UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND
- -----EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999 OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
- -----EXCHANGE ACT OF 1934
For the transition period from to
---------- -----------
Commission file number 1-3950
------
FORD MOTOR COMPANY
------------------
(Exact name of registrant as specified in its charter)
Incorporated in Delaware 38-0549190
------------------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
The American Road, Dearborn, Michigan 48121
---------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 313-322-3000
------------
Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 193 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes |X|. No .
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date: As of September 30, 1999, the Registrant had outstanding 1,137,032,916
shares of Common Stock and 70,852,076 shares of Class B Stock.
Exhibit index located on sequential page number 25
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
HIGHLIGHTS
----------
Third Quarter Nine Months
---------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Worldwide vehicle unit sales of
cars and trucks (in thousands)
- - North America 1,050 993 3,507 3,174
- - Outside North America 549 496 1,795 1,835
----- ----- ----- -----
Total 1,599 1,489 5,302 5,009
----- ----- ----- -----
----- ----- ----- -----
Sales and revenues (in millions)
- - Automotive $ 31,338 $ 26,494 $ 99,192 $86,879
- - Financial Services 6,635 6,146 18,948 19,634
--------- --------- --------- ---------
Total $ 37,973 $ 32,640 $ 118,140 $ 106,513
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income (in millions)
- - Automotive $ 690 $ 646 $ 4,272 $ 3,932
- - Financial Services (excl. The Associates) 424 355 1,159 964
- - The Associates - - - 177
- - Gain on spin-off of The Associates - - - 15,955
--------- --------- --------- ---------
Total $ 1,114 $ 1,001 $ 5,431 $ 21,028
--------- --------- --------- ---------
--------- --------- --------- ---------
Capital expenditures (in millions)
- - Automotive $ 1,931 $ 1,908 $ 5,024 $ 5,668
- - Financial Services 150 147 435 398
--------- --------- --------- ---------
Total $ 2,081 $ 2,055 $ 5,459 $ 6,066
--------- --------- --------- ---------
--------- --------- --------- ---------
Automotive capital expenditures as a
percentage of sales 6.2% 7.2% 5.1% 6.5%
Stockholders' equity at September 30
- - Total (in millions) $ 26,921 $ 23,718 $ 26,921 $ 23,718
- - After-tax return on Common and
Class B stockholders' equity 16.8% 17.2% 28.7% 28.0%
Automotive net cash at September 30
(in millions)
- - Cash and marketable securities $ 25,703 $ 22,911 $ 25,703 $ 22,911
- - Debt 12,819 9,822 12,819 9,822
--------- --------- --------- ---------
Automotive net cash $ 12,884 $ 13,089 $ 12,884 $ 13,089
--------- --------- --------- ---------
--------- --------- --------- ---------
After-tax return on sales
- - North American Automotive 4.5% 4.5% 6.3% 5.7%
- - Total Automotive 2.2% * 2.5% 4.3% * 4.6%
Shares of Common and Class B Stock
(in millions)
- - Average number outstanding 1,209 1,212 1,210 1,211
- - Number outstanding at September 30 1,208 1,210 1,208 1,210
Common Stock price (per share)
(adjusted to reflect The Associates
spin-off)
- - High $58-5/8 $61-7/16 $67-7/8 $61-7/16
- - Low 46-1/4 40-5/8 46-1/4 28-15/32
AMOUNTS PER SHARE OF COMMON AND CLASS B
STOCK AFTER PREFERRED STOCK DIVIDENDS
Income assuming dilution
- - Automotive $ 0.56 $ 0.52 $ 3.45 $ 3.16
- - Financial Services (excl. The Associates) 0.34 0.28 0.94 0.78
- - The Associates - - - 0.14
- - Premium on Series B Preferred Stock repurchase - - - (0.07)
- - Gain on spin-off of The Associates - - - 12.89
--------- --------- --------- ---------
Total $ 0.90 $ 0.80 $ 4.39 $ 16.90
--------- --------- --------- ---------
--------- --------- --------- ---------
Cash dividends $ 0.46 $ 0.42 $ 1.38 $ 1.26
_ _ _ _ _
* Total Automotive after-tax return on sales, excluding a $125 million profit
reduction for Visteon postretirement health care and life insurance
liabilities, was 2.6% in the third quarter of 1999 and 4.5% for the first nine
months of 1999.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
VEHICLE UNIT SALES
------------------
For the Periods Ended September 30, 1999 and 1998
(in thousands)
Third Quarter Nine Months
------------------------ --------------------------
1999 1998 1999 1998
-------- -------- -------- --------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
North America
United States
Cars 376 377 1,228 1,136
Trucks 596 545 2,015 1,770
----- ----- ----- -----
Total United States 972 922 3,243 2,906
Canada 50 51 188 193
Mexico 28 20 76 75
----- ----- ----- -----
Total North America 1,050 993 3,507 3,174
Europe
Britain 134 105 396 396
Germany 72 78 273 301
Italy 39 31 149 149
Spain 38 27 135 109
France 37 35 129 117
Other countries 100 71 353 282
----- ----- ----- -----
Total Europe 420 347 1,435 1,354
Other international
Brazil 35 50 90 144
Australia 32 34 96 98
Taiwan 13 17 45 65
Argentina 16 22 44 81
Japan 8 6 25 20
Other countries 25 20 60 73
----- ----- ----- -----
Total other international 129 149 360 481
----- ----- ----- -----
Total worldwide vehicle unit sales 1,599 1,489 5,302 5,009
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
Vehicle unit sales generally are reported worldwide on a "where sold" basis and
include sales of all Ford-badged units, as well as units manufactured by Ford
and sold to other manufacturers.
Prior period restated to correct reported unit sales.
-3-
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<TABLE>
<CAPTION>
Part I. Financial Information
-----------------------------
Item 1. Financial Statements
- -----------------------------
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended September 30, 1999 and 1998
(in millions)
Third Quarter Nine Months
-------------------------- --------------------------
1999 1998 1999 1998
---------- ----------- ----------- ----------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
AUTOMOTIVE
Sales $31,338 $26,494 $99,192 $86,879
Costs and expenses (Note 2)
Costs of sales 28,070 23,848 86,211 75,358
Selling, administrative and other expenses 2,258 1,869 6,686 6,016
------- ------- ------- -------
Total costs and expenses 30,328 25,717 92,897 81,374
Operating income 1,010 777 6,295 5,505
Interest income 356 322 1,044 962
Interest expense 390 198 1,029 605
------- ------- ------- -------
Net interest income/(expense) (34) 124 15 357
Equity in net income/(loss) of affiliated companies 15 23 65 31
Net expense from transactions with
Financial Services (17) (56) (62) (143)
------- ------- ------- -------
Income before income taxes - Automotive 974 868 6,313 5,750
FINANCIAL SERVICES
Revenues 6,635 6,146 18,948 19,634
Costs and expenses
Interest expense 1,988 1,830 5,701 6,025
Depreciation 2,333 2,220 6,881 6,415
Operating and other expenses 1,206 1,114 3,304 3,783
Provision for credit and insurance losses 383 393 1,146 1,461
------- ------- ------- -------
Total costs and expenses 5,910 5,557 17,032 17,684
Net revenue from transactions with Automotive 17 56 62 143
Gain on spin-off of The Associates (Note 5) - - - 15,955
------- ------- ------- -------
Income before income taxes - Financial Services 742 645 1,978 18,048
------- ------- ------- -------
TOTAL COMPANY
Income before income taxes 1,716 1,513 8,291 23,798
Provision for income taxes 569 482 2,772 2,646
------- ------- ------- -------
Income before minority interests 1,147 1,031 5,519 21,152
Minority interests in net income of subsidiaries 33 30 88 124
------- ------- ------- -------
Net income $ 1,114 $ 1,001 $ 5,431 $21,028
------- ------- ------- -------
------- ------- ------- -------
Income attributable to Common and Class B Stock
after preferred stock dividends $ 1,110 $ 997 $ 5,420 $20,925
Average number of shares of Common and Class B
Stock outstanding 1,209 1,212 1,210 1,211
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic Income (Note 6) $ 0.92 $ 0.82 $ 4.49 $ 17.29
Diluted Income (Note 6) $ 0.90 $ 0.80 $ 4.39 $ 16.90
Cash dividends $ 0.46 $ 0.42 $ 1.38 $ 1.26
</TABLE>
The accompanying notes are part of the financial statements.
Prior period costs of sales and selling, administrative and other expenses were
reclassified.
