Annual Report 2011 - Ford Motor Company

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Credit's North America segment accounted for 96% of its total operating leases at December 31, 2011. The
following table shows operating lease placement, termination, and return volumes for this segment for the years ended
December 31 (in thousands, except for percentages):
Placements
Terminations
Returns
Memo:
Return Rates
In 2011, placement volumes were up 99,000 units compared with 2010, primarily reflecting higher industry sales,
higher Ford market share, and changes in Ford's marketing programs. Termination volumes decreased by 162,000 units
in 2011 compared with 2010, reflecting lower placement volumes in the second half of 2008 and 2009. Return volumes
decreased 137,000 units in 2011 compared with 2010, primarily reflecting fewer terminations and lower return rates.
U.S. Ford and Lincoln Brand Operating Lease Experience
The following chart shows annual return volumes and auction values at incurred vehicle mix for vehicles returned in the
respective periods. Ford Credit's U.S. Ford and Lincoln lease share was about 15% in 2011, and the operating lease
portfolio accounted for about 85% of its total investment in operating leases at December 31, 2011.
Ford Credit's lease return volumes in 2011 were almost 50% lower than the same period the prior year, primarily
reflecting lower lease placements in 2008 and 2009. In addition, the 2011 lease return rate was 56%, down 9 percentage
points compared with 2010, reflecting the increase in used vehicle prices.
In 2011, Ford Credit's strong auction values for 36-month vehicles continued, increasing by $740 per unit from 2010.
Ford Credit's worldwide net investment in operating leases was $11.1 billion at the end of 2011, up from $10 billion in
2010.
2011
219
246
144
59%
2010
120
408
281
69%
2009
67
386
314
81%
Ford Motor Company | 2011 Annual Report 53