, 238,631 shares 3,229,488 3,092,663
Fidelity Investments Fidelity Global Balanced Fund, 17,428 shares 248,962 254,977
Fidelity Investments Fidelity Small Capital Stock Fund, 437,732 shares 6,636,852 6,973,064
Fidelity Investments Fidelity Global Bond Fund, 20,720 shares 192,416 188,348
Participant Loans Participant loans, interest rates varying from 7.27
to 8.50 percent - 145,886,364
</TABLE>
Note: The current values of each fund are based principally upon the closing
prices of the underlying investments as reported in the New York Stock
Exchange Transactions listing as of the last trading day of 1997. Current
values also include interest and dividends receivable.
*Denotes related party.
-16-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1997
Purchase Selling Lease Expenses
Party Involved Description of Asset Price Price Rental Incurred
- ----------------------------- --------------------------------------------- --------------- --------------- -------- ----------
<S> <C> <C> <C> <C> <C>
REPORTING CRITERION I: Single transaction in excess of five
percent of current value of plan assets.
None.
REPORTING CRITERION II: Series of transactions in other than
securities in excess of five percent of
current value of plan assets.
None.
REPORTING CRITERION III: Series of transactions in securities in
excess of five percent of current value of
plan assets.
Fidelity Investments Interest Income Fund:
257 Purchases $ 646,914,997
255 Sales $ 530,236,110
Ford Motor Company Ford Stock Fund:
253 Purchases 577,660,211
255 Sales 540,789,574
REPORTING CRITERION IV: Single transactions with a nonregulated
entity in excess of five percent of current
value of plan assets.
None.
</TABLE>
-17-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees
Item 27d - Schedule of Reportable Transactions (Continued)
for the year ended December 31, 1997
Current
Identity of Cost Value Net Gain
Party Involved Description of Asset of Asset of Asset or (Loss)
- ----------------------------- --------------------------------------------- --------------- --------------- ------------
<S> <C> <C> <C> <C>
REPORTING CRITERION I: Single transaction in excess of five
percent of current value of plan assets.
None.
REPORTING CRITERION II: Series of transactions in other than
securities in excess of five percent of
current value of plan assets.
None.
REPORTING CRITERION III: Series of transactions in securities in
excess of five percent of current value of
plan assets.
Fidelity Investments Interest Income Fund:
257 Purchases $ 646,914,997 $ 64,691,4997
255 Sales 530,236,110 530,236,110 -
Ford Motor Company Ford Stock Fund:
253 Purchases 577,660,211 577,660,211
255 Sales 462,605,774 540,789,574 $ 78,183,800
REPORTING CRITERION IV: Single transactions with a nonregulated
entity in excess of five percent of current
value of plan assets.
None.
</TABLE>
-18-
Exhibit 23
Consent of Independent Accountants
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement
Nos. 33-64605, 33-61107, 33-58255, 33-54737, 33-54283,
33-50238, 33-36043, 33-19036, 2-95018, 333-27993
333-49547 and 333-47445 on Form S-8
We consent to the incorporation by reference in the above Registration
Statements of our report dated June 5, 1998, to the Board of Directors of Ford
Motor Company with respect to the financial statements of the Ford Motor Company
Tax-Efficient Savings Plan for Hourly Employees at December 31, 1997 and 1996,
and for the year ended December 31, 1997, which is included in this Annual
Report on Form 11-K.
/s/Coopers & Lybrand L.L.P.
400 Renaissance Center
Detroit, Michigan 48243
June 5, 1998
-19-