-4-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
(in millions)
September 30, December 31,
1999 1998
--------------- ----------------
(unaudited)
<S> <C> <C>
ASSETS
Automotive
Cash and cash equivalents $ 4,039 $ 3,685
Marketable securities 21,664 20,120
-------- --------
Total cash and marketable securities 25,703 23,805
Receivables 3,622 2,604
Inventories (Note 7) 7,218 5,656
Deferred income taxes 3,377 3,239
Other current assets 3,651 3,405
Current receivable from Financial Services 910 0
-------- --------
Total current assets 44,481 38,709
Equity in net assets of affiliated companies 2,514 2,401
Net property 41,356 37,320
Deferred income taxes 3,682 3,175
Other assets 12,538 7,139
-------- --------
Total Automotive assets 104,571 88,744
Financial Services
Cash and cash equivalents 1,239 1,151
Investments in securities 733 968
Net receivables and lease investments 141,139 132,567
Other assets 17,723 13,227
Receivable from Automotive 1,985 888
-------- --------
Total Financial Services assets 162,819 148,801
-------- --------
Total assets $267,390 $237,545
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 13,356 $ 13,368
Other payables 4,453 2,755
Accrued liabilities 20,546 16,925
Income taxes payable 1,590 1,404
Debt payable within one year 1,429 1,121
Current payable to Financial Services 0 70
-------- --------
Total current liabilities 41,374 35,643
Long-term debt 11,390 8,713
Other liabilities 33,509 30,133
Deferred income taxes 1,294 751
Payable to Financial Services 1,985 818
-------- --------
Total Automotive liabilities 89,552 76,058
Financial Services
Payables 3,655 3,555
Debt 131,973 122,324
Deferred income taxes 7,217 5,488
Other liabilities and deferred income 6,487 6,034
Payable to Automotive 910 0
-------- --------
Total Financial Services liabilities 150,242 137,401
Company-obligated mandatorily redeemable preferred securities of a subsidiary
trust holding solely junior subordinated debentures of the Company (Note 8) 675 677
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference
of $177 million) * *
Common Stock, par value $1.00 per share (1,151 million shares issued) 1,151 1,151
Class B Stock, par value $1.00 per share (71 million shares issued) 71 71
Capital in excess of par value of stock 5,017 5,283
Accumulated other comprehensive income (1,861) (1,670)
ESOP loan and treasury stock (865) (1,085)
Earnings retained for use in business 23,408 19,659
-------- --------
Total stockholders' equity 26,921 23,409
-------- --------
Total liabilities and stockholders' equity $267,390 $237,545
-------- --------
-------- --------
- - - - -
*Less than $1 million
</TABLE>
The accompanying notes are part of the financial statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
Ford Motor Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
For the Periods Ended September 30, 1999 and 1998
(in millions)
Nine Months 1999 Nine Months 1998
--------------------------- --------------------------
Financial Financial
Automotive Services Automotive Services
------------- ----------- ------------- -----------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents at January 1 $ 3,685 $ 1,151 $ 6,316 $ 1,618
Cash flows from operating activities before securities trading 11,909 7,908 11,570 11,060
Net sales/(purchases) of trading securities (1,248) (148) (3,473) (114)
-------- -------- ------- --------
Net cash flows from operating activities 10,661 7,760 8,097 10,946
Cash flows from investing activities
Capital expenditures (5,024) (435) (5,668) (398)
Purchase of leased assets - - (110) -
Acquisitions of receivables and lease investments - (61,657) - (62,031)
Collections of receivables and lease investments - 40,800 - 44,147
Net acquisitions of daily rental vehicles - (2,025) - (1,854)
Purchases of securities (1,681) (759) (341) (1,838)
Sales and maturities of securities 1,385 988 570 1,229
Proceeds from sales of receivables and lease investments - 9,520 - 8,146
Net investing activity with Financial Services (430) - 187 -
Cash paid for acquisitions (Note 4) (6,342) - - -
Other 286 (4) (80) (768)
-------- -------- ------- --------
Net cash used in investing activities (11,806) (13,572) (5,442) (13,367)
Cash flows from financing activities
Cash dividends (1,682) (3) (4,787) (4)
Issuance/(Purchases) of Common Stock (265) - 207 -
Preferred stock - Series B repurchase, Series A redemption - - (420) -
Changes in short-term debt 36 (2,210) 518 (1,063)
Proceeds from issuance of other debt 3,128 26,925 2,279 19,245
Principal payments on other debt (192) (18,796) (1,273) (14,745)
Net financing activity with Automotive - 430 - (187)
Spin-off of The Associates cash - - - (508)
Other 340 (62) (851) (218)
-------- -------- ------- --------
Net cash (used in)/provided by financing activities 1,365 6,284 (4,327) 2,520
Effect of exchange rate changes on cash (53) (197) (49) 70
Net transactions with Automotive/Financial Services 187 (187) 552 (552)
-------- -------- ------- --------
Net increase/(decrease) in cash and cash equivalents 354 88 (1,169) (383)
-------- -------- ------- --------
Cash and cash equivalents at September 30 $ 4,039 $ 1,239 $ 5,147 $ 1,235
-------- -------- ------- --------
-------- -------- ------- --------
</TABLE>
The accompanying notes are part of the financial statements.
-6-
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein are unaudited,
but in the opinion of management reflect those adjustments necessary for a
fair presentation of such information. Results for interim periods should
not be considered indicative of results for a full year. Reference should
be made to the financial statements contained in the registrant's Annual
Report on Form 10-K (the "10-K Report") for the year ended December 31,
1998. For purposes of this report, "Ford", the "Company", "we", "our",
"us" or similar references means Ford Motor Company and its majority owned
subsidiaries unless the context requires otherwise. Certain amounts for
prior periods were reclassified to conform with present period
presentation.
2. Selected Automotive costs and expenses are summarized as follows (in
millions):
Third Quarter Nine Months
--------------------- ---------------------
1999 1998 1999 1998
--------- -------- --------- --------
Depreciation $874 $719 $2,422 $2,078
Amortization 627 755 1,789 2,093
Dissolution of AutoEuropa Joint Venture - Effective January 1, 1999, our
joint venture for the production of minivans with Volkswagen AG in
Portugal (AutoEuropa) was dissolved resulting in a $255 million pre-tax
gain ($165 million after-tax) in the first quarter of 1999.
3. Visteon Postretirement Adjustments - During the third quarter of 1999,
actuarial valuations of postretirement health care and life insurance
benefits for certain Visteon operations were completed by an external
actuary. The valuations revealed that the operations' estimated liability
for these benefits was under-accrued, beginning with the original
recognition of these costs in 1992 when we adopted SFAS 106 "Employers'
Accounting for Postretirement Benefits Other Then Pensions". We increased
the affected operations' balance sheet liability to recognize the accrual
shortfall. We reported the adjustment in total Automotive sector and
reduced third quarter results by $125 million after-tax. Visteon reflected
the adjustment in its results on a restated basis.
4. Acquisitions
Purchase of AB Volvo's Worldwide Passenger Car Business "Volvo Car" -
On March 31, 1999, we purchased Volvo Car for approximately $6.45
billion. The acquisition price consisted of a cash payment of
approximately $2 billion on March 31, 1999, a deferred payment
obligation to AB Volvo of approximately $1.6 billion due March 31,
2001, and Volvo Car automotive net indebtedness of approximately $2.9
billion. Most automotive indebtedness was repaid on April 12, 1999.
The purchase price payment and automotive debt repayments were funded
from our cash reserves.
The acquisition has been accounted for as a purchase. The assets
purchased, liabilities assumed and the results of operations, since
the date of acquisition, are included in our financial statements on
a consolidated basis.
The purchase price for Volvo Car has been allocated, on a preliminary
basis, to the assets acquired and liabilities assumed based on the
estimated fair values as of the acquisition date. The excess of the
purchase price over the estimated fair value of net assets acquired
is approximately $2.5 billion and is being amortized on a
straight-line basis over 40 years. The purchase price allocation
included a write-up of inventory to fair value; the sale of this
inventory in the second quarter of 1999 resulted in a one-time
increase in cost of sales of $146 million after-tax.
Purchase of Kwik-Fit Holdings plc - During the third quarter of 1999,
we completed the purchase of all the outstanding stock of Kwik-Fit Plc
("Kwik-Fit"). Kwik-Fit is Europe's largest independent vehicle
maintenance and light repair chain, with over 1,600 service centers
in the United Kingdom, Ireland, and continental Europe. The
acquisition price was approximately $1.6 billion and consisted of
cash payments of approximately $1.4 billion and loan notes to certain
Kwik-Fit shareholders of approximately $0.2 billion, redeemable
beginning on April 30, 2000 and on any subsequent interest payment
date. The purchase price payments were funded from our cash reserves.
The acquisition has been accounted for as a purchase. The assets
purchased, liabilities assumed and the results of operations, since
the date of acquisition, are included in our financial statements on
a consolidated basis.
The purchase price for Kwik-Fit has been allocated, on a preliminary
basis, to the assets acquired and liabilities assumed based on the
estimated fair values as of the acquisition date. The excess of the
purchase price over the estimated fair value of the net assets
acquired is approximately $1.5 billion and is being amortized on a
straight-line basis over 30 years.
-7-
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
4. Acquisitions (Continued)
Purchase of Plastic Omnium - On June 30, 1999, we purchased (through
Visteon) Plastic Omnium's automotive interior business for
approximately $500 million. The automotive interior business of
Plastic Omnium has 14 facilities in four countries in Europe: France,
Spain, Italy and the UK. The purchase was funded from our cash
reserves.
