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 30, 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
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Commission file number 1-3950
FORD MOTOR COMPANY SAVINGS AND STOCK
INVESTMENT PLAN FOR SALARIED EMPLOYEES
(Full title of the plan)
FORD MOTOR COMPANY
The American Road
Dearborn, Michigan 48121
(Name of issuer of the securities held
pursuant to the plan and the address of
its principal executive office)
<PAGE>
-2-
Required Information
- --------------------
Financial Statements and Schedules
- ----------------------------------
Statement of Net Assets Available for Plan Benefits, as of December 30,
1998 and December 31, 1997.
Statement of Changes in Net Assets Available for Plan Benefits for the
Period January 1, 1998 through December 30, 1998.
Schedule I - Schedule of Assets Held for Investment Purposes as of December
30, 1998.
Schedule II - Reportable Transactions for the Period January 1, 1998
through December 30, 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 Savings and Stock Investment Plan for Salaried Employees
Committee has duly caused this Annual Report to be signed by the undersigned
thereunto duly authorized.
SAVINGS AND STOCK INVESTMENT PLAN
FOR SALARIED EMPLOYEES
By: /s/Lee Freeman
----------------------------------
Lee Freeman, Chairman
Savings and Stock Investment
Plan for Salaried Employees Committee
June 15, 1999
<PAGE>
-3-
EXHIBIT INDEX
-------------
Sequential
Page Number
Designation Description at Which Found
- ----------- ----------- --------------
Exhibit 23 Consent of PricewaterhouseCoopers LLP
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Index of Financial Statements and Supplemental Schedules
Pages
Report of Independent Accountants..........................................2
Financial Statements:
Statement of Net Assets Available for Plan Benefits
as of December 30, 1998 and December 31, 1997...................3
Statement of Changes in Net Assets Available for Plan
Benefits for the Period January 1, 1998 through
December 30, 1998...............................................4
Notes to Financial Statements........................................5-14
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 30, 1998........................................15-16
Item 27d - Reportable Transactions for the Period January 1, 1998
through December 30, 1998.......................................17
<PAGE>
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 Savings and Stock Investment Plan present
fairly, in all material respects, the financial position of Ford Motor Company
Savings and Stock Investment Plan at December 30, 1998 and December 31, 1997,
and the related statement of changes in net assets available for plan benefits
for the period January 1, 1998 through December 30, 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 Savings and Stock Investment Plan for Salaried Employees as of
December 30, 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
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<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Statement of Net Assets Available for Plan Benefits
as of December 30, 1998 and December 31, 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
-------------------- --------------------
<S> <C> <C>
Investments, at fair value $ 14,831,454,618 $ 9,956,277,143
value
Loan funds receivable 143,790,370 151,612,902
Deposits with insurance companies - 322,587,090
under group contracts -------------------- --------------------
Total assets $ 14,975,244,988 $ 10,430,477,135
-------------------- --------------------
LIABILITIES AND PLAN EQUITY
Employee stock ownership plan, loan payable $ 244,654,704 $ 293,053,220
Employee stock ownership plan, interest payable 1,454,966 69,193
-------------------- --------------------
Total liabilities 246,109,670 293,122,413
-------------------- --------------------
Net assets available for plan benefits $ 14,729,135,318 $ 10,137,354,722
-------------------- --------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Statement of Changes in Net Assets Available for Plan Benefits
