<PAGE> 1
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]
- --------
For the fiscal year ended December 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
- --------
For the transition period from to
---------------- ----------------
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> 2
-2-
REQUIRED INFORMATION
Financial Statements and Schedules
Statement of Net Assets Available for Plan Benefits, as of December 31,
1998 and 1997.
Statement of Changes in Net Assets Available for Plan Benefits for the Year
Ended December 31, 1998.
Schedule I - Schedule of Assets Held for Investment Purposes as of December
31, 1998.
Schedule II - Reportable Transactions for the Year Ended December 31, 1998.
Exhibit
- -------
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 23 Consent of PricewaterhouseCoopers LLP Filed with this Report.
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.
TAX-EFFICIENT SAVINGS PLAN FOR
HOURLY EMPLOYEES
By: /s/Lee Freeman
------------------------------
Lee Freeman, Chairman
Tax-Efficient Savings Plan
for Hourly Employees Committee
June 16, 1999
<PAGE> 3
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, 1998 and 1997....................................3
Statement of Changes in Net Assets Available for Plan
Benefits for the Year Ended December 31, 1998.......................4
Notes to Financial Statements.........................................5-13
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes as of
December 31, 1998..............................................14-15
Item 27d - Reportable Transactions for the Year Ended
December 31, 1998..................................................16
1
<PAGE> 4
[PRICEWATERHOUSECOOPERS LETTERHEAD]
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Ford Motor Company:
In our opinion, the accompanying statement of net assets available for plan
benefits of the Ford Motor Company Tax-Efficient Savings Plan for Hourly
Employees present fairly, in all material respects, the financial position of
Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees at December
31, 1998 and December 31, 1997, and the related statement of changes in net
assets available for plan benefits for the year ended December 31, 1998, in
conformity with generally accepted accounting principles. 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 of these statements in accordance with
generally accepted auditing standards which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
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,
1998, 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/PricewaterhouseCoopers LLP
June 7, 1999
2
<PAGE> 5
FORD MOTOR COMPANY TAX-EFFICIENT SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
as of December 31, 1998 and 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
---------------- ----------------
<S> <C> <C>
Investments, at fair value $ 4,270,004,586 $ 2,782,405,146
Loan funds receivable 176,558,128 145,886,364
Deposits with insurance companies under
group contracts - 70,682,995
----------------- ----------------
Total assets $ 4,446,562,714 $ 2,998,974,505
================= ================
LIABILITIES AND PLAN EQUITY
Employee stock ownership plan, loan payable $ 31,883,560 $ 38,190,886
Employee stock ownership plan, interest payable 196,151 9,017
---------------- ----------------
Total liabilities 32,079,711 38,199,903
---------------- ----------------
Net assets available for plan benefits $ 4,414,483,003 $ 2,960,774,602
================ ================
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 6
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, 1998
<TABLE>
<CAPTION>
STABLE
FORD INTEREST COMMON VALUE
STOCK INCOME STOCK INCOME INCOME
FUND FUND FUND FUND FUNDS
-------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Interest and dividend income $ 510,106,426 $ 88,733,962 $ 27,040,614 $ 2,733,389 $ 3,847,518
Net appreciation (depreciation) in
fair value of investments 433,175,051 (3,483) 52,482,518 - 444,169
Loan repayment (principal) 28,572,130 25,966,940 5,115,611 - 739,351
Loan repayment (interest) 5,243,048 3,640,314 950,813 - 134,380
Employee contributions 131,448,881 52,991,163 24,968,998 - 4,659,031
Transfers in from other plan - - 9,705 - 981
Withdrawal of participants' accounts (73,183,066) (46,589,069) (11,169,063) (1,544,548) (1,246,033)
Net transfers between funds (71,832,119) 166,741,808 (29,012,116) (71,871,836) 2,888,577
Loan funds transferred (out) in (50,254,297) (25,551,704) (9,177,980) - (1,381,413)
Administrative expense - 64,606 - - (6,260)