The acquisition has been accounted for as a purchase. The assets
purchased, liabilities assumed and the results of operations, since
the date of acquisition, are included in our financial statements on
a consolidated basis.
The purchase price for Plastic Omnium has been allocated, on a
preliminary basis, to the assets acquired and liabilities assumed
based on estimated fair values as of the acquisition date. The excess
of the purchase price over the estimated fair value of net assets
acquired is approximately $300 million and is being amortized on a
straight-line basis over 20 years.
Assuming the acquisitions described above had taken place on January 1,
1999 and 1998, Ford (Automotive and Financial Services) pro forma revenue,
net income, and earnings per share for the third quarter and nine months
ended September 30, 1999 would not be materially affected. For the third
quarter and nine months ended September 30, 1998, unaudited pro forma
revenue would have been $35.9 billion and $116.6 billion, respectively.
Net income and earnings per share for these periods would not be materially
affected.
5. Spin-off of The Associates - On March 2, 1998, our Board of Directors
approved the spin-off of Associates First Capital Corporation ("The
Associates") by declaring a dividend on Ford's outstanding shares of
Common and Class B Stock consisting of Ford's 80.7% interest (279.5
million shares) in The Associates. The Board of Directors also declared a
dividend in cash on shares of Company stock held in U.S. employee savings
plans equal to the market value of The Associates stock distributed per
share of the Company's Common and Class B Stock. Both the spin-off
dividend and the cash dividend were paid on April 7, 1998 to stockholders
of record on March 12, 1998.
Holders of Ford Common and Class B Stock on the record date received
0.262085 shares of The Associates common stock for each share of Ford
stock, and participants in U.S. employee savings plans on the record date
received $22.12 in cash per share of Ford stock, based on the
volume-weighted average price of The Associates stock of $84.3849 per
share on April 7, 1998. The total value of the distribution (including the
$3.2 billion cash dividend) was $26.8 billion or $22.12 per share of Ford
stock.
As a result of the spin-off of The Associates, Ford realized a gain of
$15,955 million based on the fair value of The Associates as of the record
date, March 12, 1998, in the first quarter of 1998. Ford received a ruling
from the U.S. Internal Revenue Service that the distribution qualified as
a tax-free transaction for U.S. federal income tax purposes.
The Company's results in the first quarter of 1998 include Ford's share of
The Associates earnings through the record date, March 12 ($177 million,
or $0.14 a share).
-8-
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
(unaudited)
6. Income Per Share of Common and Class B Stock - Basic income per share of
Common and Class B Stock is calculated by dividing the income attributable
to Common and Class B Stock by the average number of shares of Common and
Class B Stock outstanding during the applicable period, adjusted for
shares issuable under employee savings and compensation plans.
The Company had Series A Preferred Stock convertible into Common Stock
until January 9, 1998. Other obligations, such as stock options, are
considered to be dilutive potential common stock. The calculation of
diluted income per share of Common and Class B Stock takes into account
the effect of dilutive potential common stock.
Income per share of Common and Class B Stock was as follows (in millions,
except per share amounts):
<TABLE>
<CAPTION>
Third Quarter 1999 Third Quarter 1998
----------------------- -----------------------
Income Shares Income Shares
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net income $1,114 1,209 $ 1,001 1,212
Preferred stock dividend requirements (4) - (4) -
Issuable and uncommitted ESOP shares - (3) - (3)
------ ----- ------- -----
Basic income and shares $1,110 1,206 $ 997 1,209
Basic income per share $ 0.92 $ 0.82
Basic income and shares $1,110 1,206 $ 997 1,209
Net dilutive effect of options - 25 - 31
Convertible preferred stock and other (1) - - -
------ ----- ------- -----
Diluted income and shares $1,109 1,231 $ 997 1,240
Diluted income per share $ 0.90 $ 0.80
Nine Months 1999 Nine Months 1998
----------------------- -----------------------
Income Shares Income Shares
----------- ---------- ---------- ----------
Net income $5,431 1,210 $21,028 1,211
Preferred stock dividend requirements (11) - (103) -
Issuable and uncommitted ESOP shares - (4) - (1)
------ ----- ------- -----
Basic income and shares $5,420 1,206 $20,925 1,210
Basic income per share $ 4.49 $ 17.29
Basic income and shares $5,420 1,206 $20,925 1,210
Net dilutive effect of options - 29 - 28
Convertible preferred stock and other (1) - (1) -
------ ----- ------- -----
Diluted income and shares $5,419 1,235 $20,924 1,238
Diluted income per share $ 4.39 $ 16.90
7. Automotive Inventories are summarized as follows (in millions):
September 30, December 31,
1999 1998
------------ -----------
Raw materials, work in process and supplies $2,989 $2,887
Finished products 4,229 2,769
------ ------
Total inventories $7,218 $5,656
------ ------
------ ------
U.S. inventories $2,400 $1,832
8. Company-Obligated Mandatorily Redeemable Preferred Securities of a
Subsidiary Trust - The sole asset of Ford Motor Company Capital Trust I
(the "Trust"), which is the obligor on the Preferred Securities of such
Trust, is $632 million principal amount of 9% Junior Subordinated
Debentures due 2025 of Ford Motor Company.
</TABLE>
-9-
<PAGE>
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
(unaudited)
9. Comprehensive Income - Other comprehensive income includes foreign
currency translation adjustments, minimum pension liability adjustments,
and net unrealized gains and losses on investments in equity securities.
Total comprehensive income is summarized as follows (in millions):
<TABLE>
<CAPTION>
Third Quarter Nine Months
----------------------- ----------------------
1999 1998 1999 1998
--------- --------- --------- --------
<S> <C> <C> <C> <C>
Net income $1,114 $1,001 $5,431 $21,028
Other comprehensive income 312 281 (191) 13
------ ------ ------ -------
Total comprehensive income $1,426 $1,282 $5,240 $21,041
------ ------ ------ -------
------ ------ ------ -------
</TABLE>
10. Segment Information - Ford has identified four primary operating segments:
Automotive, Visteon, Ford Credit and Hertz. Segment selection was based
upon internal organizational structure, the way in which these operations
are managed and their performance evaluated by management and our Board of
Directors, the availability of separate financial results and materiality
considerations. Segment detail is summarized as follows (in millions):
<TABLE>
<CAPTION>
Automotive Sector Financial Services Sector
----------------------- ----------------------------------- Total Total
Third Quarter Auto- Ford Other Elims/ Auto Fin Svcs
motive Visteon Credit Hertz Fin Svcs Other Sector Sector
----------- ----------- ----------- --------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1999
- ----
Revenues
External customer $ 30,645 $ 761 $ 5,034 $ 1,339 $ 258 $ (64) $ 31,338 $ 6,635
Intersegment 647 3,839 98 9 43 (4,636) 0 0
-------- ------- -------- ------- ------- -------- -------- --------
Total Revenues $ 31,292 $ 4,600 $ 5,132 $ 1,348 $ 301 $ (4,700) $ 31,338 $ 6,635
-------- ------- -------- ------- ------- -------- -------- --------
-------- ------- -------- ------- ------- -------- -------- --------
Net income $ 657 $ 155 $ 317 $ 139 $ (6) $ (148) b/ $ 690 $ 424
1998
- ----
Revenues
External customer $ 26,191 $ 377 $ 4,603 $ 1,220 $ 316 $ (67) $ 26,494 $ 6,146
Intersegment 496 3,720 72 8 34 (4,330) 0 0
-------- ------- -------- ------- ------- -------- -------- --------
Total Revenues $ 26,687 $ 4,097 $ 4,675 $ 1,228 $ 350 $ (4,397) $ 26,494 $ 6,146
-------- ------- -------- ------- ------- -------- -------- --------
-------- ------- -------- ------- ------- -------- -------- --------
Net income $ 496 $ 148 $ 272 $ 119 $ (13) $ (21) $ 646 $ 355
Automotive Sector Financial Services Sector
----------------------- ----------------------------------- Total Total
Nine Months Auto- Ford Other Elims/ Auto Fin Svcs
motive Visteon Credit Hertz Fin Svcs Other Sector Sector
----------- ----------- ----------- ---------- ------------ ----------- ----------- -----------
1999
- ----
Revenues
External customer $ 97,787 $ 1,627 $ 14,825 $ 3,528 $ 594 $ (221) $ 99,192 $ 18,948
Intersegment 3,352 12,808 246 25 136 (16,567) 0 0
-------- ------- -------- ------- ------- -------- -------- --------
Total Revenues $101,139 $14,435 $ 15,071 $ 3,553 $ 730 $(16,788) $ 99,192 $ 18,948
-------- ------- -------- ------- ------- -------- -------- --------
-------- ------- -------- ------- ------- -------- -------- --------
Net income $ 3,749 $ 640 $ 952 $ 276 $ (15) $ (171) b/ $ 4,272 $ 1,159
Total assets $ 97,254 $11,941 $147,877 $10,159 $12,264 $(12,105) $104,571 $162,819
1998
- ----
Revenues
External customer $ 86,099 $ 1,046 $ 13,881 $ 3,158 $ 2,578 $ (249) $ 86,879 $ 19,634
Intersegment 2,983 12,154 204 23 138 (15,502) 0 0
-------- ------- -------- ------- ------- -------- -------- --------
Total Revenues $ 89,082 $13,200 $ 14,085 $ 3,181 $ 2,716 $(15,751) $ 86,879 $ 19,634
-------- ------- -------- ------- ------- -------- -------- --------
-------- ------- -------- ------- ------- -------- -------- --------
Net income $ 3,352 $ 574 $ 850 $ 229 $16,103 a/$ (80) $ 3,932 $ 17,096
Total assets $ 82,305 $ 9,509 $126,623 $ 8,951 $ 9,634 $ (8,508) $ 88,242 $140,272
_ _ _ _ _
</TABLE>
a/ Includes $15,955 non-cash gain (not taxed) on spin-off of The Associates in
the first quarter of 1998 (Note 5).
b/ Includes $125 million after-tax charge related to postretirement health
care and life insurance adjustments at certain Visteon operations (Note 3).
