Full Description

Ford Motor Company (Ford), incorporated in 1919, is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles. Ford operates in two sectors: Automotive and Financial Services. The Automotive sector includes the operations of Ford North America, Ford South America, Ford Europe, Volvo, and Ford Asia Pacific Africa segments. The Financial Services sector includes the operations of Ford Motor Credit Company (Ford Credit) and Other Financial Services. During the year ended December 31, 2008, the Company sold the ACH glass business to Zeledyne, LLC. The sale included the Nashville, Tulsa, and VidrioCar plants, along with the research and development, engineering, sales and aftermarket operations in Tennessee and Michigan. These facilities continue to supply Ford with automotive glass products. In 2008, Ford and its subsidiary, Volvo Car Corporation, completed the sale of Thai-Swedish Assembly Group (TSA) to Volvo Holding Sverige, AB. In March 2008, the Company acquired 72.4% of the shares of S.C. Automobile Craiova SA (ACSA). In June 2008, the Company completed the sale of its Jaguar and Land Rover operations to Tata Motors Limited (Tata Motors).

Automotive

Ford sells cars and trucks worldwide. In 2008, Ford sold approximately 5,407,000 vehicles worldwide. The Company’s vehicle brands include Ford, Mercury, Lincoln and Volvo. Substantially all of its cars, trucks and parts are marketed through retail dealers in North America, and through distributors and dealers (collectively, dealerships) outside of North America, the substantial majority of which are independently owned. The Company sells cars and trucks to its dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments.

Through its dealer network and other channels, Ford also provides retail customers with a range of after-the-sale vehicle services and products through its dealer network, in the areas of maintenance and light repair, heavy repair, collision, vehicle accessories and extended service warranty. In North America, the Company markets these products and services under several brands, including Genuine Ford, Lincoln-Mercury Parts and Service, Ford Custom Accessories, Ford Extended Service Plan and Motorcraft.

Ford North America primarily includes the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America (the United States, Canada and Mexico). Ford South America primarily includes the sale of Ford-brand vehicles and related service parts in South America. Ford Europe includes the sale of Ford-brand vehicles and related service parts in Europe, Turkey and Russia. The Volvo operations primarily includes the sale of Volvo brand vehicles and related service parts worldwide (including Europe, North and South America, and Asia Pacific Africa). Ford Asia Pacific Africa includes the sale of Ford-brand vehicles and related service parts in the Asia Pacific region and South Africa.

Financial Services

Ford Credit offers a variety of automotive financing products to and through automotive dealers throughout the world. The predominant share of Ford Credit’s business consists of financing the Company’s vehicles and supporting its dealers. Ford Credit’s primary financial products fall into three categories: retail financing, which involves purchasing retail installment sales contracts and retail lease contracts from dealers, and offering financing to commercial customers, primarily vehicle leasing companies and fleet purchasers, to purchase or lease vehicle fleets; wholesale financing, which involves making loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, and other financing, which involves making loans to dealers for working capital, improvements to dealership facilities, and the acquisition and refinancing of dealership real estate.

Ford Credit services the finance receivables and leases that it originates and purchases; makes loans to the Company’s affiliates; purchases certain receivables from Ford and its subsidiaries, and provides insurance services related to its financing programs. Ford Credit does business in all states in the United States and in all provinces in Canada through automotive dealer financing branches and regional business centers. Outside of the United States, FCE Bank plc (FCE) is Ford Credit’s largest operation. FCE’s primary business is to support the sale of the Company’s vehicles in Europe through its dealer network. FCE offers a variety of retail, leasing and wholesale finance plans in most countries, in which it operates. FCE does business in the United Kingdom, Germany and most other European countries. Ford Credit, through its subsidiaries, also operates in the Asia Pacific and Latin American regions. In addition, FCE, through its Worldwide Trade Financing division, provides financing to dealers in countries where typically Ford has no established local presence.

The Company competes with General Motors Corporation, Chrysler LLC, Toyota Motor Corporation, Honda Motor Company, Nissan Motor Company, Volkswagen A.G. Group, PSA Group, Renault Group and Fiat SpA.