Transfer out to other plans (118,316) (106,898)
Interest expense (2,803,278) - - - -
-------------- ------------ ------------ ------------ -----------
Net increase (decrease) in plan
equity for the year 910,354,460 265,887,639 61,209,100 (70,682,995) 10,080,301
Net assets available for plan
benefits, beginning of year 1,589,340,404 455,471,955 246,235,800 70,682,995 24,600,391
-------------- ------------ ------------ ------------ -----------
Net assets available for plan
benefits, end of year $2,499,694,864 $721,359,594 $307,444,900 - $34,680,692
============== ============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
GROWTH
ASSET AND
INTERNATIONAL ALLOCATION GROWTH INCOME LOAN
FUNDS FUNDS FUNDS FUNDS FUND TOTAL
------------- ------------ ------------ ----------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Interest and dividend income $ 6,264,668 $ 4,124,273 $ 48,756,549 $34,257,437 - $ 725,864,836
Net appreciation (depreciation) in
fair value of investments 1,014,736 350,016 47,237,934 28,097,954 562,798,895
Loan repayment (principal) 1,304,979 435,237 6,968,488 4,402,318 $(73,505,054) -
Loan repayment (interest) 233,285 80,076 1,231,759 785,037 - 12,298,712
Employee contributions 8,157,104 3,684,209 48,503,505 33,960,474 - 308,373,365
Transfers in from other plan 3,170 1,175 8,904 12,619 - 36,554
Withdrawal of participants' accounts (1,167,620) (698,320) (7,585,128) (6,812,656) (2,669,836) (152,665,339)
Net transfers between funds 3,366,419 1,142,018 (7,162,646) 5,739,895 - -
Loan funds transferred (out) in (1,710,202) (739,116) (11,299,883) (6,732,059) 106,846,654 -
Administrative expense (7,894) - (12,877) (3,739) - 33,836
Transfer out to other plans (3,966) (229,180)
Interest expense - - - - - (2,803,278)
----------- ----------- ------------ ------------ ------------ --------------
Net increase (decrease) in plan
equity for the year 17,458,645 8,379,568 126,642,639 93,707,280 30,671,764 1,453,708,401
Net assets available for plan
benefits, beginning of year 38,652,323 14,718,779 229,393,687 145,791,904 145,886,364 2,960,774,602
----------- ----------- ------------ ------------ ------------ --------------
Net assets available for plan
benefits, end of year $56,110,968 $23,098,347 $356,036,326 $239,499,184 $176,558,128 $4,414,483,003
=========== =========== ============ ============ ============ ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 7
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 for 1997 and 25 percent for 1998 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. Per the plan agreement, certain fund
options charge redemption fees on transfers of funds which are paid by
the participants. These redemption fees are charged to the individual
participant account fund assets. The fees totaled approximately $31,000
and $28,000 for the years ended December 31, 1998 and 1997,
respectively. 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.
5
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF THE PLAN, CONTINUED:
f. INVESTMENT OPTIONS AND PARTICIPATION: Participant contributions are
invested in accordance with the participant's election in one or more
of several investment options. The types of investment options, and
the number of participants in each option at December 31, 1998, are as
follows:
<TABLE>
<CAPTION>
PARTICIPANTS
---------------
<S> <C>
Ford Stock Fund 62,637
Interest Income Fund 36,840
Common Stock Fund 18,787
Other 96,289
</TABLE>
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. Effective June 30,
1998, this underlying investment contract matured, and all participant
assets held in the Stable Value Income Fund were transferred to other
investment options.
Details of investments held at December 31, 1998 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 options, 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.
6
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF THE PLAN, CONTINUED:
i. EMPLOYEE STOCK OWNERSHIP PLAN: The Plan operates, in part, as a
leveraged employee stock ownership plan (ESOP) and is designed to
comply with Section 4975 (e) (7) and the regulations thereunder of the
Internal Revenue Code of 1986, as amended (Code) and is subject to the
applicable provisions of the Employee Retirement Income Security Act
of 1974, as amended (ERISA).
The Plan purchased Company common shares using the proceeds of a loan
from the Company and held the shares in an ESOP trust account
established under the Plan. The borrowings are to be repaid quarterly
over the period ended December 1, 1999.
