Ford 2009 Annual Report Download - page 56

Management’s Discussion and Analysis of Financial Condition and Results of Operations
54 Ford Motor Company | 2009 Annual Report
OUTLOOK
Although a global economic recovery is underway, the economic environment remains uncertain. We believe that in
the face of this uncertainty, our One Ford plan – to aggressively restructure our business to operate profitably at current
demand and changing model mix, accelerate development of new products customers want and value, finance our plan
and improve our balance sheet, and work together effectively as one team to leverage our global resources – provides the
right strategy to achieve our objectives. For additional discussion of the economic environment, and discussion and
assessment of the risks and opportunities with regard to our planning assumptions, see our "Risk Factors" and "Overview"
discussion above, and "Critical Accounting Estimates" discussion below.
Our projection of upcoming vehicle production (including Ford-badged vehicles manufactured by unconsolidated
affiliates and non-Ford-badged vehicles manufactured by Ford or its consolidated affiliates) is as follows (in thousands):
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products, and the non-recurrence of prior-year dealer stock declines. We expect gradual improvement in global industry
sales volume during 2010, but significant uncertainties remain. As a result of the very effective 2009 scrappage programs
in Europe, we expect vehicle demand in that region to be lower in 2010, particularly in Germany.
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Although we see improvement in leading economic indicators in our major markets and financial markets have
continued to normalize with ongoing policy support, low levels of consumer confidence and continuing labor market
weakness present a challenge to the near-term economic outlook (particularly for the United States and Europe). The
outlook for consumer spending in the United States and Europe remains weak, with below-trend growth likely in 2010.
In addition, our suppliers and dealers have been weakened by the global economic downturn.
Commodity prices have begun to increase with the emergence of initial signs of economic recovery, and we anticipate
this trend will continue in 2010. Our business also will continue to be affected by currency volatility.
We experienced significant positive net pricing in 2009; we expect year-over-year improvement in 2010, but this will be
a smaller magnitude than in 2009.