Ford 2014 Annual Report Download - page 8

Item 1. Business (Continued)
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OVERVIEW
Segments. We review and present our business results in two sectors: Automotive and Financial Services. Within
these sectors, our business is divided into reportable segments (referred to herein as “segments,” “business units,” or
“regions”) based on the organizational structure that we use to evaluate performance and make decisions on resource
allocation, as well as availability and materiality of separate financial results consistent with that structure.
The reportable segments within our Automotive and Financial Services sectors at December 31, 2014 were as
described in the table below:
Business Sector Reportable Segments Description
Automotive: North America Primarily includes the sale of Ford and Lincoln vehicles, service parts, and
accessories in North America (the United States, Canada, and Mexico),
together with the associated costs to develop, manufacture, distribute, and
service the vehicles, parts, and accessories.
South America Primarily includes the sale of Ford vehicles, service parts, and accessories in
South America, together with the associated costs to develop, manufacture,
distribute, and service the vehicles, parts, and accessories.
Europe Primarily includes the sale of Ford vehicles, components, service parts, and
accessories in Europe, Turkey, and Russia, together with the associated costs
to develop, manufacture, distribute, and service the vehicles, parts, and
accessories.
Middle East & Africa Primarily includes the sale of Ford and Lincoln vehicles, service parts, and
accessories in the Middle East and Africa, together with the associated costs to
develop, manufacture, distribute, and service the vehicles, parts, and
accessories.
Asia Pacific Primarily includes the sale of Ford and Lincoln vehicles, service parts, and
accessories in the Asia Pacific region, together with the associated costs to
develop, manufacture, distribute, and service the vehicles, parts, and
accessories.
Financial Services: Ford Credit Primarily includes vehicle-related financing and leasing.
Other Financial Services Includes a variety of businesses, including holding companies and real estate-
related activities.
AUTOMOTIVE SECTOR
General
Our vehicle brands are Ford and Lincoln. In 2014, we sold approximately 6,323,000 vehicles at wholesale throughout
the world. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“Item
7”) for discussion of our calculation of wholesale unit volumes.
Substantially all of our vehicles, parts, and accessories are sold through distributors and dealers (collectively,
“dealerships”), the substantial majority of which are independently owned. At December 31, 2014, the approximate
number of dealerships worldwide distributing our vehicle brands was as follows:
Brand
Number of Dealerships
at December 31, 2014
Ford 10,938
Ford-Lincoln (combined) 869
Lincoln 173
Total 11,980
We do not depend on any single customer or a few customers to the extent that the loss of such customers would
have a material adverse effect on our business.
In addition to the products we sell to our dealerships for retail sale, we also sell vehicles to our dealerships for sale to
fleet customers, including commercial fleet customers, daily rental car companies, and governments. We also sell parts
and accessories, primarily to our dealerships (which in turn sell these products to retail customers) and to authorized parts
distributors (which in turn primarily sell these products to retailers). We also offer extended service contracts.
The worldwide automotive industry is affected significantly by general economic conditions over which we have little
control. Vehicles are durable goods, and consumers have latitude in determining whether and when to replace an existing
vehicle. The decision whether to purchase a vehicle may be affected significantly by slowing economic growth,
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