As the Plan makes each payment of principal, an appropriate percentage
of stock will be allocated to eligible employee accounts. The shares
vest fully upon allocation. The borrowings are collateralized by the
unallocated shares of stock.
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.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS, CONTINUED
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED:
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 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, 1998 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.
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.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. EMPLOYEE STOCK OWNERSHIP PLAN, CONTINUED:
The Plan obtained loans from the Company to purchase shares of company
stock for quarterly allocation. The following summarizes the loans taken
out by the Plan:
<TABLE>
<CAPTION>
ORIGINAL TOTAL # OF DATE OF
DATE OF PRINCIPLE INTEREST QUARTERLY QUARTERLY FIRST
LOAN BALANCE RATE PAYMENTS PAYMENTS PAYMENT
--------- ----------- ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
11/25/98 $ 3,440,957 5.00% $ 706,192 5 12/1/98
8/27/98 14,048,255 5.72 2,427,802 6 9/1/98
4/29/97 1,354,238 8.50 464,744 3 6/2/97
12/30/97 38,190,886 8.50 5,212,722 8 3/2/98
</TABLE>
All of the loans mature on December 1, 1999, except the loan dated April
29, 1997 which matured 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. As of December 31, 1998 and 1997, the share activity is as
follows:
<TABLE>
<CAPTION>
1998 1997
----------------------------- ----------------------------
ALLOCATED UNALLOCATED ALLOCATED UNALLOCATED
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Ford Motor Company common shares:
Number of shares 439,967 682,755 39,263 -
Cost $19,998,557 $31,467,010 $1,354,209 -
</TABLE>
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.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. EMPLOYEE STOCK OWNERSHIP PLAN, CONTINUED:
The following highlights certain ESOP activity:
<TABLE>
<CAPTION>
1998
LOAN
ACTIVITY
--------
<S> <C>
Units purchased with loan cash 1,122,722
Cost of units purchased with loan cash $ 51,465,567
Loan principal paid 23,796,538
Loan interest paid and accrued 2,635,219
</TABLE>
4. ASSET VALUE PER FUND UNIT:
The number of units, rounded to the nearest whole, the asset value per
unit, and the total asset value of the Plan's investments at December 31,
1998 are as follows:
<TABLE>
<CAPTION>
ASSET TOTAL
NUMBER VALUE ASSET
OF UNITS PER UNIT VALUE
----------------- ------------ -------------
<S> <C> <C> <C>
Interest Income Fund 721,359,594 $ 1.00 $ 721,359,594
T. Rowe Price Spectrum Growth Fund 169,931 16.45 2,795,357
Scudder International Fund 53,032 48.70 2,582,643
Vanguard LifeStrategy Conservative Growth Fund 77,466 14.71 1,139,526
T. Rowe Price Spectrum Income Fund 199,880 11.50 2,298,617
Scudder International Bond Fund 29,451 10.82 318,658
Vanguard LifeStrategy Moderate Growth Fund 104,819 16.86 1,767,252
T. Rowe Price New Horizons Fund 680,389 23.34 15,880,283
Scudder Global Fund 39,849 28.68 1,142,870
Vanguard LifeStrategy Growth Fund 181,268 18.79 3,406,021
T. Rowe Price International Stock Fund 418,232 14.99 6,269,292
Scudder Global Discovery Fund 37,990 23.10 877,560
Vanguard 500 Index Fund 628,796 113.95 71,651,275