for the period January 1, 1998 through December 30, 1998
<TABLE>
<CAPTION>
Stable
Ford Interest Common Value
Stock Income Stock Income Income International
Fund Fund Fund Fund Funds Funds
--------------- -------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Interest and dividend $ 1,867,159,904 $ 244,770,005 $ 127,600,264 $ 12,446,656 $ 29,406,234 $ 37,011,503
income
Net appreciation
(depreciation) in
fair value of investments 1,452,684,345 52,863 211,571,933 401 349,807 6,956,883
Loan repayment 29,417,529 24,135,626 4,806,873 - 893,010 1,561,571
(principal)
Loan repayment 5,383,051 2,962,726 895,074 - 149,620 255,349
(interest)
Employee contributions 157,645,834 31,121,108 37,027,668 - 6,037,647 13,245,992
Company contributions
on behalf of employees 2,059,482 1,261,715 346,415 - 195,155 400,458
Company matching 161,460,640 - - - - -
Transfers in from 354,174 - -
other plans - 2,020,873 -
Withdrawal of participants' (310,755,797) (166,937,209) (50,795,445) (7,999,128) (8,631,794) (7,683,961)
accounts
Net transfers between funds (564,193,332) 856,785,373 (128,745,756) (327,035,019) 53,142,326 29,806,641
Loan funds transferred (32,583,327) (13,915,876) (5,192,503) - (1,145,457) (1,442,554)
(out) in
Administrative expense - (496,213) - - (14,498) (37,068
Transfers out to other plans (1,221,918) (1,535,816) (30,245) (354,174) (263) (9,590)
Interest expense (21,460,461) - - - - -
-------------- --------------- --------------- --------------- --------------- -------------
Net increase (decrease)
in plan equity
for the year 2,745,595,950 980,225,175 197,484,278 (322,587,090) 80,381,787 80,065,224
Net assets available for
plan benefits, beginning
of year 5,828,945,382 963,621,706 1,057,394,955 322,587,090 120,608,446 161,332,966
-------------- --------------- --------------- -------------- -------------- -------------
Net assets available for
plan benefits, end of
year $ 8,574,541,332 $1,943,846,881 $ 1,254,879,233 - $ 200,990,233 $ 241,398,190
--------------- -------------- --------------- -------------- -------------- -------------
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Statement of Changes in Net Assets Available for Plan Benefits
for the period January 1, 1998 through December 30, 1998
<TABLE>
<CAPTION>
Growth
Asset and
Allocation Growth Income Loan
Funds Funds Funds Funds Total
------------------ ---------------- --------------- ---------------- ---------------------
<S> <C> <C> <C> <C> <C>
Interest and dividend
income $ 21,009,226 $ 208,633,601 $ 196,622,418 - $ 2,744,659,811
Net appreciation
(depreciation) in
fair value of investments 1,057,460 183,573,424 112,670,310 - 1,968,917,426
Loan repayment
(principal) 384,347 7,775,289 4,378,324 $ (73,352,569) -
Loan repayment
(interest) 74,959 1,414,472 752,667 - 11,887,918
Employee contributions 3,666,702 67,865,427 39,560,450 - 356,170,828
Company contributions
on behalf of employees 413,579 3,059,814 1,522,056 - 9,258,674
Company matching - 161,460,640
Transfers in from
other plans 140 - - - 2,375,187
Withdrawal of participants'
accounts (4,093,319) (42,232,340) (35,625,732) (2,739,348) (637,494,073)
Net transfers
between funds 12,835,943 10,312,185 57,091,639 - -
Loan funds transferred
(out) in (449,446) (8,996,174) (4,575,760) 68,301,097
Administrative expense - (49,522) (18,001) - (615,302)
Transfers out to other
plans (5,158) (156,563) (34,613) (31,712) (3,380,052)
Interest expense - - - - (21,460,461)
-------------- ------------- ------------- ------------- ----------------
Net increase (decrease)
in plan equity
for the year 34,894,433 431,199,613 372,343,758 (7,822,532) 4,591,780,596
Net assets available
for plan benefits,
beginning of year 46,481,822 872,312,376 612,457,077 151,612,902 10,137,354,722
-------------- ------------- -------------- ------------- ----------------
Net assets available for plan
benefits, end of year $ 81,376,255 $1,303,511,989 $ 984,800,835 $ 143,790,370 $ 14,729,135,318
============== ============== ============== ============= ================
The accompanying notes are an integral part of the financial statements.
