<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report January 28, 1999
(Date of earliest event reported)
FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3950 38-0549190
(Commission File Number) (IRS Employer Identification No.)
The American Road, Dearborn, Michigan 48121
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
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Item 5. Other Events.
- ----------------------
News release dated January 28, 1999 and slide presentation, filed as
Exhibits 20.1 and 20.2 to this Current Report on Form 8-K, are incorporated by
reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
EXHIBITS
--------
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 20.1 News release dated January 28, 1999 Filed with this Report
Exhibit 20.2 Slide presentation Filed with this Report
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the date indicated.
FORD MOTOR COMPANY
---------------------------
(Registrant)
Date: January 28, 1999 By:/s/Kathryn S. Lamping
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Kathryn S. Lamping
Assistant Secretary
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EXHIBIT INDEX
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DESIGNATION DESCRIPTION
- ----------- -----------
Exhibit 20.1 News release dated January 28, 1999
Exhibit 20.2 Slide presentation
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EXHIBIT 20.1
[FORD LOGO] | NEWS RELEASE
|
FOR IMMEDIATE RELEASE
Contact: John W. Spelich Mats Edenborg
Ford Motor Company AB Volvo
313-322-1524 +46-31-591126 or +46-708-591126
FORD REACHES AGREEMENT TO BUY VOLVO'S
WORLDWIDE PASSENGER VEHICLE BUSINESS
DEARBORN, Mich., January 28, 1999 -- Ford Motor Company [NYSE: F] has reached an
agreement with AB Volvo to buy its worldwide passenger vehicle business, Volvo
Cars, for a price of $6.45 billion.
"Our 21st century vision is to become the world's leading consumer company that
provides automotive products and services," said Ford Chairman William Clay
Ford, Jr. "The addition of Volvo is a meaningful step toward achieving this
vision."
"Volvo is a premium automotive brand with unique appeal that represents a good
opportunity to profitably extend our lineup and grow the Ford business
worldwide," said Jacques Nasser, Ford president and chief executive officer.
"Volvo is a perfect complement to the Ford family of brands worldwide. Volvo has
a world-class reputation for safety, quality, durability and environmental
responsibility - all of which are attributes that are increasingly important to
our customers, and fit with our 21st century vision for Ford Motor Company."
<PAGE> 2
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"The proposed sale of Volvo Cars to Ford will have very important benefits to
the parties concerned," said Leif Johansson, president of AB Volvo and chief
executive officer of the Volvo Group. "Volvo Cars' future prospects will, by
being an important part of one of the world's largest and most profitable
automotive groups, improve considerably."
Nasser said that Ford is pleased to be able to expand its technology and
research capabilities through this transaction, as well as expand its operations
in Sweden. "Ford has been operating in Sweden since 1924, and today we sell
passenger and commercial vehicles through a network of 87 dealers there. We have
been serving our Swedish customers for 75 years," Nasser said. "We are not just
in Sweden, we are part of Sweden. And, through our new relationship with Volvo,
we plan to be part of the fabric of the country for many years to come."
Ford will take ownership of all of Volvo Cars' facilities worldwide, including
three major assembly plants and two powertrain plants in Europe and Volvo's
passenger vehicle product development center in Gothenburg, Sweden. Ford will
have the right to use the Volvo brand for passenger vehicles including cars,
minivans, sport utility vehicles and light trucks on a perpetual basis. Volvo
has the right to use the Volvo brand for commercial vehicles and its
non-automotive-related products.
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"By adding Volvo as our seventh global automotive brand, we expect to generate
increased revenue and profitability while broadening the choices that we at Ford
provide our customers, and strengthening our image," Nasser said. "Volvo Cars
has a strong demographic and regional appeal that fits well with other Ford
products. In addition, Volvo's fine global distribution network will give us
added flexibility to grow our other brands."
This transaction is subject to regulatory and Volvo shareholder approval.
"The agreed price represents full and fair value to the Volvo shareholders and
excellent long-term value to the Ford shareholders," said Ford. "We expect
increased annual earnings through a combination of expanded product lineup,
volume growth, global economies of scale in engineering resources and
purchasing, and platform and manufacturing synergies."