T. Rowe Price International Discovery Fund 22,872 15.65 357,945
Scudder Income Fund 96,849 13.24 1,282,284
Vanguard Value Index Fund 235,920 22.51 5,310,554
T. Rowe Price New Asia Fund 682,124 5.01 3,417,442
Scudder Growth and Income Fund 457,418 26.31 12,034,661
Vanguard Growth Index Fund 970,723 31.67 30,742,783
T. Rowe Price High Yield Fund 476,084 8.36 3,980,060
Scudder Greater Europe Growth Fund 607,636 26.53 16,120,595
Vanguard Explorer Fund 28,102 56.71 1,593,676
T. Rowe Price New Era Fund 77,209 19.78 1,527,198
Scudder Japan Fund 157,339 8.33 1,310,633
Vanguard International Value Fund 36,914 25.09 926,172
</TABLE>
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4. ASSET VALUE PER FUND UNIT, CONTINUED:
<TABLE>
<CAPTION>
ASSET TOTAL
NUMBER VALUE ASSET
OF UNITS PER UNIT VALUE
------------------ -------- --------------
<S> <C> <C> <C>
T. Rowe Price Latin America Fund 423,438 $ 6.81 $ 2,883,611
Barclays Global Investors Bond Fund 1,225,556 15.27 18,714,241
Ford Stock Fund 134,899,885 18.53 2,499,694,864
Comerica Common Stock Fund 5,154,148 59.65 307,444,900
Associates Stock Fund 311,679 17.73 5,526,065
Fidelity Fund 450,994 36.69 16,546,955
Fidelity Puritan Fund 429,699 20.07 8,624,050
Fidelity Trend Fund 19,620 55.62 1,091,291
Fidelity Magellan Fund 701,275 120.82 84,728,087
Fidelity Contrafund 1,722,582 56.79 97,825,431
Fidelity Equity-Income Fund 353,975 55.55 19,663,294
Fidelity Growth Company Fund 450,534 51.02 22,986,221
Fidelity Investment Grade Bond Fund 358,045 7.39 2,645,950
Fidelity Growth and Income Portfolio 1,949,459 45.84 89,363,223
Fidelity Value Fund 250,709 46.35 11,620,352
Fidelity Government Income Fund 328,805 10.14 3,334,078
Fidelity Retirement Growth Fund 443,875 20.51 9,103,881
Fidelity Overseas Fund 154,619 35.98 5,563,208
Fidelity Europe Fund 239,771 33.48 8,027,545
Fidelity Pacific Basin Fund 67,868 13.22 897,213
Fidelity Real Estate Investment Portfolio 233,330 15.54 3,625,941
Fidelity Balanced Fund 148,804 16.36 2,434,436
Fidelity International Growth and Income Fund 86,644 20.91 1,811,728
Fidelity Capital Appreciation Fund 178,808 22.07 3,946,296
Fidelity Canada Fund 14,795 13.99 206,986
Fidelity Utilities Fund 309,476 23.18 7,173,659
Fidelity Asset Manager 341,174 17.39 5,933,024
Fidelity Worldwide Fund 224,775 16.53 3,715,531
Fidelity Stock Selector 388,840 28.71 11,163,594
Fidelity Asset Manager Growth 446,683 18.68 8,344,030
Fidelity Asset Manager Income 203,611 12.32 2,508,485
Fidelity Dividend Growth Fund 1,763,283 28.73 50,659,107
Fidelity New Markets Income Fund 209,955 8.99 1,887,493
Fidelity Global Balanced Fund 16,299 16.92 275,775
Fidelity Small Capital Selector Fund 538,553 14.19 7,642,066
Fidelity International Bond Fund 24,074 9.11 219,313
--------------
$4,237,924,875
==============
</TABLE>
11
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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.
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 1998 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.
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 paid 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.
12
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS, CONTINUED
7. OTHER, CONTINUED:
$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.
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.
