Ford 2005 Annual Report Download - page 43

Ford Motor Company Annual Report 2005 40 Ford Motor Company Annual Report 2005 41
Managementʼs Discussion and Analysis of Financial
Condition and Results of Operations
presently assessing the appropriate accounting treatment for and amount of these GEN costs, including the extent, if any, to which
future GEN costs should be accrued in the first quarter of 2006.
Financial Services Results. Our Financial Services sector is projected to be profitable in 2006, but less profitable than in 2005
because of the absence of earnings from Hertz (including the gain on sale) and lower expected earnings at Ford Credit. For 2006, we
expect Ford Credit's managed receivables to decline to between $140 billion and $145 billion. Ford Credit's 2006 earnings are
expected to be lower than in 2005 because of the impact of the lower level of receivables and the impact of higher interest rates.
Risk Factors
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions
by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially
from those stated, including, without limitation:
�Continued decline in market share;
�Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;
�A market shift (or an increase in or acceleration of market shift) away from sales of trucks or sport utility vehicles, or from
sales of other more profitable vehicles in the United States;
�A significant decline in industry sales, particularly in the United States or Europe, resulting from slowing economic growth,
geo-political events or other factors;
�Lower-than-anticipated market acceptance of new or existing products;
�Continued or increased high prices for or reduced availability of fuel;
�Currency or commodity price fluctuations;
�Adverse effects from the bankruptcy or insolvency of a major competitor;
�Economic distress of suppliers that has in the past and may in the future require us to provide financial support or take other
measures to ensure supplies of components or materials;
�Work stoppages at Ford or supplier facilities or other interruptions of supplies;
�Single-source supply of components or materials;
�Labor or other constraints on our ability to restructure our business;
�Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates,
investment returns, and health care cost trends);
�The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
�Increased safety, emissions, fuel economy or other (e.g., pension funding) regulation resulting in higher costs, cash
expenditures, and/or sales restrictions;
�Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
�A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit
us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-
pay contracts");
�Inability to access debt or securitization markets around the world at competitive rates or in sufficient amounts due to
additional credit rating downgrades or otherwise;
�Higher-than-expected credit losses;
�Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
�Changes in interest rates;
�Collection and servicing problems related to finance receivables and net investment in operating leases;
�Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;
�New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing
restrictions; and
�Inability to implement the Way Forward plan.
We cannot be certain that any expectation, forecast or assumption made by management in preparing these forward-looking
statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between
projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not
undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future
events or otherwise.