"Other Financial Services" data is an aggregation of miscellaneous smaller
Financial Services Sector business components, including Ford Motor Land
Development Corporation, Ford Leasing Development Company, Ford Leasing
Corporation, and Granite Management Corporation, and certain unusual
transactions (footnoted). Also included is data for The Associates, which was
spun-off from Ford in 1998.
"Eliminations/Other" data includes intersegment eliminations and minority
interest calculations. Interest income for the operating segments in the
Financial Services Sector is reported as "Revenue". Included in the Visteon
segment's external customer revenues are sales to outside fabricators for
inclusion in components sold to Ford's Automotive segment.
-10-
<PAGE>
[PricewaterhouseCoopers LLP letterhead]
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders
Ford Motor Company
We have reviewed the accompanying consolidated balance sheet of Ford Motor
Company and its subsidiaries as of September 30, 1999, the related consolidated
statement of income for each of the three-month and nine-month periods ended
September 30, 1999 and 1998, and the condensed consolidated statement of cash
flows for the nine-month periods ended September 30, 1999 and 1998. These
financial statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying consolidated interim financial statements
for them to be in conformity with generally accepted accounting principles.
We previously audited in accordance with generally accepted auditing standards,
the consolidated balance sheet as of December 31, 1998, and the related
consolidated statements of income, stockholders' equity, and of cash flows for
the year then ended (not presented herein), and in our report dated January 21,
1999, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
consolidated balance sheet as of December 31, 1998, is fairly stated in all
material respects in relation to the consolidated balance sheet from which it
has been derived.
/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
October 14, 1999
-11-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
- ------------------------------------------------------------------------
OVERVIEW
Our third quarter 1999 results and financial condition discussed below
include the third quarter 1999 results and financial condition of AB Volvo's
worldwide passenger car business ("Volvo Car"), which we purchased on
March 31, 1999.
Our worldwide net income was $1,114 million in the third quarter of 1999,
or $0.90 per diluted share of Common and Class B Stock. These earnings include
a non-recurring profit reduction of $125 million, or $0.10 per diluted share,
to adjust postretirement healthcare and life insurance liabilities of our
Visteon automotive systems operations, reflecting an actuarial valuation
completed during the third quarter of 1999. (See Note 3 of the Notes to
Financial Statements.) In the third quarter of 1998, earnings were $1,001
million, or $0.80 per diluted share. Our worldwide sales and revenues were $38
billion in the third quarter of 1999, up $5.3 billion from a year ago. The
increase in sales and revenues reflects primarily the contribution from recent
acquisitions and a richer vehicle mix. Vehicle unit sales of cars and trucks
were 1,599,000, up 110,000 units. Stockholders' equity was $26.9 billion
at September 30, 1999, up $3.5 billion from December 31, 1998.
THIRD QUARTER RESULTS OF OPERATIONS
Results of our operations by business sector for the third quarter of 1999
and 1998 are shown below (in millions).
<TABLE>
<CAPTION>
Third Quarter
Net Income/(Loss)
--------------------------------------
1999
O/(U)
1999 1998 1998
------------ ------------ -----------
<S> <C> <C> <C>
Automotive Sector $ 690 $ 646 $ 44
Financial Services Sector 424 355 69
------ ------ ----
Total Company $1,114 $1,001 $113
------ ------ ----
------ ------ ----
</TABLE>
Automotive Sector
- -----------------
Worldwide earnings for our Automotive sector were $690 million in the
third quarter of 1999, including the $125 million adjustment for retiree
benefits, on sales of $31.3 billion. Earnings in the third quarter of 1998 were
$646 million on sales of $26.5 billion. Adjusted for constant volume and mix,
total automotive costs were down $300 million compared with the third quarter of
1998.
Details of third quarter Automotive sector earnings are shown below (in
millions).
<TABLE>
<CAPTION>
Third Quarter
Net Income/(Loss)
--------------------------------------
1999
O/(U)
1999 1998 1998
------------ ------------ -----------
<S> <C> <C> <C>
North American Automotive $1,004 $ 900 $ 104
Automotive Outside North America
- Europe (171) (273) 102
- South America (72) (44) (28)
- Other 54 63 (9)
----- ----- -----
Total Automotive Outside
North America (189) (254) 65
Visteon postretirement adjustment (125) - (125)
------ ----- -----
Total Automotive Sector $ 690 $ 646 $ 44
------ ----- -----
------ ----- -----
</TABLE>
-12-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
Automotive sector earnings in North America were $1,004 million in the
third quarter of 1999 on sales of $22.7 billion. In the third quarter of 1998,
earnings were $900 million on sales of $20.2 billion. The increase in earnings
reflects primarily improved sales volume and mix of light trucks and luxury
cars, offset partially by costs of $88 million for employee separation programs.
The after-tax return on sales for our North American Automotive sector was 4.5%
in the third quarter of 1999, unchanged from a year ago.
In the third quarter of 1999, approximately 4.5 million new cars and
trucks were sold in the United States, up 700,000 units from a year ago. Our
share of those unit sales was 23.1% in the third quarter of 1999, down 2.7
percentage points from a year ago. The decline in market share reflects
primarily capacity constraints on several key products due to the strong United
States market and General Motors Corporation's recovery from last year's labor
strike.
Our Automotive sector losses in Europe were $171 million in the third
quarter of 1999, compared with a loss of $273 million a year ago. The improved
results reflect lower costs and improved share of premium vehicle segments,
offset partially by lower share for Ford-branded vehicles. Based on the present
forecast, we do not expect to achieve our 1999 milestone for Europe to improve
operating earnings year-over-year.
In the third quarter of 1999, approximately 4.1 million new cars and
trucks were sold in Europe, up 100,000 units from a year ago. Our share of
those unit sales was 11.1% in the third quarter of 1999, up 1.1 percentage
points from a year ago. Our market share increase is more than accounted for by
the addition of Volvo Car sales.
The European market remains fiercely competitive as a result of industry
overcapacity and we will continue to work to balance our capacity with demand.
We must continue to strengthen the Ford brand and leverage our Volvo and Jaguar
brands to grow their volume and profitability. We are committed to improve our
business in Europe, but it will take at least 2 to 3 years before we achieve
acceptable returns.
Our Automotive sector in South America had losses of $72 million in the
third quarter of 1999, compared with losses of $44 million a year ago. The
deterioration in earnings reflects primarily lower industry volume driven by
the weak economy in Brazil, the largest vehicle market in the region, and lower
market share in Brazil.
In the third quarter of 1999, approximately 359,000 new cars and trucks
were sold in Brazil, compared with 405,000 a year ago. Our share of those unit
sales was 8.7% in the third quarter of 1999, down 4.3 percentage points from a
year ago. The decline in market share reflects primarily model changeover for
the Fiesta and Courier, and increased competition from new and existing
manufacturers who are aggressively competing for the lower industry volume.
Our Visteon operations, included in our Automotive sector, earned $155
million on revenues of $4,600 million in the third quarter of 1999. Earnings in
the third quarter of 1998 were $148 million, on revenues of $4,097 million.
These earnings exclude the effect of the adjustment for retiree benefits, which
has been reflected retroactively in Visteon's financial statements. The
earnings increase compared with last year reflects primarily improved volume
and mix, and material cost reductions, offset partially by revenue reductions,
unfavorable foreign currency exchange effects, and higher interest expense.
Visteon's after-tax return on sales in the third quarter of 1999 was 3.6%,
unchanged from a year ago.
-13-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
Financial Services Sector
- -------------------------
Earnings of our Financial Services sector consist primarily of two
segments, Ford Credit and Hertz. Details of third quarter Financial Services
sector earnings are shown below (in millions).