13
<PAGE> 16
FORD MOTOR COMPANY TAX-EFFICIENT SAVINGS PLAN FOR HOURLY EMPLOYEES
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
as of December 31, 1998
<TABLE>
<CAPTION>
(c)
(b) DESCRIPTION OF INVESTMENT,
IDENTITY OF ISSUER, INCLUDING MATURITY DATE, (e)
LESSOR, BORROWER RATE OF INTEREST, COLLATERAL, (d) CURRENT
(a) OR SIMILAR PARTY PAR OR MATURITY VALUE COST** VALUE
- --- ------------------------- ------------------------------------------------------------ --------------- ----------------
<S> <C> <C> <C> <C>
* Fidelity Investments Interest Income Fund, 721,359,594 units $ 721,359,594
* Fidelity Investments T. Rowe Price Spectrum Growth Fund, 169,931 units 2,795,357
* Fidelity Investments Scudder International Fund, 53,032 units 2,582,643
* Fidelity Investments Vanguard LifeStrategy Conservative Growth Fund, 77,466 units 1,139,526
* Fidelity Investments T. Rowe Price Spectrum Growth Fund, 199,880 units 2,298,617
* Fidelity Investments Scudder International Bond Fund, 29,451 units 318,658
* Fidelity Investments Vanguard LifeStrategy Moderate Growth Fund, 104,819 units 1,767,252
* Fidelity Investments T. Rowe Price New Horizons Fund, 680,389 units 15,880,283
* Fidelity Investments Scudder Global Fund 39,849 units 1,142,870
* Fidelity Investments Vanguard LifeStrategy Growth Fund, 181,268 units 3,406,021
* Fidelity Investments T. Rowe Price International Stock Fund, 418,232 units 6,269,292
* Fidelity Investments Scudder Global Discovery Fund, 37,990 units 877,560
* Fidelity Investments Vanguard 500 Index Fund, 628,796 units 71,651,275
* Fidelity Investments T. Rowe Price International Discovery Fund, 22,872 units 357,945
* Fidelity Investments Scudder Income Fund, 96,849 units 1,282,284
* Fidelity Investments Vanguard Value Index Fund, 235,920 units 5,310,554
* Fidelity Investments T. Rowe Price New Asia Fund, 682,124 units 3,417,442
* Fidelity Investments Scudder Growth and Income Fund, 457,418 units 12,034,661
* Fidelity Investments Vanguard Growth Index Fund, 970,723 units 30,742,783
* Fidelity Investments T. Rowe Price High Yield Fund, 476,084 units 3,980,060
* Fidelity Investments Scudder Greater Europe Growth Fund, 607,636 units 16,120,595
* Fidelity Investments Vanguard Explorer Fund, 28,102 units 1,593,676
* Fidelity Investments T. Rowe Price New Era Fund, 77,209 units 1,527,198
* Fidelity Investments Scudder Japan Fund, 157,339 units 1,310,633
* Fidelity Investments Vanguard International Value Fund, 36,914 units 926,172
* Fidelity Investments T. Rowe Price Latin America Fund, 423,438 units 2,883,611
Barclays Global Investors Bond Fund, 1,225,556 units 18,714,241
* Ford Motor Company Ford Stock Fund, 134,899,885 units 2,499,694,864
Comerica Bank, N.A. Common Stock Fund, 5,154,148 units 307,444,900
* Ford Motor Company Associates Stock Fund, 311,679 units 5,526,065
* Fidelity Investments Fidelity Fund, 450,994 units 16,546,955
* Fidelity Investments Fidelity Puritan Fund, 429,699 8,624,050
* Fidelity Investments Fidelity Trend Fund, 19,620 units 1,091,291
* Fidelity Investments Fidelity Magellan Fund, 701,275 units 84,728,087
* Fidelity Investments Fidelity Contrafund, 1,722,582 units 97,825,431
* Fidelity Investments Fidelity Equity-Income Fund, 353,975 units 19,663,294
* Fidelity Investments Fidelity Growth Company Fund, 450,534 units 22,986,221
* Fidelity Investments Fidelity Investment Grade Bond Fund, 358,045 units 2,645,950
* Fidelity Investments Fidelity Growth and Income Portfolio, 1,949,459 units 89,363,223
* Fidelity Investments Fidelity Value Fund, 250,709 units 11,620,352
* Fidelity Investments Fidelity Government Income Fund, 328,805 units 3,334,078
* Fidelity Investments Fidelity Retirement Growth Fund, 443,875 units 9,103,881
</TABLE>
14
<PAGE> 17
FORD MOTOR COMPANY TAX-EFFICIENT SAVINGS PLAN FOR HOURLY EMPLOYEES
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES, CONTINUED
<TABLE>
<CAPTION>
(c)
(b) DESCRIPTION OF INVESTMENT,
