Ford 2004 Annual Report Download - page 7

but other manufacturers also improved, so we
are still not where we want to be. Rising expenses
related to health care, commodities and energy
will make holding down costs difficult. In North
America, which represents more than half of our
worldwide volume, our market share was down
in 2004, and competition remains intense.
Despite these challenges, we plan to meet the
priorities we have set for ourselves in 2005:
• Continuing to deliver exciting new products.
• Improving our quality and customer satisfaction.
• Holding our overall costs at 2004 levels.
• Improving our market share and
revenue in all regions.
• Improving results at all automotive operations.
We are encouraged by the fact that all of the new
products we have introduced are connecting with
customers. The new Ford F-Series and redesigned Ford
Escape set sales records. Ford Five Hundred, Ford
Freestyle and Mercury Montego are making significant
inroads into their respective market segments. Ford
Mustang, Volvo S40 and Land Rover LR3 have
generated critical acclaim and customer enthusiasm,
and so has the new Ford Focus in Europe and Asia.
We expect better results at all of our automotive
operations in 2005. We also are projecting
a strong profit performance for our Financial
Services business; however, results for this business
are likely to be down from a very strong 2004,
reflecting lower volume, increasing interest rates
and a non-recurrence of reserve reductions.
Building On The Basics
The success we’ve achieved has been the result
of the disciplined and consistent approach
we’ve taken in executing our plans. As we move
forward, we will continue that relentless focus
on quality, costs and all the other basics of our
business. At the same time, we are building on
those basics and taking our efforts to the next level.
We’re in a complicated business, but I can sum
up our long-term vision very simply. We’re going
to build great products, a strong business and a
better world. That will help us achieve our goal of
being the best automotive company in the world.
Our Financial Services business plays a critical
role in our long-term plans. It supports our vehicle
sales and makes a major contribution to our
earnings. But we know that strong automotive
operations are the key to our long-term success.
The fundamental requirement for success in the auto
business is having great products. Supporting the
development of those products requires a strong
business with a world-class operating structure. I
believe that an integral part of creating great products
and a strong business is operating in a socially
responsible way that helps build a better world.
We are going to continue to improve on
these fundamentals, but we have to assume
that our competition will do the same. The
question then becomes, “What makes us
different?” Or, put another way, “Why do
business with Ford Motor Company?”
F O R W A R D
5
* Pre-tax results excluding special items improved from a loss of $1.3 billion in 2001 to a profit of $5.8 billion in 2004. Special items, primarily relating to the Revitalization Plan,
adversely impacted 2001pre-tax results by $6 b฀
** For 2004, special items reduced pre-tax income by $1 billion, primarily related to North America charges of $600 million for an allowance against a receivable
from Visteon for OPEB obligations and $182 million associated with our investment in Ballard and PAG/Europe charges of $159 million associated with our PAG
and Ford ฀ th America from
our agreements with Visteon for $1.6 billion and charges at PAG/Europe associated with the Ford Europe Improvement Plan of $513 million.
*** At constant volume, mix, and currency exchange; excluding special items and discontinued operations.
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