<TABLE>
<CAPTION>
Third Quarter
Net Income/(Loss)
--------------------------------------
1999
O/(U)
1999 1998 1998
----------- ----------- -----------
<S> <C> <C> <C>
Ford Credit $317 $272 $45
Hertz 139 119 20
Minority interests, Eliminations,
and Other (32) (36) 4
---- ---- ---
Total Financial Services Sector $424 $355 $69
---- ---- ---
---- ---- ---
Memo: Ford's share of earnings in
Hertz $113 $ 96 $17
</TABLE>
Ford Credit's consolidated net income in the third quarter of 1999 was
$317 million, up $45 million or 16% from 1998. The increase in earnings
reflects primarily higher financing volumes, improved credit loss performance
and lower effective tax rates, offset partially by costs related to employee
separation programs.
Earnings at Hertz in the third quarter of 1999 were $139 million (of which
$113 million was Ford's share), compared with earnings of $119 million (of
which $96 million was Ford's share) a year ago.
FIRST NINE MONTHS RESULTS OF OPERATIONS
Results of our operations by business sector for the first nine months of
1999 and 1998 are shown below (in millions).
<TABLE>
<CAPTION>
Nine Months
Net Income/(Loss)
--------------------------------------
1999
O/(U)
1999 1998 1998
------------ ------------ -----------
<S> <C> <C> <C>
Automotive Sector $4,272 $ 3,932 $ 340
Financial Services Sector (excluding The
Associates) 1,159 964 195
Gain on Spin-Off of The Associates - 15,955 (15,955)
The Associates (net of Minority Interest) - 177* (177)
------ ------- --------
Total Company $5,431 $21,028 $(15,597)
------ ------- --------
------ ------- --------
_ _ _ _ _
* Through March 12, 1998
</TABLE>
Our worldwide earnings in the first nine months of 1999 were $5,431
million. Earnings in the first nine months of 1998 were $21,028 million. This
includes Ford's share of the income from The Associates of $177 million and a
one-time, non-cash gain of $15,955 million related to the spin-off of The
Associates. Worldwide sales and revenues in the first nine months of 1999 were
$118.1 billion, up $11.6 billion from a year ago. Vehicle unit sales of cars
and trucks were 5,302,000, up 293,000 units.
-14-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
Automotive Sector
- -----------------
Worldwide earnings for our Automotive sector were $4,272 million in the
first nine months of 1999, on sales of $99.2 billion. Earnings in the first
nine months of 1998 were $3,932 million on sales of $86.9 billion. The earnings
improvement reflects primarily lower costs and improved sales volume and mix,
offset partially by lower net interest income and non-recurring items netting
to a $106 million reduction in earnings. The non-recurring items reflect a
$165 million gain from the sale of our interest in AutoEuropa to Volkswagen AG
in the first quarter of 1999, more than offset by a $146 million one-time
inventory-related profit reduction for Volvo Car in the second quarter of 1999,
and a $125 million Visteon-related postretirement adjustment in the third
quarter of 1999.
Automotive sector earnings in the first nine months of 1999 and 1998 are
shown below (in millions).
<TABLE>
<CAPTION>
Nine Months
Net Income/(Loss)
----------------------------------------
1999
O/(U)
1999 1998 1998
------------ ------------ ------------
<S> <C> <C> <C>
North American Automotive $4,561 $3,565 $ 996
Automotive Outside North America
- Europe 83 267 (184)
- South America (357) (75) (282)
- Other 110 175 (65)
----- ------ -----
Total Automotive Outside
North America (164) 367 (531)
Visteon postretirement adjustment (125) - (125)
----- ------ -----
Total Automotive Sector $4,272 $3,932 $ 340
----- ------ -----
----- ------ -----
</TABLE>
Automotive sector earnings in North America were $4,561 million in the
first nine months of 1999, up $996 million from the first nine months of 1998.
The increase reflects primarily increased sales volume, an improved mix of
light trucks and luxury cars, and lower material cost, offset partially by
lower net interest income and costs related to employee separation programs.
The North American Automotive after-tax return on sales was 6.3% in the first
nine months of 1999, up 6/10 of a percentage point from a year ago.
In the first nine months of 1999, approximately 13.3 million new cars and
trucks were sold in the United States, up 1.3 million units from a year ago.
Our share of those unit sales was 24% in the first nine months of 1999, down
7/10 of a percentage point from a year ago. The decrease in market share
reflects primarily capacity constraints on several key products due to the
strong United States market and General Motors Corporation's recovery from last
year's labor strike.
Automotive sector earnings in Europe in the first nine months of 1999 were
$83 million, down $184 million from the first nine months a year ago. The
deterioration is explained by lower market share for Ford-branded vehicles,
primarily Mondeo and Fiesta, and unfavorable vehicle mix, offset partially by
lower total costs and improved share of the premium vehicle segments.
In the first nine months of 1999, approximately 13.2 million new cars and
trucks were sold in Europe, up 750,000 units from a year ago. Our share of
those unit sales was 10.7% in the first nine months of 1999, unchanged from a
year ago.
-15-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
Automotive sector losses in South America were $357 million in the first
nine months of 1999, compared with a loss of $75 million in the first nine
months a year ago. The deterioration reflects primarily the same factors as
those described in the discussion of third quarter results of operations. In
the first nine months of 1999, approximately 964,000 new cars and trucks were
sold in Brazil, compared with 1,210,000 a year ago. Our share of those unit
sales was 9.4% in the first nine months of 1999, down 4.1 percentage points
from a year ago. The decline in market share reflects primarily shortages of
dealer stocks because of an earlier carrier strike and increased competition
from new and existing manufacturers who are aggressively competing for the
lower industry volume.
Visteon earned $640 million on revenues of $14,435 million in the first
nine months of 1999, compared with $574 million on revenues of $13,200 million
in the first nine months a year ago. The increase in earnings reflects
primarily improved volume and mix, material and manufacturing cost reductions,
offset partially by revenue reductions and unfavorable foreign currency exchange
effects. The after-tax return on sales was 4.5% in the first nine months of
1999, up 2/10 of a percentage point from a year ago.
Financial Services Sector
- -------------------------
Financial Services sector earnings in the first nine months of 1999 and
1998 are shown below (in millions).
<TABLE>
<CAPTION>
Nine Months
Net Income/(Loss)
---------------------------------------
1999
O/(U)
1999 1998 1998
------------ ------------ -----------
<S> <C> <C> <C>
Ford Credit $ 952 $ 850 $ 102
Hertz 276 229 47
Minority interests, Eliminations,
and Other (69) (115) 46
------ ------ --------
Financial Services (excluding
The Associates) 1,159 964 195
The Associates - 177* (177)
Gain on Spin-off of
The Associates - 15,955 (15,955)
------ ------- --------
Total Financial Services Sector $1,159 $17,096 $(15,937)
------ ------- --------
------ ------- --------
Memo: Ford's share of earnings in
Hertz $ 224 $ 185 $ 39
_ _ _ _ _
* Through March 12, 1998
</TABLE>
Ford Credit's consolidated net income for the first nine months of 1999
was $952 million, up $102 million or 12% from a year ago. The increase in
earnings reflects primarily higher financing volumes, improved credit loss
performance and lower effective tax rates, offset partially by lower net
financing margins.
LIQUIDITY AND CAPITAL RESOURCES
Automotive Sector
- -----------------
At September 30, 1999, our Automotive sector had $25.7 billion of cash and
marketable securities, up $1.9 billion from December 31, 1998.
Automotive capital expenditures, including the effect of adopting the
accounting change for the capitalization of computer software (Statement of
Position 98-1), totaled $5 billion in the first nine months of 1999, down $700
million from the first nine months of 1998.
-16-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
At September 30, 1999, our Automotive sector had total debt of $12.8
billion, compared with $9.8 billion at December 31, 1998. The increase in debt
is more than explained by long-term debt issuances totaling $3.3 billion.
Automotive debt was 32% of our total capitalization (that is, the sum of our
stockholders' equity and Automotive debt) at the end of the third quarter of
1999, two percentage points above the percentage of Automotive debt to total
capitalization at December 31, 1998.
At September 30, 1999, Ford had long-term contractually committed global
credit agreements under which $8.6 billion is available from various banks;
86% are available through June 30, 2004. The entire $8.6 billion may be used,
at our option, by any affiliate of Ford; however, any borrowing by an affiliate
will be guaranteed by Ford. We also have the ability to transfer on a
nonguaranteed basis $8.3 billion of such credit lines in varying portions to
Ford Credit and FCE Bank plc (formerly known as Ford Credit Europe plc). In
addition, at September 30, 1999, $297 million of contractually committed credit
facilities were available to various Automotive sector affiliates outside the
U.S. Approximately $142 million of these facilities were in use at
September 30, 1999.
Financial Services Sector
- -------------------------
At September 30, 1999, our Financial Services sector had cash and cash
equivalents totaling $1.2 billion, unchanged from December 31, 1998.
