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 SAVINGS AND STOCK
INVESTMENT PLAN FOR SALARIED 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
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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 Savings and Stock Investment Plan for Salaried Employees
Committee has duly caused this Annual Report to be signed by the undersigned
thereunto duly authorized.
SAVINGS AND STOCK INVESTMENT PLAN
FOR SALARIED EMPLOYEES
By: /s/Lee Freeman
----------------------------------
Lee Freeman, Chairman
Savings and Stock Investment
Plan for Salaried 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 Savings and Stock Investment Plan for Salaried 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.......................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>
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 Savings and Stock Investment Plan for
Salaried 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 Savings and Stock Investment Plan for Salaried 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 Savings and Stock Investment Plan for Salaried 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 $ 9,956,277,143 $ 6,882,843,309
Loan funds receivable 151,612,902 144,371,616
Deposits with insurance companies under group contracts 322,587,090 445,766,681
-------------------- --------------------
Total assets $ 10,430,477,135 $ 7,472,981,606
==================== ====================
LIABILITIES AND PLAN EQUITY
Employee stock ownership plan, loan payable $ 293,053,220 $ 143,567,834
Employee stock ownership plan, interest payable 69,193 1,013,776
-------------------- --------------------
Total liabilities 293,122,413 144,581,610
-------------------- --------------------
Net assets available for plan benefits $ 10,137,354,722 $ 7,328,399,996
==================== ====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
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<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1997
Stable
Ford Interest Common Value
Stock Income Stock Income Income International
Fund Fund Fund Fund Funds Funds
--------------- --------------- ---------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Interest and dividend income $ 160,962,929 $ 52,666,704 $ 67 $ 27,852,738 $ 5,202,978 $ 10,035,502
Net appreciation (depreciation)
in fair value of investments 2,005,647,077 (701,342) 225,594,358 7,569 4,795,913 (909,495)
Loan repayment (principal) 17,709,602 32,026,253 4,094,888 625,866 971,244
Loan repayment (interest) 4,110,539 4,582,767 890,952 131,572 207,614
Employee contributions 29,228,277 5,428,447 6,635,671 765,420 1,246,831
Company contributions on behalf
of employees 103,665,677 25,994,124 33,151,179 5,055,665 11,153,706
Company matching 150,652,864
Transfers in from other plans 1,078,402 43,711,381 560,052 1,769,336 2,714,002
Withdrawal of participants'
accounts (260,493,016) (118,689,211) (55,650,504) (27,651,139) (6,825,604) (8,080,859)
Net transfers between funds (262,567,387) 141,480,325 (90,390,980) (123,388,759) 20,342,315 34,682,478
Loan funds transferred (out) in (32,247,350) (16,965,378) (7,404,159) (1,082,689) (1,541,970)
Interest expense (7,140,612)
-------------- --------------- --------------- -------------- ------------ -------------
Net increase (decrease) in plan
equity for the year 1,910,607,002 169,534,070 117,481,524 (123,179,591) 30,780,772 50,479,053
Net assets available for plan
benefits, beginning of year 3,918,338,380 794,087,636 939,913,431 445,766,681 89,827,674 110,853,913
-------------- --------------- --------------- -------------- ------------- -------------
Net assets available for plan
benefits, end of year $ 5,828,945,382 $ 963,621,706 $ 1,057,394,955 $ 322,587,090 $ 120,608,446 $161,332,966
================ =============== =============== ============== ============= ============
</TABLE>
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The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Statement of Changes in Net Assets Available for Plan Benefits
for the year ended December 31, 1997 (Continued)
Growth
and
Asset Growth Income Loan
Allocation Funds Funds Funds Fund Total
--------------- --------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Interest and dividend income $ 3,633,026 $ 67,908,448 $ 28,050,688 $ 356,313,080
Net appreciation (depreciation)
in fair value of investments 3,340,635 87,464,722 89,255,760 2,414,495,197
Loan repayment (principal) 277,204 6,097,056 2,736,320 (64,538,433) -
Loan repayment (interest) 56,592 1,245,197 546,891 11,772,124
Employee contributions 399,278 6,573,298 3,446,501 53,723,723
Company contributions on behalf
of employees 3,000,866 58,639,995 26,666,214 267,327,426
Company matching 150,652,864
Transfers in from other plans 1,960,359 21,065,006 22,467,571 2,052,780 97,378,889