</TABLE>
-5-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Notes to Financial Statements
1. Description of the Plan:
The following description of the Ford Motor Company Savings and Stock
Investment Plan for Salaried Employees (the "Plan") provides only general
information. The Plan was established effective February 1, 1956. The
provisions of the Plan are governed in all respects by the detailed terms
and conditions contained in the plan agreement. Participants should refer
to the plan agreement for a complete description of the Plan's
provisions.
a. Type and Purpose of the Plan: The Plan is a defined contribution plan
established to encourage and facilitate systematic savings and
investment by eligible salaried employees of Ford Motor Company (the
"Company") and to provide them with an opportunity to become
stockholders of the Company. The Plan includes provisions for voting
shares of Company stock. It is subject to certain provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA") applicable
to defined contribution pension plans.
b. Eligibility: With certain exceptions, regular full-time salaried
employees are eligible to participate in the Plan twelve months after
their original date of hire. Certain other part-time and temporary
employees also may be eligible to participate in the Plan.
Participation in the Plan is voluntary.
c. Contributions: The Plan has both a Pre-Tax Program and an After-Tax
Program. Under the Plan and subject to limits required to be imposed
by the Internal Revenue Code, participants may elect a reduction in
base salary up to 15 percent. Participants may also elect reductions
in their distributions under the Company's Profit Sharing Plan and
Flexible Compensation Account program, with a contribution in an
amount corresponding to each reduction made by the Company on their
behalf to the Plan. Such contributions are excluded from the
participants' taxable income and are classified as Company
contributions on behalf of employees. Subject to limitations imposed
by the Internal Revenue Code, participants may also contribute up to
10 percent of their base monthly salaries to the Plan on an after-tax
basis. These after-tax contributions are classified as employee
contributions. The investment programs are the same for all savings
contributions.
Effective January 1, 1994, the Company began matching at the rate of
$.60 for each dollar of contributions up to 10 percent of
participants' base salaries. All Company matching contributions are
invested in the Ford Stock Fund. Contributions to the Pre-Tax Program
from the Profit Sharing Plan and Flexible Compensation Account Program
are not eligible for the Company match.
-6-
<PAGE>
Notes to Financial Statements, Continued
1. Description of the Plan, continued:
d. Participant Accounts: Each participant's account is credited with the
participant's contributions and allocations of (a) the Company's
contribution and (b) plan earnings. Allocations are based on
participant earnings or account balances, as defined. Plan
administrative expenses are paid by the Company and not charged to
participants' accounts. 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
$119,000 and $104,000 for the period January 1, 1998 through December
30, 1998 and for the year ended December 31, 1997, respectively. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
e. Vesting and Distributions: Pre-Tax Program assets, After-Tax Program
assets and assets resulting from Company matching contributions (Ford
Stock Fund) are accounted for separately.
Company matching contributions vest five years after the original date
of hire. At that time, all assets attributable to Company matching
contributions held in participants' accounts become vested, and all
future contributions vest when they are made.
Pre-Tax Program assets may not be withdrawn by participants until the
termination of their employment or until they reach age 59-1/2, except
in the case of personal financial hardship.
f. Investment 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 30, 1998, are as
follows:
Participants
------------
Ford Stock Fund 61,598
Interest Income Fund 28,131
Common Stock Fund 19,393
Other 140,006
The Ford Stock Fund is an investment in Ford common stock with a
portion of the Fund's assets being invested in short-term investments.
The Interest Income Fund is a broadly diversified, stable value
investment fund. The Interest Income Fund invests in a diversified
portfolio of fixed income securities, including investment contracts
with insurance companies and other organizations.
The Common Stock Fund is a broadly diversified, passively managed
equity fund administered by Comerica Bank. Fund assets are invested in
stocks through a series of Comerica Bank commingled pools.