Net receivables and lease investments were $141.1 billion at September 30,
1999, up $8.5 billion from December 31, 1998.
Total debt was $132 billion at September 30, 1999, up $9.6 billion from
December 31, 1998.
Outstanding commercial paper at September 30, 1999 totaled $41 billion at
Ford Credit, and $1.5 billion at Hertz, with an average remaining maturity of
33 days and 31 days, respectively.
At September 30, 1999, Financial Services Sector had a total of $27.2
billion of contractually committed support facilities (excluding the $8.3
billion available under Ford's global credit agreements). Of these facilities,
$23 billion are contractually committed global credit agreements under which
$18.3 billion and $4.7 billion are available to Ford Credit and FCE Bank plc,
respectively, from various banks; 54% and 66%, respectively of such facilities
are available through June 30, 2004. The entire $18.3 billion may be used, at
Ford Credit's option, by any subsidiary of Ford Credit, and the entire $4.7
billion may be used, at FCE Bank plc's option, by any subsidiary of
FCE Bank plc. Any borrowings by such subsidiaries will be guaranteed by Ford
Credit or FCE Bank plc, as the case may be. At September 30, 1999, $71 million
of the Ford Credit global facilities were in use and $235 million of the
FCE Bank plc global facilities were in use. Other than the global credit
agreements, the remaining portion of the Financial Services Sector support
facilities at September 30, 1999 consisted of $2.5 billion of contractually
committed support facilities available to Hertz in the U.S. and $1.7 billion of
contractually committed support facilities available to various affiliates
outside the U.S.; at September 30, 1999, approximately $0.9 billion of these
facilities were in use. Furthermore, banks provide $1,475 million of liquidity
facilities to support the asset-backed commercial paper program of a Ford Credit
sponsored special purpose entity.
NEW ACCOUNTING STANDARDS
New Standards
- -------------
Statement of Financial Accounting Standards No. 133 ("SFAS 133"),
"Accounting for Derivative Instruments and Hedging Activities," was issued by
the Financial Accounting Standards Board in June 1998. This Statement
establishes accounting and reporting standards for derivative instruments,
including certain derivative instruments embedded in other contracts, and for
hedging activities. It requires
-17-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
- -------------------------------------------------------------------------------
recognition of all derivatives as either assets or liabilities on the balance
sheet and measurement of those instruments at fair value. If certain conditions
are met, a derivative may be designated specifically as (a) a hedge of the
exposure to changes in the fair value of a recognized asset or liability or an
unrecognized firm commitment referred to as a fair value hedge, (b) a hedge of
the exposure to variability in cash flows of a forecasted transaction (a cash
flow hedge), or (c) a hedge of the foreign currency exposure of a net investment
in a foreign operation, an unrecognized firm commitment, an available-for-sale
security, or a forecasted transaction. We anticipate having each of these types
of hedges, and we will comply with the requirements of SFAS 133 when we adopt
it. Based on the May 1999 announcement by the Financial Accounting Standards
Board to delay the implementation date by one year, we expect to adopt SFAS 133
beginning January 1, 2001. We have not yet determined the effect of adopting
SFAS 133.
OTHER FINANCIAL INFORMATION
PricewaterhouseCoopers LLP, our independent public accountants, performed
a limited review of the financial data presented on pages 2 through 10
inclusive. The review was performed in accordance with standards for such
reviews established by the American Institute of Certified Public Accountants.
The review did not constitute an audit; accordingly, PricewaterhouseCoopers LLP
did not express an opinion on the aforementioned data. The financial data
include any material adjustments or disclosures proposed by
PricewaterhouseCoopers LLP as a result of their review.
-18-
<PAGE>
Part II. Other Information
--------------------------
Item 1. Legal Proceedings
- --------------------------
Product Liability Matters
- -------------------------
Bronco Rollover Jury Verdict. (Previously discussed under Product Liability
Matters in the Legal Proceedings section of Ford's Quarterly Report on Form
10-Q for the quarter ended June 30, 1999 (the "Second Quarter 10-Q Report").)
On September 16, 1999, the trial court granted Ford's motion for a new trial as
to punitive damages, overturning the $290 million punitive award. The court
denied Ford's motion as to compensatory damages. We plan to appeal, seeking a
new trial as to all issues.
Class Actions
- -------------
Flat Glass. (Previously discussed under Class Actions in the Legal
Proceedings section of Ford's Annual Report on Form 10-K for year ended
December 31, 1998 (the "10-K Report").) Pilkington, AFG Industries and Guardian
Industries have entered into a tentative settlement agreement with plaintiffs
in the consolidated case. The tentative accord requires these entities to pay
$53.7 million in settlement. Ford and PPG Industries are the only remaining
defendants. On October 6, 1999, the court heard oral argument concerning
plaintiff's motion for class certification. On November 5, 1999, the trial
judge granted plaintiffs' motion for class certification and certified two
subclasses: (1) all individuals and entities who, between August 1, 1995, and
December 31, 1995, purchased flat glass products in the U.S. from defendants,
and (2) all individuals and entities who, between August 1, 1991 and
December 31, 1995, purchased from defendants fabricated automotive replacement
glass for domestic makes of cars in the U.S. We plan to appeal this ruling.
Paint. (Previously discussed under Class Actions in the Legal Proceedings
section of the 10-K Report.) There are three purported class actions currently
pending against Ford alleging defects in the paint process used on several
million vehicles in various model years from 1983 through 1997: Sheldon,
pending in Texas state court, Nienhuis, pending in Illinois state court, and
Judy, recently filed in California state court. (In the Landry case, a
previously reported paint class action pending in Louisiana, the trial court
refused to certify a class and the Court of Appeals refused to hear an
interlocutory appeal from this order before trial. In the Clayman case, another
previously reported paint class action filed in Pennsylvania state court, the
trial court granted Ford's motion to dismiss.) Plaintiffs in these purported
class action cases allege claims for fraud, breach of warranty, and violations
of consumer protection statutes because the paint on their vehicles peeled.
They contend that their paint is defective because Ford did not use spray
primer between the high-build electrocoat ("HBEC") and the color coat. The lack
of spray primer allegedly causes the adhesion of the color coat to the HBEC to
deteriorate after extended exposure to ultraviolet radiation from sunlight.
Plaintiffs also allege that Ford knew of the defect and they seek punitive as
well as compensatory damages. In Judy, Plaintiffs also seek "disgorgement" of
the profits Ford allegedly gained from using the defective paint process.
Ford's motion to dismiss is pending in Judy. In Nienhuis, Plaintiff is seeking
leave to voluntarily dismiss his complaint (although his attorneys might also
seek leave to substitute another named plaintiff). As previously reported, the
trial court in Sheldon certified two subclasses of Texas residents for trial,
the Texas Court of Appeals affirmed, and the Texas Supreme Court granted review.
We expect a decision from the Texas Supreme Court at any time.
Ford/Citibank Visa. (Previously discussed under Class Actions in the Legal
Proceedings section of the 10-K Report.) On October 29, 1999, the federal court
dismissed the consolidated proceedings for lack of jurisdiction and sent each
action back to the state court in which it originated. We have appealed this
ruling.
-19-
<PAGE>
Item 1. Legal Proceedings (Continued)
- -------------------------
Ignition Switch. (Previously discussed under Class Actions in the Legal
Proceedings section of the 10-K Report.) Most of the non-incident class actions
consolidated for pretrial proceedings in New Jersey have been voluntarily
dismissed; only one remains (Rick), and Plaintiff in that case is seeking to
amend his complaint to strike the class action allegations. In addition,
Plaintiffs have agreed to dismiss the two non-incident class actions pending in
California (Stern and Carr). One non-incident class action remains pending in
Illinois (Fisher); we have filed a motion for summary judgment in that case.
In the one remaining incident class, Snodgrass, Plaintiffs have filed a renewed
motion to certify a class. That motion will be heard on November 19, 1999.
In the related subrogation actions filed by State Farm and the California
State Automobile Association Inter-insurance Bureau in California, and
consolidated for pretrial proceedings in New Jersey, final rulings on Ford's
motions to dismiss have effectively been deferred until after the cases have
been remanded to California. We expect those cases to be remanded in the near
future.
Lease Agreement Disclosure. (Previously discussed under Class Actions in
the Legal Proceedings sections of the 10-K Report, Ford's Quarterly Report on
Form 10-Q for the quarter ended March 31, 1999 (the "First Quarter 10-Q Report")
and the Second Quarter 10-Q Report.) A Michigan state court dismissed a
purported class action alleging that Ford Credit and Primus leasing contracts
improperly failed to disclose acquisition and administrative fees that are
included in the amount of a customer's monthly lease
payment.
Air Bag. (Previously discussed under Class Actions in the Legal Proceedings
sections of the 10-K Report and the First Quarter 10-Q Report.) The last
remaining airbag class action has been dismissed without prejudice.
