PROFITABLE GROWTH FOR ALL

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford South America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit
compared with 2010 by causal factor.
As shown above, full-year wholesales and revenue increased compared with a year ago, while operating margin
declined.
Ford South America reported a pre-tax operating profit of $861 million, compared with a profit of $1 billion a year ago.
The decline in earnings is more than explained by higher structural costs (driven primarily by local inflation), higher
contribution costs (more than explained by commodity costs), and unfavorable exchange, offset partially by favorable net
pricing and volume and mix.
Looking ahead, the competition in South America is intensifying, with substantial capacity increases planned by a
number of companies and new entrants. Against this background, we expect our South American operations to continue
to generate solid profitability for 2012, although somewhat lower than in 2011. We are continuing to work on actions to
strengthen our competitiveness in the changing environment. These actions include fully leveraging our One Ford plan,
including the introduction of an all-new lineup of global products over the next two years, starting in the second half
of 2012.
Ford Motor Company | 2011 Annual Report 41