Ford 2006 Annual Report Download - page 20
Download and view the complete annual report
Please find page 20 of the 2006 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’s Discussion and Analysis of Financial Condition and Results of Operations
18
Details of Automotive sector market share for selected markets for 2006 and 2005, along with the level of dealer stocks
as of December 31, 2006 and 2005, are shown below:
'HDOHU2ZQHG6WRFNVD
0DUNHW6KDUH LQWKRXVDQGV
0DUNHW
2YHU8QGHU
2YHU8QGHU
86E SWV
6RXWK$PHULFDEF
(XURSHEG ಧ
3$*86(XURSHG
$VLD3DFLILFDQG$IULFDEHI ಧ ಧ
__________
(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 2006 market share is based, in part, on estimated 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 2006 market share is based on estimated 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 the effect of Jobs Bank Benefits charges and higher personnel-reduction program
charges for our Ford North America segment, unfavorable volume and mix (mainly lower market share, adverse product
mix in Ford North America, and lower dealer stock levels), pension curtailment charges, impairment charges related to our
long-lived assets in Ford North America and Jaguar and Land Rover operations, and unfavorable net pricing. These
adverse factors were offset partially by favorable cost changes. Our efforts to restructure the Ford North America
business resulted in the Jobs Bank Benefits and personnel-reduction program charges, and the related pension
curtailment charges.
The decline in revenue primarily reflected lower wholesale unit volumes in Ford North America, adverse product mix,
and unfavorable net pricing.
The table below details our 2006 cost changes at constant volume, mix, and exchange, excluding special items and
discontinued operations (in billions):
([SODQDWLRQRI&RVW&KDQJHV
%HWWHU:RUVH
7KDQ
0DQXIDFWXULQJDQGHQJLQHHULQJ 3ULPDULO\KRXUO\DQGVDODULHGSHUVRQQHOUHGXFWLRQVDQGFRQWLQXHGLPSURYHPHQWVLQRXUSODQWV
DQGSURFHVVHV
3HQVLRQDQG2WKHU
3RVWUHWLUHPHQW(PSOR\HH
%HQHILWV23(%
3ULPDULO\LPSURYHPHQWVEHJLQQLQJLQWKHWKLUGTXDUWHUDVVRFLDWHGZLWKRXUUHWLUHHKHDOWKFRVW
VKDULQJDJUHHPHQWZLWKWKH8$:DQGLPSURYHPHQWVUHODWHGWRUHYLVLRQVWRRXUVDODULHGEHQHILW
SODQVRIIVHWSDUWLDOO\E\WKHLPSDFWRIUHGXFLQJWKHGLVFRXQWUDWHDQGORQJWHUPH[SHFWHGUHWXUQ
DVVXPSWLRQV
2YHUKHDG 3ULPDULO\UHODWHGWRVDODULHGSHUVRQQHOUHGXFWLRQV
1HWSURGXFW 3ULFLQJUHGXFWLRQVIURPRXUVXSSOLHUVDQGQHWGHVLJQFRVWUHGXFWLRQVRIIVHWSULPDULO\E\
FRPPRGLW\SULFHLQFUHDVHV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ $FFHOHUDWLRQRIGHSUHFLDWLRQUHVXOWLQJIURPRQJRLQJLPSURYHPHQWSODQVLQFOXGLQJWKHDQQRXQFHG
IDFLOLW\LGOLQJVRIIVHWSDUWLDOO\E\WKHIDYRUDEOHLPSDFWRILPSDLUPHQWFKDUJHVIRUORQJOLYHG
DVVHWVDQGWKHIDYRUDEOHLPSDFWRIWKHFKDQJHLQVSHFLDOWRROLQJDPRUWL]DWLRQPHWKRGRORJ\
:DUUDQW\UHODWHG 3ULPDULO\UHIOHFWVDGMXVWPHQWVWR-DJXDUDQG/DQG5RYHUZDUUDQW\DFFUXDOVUHODWHGWRXQIDYRUDEOH
SULRUPRGHO\HDUSHUIRUPDQFHDQGWKHQRQUHFXUUHQFHLQRIIDYRUDEOHUHVHUYHDGMXVWPHQWV
RIIVHWSDUWLDOO\E\IDYRUDEOHFRYHUDJHSHUIRUPDQFHLQ)RUG1RUWK$PHULFD
$GYHUWLVLQJ6DOHV3URPRWLRQV 3ULPDULO\LQFUHDVHGDGYHUWLVLQJFRVWV
7RWDO