Lease Residual. (Previously discussed under Class Actions sections of the
10-K Report.) Ford Credit and each of the individual plaintiffs have settled
the individual claims arising out of Shore v. Ford Credit. The trial court in
Higginbotham v.Ford Credit granted summary judgment against the Plaintiff and
in favor of Ford Credit on all but one claim, and Plaintiff subsequently agreed
to dismiss all of her remaining claims against Ford and Ford Credit. However,
the Plaintiff is now attempting to reactivate her purported class statewide
class action against Ford Credit in Florida and to relitigate the issues
decided against her in Illinois. We are optimistic that the federal court in
Florida will not permit this.
Windstar Transmission. (Previously discussed under Class Actions in the
Legal Proceedings sections of the First Quarter 10-Q Report and in the Second
Quarter 10-Q Report.) On October 27, 1999, the trial court dismissed the
non-California plaintiffs, dismissed all except one count (false advertising),
and ruled that any class that might later be certified will be limited to owners
who experienced a malfunction. The dismissals are without prejudice, and
plaintiffs have 20 days to again amend their complaint. It is therefore
possible (but not likely) that some claims could be reinstated. These rulings
greatly improve our prospects for opposing class certification.
Retail Lessee Insurance Coverage. (Previously discussed under Class
Actions in the Legal Proceedings section of the Second Quarter 10-Q Report.)
Ford has filed a motion for summary judgment based on the policy language and
the intentions of the parties.
Seat Backs. (Previously discussed under Class Actions in the Legal
Proceedings section of the Second Quarter 10-Q Report.) A fifth statewide class
action has been filed in New Hampshire. Motions to dismiss have been or will be
filed in all five cases.
Lifetime Service Guarantee. (Previously discussed under Class Actions in
the Legal Proceedings section of the 10-K Report.) Plaintiffs' motion to
certify a class will be heard by the trial court on November 15, 1999.
-20-
<PAGE>
Item 1. Legal Proceedings (Continued)
- --------------------------
Environmental Matters
- ---------------------
CCA Lawsuit (Previously discussed under Environmental Matters in the Legal
Proceedings section of the 10-K Report). CCA has informed us that it intends to
withdraw its appeal.
Waste Disposal. The United States Environmental Protection Agency ("EPA")
has initiated a civil enforcement action against Ford as a result of Ford
Venezuela's shipment of industrial wastes from its Valencia Assembly Plant in
Venezuela for disposal in Texas. Ford also has received a subpoena and been
notified that it is the subject of a grand jury investigation based on the same
facts. Ford Venezuela shipped the industrial waste to the U.S. for disposal
under the more stringent U.S. disposal requirements because of the
unavailability of adequate disposal facilities in Venezuela and to ensure
proper disposal of the waste. Although Ford believes that the subject waste is
properly classified as non-hazardous under U.S. environmental laws, the EPA
contends that even if the wastes do not exhibit any hazardous characteristics,
they nevertheless may be the product of a process that is automatically
deemed hazardous under applicable regulations. If Ford is determined to have
violated EPA regulations regarding the disposal of hazardous wastes, Ford could
be required to pay substantial fines which could exceed $100,000. It is
impossible at this point in the proceedings to determine what amount, if any,
Ford may be required to pay.
Permit Modification. Ford has received a letter of violation from the
Michigan Department of Environmental Quality alleging that our Rawsonville Plant
located in Michigan failed to obtain a necessary permit modification in
connection with a change in raw material used at the facility. At the agency's
request, Ford has submitted a permit modification application. The failure to
obtain the permit modification could result in a fine in excess of $100,000.
Settlement discussions between Ford and the agency are ongoing.
Ohio Assembly Plant. On September 30, 1999, the EPA filed a complaint and
compliance order against Ford, alleging violations of the Resource Conservation
and Recovery Act ("RCRA") at Ford's Ohio Assembly Plant. The complaint included
a proposed civil penalty. The most significant count in the complaint alleges
that Ford failed to monitor certain paint process equipment at the plant for
air emissions, in violation of RCRA requirements. Ford disputes the EPA's
allegations, including factual assertions and interpretations of law, and has
requested a hearing to contest the charges made in the complaint. Ford expects
to prevail in the challenge to the EPA's complaint. However, if Ford is
unsuccessful, liability in this case may exceed $100,000.
Other Matters
- -------------
OFCCP Proceeding. (Previously discussed under Other Matters in the Legal
Proceedings section of the 10-K Report.) A tentative settlement has been
reached with OFCCP. The settlement addresses all pending compliance
investigations commenced by OFCCP, including the Kentucky matter. The tentative
accord requires the Company to pay $3.8 million in settlement and to hire 75
hourly workers (without retroactive seniority) scattered among nine
manufacturing facilities within three years.
Item 5. Other Information
- ------------------------=
Governmental Standards
- ----------------------
Mobile Source Emissions Control. (Previously discussed in the Governmental
Standards section of the 10-K Report and in the Second Quarter 10-Q Report.)
In October, the EPA proposed new post-2004 emissions standards for "heavy-duty"
trucks (8,500 - 14,000 lbs. gross vehicle weight). These proposed standards are
likely to pose technical challenges and may affect the competitive position of
full-line vehicle manufacturers such as Ford.
-21-
<PAGE>
Item 5. Other Information (Continued)
- -------------------------
Other Information
- -----------------
We have entered into a new collective bargaining agreement with the United
Automobile Workers ("UAW") that will expire on September 14, 2003. The new UAW
agreement will increase Ford's labor costs in respect of employees represented
by the UAW by an average of about 5.5% per year over the term of the contract.
We also have entered into a new collective bargaining agreement with the
Canadian Automobile Workers ("CAW") that will expire on September 21, 2002.
The new CAW agreement will increase Ford's labor costs in respect of employees
represented by the CAW by an average of about 6% per year over the term of the
contract.
All local CAW contracts are settled, but our management at several of our
plants in the United States are continuing to negotiate to resolve local issues
with the UAW. In addition, we will be negotiating new collective bargaining
agreements with labor unions in Europe later this year. A work stoppage could
occur as a result of these negotiations, which, if protracted, could
substantially adversely affect Ford's profits.
As part of the new UAW agreement, we also agreed that in connection with
any spin-off, sale or other transfer of our Visteon operations: (1) all of our
employees who are represented by the UAW and who work at a Visteon facility on
the date of such spin-off, sale or transfer will remain Ford employees
indefinitely and will continue to be covered under our master agreement with
the UAW; (2) Visteon or its successor will continue to use the services of such
employees after any such spin-off, sale or transfer; (3) Visteon or its
successor will agree to adopt a collective bargaining agreement for hourly
employees hired by it after any such spin-off, sale or transfer that has terms
identical to the terms of the current master agreement between Ford and the UAW
and the next two immediately succeeding master agreements between Ford and the
UAW; and (4) Visteon or its successor will be required to provide any
UAW-represented employees hired by it during the terms of the three master
agreements mentioned above with wages, benefits and other terms and conditions
of employment that are identical to those required to be provided from time to
time by Ford to its UAW-represented employees for the duration of such
employee's employment with, and retirement from, Visteon or such successor.
-22-
<PAGE>
<TABLE>
<CAPTION>
Supplemental Schedule
Ford Motor Company
CONDENSED FINANCIAL INFORMATION OF SUBSIDIARY
---------------------------------------------
(in millions)
Ford Capital B.V.
September 30, December 31,
1999 1998
---------------- --------------
(unaudited)
<S> <C> <C>
Current assets $ 654 $ 621
Noncurrent assets 2,412 2,388
------ ------
Total assets $3,066 $3,009
------ ------
------ ------
Current liabilities $ 613 $ 394
Noncurrent liabilities 2,240 2,430
Minority interests in net
assets of subsidiaries 15 15
Stockholder's equity 198 170
------ ------
Total liabilities and
stockholder's equity $3,066 $3,009
------ ------
------ ------
</TABLE>
<TABLE>
<CAPTION>
Third Quarter Nine Months
--------------------- ----------------------
1999 1998 1999 1998
-------- --------- -------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Sales and other revenue $514 $478 $1,896 $1,757
Operating income/(loss) (27) 49 104 79
Income/(Loss) before income taxes (33) 49 71 79
Net income/(loss) (15) 42 46 56
</TABLE>
Ford Capital B.V., a wholly owned subsidiary of Ford Motor Company, was
established primarily for the purpose of raising funds through the issuance of
commercial paper and debt securities. Ford Capital B.V. also holds shares of
the capital stock of Ford Nederland B.V., Ford Motor Company (Belgium) N.V.,
Ford Motor Company A/S (Denmark), Ford Poland S.A., and Ford Distribution Sp.
z.o.o., Ltd. Substantially all of the assets of Ford Capital B.V., other than
its ownership interests in subsidiaries, represent receivables from Ford Motor
Company or its consolidated subsidiaries.
-23-
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
--------
Please refer to the Exhibit Index on page 25.
(b) Reports on Form 8-K
-------------------
The Registrant filed the following Current Reports on Form 8-K
during the quarter ended September 30, 1999:
Current Report on Form 8-K dated July 15, 1999 included information
relating to Ford's issuance of 7.45% Notes due July 16, 2031
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.