-7-
<PAGE>
1. Description of the Plan, continued:
f. Investment Options and Participation, continued: The Stable Value
Income Fund, included in other above, which invests in contracts with
insurance companies and other organizations, was eliminated as an
investment option for participant contributions effective January 1,
1996. Contributions to the Stable Value Income Fund in 1995 were
placed with the John Hancock Mutual Life Insurance Company at an
annual effective interest rate of 8.07 percent. 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 as of December 30, 1998 are set forth in
Supplemental Schedule Item 27a - Schedule of Assets Held for
Investment Purposes.
g. Transfer of Assets: The Plan permits the transfer of assets among
investment options, with certain restrictions related to transfers
from the Stable Value Income Fund.
h. Loans: The Plan permits loans to participants from both their Pre-Tax
and After-Tax Program accounts with certain restrictions related to
loans from the Stable Value Income Fund. Monthly loan interest rates
are based on the prime rate published in The Wall Street Journal.
i. Forfeitures and Plan Administration Expenses: The Plan permits the
Company to use assets forfeited by participants to pay plan
administrative expenses and, to the extent not used to pay such
expenses, to reduce the Company's future contributions to the Plan. To
the extent that forfeited assets are not available to pay certain
administrative expenses, the Company pays such expenses directly.
Participant forfeitures amounted to approximately $1,306,000 and
$725,000 for the period January 1, 1998 through December 30, 1998 and
the year ended December 31, 1997, respectively, of which approximately
$496,000 and $63,000, respectively, were used to pay plan
administrative expenses.
j. 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.
-8-
<PAGE>
1. Description of the Plan, continued:
j. Employee Stock Ownership Plan, continued: 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 and from the
Company and participating subsidiaries (as defined in the Plan) are
recorded in the period that payroll deductions are made from plan
participants.
d. Payment of Benefits: Benefits are recorded when paid.
e. Use of Estimates in the Preparation of Financial Statements: The
preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and
deductions during the reporting period. Actual results could differ
from those estimates.
f. Risks and Uncertainties: The Plan's invested assets ultimately consist
of stocks, bonds, fixed income securities, and other investment
securities. Investment securities are exposed to various risks, such
as interest rate, market and credit. Due to the level of risk
associated with certain investment securities and the level of
uncertainty related to changes in the value of investment securities,
it is at least reasonably possible that changes in risks in the near
term would materially affect participants' account balances and the
amounts reported in the statement of net assets available for plan
benefits and the statement of changes in net assets available for plan
benefits.
g. Other: Purchases and sales of investments are reflected on a
trade-date basis. Realized gains and losses on sales of investments
are determined using specific identification.
-9-
<PAGE>
2. Summary of Significant Accounting Policies, continued:
g. Other: Dividend income is recorded on the ex-dividend date.
Income from other investments is recorded as earned on an accrual
basis.
The Plan presents in the statement of changes in net assets available
for plan benefits the net appreciation (depreciation) in the fair
value of its investments which consists of the Plan's realized gains
or losses and the unrealized appreciation (depreciation) on those
investments.
The Ford Stock Fund, the Interest Income Fund and the Common Stock
Fund, which each represent five percent or more of plan net assets at
December 30, 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 objectives into the Stable Value Income Fund, the
Income Funds, the International Funds, the Asset Allocation Funds, the
Growth Funds and the Growth and Income Funds.
3. Plan Amendment:
The Plan had the following amendments during the period January 1, 1998
through December 30, 1998 and for the year ended December 31, 1997. The
Plan year-end was amended from December 31 to December 30, effective
December 30, 1998. The Plan was also amended to give the Board of
Directors authority to establish and vary the maximum rate for Company
matching contributions under the Plan without shareholder approval.
4. Employee Stock Ownership Plan:
Effective January 1, 1989, the Company, by action of the Board of
Directors, established within the Plan an Employee Stock Ownership Plan
("ESOP"). All shares of Company stock in the Plan at any time, including
all shares allocated to participants' accounts and shares held in an ESOP
suspense account, and forfeited shares are included in the ESOP, along
with other assets attributable to post-1988 contributions to the Plan.
-10-
<PAGE>
4. 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 $ 26,403,776 5.00% $ 5,418,883 5 12/1/98
8/27/98 107,797,613 5.72 18,629,451 6 9/1/98
4/29/97 10,391,587 8.50 3,566,155 3 6/2/97
12/30/97 293,053,220 8.50 39,999,202 8 3/2/98
</TABLE>
All of the loans mature on December 1, 1999, except for the April
29, 1997 loan 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 30, 1998 and December 31, 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 3,376,071 5,239,021 301,315 -
Cost $ 153,460,001 $ 241,459,866 $ 10,391,561 -
</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.