Ford Motor Company is the world's second largest automaker. Its automotive
brands include Aston Martin, Ford, Jaguar, Lincoln, Mazda and Mercury. Its
automotive-related services include Ford Credit, Quality Care, Hertz and Visteon
Automotive Systems.
# # #
<PAGE> 1
EXHIBIT 20.2
SLIDE 1 OF 13
[FORD LOGO]
[VOLVO LOGO]
FORD REACHES AGREEMENT TO BUY
VOLVO'S CAR BUSINESS
<PAGE> 2
SLIDE 2 OF 13
OVERVIEW OF FORD MOTOR COMPANY
- - WORLD'S MOST PROFITABLE AUTOMAKER WITH STRONG FINANCIAL RESOURCES
- - WORLD'S LARGEST TRUCK MANUFACTURER AND SECOND LARGEST CAR & TRUCK
MANUFACTURER
- - MANUFACTURING, VEHICLE ASSEMBLY, OR SALES OPERATIONS IN MORE THAN 30
COUNTRIES
- - WORLDWIDE VEHICLE SALES OF 6.8 MILLION UNITS THROUGH A NETWORK OF 15,800
DEALERS IN OVER 200 COUNTRIES
- - DIVERSE, GLOBAL TEAM OF 364,000 EMPLOYEES
- - ANNUAL SALES OF $144 BILLION -- RANKS FORD 2ND ON FORTUNE 500 LIST OF
LARGEST COMPANIES
<PAGE> 3
SLIDE 3 OF 13
FORD MOTOR COMPANY INCLUDES SIX
GREAT AUTOMOTIVE BRANDS . . .
[MERCURY LOGO] [FORD LOGO] [LINCOLN LOGO]
[JAGUAR LOGO] [ASTON MARTIN LOGO]
[MAZDA LOGO]
<PAGE> 4
SLIDE 4 OF 13
AND FOUR GREAT
AUTOMOTIVE-RELATED BRANDS
[VISTEON LOGO] [FORD CREDIT LOGO]
[QUALITYCARE LOGO] [HERTZ LOGO]
<PAGE> 5
SLIDE 5 OF 13
[FORD LOGO] 21ST CENTURY VISION
"WORLD'S LEADING CONSUMER COMPANY FOR
AUTOMOTIVE PRODUCTS & SERVICES"
SOURCES OF COMPETITIVE ADVANTAGE:
- - STRONG GLOBAL BRANDS
- - SUPERIOR CUSTOMER SATISFACTION & LOYALTY
- - BEST TOTAL VALUE TO CONSUMERS
- - NIMBLE ORGANIZATION WITH LEADERS AT ALL LEVELS
- - RESPONSIBLE IN CORPORATE CITIZENSHIP
<PAGE> 6
SLIDE 6 OF 13
WHY IS VOLVO IMPORTANT TO FORD?
- - PREMIUM BRAND WITH UNIQUE APPEAL
- - INCREMENTAL GROWTH OPPORTUNITY
- - ECONOMIES OF SCALE
- - GIVES FORD LEADING PORTFOLIO OF LUXURY BRANDS
VOLVO IS A UNIQUE, PREMIUM BRAND THAT PROVIDES FORD AN
OPPORTUNITY FOR PROFITABLE GROWTH & ECONOMIES OF SCALE,
& STRENGTHENS FORD'S PORTFOLIO
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SLIDE 7 OF 13
FORD PLANS FOR VOLVO
- - NURTURE VOLVO'S STRONG BRAND
- - VALUE VOLVO'S SWEDISH HERITAGE, MANAGEMENT & EMPLOYEES
- - CONTINUE STRONG R & D FUNCTION IN SWEDEN
- - EXTEND PRODUCT RANGE & GROW VOLUME
- - LEVERAGE FORD ECONOMIES OF SCALE & DISTRIBUTION SYSTEM
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SLIDE 8 OF 13
FORD & VOLVO COMBINED AUTOMOTIVE DATA
<TABLE>
<CAPTION>
FORD
VOLVO CAR FORD WITH VOLVO
--------- ---- ----------
FINANCIAL RESULTS (1997) (1998)
