Ford 2006 Annual Report Download - page 23

Management’s Discussion and Analysis of Financial Condition and Results of Operations
21
Details of Automotive sector market share for selected markets for 2005 and 2004, along with the level of dealer
stocks as of December 31, 2005 and 2004, are shown below:
  'HDOHU2ZQHG6WRFNV
D

0DUNHW6KDUH LQWKRXVDQGV


0DUNHW







2YHU8QGHU








2YHU8QGHU


86E        SWV      
6RXWK$PHULFDEF             
(XURSHEG              
3$*ದ 86(XURSHG           
$VLD3DFLILFDQG$IULFDEHI             
__________
(a) Dealer-owned stocks represent our estimate of vehicles shipped to our customers (dealers) and not yet sold by the dealers to their retail
customers, as well as some vehicles reflected in our inventory.
(b) Includes only Ford and, in certain markets (primarily U.S.), Lincoln and Mercury brands.
(c) South America market share is based on vehicle retail sales for our six major markets (Argentina, Brazil, Chile, Colombia, Ecuador, and
Venezuela).
(d) European market share is based, in part, on vehicle registrations for our 19 major European markets (Britain, Germany, France, Italy, Spain,
Austria, Belgium, Ireland, Netherlands, Portugal, Switzerland, Finland, Sweden, Denmark, Norway, Czech Republic, Greece, Hungary, and
Poland).
(e) Asia Pacific and Africa market share is based on vehicle retail sales for our 12 major markets (Australia, China, Japan, India, Indonesia,
Malaysia, New Zealand, Philippines, South Africa, Taiwan, Thailand, and Vietnam).
(f) Dealer-owned stocks for Asia Pacific and Africa include primarily Ford-brand vehicles as well as a small number of units distributed for other
manufacturers.
Overall Automotive Sector
The decline in earnings reflected losses at our Ford North America segment, an impairment charge for long-lived
assets of Jaguar and Land Rover operations, and higher charges for personnel reduction programs, offset partially by
favorable market performance at Land Rover and increased earnings at our Ford South America segment, Other
Automotive, and Ford Asia Pacific and Africa/Mazda segment.
The improvement in revenues primarily reflected favorable product mix and favorable changes in currency exchange
rates.
The Americas
Ford North America Segment. The decline in results primarily reflected lower U.S. market share, unfavorable cost
changes, lower dealer stock levels, charges for personnel-reduction programs, and unfavorable currency exchange.
Unfavorable cost changes primarily reflected higher warranty-related costs and net product costs.
Ford South America Segment. The increase in earnings primarily reflected favorable net pricing, higher industry
volumes, and favorable currency exchange, offset partially by unfavorable cost changes. The unfavorable cost changes
primarily reflected higher net product costs and overhead costs.
Ford Europe and PAG
Ford Europe Segment. The decline in results primarily reflected higher charges for personnel-reduction programs,
unfavorable net pricing, and adverse product and market mix, offset partially by favorable cost changes and favorable
changes in currency exchange rates. The favorable cost changes primarily reflected lower manufacturing and
engineering costs offset partially by unfavorable warranty-related costs.
PAG Segment. The decline in earnings primarily reflected an impairment charge for long-lived assets of the Jaguar
and Land Rover operations, unfavorable currency exchange, and higher charges for personnel-reduction programs, offset
partially by favorable net pricing, improved product mix primarily reflecting the impact of new Land Rover products, and
favorable cost changes. The favorable cost changes primarily reflected lower warranty-related costs and favorable
manufacturing and engineering costs offset partially by higher net product costs.