FORD MOTOR COMPANY
----------------------------------------
(Registrant)
Date: November 11, 1999 By: /s/ W. A. Swift
----------------------------------
W. A. Swift
Vice President - Corporate Controller
(principal accounting officer)
-24-
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
-------------
Designation Description
------------------------- -----------------------------------------------------------------------------------------
<S> <C>
Exhibit 10 Amendment to Ford Motor Company Deferred Compensation Plan, effective as of
October 29, 1999
Exhibit 12 Ford Motor Company and Subsidiaries Calculation of Ratio of Earnings to
Combined Fixed Charges and Preferred Stock Dividends.
Exhibit 15 Letter of PricewaterhouseCoopers LLP, Independent Public Accountants, dated
November 11, 1999, relating to Financial Information.
Exhibit 27.1 Financial Data Schedule, Automotive Sector, for the Nine Months Ended
September 30, 1999 (included with electronic EDGAR filing only).
Exhibit 27.2 Financial Data Schedule, Financial Services Sector, for the Nine Months Ended
September 30, 1999 (included with electronic EDGAR filing only).
Exhibit 27.3 Financial Data Schedule, Conglomerate Totals, for the Nine Months Ended
September 30, 1999 (included with electronic EDGAR filing only).
</TABLE>
-25-
Exhibit 10
AMENDMENT TO FORD MOTOR COMPANY
DEFERRED COMPENSATION PLAN
--------------------------
(Effective as of October 29, 1999)
Paragraph (f) of Section 4 is amended to read as follows:
"(f) Deferrals of Awards Under AIC Plan and Other Similar Plans.
Notwithstanding anything contained in the Plan to the contrary, subject to
any limitations determined under paragraph (a) or paragraph (e) of this
Section 4, U.S. employees who receive an award payable only in cash under
the AIC Plan, the RPM Plan, the ARC Plan, the PRIMUS Management Incentive
Plan, the Fairlane Credit Management Incentive Plan, the National Recovery
Center Management Incentive Plan, the AMI Leasing, Inc. Executive Incentive
Plan or the AMI Leasing, Inc. Management Incentive Plan are eligible to
defer payment under the Plan from 1% to 100%, in 1% increments, of such
amount net of applicable taxes, but not less than $1,000, provided that
such employees are actively employed by the Company in salary grade 11 or
above or the equivalent at the time of the election to defer. Unless
otherwise determined by the Compensation and Option Committee, deferrals of
cash awards under the AIC Plan, the RPM Plan, the ARC Plan, the PRIMUS
Management Incentive Plan, the Fairlane Credit Management Incentive Plan,
the National Recovery Center Management Incentive Plan, the AMI Leasing,
Inc. Executive Incentive Plan or the AMI Leasing, Inc. Management Incentive
Plan shall be subject to the same terms and conditions of the Plan that
apply to deferrals of awards of supplemental compensation under the SC
Plan. For purposes of the Plan, any references to awards or payments of
supplemental compensation shall be deemed to cover cash awards or cash
payments under the AIC Plan, the RPM Plan, the ARC Plan, the PRIMUS
Management Incentive Plan, the Fairlane Credit Management Incentive Plan,
the National Recovery Center Management Incentive Plan, the AMI Leasing,
Inc. Executive Incentive Plan and the AMI Leasing, Inc. Management
Incentive Plan."
<TABLE>
<CAPTION> Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
----------------------------------------------------------------------------------------
(in millions)
Nine
Months For the Years Ended December 31
------- -----------------------------------------------------------
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Earnings
Income before income taxes $ 8,291 $25,396 $10,939 $ 6,793 $ 6,705 $ 8,789
Equity in net (income)/loss of affiliates
plus dividends from affiliates (21) 78 121 36 179 (182)
Adjusted fixed charges a/ 7,008 9,215 10,911 10,801 10,556 8,122
------- ------- ------- ------- ------- -------
Earnings $15,278 $34,689 $21,971 $17,630 $17,440 $16,729
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Combined Fixed Charges and
Preferred Stock Dividends
Interest expense b/ $ 6,764 $ 8,919 $10,570 $10,464 $10,121 $ 7,787
Interest portion of rental expense c/ 202 245 309 300 396 265
Preferred stock dividend requirements of
majority owned subsidiaries and trusts d/ 41 55 55 55 199 160
------- ------- ------- ------- ------- -------
Fixed charges 7,007 9,219 10,934 10,819 10,716 8,212
Ford preferred stock dividend requirements e/ 17 122 82 95 459 472
------- ------- ------- -------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 7,024 $ 9,341 $11,016 $10,914 $11,175 $ 8,684
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratios
Ratio of earnings to fixed charges 2.2 3.8 f/ 2.0 1.6 1.6 2.0
Ratio of earnings to combined fixed
charges and preferred stock dividends 2.2 3.7 f/ 2.0 1.6 1.6 1.9
</TABLE>
- - - - - -
a/ Fixed charges, as shown above, adjusted to exclude the amount of interest
capitalized during the period and preferred stock dividend requirements of
majority owned subsidiaries and trusts.
b/ Includes interest, whether expensed or capitalized, and amortization of debt
expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc. (1995 - 1993)
increased to an amount representing the pre-tax earnings which would be
required to cover such dividend requirements based on Ford's effective
income tax rates. Beginning in Fourth Quarter 1995, includes requirements
related to company-obligated mandatorily redeemable preferred securities of
a subsidiary trust.
e/ Preferred stock dividend requirements of Ford Motor Company increased to an
amount representing the pre-tax earnings which would be required to cover
such dividend requirements based on Ford Motor Company's effective income
tax rates.
f/ Earnings used in calculation of this ratio include the $15,955 million gain
on the spin-off of The Associates. Excluding this gain, the ratio is 2.0.
Exhibit 15
November 11, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Ford Motor Company Registration Statements Nos. 2-95018, 2-95020, 33-9722,
33-14951, 33-19036, 33-36043, 33-36061, 33-39402, 33-50087, 33-50194,
33-50238, 33-54275, 33-54283, 33-54344, 33-54348, 33-54735, 33-54737,
33-56785, 33-58255, 33-58785, 33-61107, 33-64605, 33-64607, 333-02735,
333-20725, 333-27993, 333-28181, 333-46295, 333-47443, 333-47445,
333-47733, 333-47735, 333-52399, 333-58695, 333-58697, 333-58701,
333-65703, 333-70447, 333-74313, 333-86127, 333-87619 on Form S-8, and
333-67209 on Form S-3
Commissioners:
We are aware that our report dated October 14, 1999 on our review of interim
financial information of Ford Motor Company (the "Company") as of and for the
period ended September 30, 1999 and included in the Company's Quarterly Report
on Form 10-Q for the quarter then ended is incorporated by reference in the
afore referenced Registration Statements.
Very truly yours,
/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Automotive Sector - This schedule contains summary financial information
extracted from Ford's financial statements for the three and nine month periods
ended and at September 30, 1999 and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 4,039
<SECURITIES> 21,664
<RECEIVABLES> 3,622
<ALLOWANCES> 120
<INVENTORY> 7,218
<CURRENT-ASSETS> 44,481
<PP&E> 90,042
<DEPRECIATION> 48,686
<TOTAL-ASSETS> 104,571
<CURRENT-LIABILITIES> 41,374
<BONDS> 11,390
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 99,192
<TOTAL-REVENUES> 99,192
<CGS> 86,211
<TOTAL-COSTS> 92,897
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,029
<INCOME-PRETAX> 6,313
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial Services Sector - This schedule contains summary financial
information extracted from Ford's financial statements for the three and nine
month periods ended and at September 30, 1999 and is qualified in its entirety
by reference to such financial statements. The error message indicated on this
FDS is a result of the EDGAR system's inability to accept multiple Article 5
Financial Data Schedules. Accordingly, the error message should be ignored.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,239
<SECURITIES> 733
<RECEIVABLES> 141,139
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 162,819
<CURRENT-LIABILITIES> 0
<BONDS> 131,973
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 18,948
<TOTAL-REVENUES> 18,948
<CGS> 0
<TOTAL-COSTS> 17,032
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1,146
<INTEREST-EXPENSE> 5,701
<INCOME-PRETAX> 1,978
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> CT
<LEGEND>
Conglomerate Totals - This schedule contains summary financial information
extracted from Ford's financial statements for the three and nine month periods
ended and at September 30, 1999 and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000037996
<NAME> FORD MOTOR COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<TOTAL-ASSETS> 267,390
0
0
<COMMON> 1,222
<OTHER-SE> 25,699
<TOTAL-LIABILITY-AND-EQUITY> 267,390
<TOTAL-REVENUES> 118,140
<INCOME-TAX> 2,772
<INCOME-CONTINUING> 5,431
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,431
<EPS-BASIC> 4.49
<EPS-DILUTED> 4.39
</TABLE>