- -----------------
<S> <C> <C> <C>
REVENUE (BILS.) $13 $144 $ 157
NET INCOME (BILS.) $0.4 $5.9 $6.3
RETURN ON SALES 3.2% 4.0% 3.9%
OPERATING FACTORS
- -----------------
EMPLOYEES (000) 28 364 392
UNIT VOLUME (000) 386 6,823 7,209
WW MARKET SHARE 0.7% 13.0% 13.7%
</TABLE>
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SLIDE 9 OF 13
VOLVO SALES COMPLEMENT FORD
VOLVO
[PIE CHART]
<TABLE>
<CAPTION>
NORTH
AMERICA ROW EUROPE
<S> <C> <C> <C>
400,000 UNITS 25% 15% 60%
</TABLE>
FORD
[PIE CHART]
<TABLE>
<CAPTION>
NORTH
AMERICA ROW EUROPE
<S> <C> <C> <C>
6,800,000 UNITS 64% 9% 27%
</TABLE>
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SLIDE 10 OF 13
VOLVO BRAND FITS WELL UNDER FORD'S UMBRELLA
& GIVES FORD A LEADING LUXURY PORTFOLIO
FORD MOTOR COMPANY
INGENIOUS . . . CARING
SERVICES VEHICLES
[MERCURY LOGO]
INNOVATIVE
INDIVIDUALISTIC
EXPRESSIVE
[MAZDA LOGO]
STYLISH
SPIRITED
INSIGHTFUL
[FORD LOGO]
GENUINE
PROGRESSIVE
SMART
[LINCOLN LOGO]
AMERICAN
LUXURY
[VOLVO LOGO]
THOUGHTFUL
SUBSTANTIAL
UNDERSTATED
[JAGUAR LOGO]
ELEGANT
SENSUOUS
ORIGINAL W/
REFINED
POWER
[ASTON MARTIN LOGO]
THE MOST
EXCLUSIVE
CLUB
[FORD CREDIT LOGO]
SERVICE
VALUE
TRUST
[RED CARPET LEASE LOGO]
LOYALTY;
FLEXIBILITY
[QUALITYCARE LOGO]
RELIABLE;
CONVENIENT
SERVICE
[HERTZ LOGO]
SUPERIOR GLOBAL SERVICE
SPEED & CONVENIENCE
COMPETITIVE PRICES
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SLIDE 11 OF 13
VOLVO BUYERS ARE CLEARLY DIFFERENT
FROM JAGUAR & LINCOLN
FEMALE BUYERS
[BAR GRAPH]
<TABLE>
<CAPTION>
VOLVO JAGUAR LINCOLN
<S> <C> <C>
51% 31% 26%
</TABLE>
AGE GROUP CONCENTRATION
[BAR GRAPH]
<TABLE>
<CAPTION>
VOLVO JAGUAR LINCOLN
<S> <C> <C> <C>
21-33 YRS. 14% 3% 1%
34-53 YRS. 56% 38% 16%
54 & UP YRS. 30% 59% 83%
</TABLE>
SOURCE: 1998 NEW VEHICLE CUSTOMER SURVEY - U.S. CAR DATA
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SLIDE 12 OF 13
GROWING OUR LUXURY PORTFOLIO
[BAR GRAPH]
<TABLE>
<S> <C>
1998 250,000
2000 750,000
POTENTIAL 1 MILLION
</TABLE>
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SLIDE 13 OF 13
SUMMARY
- - FORD IS A STRONG & WELL RESPECTED GLOBAL COMPANY
- - VOLVO FITS WELL IN THE FORD FAMILY & GIVES FORD A LEADING LUXURY PORTFOLIO
- - FORD PLANS TO GROW VOLVO WHILE ENHANCING ITS PREMIUM BRAND POSITION
- - FORD VALUES VOLVO'S RICH HERITAGE, MANAGEMENT & PEOPLE
VOLVO ACQUISITION PROVIDES EXCELLENT FIT WITH FORD
& OPPORTUNITY FOR GROWTH, WHILE
MAINTAINING VOLVO'S PREMIUM BRAND & RICH HERITAGE