Withdrawal of participants'
accounts (1,981,767) (29,450,732) (23,957,308) (2,787,825) (535,567,965)
Net transfers between funds 10,936,454 92,636,924 176,268,630 -
Loan funds transferred (out) in (419,465) (9,123,493) (3,730,260) 72,514,764 -
Interest expense (7,140,612)
------------- ------------- -------------- -------------- -------------
Net increase (decrease) in plan
equity for the year 21,203,182 303,056,421 321,751,007 7,241,286 2,808,954,726
Net assets available for plan
benefits, beginning of year 25,278,640 569,255,955 290,706,070 144,371,616 7,328,399,996
------------- -------------- -------------- ------------- -------------
Net assets available for plan
benefits, end of year $ 46,481,822 $ 872,312,376 $ 612,457,077 $ 151,612,902 $10,137,354,722
============= ============= ============== ============== ===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
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<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Notes to Financial Statements
1. Description of the Plan:
The following description of the Ford Motor Company Savings and Stock
Investment Plan for Salaried Employees (the "Plan") provides only general
information. The Plan was established effective February 1, 1956. 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 salaried 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: With certain exceptions, regular full-time salaried
employees are eligible to participate in the Plan twelve months after
their original date of hire. Certain other part-time and temporary
employees also may be eligible to participate in the Plan.
Participation in the Plan is voluntary.
c. Contributions: The Plan has both a Pre-Tax Program and an After-Tax
Program. Under the Plan and subject to limits required to be imposed
by the Internal Revenue Code, participants may elect a reduction in
base salary up to 15 percent. Participants may also elect reductions
in their distributions under the Company's Profit Sharing Plan and
Flexible Compensation Account program, with a contribution in an
amount corresponding to each reduction made by the Company on their
behalf to the Plan. Such contributions are excluded from the
participants' taxable income and are classified as Company
contributions on behalf of employees. Subject to limitations imposed
by the Internal Revenue Code, participants may also contribute up to
10 percent of their base monthly salaries to the Plan on an after-tax
basis. These after-tax contributions are classified as employee
contributions. The investment programs are the same for all savings
contributions.
Effective January 1, 1994, the Company began matching at the rate of
$.60 for each dollar of contributions up to 10 percent of
participants' base salaries. All Company matching contributions are
invested in the Ford Stock Fund. Contributions to the Pre-Tax Program
from the Profit Sharing Plan and Flexible Compensation Account Program
are not eligible for the Company match.
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<PAGE>
Notes to Financial Statements, Continued
1. Description of the Plan, continued:
d. Participant Accounts: Each participant's account is credited with the
participant's contributions and allocations of (a) the Company's
contribution and (b) 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 vested
account.
e. Vesting and Distributions: Pre-Tax Program assets, After-Tax Program
assets and assets resulting from Company matching contributions (Ford
Stock Fund) are accounted for separately.
Company matching contributions vest five years after the original date
of hire. At that time, all assets attributable to Company matching
contributions held in participants' accounts become vested, and all
future contributions vest when they are made.
Pre-Tax Program assets may not be withdrawn by participants until the
termination of their employment or until they reach age 59-1/2, except
in the case of personal financial hardship.
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 59,959
Interest Income Fund 27,615
Common Stock Fund 21,036
Other 133,124
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.
-7-
<PAGE>
1. Description of the Plan, continued:
f. Investment Programs and Participation, continued: 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 7.25% for the year ended Decmeber 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 as of December 31, 1997 are set forth in
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 from both their Pre-Tax
and After-Tax Program accounts 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.
i. Mergers: Effective January 2, 1997, the Jaguar Cars 401(k) Savings
Plan, a benefit plan for a subsidiary of the Company, was merged into
the Plan. As a result, net assets of $2,004,834 were transferred into
the Plan.
