Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
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18 <strong>Ford</strong> <strong>Motor</strong> <strong>Company</strong> | <strong>2011</strong> <strong>Annual</strong> <strong>Report</strong><br />
2 3<br />
STRONG BUSINESS<br />
FINANCE PLAN AND<br />
IMPROVE BALANCE SHEET<br />
In <strong>2011</strong>, we made great progress in strengthening our balance<br />
sheet. We increased Automotive cash and paid down $6 billion<br />
in Automotive debt. This included fully paying off $4.1 billion in<br />
term loans. The company also announced the reinstatement of<br />
the dividend, an important sign of our progress and confidence<br />
in the future. In addition, we improved our investment rating and<br />
the near-term should see a return to investment-grade status.<br />
The UAW ratification of a new labor agreement further<br />
improves <strong>Ford</strong>’s competitiveness in the U.S. By 2015, the<br />
company plans to invest $16 billion in U.S. product development<br />
and manufacturing operations. Full-time hourly UAW<br />
employees received the highest average profit sharing of the<br />
last decade, while salaried employees received bonuses.<br />
<strong>Ford</strong> <strong>Motor</strong> Credit <strong>Company</strong> had another strong year in <strong>2011</strong>,<br />
reporting a pre-tax operating profit of $2.4 billion and providing<br />
$3 billion in distributions to support <strong>Ford</strong>’s business. The<br />
company also launched Lincoln Automotive Financial Services<br />
for U.S. Lincoln customers. With strong business fundamentals,<br />
1<br />
1) <strong>Ford</strong> <strong>Motor</strong> <strong>Company</strong><br />
Executive Chairman Bill<br />
<strong>Ford</strong> shakes hands with<br />
UAW Vice President<br />
Jimmy Settles during<br />
the UAW-<strong>Ford</strong> National<br />
Negotiations Opening<br />
Day Ceremony. 2) U.S.<br />
Ambassador to<br />
Thailand, Kristie Kenney,<br />
visits our new state-ofthe-art<br />
manufacturing<br />
and environmental<br />
facility in Thailand.<br />
3) We are enhancing<br />
the ownership<br />
experience by listening<br />
and responding to<br />
customer feedback,<br />
no charge software<br />
upgrades are being<br />
offered to existing<br />
My<strong>Ford</strong> Touch owners.<br />
Significantly paid down Automotive debt (Billions)<br />
$33.6<br />
Year End<br />
2009<br />
$19.1<br />
$20.5<br />
Year End<br />
2010<br />
$13.1<br />
Year End<br />
<strong>2011</strong><br />
Improved Automotive cash net of debt (Billions)<br />
$(8.7)<br />
Year End<br />
2009<br />
$1.4<br />
Year End<br />
2010<br />
$9.8<br />
Year End<br />
<strong>2011</strong><br />
Cash $ 24.9 $ 20.5 $ 22.9<br />
Debt (33.6) (19. 1) (13. 1)<br />
Liquidity 25.6 27.9 32.4