Ford 2014 Annual Report Download - page 70

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
2014 Compared with 2013
Ford Credit. The chart below details the change in 2014 pre-tax results compared with 2013 by causal factor.
Ford Credit is a strategic asset and an integral part of our global growth and value creation strategy. Ford Credit
provides world-class dealer and customer financial services, supported by a strong balance sheet, providing solid profits
and distributions to Ford.
The improvement of $98 million in pre-tax profit in 2014 compared with 2013 is more than explained by higher
volume, driven by increases in consumer and non-consumer finance receivables globally, as well as an increase in
operating leases in North America.
Partial offsets include unfavorable lease residual performance in North America, resulting from lower relative auction
values, and lower financing margin. The lower financing margin primarily reflects a one-time reserve in Europe and lower
portfolio pricing in North America.
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