Effective February 28, 1997, net assets of $68,679,432 were
transferred into the Plan from the USL Capital Corporation Retirement
Plan, a benefit plan for a former subsidiary of the Company.
Effective October 1, 1997, the 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 $26,694,623 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.
-8-
<PAGE>
2. Summary of Significant Accounting Policies, continued:
c. Contributions: Contributions to the Plan from employees and from the
Company and participating subsidiaries (as defined in the Plan) 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.
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 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 objectives 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.
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<PAGE>
3. Forfeitures and Plan Administration Expenses:
The Plan permits the Company to use assets forfeited by participants to
pay plan administrative expenses and, to the extent not used to pay such
expenses, to reduce the Company's future contributions to the Plan. To
the extent that forfeited assets are not available to pay certain
administrative expenses, the Company pays such expenses directly. For the
year ended December 31, 1997, participant forfeitures amounted to
approximately $725,000, of which approximately $63,000 was used to pay
plan administrative expenses.
4. 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, and forfeited shares 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 $10,391,587 and
$293,053,220 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
$3,566,155 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 $39,999,202 beginning March 2, 1998. The 1996 ESOP loans
were paid off on December 1, 1997.
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 5,867,049
shares at a cost of $258,867,107 in March 1998. The Plan held 4,803,833
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.
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<PAGE>
4. Employee Stock Ownership Plan, continued:
The following highlights certain ESOP activity:
1997
Loan
Activity
--------------
Shares purchased with loan cash 301,315
Cost of shares purchase with loan cash $ 10,391,561
Loan principal paid 153,959,422
Loan interest paid and accrued 8,154,388
5. 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 322,587,090 $ 1.00
Interest Income Fund 963,621,706 1.00
T. Rowe Price Spectrum Growth Fund 731,696 15.93
Scudder International Fund 153,152 45.75
Vanguard Life Strategy Conservative Fund 297,895 13.40
T. Rowe Price Spectrum Income Fund 1,479,527 11.66
Scudder International Bond Fund 197,057 10.16
Vanguard Life Strategy Moderate Fund 251,077 14.81
T. Rowe Price New Horizons Fund 3,152,325 23.30
Scudder Global Fund 311,881 28.28
Vanguard Life Strategy Growth Fund 277,184 16.04
T. Rowe Price International Stock Fund 2,670,515 13.42
Scudder International Discovery Fund 175,206 19.84
Vanguard Index Trust 500 Fund 2,209,306 90.07
T. Rowe Price International Discovery Fund 80,597 15.05
Scudder Income Fund 360,952 13.47
Vanguard Index Trust Value Fund 787,520 20.85
T. Rowe Price New Asia Fund 1,388,083 5.74
Scudder Growth and Income Fund 1,577,416 27.33
Vanguard Index Trust Growth Fund 2,460,479 22.53
T. Rowe Price High Yield Fund 2,013,631 8.74
Scudder Greater Europe Growth Fund 824,644 20.58
Vanguard Explorer Fund 132,999 55.30
T. Rowe Price New Era Fund 301,247 25.95
</TABLE>
-11-
<PAGE>
<TABLE>
<CAPTION>
5. Asset Value Per Fund Unit, continued:
Asset
Number Value
of Units Per Unit
-------------------- -----------------
<S> <C> <C>
Scudder Japan Fund 445,207 $ 6.77
Vanguard Trustees International Fund 108,980 22.64