-11-
<PAGE>
4. Employee Stock Ownership Plan, continued:
The following highlights certain ESOP activity:
1998
Loan
Activity
--------
Shares purchased with loan cash 8,615,092
Cost of shares purchased with loan cash $ 394,919,867
Loan principal paid 182,599,905
Loan interest paid and accrued 20,170,879
5. 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
30, 1998 are as follows:
<TABLE>
<CAPTION>
Asset
Value Total
Number Per Asset
of Units Unit Value
------------------ ----------- ----------------
<S> <C> <C> <C>
Interest Income Fund 1,943,846,881 $ 1.00 $ 1,943,846,881
T. Rowe Price Spectrum Growth Fund 671,165 16.26 10,913,150
Scudder International Fund 301,652 48.48 14,624,092
Vanguard Life Strategy Conservative Growth Fund 659,234 14.70 9,690,739
T. Rowe Price Spectrum Income Fund 2,348,349 11.49 26,982,531
Scudder International Bond Fund 137,369 10.76 1,478,088
Vanguard Life Strategy Moderate Growth Fund 599,366 16.82 10,081,336
T. Rowe Price New Horizons Fund 2,861,847 22.61 64,706,357
Scudder Global Fund 376,276 28.53 10,735,144
Vanguard Life Strategy Growth Fund 436,531 18.74 8,180,591
T. Rowe Price International Stock Fund 2,531,218 14.92 37,765,779
Scudder Global Discovery Fund 218,785 22.70 4,966,421
Vanguard 500 Index Fund 3,062,659 114.18 349,694,364
T. Rowe Price International Discovery Fund 103,236 15.55 1,605,324
Scudder Income Fund 558,976 13.25 7,406,435
Vanguard Value Index Fund 1,229,716 22.52 27,693,207
T. Rowe Price New Asia Fund 2,460,210 5.03 12,374,854
Scudder Growth and Income Fund 1,916,700 26.22 50,255,865
Vanguard Growth Index Fund 5,118,919 31.77 162,628,072
T. Rowe Price High Yield Fund 3,231,947 8.36 27,019,073
Scudder Greater Europe Growth Fund 2,505,550 26.42 66,196,633
Vanguard Explorer Fund 149,796 55.06 8,247,777
T. Rowe Price New Era Fund 236,197 19.48 4,601,125
Scudder Japan Fund 933,924 8.20 7,658,177
Vanguard International Value Fund 150,818 25.02 3,773,477
-12-
<PAGE>
5.
Asset Value Per Fund Unit,
continued:
Asset Total
Value Asset
Number Per Value
of Units Unit
------------------ -------- ------------------
T. Rowe Price Latin American Fund 1,283,250 $ 6.80 $ 8,726,099
Barclays Global Investors Bond Fund 4,170,523 15.27 63,683,887
Ford Stock Fund 467,022,948 18.36 8,574,541,332
Comerica Common Stock Fund 21,129,470 59.39 1,254,879,233
Associates Stock Fund 1,633,926 18.01 29,427,016
Fidelity Fund 1,675,562 36.62 61,359,079
Fidelity Puritan Fund 1,873,066 20.07 37,592,430
Fidelity Trend Fund 30,368 55.17 1,675,388
Fidelity Magellan Fund 2,080,756 120.38 250,481,385
Fidelity Contrafund 5,266,562 60.73 319,838,302
Fidelity Equity-Income Fund 1,401,774 55.30 77,518,107
Fidelity Growth Company Fund 2,121,876 50.55 107,260,825
Fidelity Investment Grade Bond Fund 3,792,559 7.38 27,989,088
Fidelity Growth and Income Portfolio 6,966,671 45.81 319,143,211
Fidelity Value Fund 1,010,772 45.52 46,010,339
Fidelity Government Income Fund 3,799,135 10.18 38,675,192
Fidelity Retirement Growth Fund 1,506,478 20.34 30,641,756
Fidelity Overseas Fund 559,350 35.79 20,019,142
Fidelity Europe Fund 851,135 33.33 28,368,330
Fidelity Pacific Basin Fund 276,258 13.05 3,605,164
Fidelity Real Estate Investment Portfolio 994,093 15.38 15,289,157
