Ford 2003 Annual Report Download - page 43

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2003 ANNUAL REPORT 41
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULT OF OPERATIONS
Details of Automotive sector sales and vehicle unit sales for 2002 and 2001 are shown below:
Sales Vehicle Unit Sales*
(in billions) (in thousands)
2002 2002
Over/(Under) Over/(Under)
2002 2001 2001 2002 2001 2001
Americas
- Ford North America $ 87.1 $ 83.9 $ 3.2 4% 4,146 4,051 95 2%
- Ford South America 1.5 2.1 (0.6) (29) 195 195 - -
Total Americas 88.6 86.0 2.6 3 4,341 4,246 95 2
International
- Ford Europe 18.9 19.4 (0.5) (3) 1,561 1,698 (137) (8)
- Ford Asia Pacific 4.4 3.8 0.6 16 300 274 26 9
- Premier Automotive Group 21.3 20.4 0.9 4 771 790 (19) (2)
- Other International - - - - - - - -
Total International 44.6 43.6 1.0 2 2,632 2,762 (130) (5)
Other Automotive 1.1 1.1 - - - - - -
Total Automotive $134.3 $ 130.7 $ 3.6 3% 6,973 7,008 (35) - %
–––––––––––––
* Includes rental repurchase and Company vehicles sold at auction.
Details of Automotive sector market share for selected markets for 2002 and 2001 are shown below:
2002
Over/(Under)
2002 2001 2001 Market
Americas
- Ford North America 19.9% 21.6% (1.7)pts. U.S.*
- Ford South America 9.9 7.8 2.1 Brazil*
International
- Ford Europe 8.6 8.6 - Europe*
- Ford Asia Pacific 13.2 13.8 (0.6) Australia*
- Premier Automotive Group 1.2/2.2 1.2/2.0 -/0.2 U.S./Europe
–––––––––––––
* Excludes market share of our Premier Automotive Group brand vehicles (i.e. Volvo, Jaguar, Land Rover and Aston Martin).
AMERICAS AUTOMOTIVE SEGMENT
Ford North America — The improvement in earnings reflected primarily the non-recurrence of the 2001 asset impairments
and other charges ($4.5 billion) largely related to our Revitalization Plan, as well as the non-recurrence of costs related to
our 2001 Firestone tire replacement action (about $2 billion). Additionally, profits improved due to achievement of our 2002
milestone to reduce non-product costs by $2 billion and the replenishment of dealer stocks in the United States, which
were unusually low at year-end 2001. These improvements were partially offset by increased product-related costs and
lower market share. The decline in market share reflected a number of factors, including an increase in the number of
new competitive product offerings and our discontinuation of four vehicle lines (Mercury Cougar, Mercury Villager,
Lincoln Continental and most models of the Ford Escort) in the second half of 2002.
Ford South America — The reduced loss reflected primarily the non-recurrence of the 2001 asset impairments and other
one-time charges ($848 million) largely related to our Revitalization Plan. The results also reflected the adverse effects of
currency devaluation, partially offset by continuing improvement in operating costs. The increase in our market share in
Brazil reflected market acceptance of our new Ford Fiesta model and strong sales performance.
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