T. Rowe Price Latin America Fund 2,030,264 10.77
Wells Fargo Bond Fund 2,962,440 14.03
Ford Stock Fund 368,687,247 15.81
Comerica Common Stock Fund 21,518,009 49.14
Associates Stock Fund 3,042,228 14.99
Fidelity Fund 818,278 29.81
Fidelity Puritan Fund 1,485,031 19.38
Fidelity Trend Fund 32,381 54.10
Fidelity Magellan Fund 1,541,155 95.27
Fidelity Contra Fund 4,756,277 46.63
Fidelity Equity Income Fund 1,212,153 52.41
Fidelity Growth Company Fund 2,138,655 43.32
Fidelity Investment Grade Bond Fund 2,216,124 7.28
Fidelity Growth and Income Portfolio 4,899,168 38.10
Fidelity Value Fund 1,026,922 54.04
Fidelity Government Securities Fund 1,123,750 9.91
Fidelity Retirement Growth Fund 637,129 16.85
Fidelity Overseas Fund 537,729 32.54
Fidelity Europe Fund 417,859 29.94
Fidelity Pacific Basin Fund 243,665 12.23
Fidelity Real Estate Investment Portfolio 1,225,485 20.45
Fidelity Balanced Fund 253,041 15.27
Fidelity International Growth and Income Fund 174,308 19.70
Fidelity Capital Appreciation Fund 490,480 19.38
Fidelity Canada Fund 41,816 16.53
Fidelity Utilities Fund 481,255 19.46
Fidelity Asset Manager Fund 769,088 18.35
Fidelity Worldwide Fund 976,756 15.95
Fidelity Stock Selector Fund 1,040,348 27.13
Fidelity Asset Manager Growth Fund 840,873 18.48
Fidelity Asset Manager Income Fund 383,699 12.18
Fidelity Dividend Growth Fund 3,751,144 23.27
Fidelity New Markets Income Fund 708,702 12.96
Fidelity Global Balanced Fund 42,930 14.63
Fidelity Small Capital Stock Fund 1,782,445 15.93
Fidelity Global Bond Fund 96,409 9.09
</TABLE>
-12-
<PAGE>
6. Tax Status:
The Internal Revenue Service has determined and informed the Company by
letter dated December 13, 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.
7. 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 (a) 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, or (b) continuance of vesting of such securities and cash
attributable to Company matching contributions or earnings thereon. There
are currently no plans to terminate the Plan.
8. 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.
9. 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.
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<PAGE>
9. Subsequent Event, continued:
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.
$1,643,056,165 of the amount of the cash distribution
attributable to the Ford Stock Fund under the Plan was invested in the
Ford Stock Fund, $670,227,982 was invested in other Plan options and
$228,450,819 was paid out in cash directly to Plan participants.
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.
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<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1997
<TABLE>
<CAPTION>
(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>
John Hancock Mutual Life
Insurance Company 6/30/98 Maturity, 8.07% interest rate $ 322,587,090 $ 322,587,090
Fidelity Investments Interest Income Fund, 963,621,706 shares 963,621,706 963,621,706
Fidelity Investments T. Rowe Price Spectrum Growth Fund, 731,696 shares 11,385,190 11,655,925
Fidelity Investments Scudder International Fund, 153,152 shares 7,419,612 7,006,706
Fidelity Investments Vanguard Life Strategy Conservative Fund, 297,895 3,807,167 3,991,794
shares
Fidelity Investments T. Rowe Price Spectrum Income Fund, 1,479,527 shares 16,839,595 17,251,284
Fidelity Investments Scudder International Bond Fund, 197,057 shares 2,112,901 2,002,095
Fidelity Investments Vanguard Life Strategy Moderate Fund, 251,077 shares 3,469,742 3,718,450
Fidelity Investments T. Rowe Price New Horizons Fund, 3,152,325 shares 70,345,408 73,449,174
Fidelity Investments Scudder Global Fund, 311,881 shares 9,389,445 8,819,999