Fidelity Balanced Fund 548,044 16.31 8,938,604
Fidelity International Growth and Income Fund 198,690 20.77 4,126,786
Fidelity Capital Appreciation Fund 729,822 21.76 15,880,926
Fidelity Canada Fund 51,440 13.74 706,787
Fidelity Utilities Fund 1,092,205 23.04 25,164,394
Fidelity Asset Manager 1,088,981 17.30 18,839,367
Fidelity Worldwide Fund 984,511 16.40 16,145,973
Fidelity Stock Selector 1,255,057 28.56 35,844,428
Fidelity Asset Manager:Growth 1,098,875 18.63 20,472,048
Fidelity Asset Manager:Income 1,147,332 12.30 14,112,178
Fidelity Dividend Growth Fund 6,705,830 28.63 191,987,906
Fidelity New Markets Income Fund 693,712 8.95 6,208,725
Fidelity Global Balanced Fund 73,504 16.86 1,239,271
Fidelity Small Capital Selector Fund 2,480,491 13.82 34,280,385
Fidelity International Bond Fund 170,774 9.06 1,547,216
-----------------
$ 14,585,344,948
=================
</TABLE>
-13-
<PAGE>
6. Tax Status:
The Internal Revenue Service has determined and informed the Company by
letter dated December 13, 1995, that the Plan and the related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (the "Code"). The Plan has since been amended, however, the Plan
sponsor believes that the Plan is currently designed and being operated
in compliance with the Code. Therefore, no provision for income taxes has
been included in the Plan's financial statements.
7. Plan Termination:
The Company, by action of the Board of Directors, may terminate the Plan
at any time. Termination of the Plan would not affect the rights of a
participant as to (a) the continuance of investment, distribution or
withdrawal of the securities, cash and cash value of the Ford Stock Fund
units in the account of the participant as of the effective date of such
termination, or (b) continuance of vesting of such securities and cash
attributable to Company matching contributions or earnings thereon. There
are currently no plans to terminate the Plan.
8. Other:
Differences between the data shown on pages 3 and 4 of this report and
the 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.
-14-
<PAGE>
8. Other, continued:
$1,643,056,165 of the amount of the cash distribution attributable to the
Ford Stock Fund under the Plan was invested in the Ford Stock Fund,
$670,227,982 was invested in other Plan options and $228,450,819 was paid
out in cash directly to Plan participants.
During the period between the record date and the distribution date,
participants' Ford Stock Fund account balances under the Plan did not
include the value of the cash distribution. Following payment of the cash
distribution, the Ford Stock Fund held a much higher level of short-term
cash instruments until the proceeds of the cash distribution could be
reinvested in Ford Common Stock in an expeditious and prudent manner.
As of March 3, 1998, the Associates Stock Fund became a "sell-only" fund,
and after December 31, 1999, will be closed.
9. Subsequent Event:
The Company is funding its employer match through a contribution to a
leveraged employee stock ownership plan. Effective December 31, 1998, the
Plan borrowed $100,000,000 from Ford Motor Company to fund Ford's
matching contributions for 1999. The note bears interest at 5% and is
payable in 17 bi-weekly installments through August 15, 1999.