IDENTITY OF ISSUER, INCLUDING MATURITY DATE, (e)
LESSOR, BORROWER RATE OF INTEREST, COLLATERAL, (d) CURRENT
a) OR SIMILAR PARTY PAR OR MATURITY VALUE COST** VALUE
- --- ------------------------- ------------------------------------------------------------ --------------- ----------------
<S> <C> <C> <C> <C>
* Fidelity Investments Fidelity Overseas Fund, 154,619 units $ 5,563,208
* Fidelity Investments Fidelity Europe Fund, 239,771 units 8,027,545
* Fidelity Investments Fidelity Pacific Basin Fund, 67,868 units 897,213
* Fidelity Investments Fidelity Real Estate Invesment Porfolio Fund, 233,330 units 3,625,941
* Fidelity Investments Fidelity Balanced Fund, 148,804 units 2,434,436
* Fidelity Investments Fidelity International Growth and Income Fund, 86,644 units 1,811,728
* Fidelity Investments Fidelity Capital Appreciation Fund, 178,808 units 3,946,296
* Fidelity Investments Fidelity Canada Fund, 14,795 units 206,986
* Fidelity Investments Fidelity Utilities Fund, 309,476 units 7,173,659
* Fidelity Investments Fidelity Asset Manager, 341,174 units 5,933,024
* Fidelity Investments Fidelity Worldwide Fund, 224,775 units 3,715,531
* Fidelity Investments Fidelity Stock Selector, 388,840 units 11,163,594
* Fidelity Investments Fidelity Asset Manager Growth, 446,683 units 8,344,030
* Fidelity Investments Fidelity Asset Manager Income, 203,611 units 2,508,485
* Fidelity Investments Fidelity Dividend Growth Fund, 1,763,283 units 50,659,107
* Fidelity Investments Fidelity New Markets Income Fund, 209,955 units 1,887,493
* Fidelity Investments Fidelity Global Balanced Fund, 16,299 units 275,775
* Fidelity Investments Fidelity Small Capital Selector Fund, 538,553 units 7,642,066
* Fidelity Investments Fidelity International Bond Fund, 24,074 units 219,313
* Participant Loans Participant loans, interest rates varying from 6.0 to 11.0 percent 176,558,128
--------------
$4,414,483,003
==============
</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 1998. Current
values also include interest and dividends receivable.
*Denotes party-in-interest
**Not required per Department of Labor Reporting
15
<PAGE> 18
FORD MOTOR COMPANY TAX-EFFICIENT SAVINGS PLAN FOR HOURLY EMPLOYEES
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1998
<TABLE>
<CAPTION>
IDENTITY OF PURCHASE SELLING LEASE EXPENSES COST
PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE RENTAL INCURRED OF ASSET
- ------------------ ---------------------- ------------ -------------- ---------- ------------ -------------
<S> <C> <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:
256 Purchases $1,315,658,448 $1,315,658,448
253 Sales $1,049,770,801 1,049,770,801
Ford Motor Company Ford Stock Fund: 1,647,611,196 923,653,678
252 Purchases 1,167,529,701
253 Sales
REPORTING CRITERION IV: Single transactions
with a nonregulated
entity in excess of
five percent of
current value of
plan assets.
None.
<CAPTION>
CURRENT
IDENTITY OF VALUE NET GAIN
PARTY INVOLVED OF ASSET OR (LOSS)
- ------------------ ------------- -----------
<S> <C> <C>
REPORTING CRITERION I:
REPORTING CRITERION II:
REPORTING CRITERION III:
Fidelity Investments
$1,315,658,448
1,049,770,801
Ford Motor Company
1,167,529,701 $243,876,023
REPORTING CRITERION IV:
</TABLE>
16
<PAGE> 19
EXHIBIT INDEX
Sequential
Page Number
Designation Description at Which Found
- ----------- ----------- --------------
Exhibit 23 Consent of PricewaterhouseCoopers LLP
<PAGE> 1
EXHIBIT 23
[PRICEWATERHOUSECOOPERS LETTERHEAD]
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, 333-58701 and 333-47445 on Form S-8
We consent to the incorporation by reference in the above Registration
Statements of our report dated June 7, 1999, 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, 1998 and 1997,
and for the year ended December 31, 1998, which is included in this Annual
Report on Form 11-K.
/s/PricewaterhouseCoopers LLP
400 Renaissance Center
Detroit, Michigan 48243
June 15, 1999