Fidelity Investments Vanguard Life Strategy Growth Fund, 277,184 shares 4,017,663 4,446,027
Fidelity Investments T. Rowe Price International Stock Fund, 2,670,515 36,419,338 35,838,314
shares
Fidelity Investments Scudder International Discovery Fund, 175,206 shares 3,540,301 3,476,080
Fidelity Investments Vanguard Index Trust 500 Fund, 2,209,306 shares 159,106,387 198,992,155
Fidelity Investments T. Rowe Price International Discovery Fund, 80,597 1,303,754 1,212,980
shares
Fidelity Investments Scudder Income Fund, 360,952 shares 4,843,449 4,862,026
Fidelity Investments Vanguard Index Trust Value Fund, 787,520 shares 14,574,579 16,419,794
Fidelity Investments T. Rowe Price New Asia Fund, 1,388,083 shares 11,060,700 7,967,595
Fidelity Investments Scudder Growth and Income Fund, 1,577,416 shares 40,741,833 43,110,788
Fidelity Investments Vanguard Index Trust Growth Fund, 2,460,479 shares 48,614,206 55,434,595
Fidelity Investments T. Rowe Price High Yield Fund, 2,013,631 shares 17,062,943 17,599,132
Fidelity Investments Scudder Greater Europe Growth Fund, 824,644 shares 15,540,312 16,971,178
Fidelity Investments Vanguard Explorer Fund, 132,999 shares 7,459,214 7,354,824
Fidelity Investments T. Rowe Price New Era Fund, 301,247 shares 8,132,106 7,817,348
Fidelity Investments Scudder Japan Fund, 445,207 shares 3,754,374 3,014,049
Fidelity Investments Vanguard Trustees International Fund, 108,980 shares 3,136,369 2,467,318
Fidelity Investments T. Rowe Price Latin America Fund, 2,030,264 shares 20,732,624 21,865,940
Wells Fargo Institutional
Trust Company Bond Fund, 2,962,440 shares 34,021,326 41,563,034
* Ford Motor Company Ford Stock Fund, 368,687,247 shares 2,859,511,280 5,828,945,382
Comerica Bank, N. A. Common Stock Fund, 21,518,009 shares 430,616,726 1,057,394,955
* Ford Motor Company Associates Stock Fund, 3,042,228 shares 36,143,879 45,603,002
Fidelity Investments Fidelity Fund, 818,278 shares 22,070,767 24,392,873
Fidelity Investments Fidelity Puritan Fund, 1,485,031 shares 26,748,666 28,779,896
Fidelity Investments Fidelity Trend Fund, 32,381 shares 1,899,834 1,751,819
Fidelity Investments Fidelity Magellan Fund, 1,541,155 shares 131,234,553 146,825,793
Fidelity Investments Fidelity Contra Fund, 4,756,277 shares 200,695,285 221,785,179
Fidelity Investments Fidelity Equity Income Fund, 1,212,153 shares 54,635,463 63,528,959
Fidelity Investments Fidelity Growth Company Fund, 2,138,655 shares 83,990,769 92,646,548
Fidelity Investments Fidelity Investment Grade Bond Fund, 2,216,124 shares 16,008,481 16,133,382
Fidelity Investments Fidelity Growth and Income Portfolio, 4,899,168 shares 156,219,654 186,658,301
</TABLE>
-15-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
<TABLE>
<CAPTION>
(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 Value Fund, 1,026,922 shares $ 56,336,974 $ 55,494,859
Fidelity Investments Fidelity Government Securities Fund, 1,123,750 shares 10,998,473 11,136,362
Fidelity Investments Fidelity Retirement Growth Fund, 637,129 shares 11,732,459 10,735,620
Fidelity Investments Fidelity Overseas Fund, 537,729 shares 16,990,799 17,497,716
Fidelity Investments Fidelity Europe Fund, 417,859 shares 11,721,822 12,510,709
Fidelity Investments Fidelity Pacific Basin Fund, 243,665 shares 3,614,085 2,980,026
Fidelity Investments Fidelity Real Estate Investment PortfolioFund,
1,225,485 shares 22,568,395 25,061,177
Fidelity Investments Fidelity Balanced Fund, 253,041 shares 3,732,121 3,863,932
Fidelity Investments Fidelity International Growth and Income Fund, 174,308
shares 3,470,083 3,433,867
Fidelity Investments Fidelity Capital Appreciation Fund, 490,480 shares 9,624,798 9,505,501
Fidelity Investments Fidelity Canada Fund, 41,816 shares 754,380 691,224