-15-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 30, 1998
<TABLE>
<CAPTION>
(c)
(b) Description of Investment,
Identity of Issuer Including Maturity Date, (e)
Lessor, Borower Rate of Interest Collateral, (d) Current
(a) or Similar Party Par of Maturity Value Cost** Value
- --- ------------------ ---------------------------- ------ ----------------
<S> <C> <C> <C> <C>
* Fidelity Investments Interest Income Fund, 1,943,846,881 units $ 1,943,846,881
* Fidelity Investments T. Rowe Price Specturm Growth Fund, 671,165 units 10,913,150
* Fidelity Investments Scudder International Fund, 301,652 units 14,624,092
* Fidelity Investments Vanguard Life Strategy Conservative Growth Fund,
659,234 units 9,690,739
* Fidelity Investments T.Rowe Price Spectrum Income Fund, 2,348,349 units 26,982,531
* Fidelity Investments Scudder International Bond Fund, 137,369 units 1,478,088
* Fidelity Investments Vanguard Life Strategy Moderate Growth Fund, 599,366 units 10,081,336
* Fidelity Investments T. Rowe Price New Horizons Fund, 2,861,847 units 64,706,357
* Fidelity Investments Scudder Global Fund, 376,276 units 10,735,144
* Fidelity Investments Vanguard Life Strategy Growth Fund, 436,531 units 8,180,591
* Fidelity Investments T. Rowe Price International Stock Fund, 2,531,218 units 37,765,779
* Fidelity Investments Scudder Global Discovery Fund, 218,785 units 4,966,421
* Fidelity Investments Vanguard 500 Index Fund, 3,062,659 units 349,694,364
* Fidelity Investments T. Rowe Price International Discovery Fund, 103,236 units 1,605,324
* Fidelity Investments Scudder Income Fund, 558,976 units 7,406,435
* Fidelity Investments Vanguard Value Index Fund, 1,229,716 units 27,693,207
* Fidelity Investments T. Rowe Price New Asia Fund, 2,460,210 units 12,374,854
* Fidelity Investments Scudder Growth and Income Fund, 1,916,700 units 50,255,865
* Fidelity Investments Vanguard Growth Index Fund, 5,118,919 units 162,628,072
* Fidelity Investments T. Rowe Price High Yield Fund, 3,231,947 units 27,019,073
* Fidelity Investments Scudder Greater Europe Growth Fund, 2,505,550 units 66,196,633
* Fidelity Investments Vanguard Explorer Fund, 149,796 units 8,247,777
* Fidelity Investments T. Rowe Price New Era Fund, 236,197 units 4,601,125
* Fidelity Investments Scudder Japan Fund, 933,924 units 7,658,177
* Fidelity Investments Vanguard International Value Fund, 150,818 units 3,773,477
* Fidelity Investments T. Rowe Price Latin America Fund, 1,283,250 units 8,726,099
Barclays Global Investors Bond Fund, 4,170,523 units 63,683,887
* Ford Motor Company Ford Stock Fund, 467,022,948 units 8,574,541,332
Comerica Bank, N.A. Common Stock Fund, 21,129,470 units 1,254,879,233
* Ford Motor Company Associates Stock Fund, 1,633,926 units 29,427,016
* Fidelity Investments Fidelity Fund, 1,675,562 units 61,359,079
* Fidelity Investments Fidelity Puritan Fund, 1,873,066 units 37,592,430
* Fidelity Investments Fidelity Trend Fund, 30,368 units 1,675,388
* Fidelity Investments Fidelity Magellan Fund, 2,080,756 units 250,481,385
* Fidelity Investments Fidelity Contrafund, 5,266,562 units 319,838,302
* Fidelity Investments Fidelity Equity-Income Fund, 1,401,774 units 77,518,107
* Fidelity Investments Fidelity Growth Company Fund, 2,121,876 units 107,260,825
* Fidelity Investments Fidelity Investment Grade Bond Fund, 3,792,559 units 27,989,088
* Fidelity Investments Fidelity Growth and Income Portfolio, 6,966,671 units 319,143,211
</TABLE>
-16-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
<TABLE>
<CAPTION>
(c)
(b) Description of Investment,
Identity of Issuer Including Maturity Date, (e)
Lessor, Borower Rate of Interest Collateral, (d) Current
(a) or Similar Party Par of Maturity Value Cost** Value
- --- ------------------ ---------------------------- ------ ----------------
<S> <C> <C> <C> <C>
* Fidelity Investments Fidelity Value Fund, 1,010,772 units $ 46,010,339
