Ford 2011 Annual Report Download - page 50
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
48 Ford Motor Company | 2011 Annual Report
Ford Europe Segment. The charts below detail key metrics and the change in 2010 pre-tax operating profit compared
with 2009 by causal factor.
The increase in wholesales for Ford Europe primarily reflects higher wholesales in Turkey, Russia, and other eastern
European markets, offset partially by lower wholesales in the 19 markets that we track (primarily lower market share and
industry volume, offset partially by the non-recurrence of prior-year reductions in dealer stocks). The decrease in market
share reflects our decision to reduce participation selectively in low-margin business, as well as the end of the favorable
effect of government scrappage programs on our small car sales.
The improvement in results primarily reflects favorable cost changes and higher parts and subsidiary profits, offset
partially by unfavorable volume and mix (primarily lower market share offset partially by the non-recurrence of prior-year
reductions in dealer stocks). The favorable cost changes primarily reflect material cost reductions and lower warranty
costs, offset partially by higher structural costs (in part to support product launches and growth of our product plans).