Fidelity Investments Fidelity Utilities Fund, 481,255 shares 8,713,038 9,365,216
Fidelity Investments Fidelity Asset Manager Fund, 769,088 shares 13,096,770 14,112,764
Fidelity Investments Fidelity Worldwide Fund, 976,756 shares 15,400,370 15,579,264
Fidelity Investments Fidelity Stock Selector Fund, 1,040,348 shares 26,407,556 28,224,640
Fidelity Investments Fidelity Asset Manager Growth Fund, 840,873 shares 14,567,411 15,539,328
Fidelity Investments Fidelity Asset Manager Income Fund, 383,699 shares 4,586,054 4,673,459
Fidelity Investments Fidelity Dividend Growth Fund, 3,751,144 shares 78,231,249 87,289,120
Fidelity Investments Fidelity New Markets Income Fund, 708,702 shares 9,581,696 9,184,774
Fidelity Investments Fidelity Global Balanced Fund, 42,930 shares 605,903 628,061
Fidelity Investments Fidelity Small Capital Stock Fund, 1,782,445 shares 27,158,778 28,394,353
Fidelity Investments Fidelity Global Bond Fund, 96,409 shares 911,011 876,357
Participant Loans Participant loans, interest rates varying from 7.27
to 8.50 percent - 151,612,902
</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>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1997
<TABLE>
<CAPTION>
Identity of Purchase Selling Lease
Party Involved Description of Asset Price Price Rental
- -------------- ------------------------ ----------- ----------- ---------
<S> <C> <C> <C> <C>
REPORTING Single transaction in
CRITERION I: excess of five percent
of current value of plan
assets.
None.
REPORTING Series of transactions in
CRITERION II: other than securities in
excess of five percent
of current value of plan
assets.
None.
REPORTING Series of transactions in
CRITERION III: securities in excess of
five percent of current
value of plan assets.
Fidelity Interest Income Fund:
Investments 258 Purchases $1,862,303,048
253 Sales $1,692,768,979
Ford Motor Ford Stock Fund:
Company 253 Purchases 1,772,135,716
254 Sales 1,859,993,839
Ford Motor The Associates Stock Fund:
Company 192 Purchases 224,919,360
191 Sales 196,417,366
REPORTING Single transactions with a
CRITERION IV: nonregulated entity in
excess of five percentof
current value of plan assets.
None.
</TABLE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1997 (Continued)
<TABLE>
<CAPTION>
-17-
<PAGE>
Current
Identity of Expenses Cost Value Net Gain
Party Involved Description of Asset Incurred of Asset of Asset or (Loss)
- -------------- ------------------------ ----------- ----------- --------------- -------------
<S> <C> <C> <C> <C> <C>
REPORTING Single transaction in
CRITERION I: excess of five percent
of current value of plan
assets.
None.
REPORTING Series of transactions in
CRITERION II: other than securities in
excess of five percent
of current value of plan
assets.
None.
REPORTING Series of transactions in
CRITERION III: securities in excess of
five percent of current
value of plan assets.
Fidelity Interest Income Fund:
Investments 258 Purchases $1,862,303,048 $ 1,862,303,048
253 Sales 1,692,768,979 1,692,768,979 -
Ford Motor Ford Stock Fund:
Company 253 Purchases 1,772,135,716 1,772,135,716
254 Sales 1,485,223,236 1,859,993,839 $ 374,770,603
Ford Motor The Associates Stock Fund:
Company 192 Purchases 224,919,360 224,919,360
191 Sales 188,775,481 196,417,366 7,641,885
REPORTING Single transactions with a
CRITERION IV: nonregulated entity in
excess of five percentof
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. 33-64607, 33-54735, 33-54275, 33-50194,
33-36061, 33-14951, 2-95020, 333-28181, 333-49545
and 333-47443 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
Savings and Stock Investment Plan for Salaried 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-