* Fidelity Investments Fidelity Government Income Fund, 3,799,135 units 38,675,192
* Fidelity Investments Fidelity Retirement Growth Fund, 1,506,478 units 30,641,756
* Fidelity Investments Fidelity Overseas Fund, 559,350 units 20,019,142
* Fidelity Investments Fidelity Europe Fund, 851,135 units 28,368,330
* Fidelity Investments Fidelity Pacific Basin Fund, 276,258 units 3,605,164
* Fidelity Investments Fidelity Real Estate Investment Portfolio Fund,
994,093 units 15,289,157
* Fidelity Investments Fidelity Balanced Fund, 548,044 units 8,938,604
* Fidelity Investments Fidelity International Growth and Income Fund,
198,690 units 4,126,786
* Fidelity Investment Fidelity Capital Appreciation Fund, 729,822 units 15,880,926
* Fidelity Investments Fidelity Canada Fund, 51,440 units 706,787
* Fidelity Investments Fidelity Utilities Fund, 1,092,205 units 25,164,394
* Fidelity Investments Fidelity Asset Manager, 1,088,981 units 18,839,367
* Fidelity Investments Fidelity Worldwide Fund, 984,511 units 16,145,973
* Fidelity Investments Fidelity Stock Selector, 1,255,057 units 35,844,428
* Fidelity Investments Fidelity Asset Manager:Growth, 1,098,875 units 20,472,048
* Fidelity Investments Fidelity Asset Manager:Income, 1,147,332 units 14,112,178
* Fidelity Investments Fidelity Dividend Growth Fund, 6,705,830 units 191,987,906
* Fidelity Investments Fidelity New Markets Income Fund, 693,712 units 6,208,725
* Fidelity Investments Fidelity Global Balanced Fund, 73,504 units 1,239,271
* Fidelity Investments Fidelity Small Capital Selector Fund, 2,480,491 units 34,280,385
* Fidelity Investments Fidelity International Bond Fund, 170,774 units 1,547,216
* Participant Loans Participant loans, interest rates varying from
6.0 to 12.5 percent
143,790,370
----------------
$ 14,729,135,318
----------------
</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
-17-
<PAGE>
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees
Item 27d - Schedule of Reportable Transactions
for the period January 1, 1998 through December 30, 1998
<TABLE>
<CAPTION>
Identity
of Current
Party Purchase Selling Lease Expenses Cost Value Net Gain
Involved Description of Asset Price Price Rental Incurred of Asset of Asset or (Loss)
- ---------- ----------------------- -------------- -------------- ------- -------- ------------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REPORTING Single transaction in excess
CRITERION of five percent of current
I: value of plan assets.
None.
REPORTING Series of transaction in
CRITERION other than securities
II: in excess of five
percent of current value of
plan assets.
None.
REPORTING Series of transaction in
CRITERION securities in excess of
III: five percent of current value
of plan assets.
Fidelity Interest Invome Fund:
Investments 255 Purchases $4,101,657,975 $4,101,657,975 $4,101,657,975
252 Sales $3,121,432,799 3,121,432,799 3,121,432,799
Ford Motor Ford Stock Fund:
Company 251 Purchases 4,946,239,579 2,699,376,376
251 Sales 3,631,757,714 3,631,757,714 $932,381,338
Ford Motor The Common Stock Fund:
Company 251 Purchases 246,973,931 146,141,341
251 Sales 261,045,252 261,045,252 114,903,911
REPORTING Single transactions
CRITERION with a nonregulated entity
IV: in excess of five percent of
current value of plan assets.
None.
-18-
</TABLE>
Exhibit 23
Consent of Independent Accountants
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement
Nos. 33-64607, 33-54735, 33-54275, 33-50194,
33-36061, 33-14951, 2-95020, 333-28181,
333-49545, 333-58695 and 333-47443 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
Savings and Stock Investment Plan for Salaried Employees at December 30, 1998
and December 31, 1997, and for the period January 1, 1998 through December 30,
1998, which is included in this Annual Report on Form 11-K.
/s/PricewaterhouseCoopers
400 Renaissance Center
Detroit, Michigan 48243
June 15, 1999
