Sales Trends

While overall industry sales and production levels remained low in the United States in 2009 compared to pre-recession levels, Ford saw growth in market share in most of our major markets. Government incentives, such as the popular "cash for clunkers" program in the United States and even larger scrappage programs in Europe (particularly Germany) helped boost what was otherwise a dismal year overall. In the United States, the Ford Focus was the top-selling Ford car under the cash for clunkers program. Reflecting the shifts in consumer preferences, three Ford Explorer models from the 1990s were among the vehicles most traded-in under the program.

Strong products drove Ford's full-year market share gains in North America, South America and Europe, while we maintained our share in the rapidly growing Asia Pacific Africa region.

In the United States, Ford, Lincoln and Mercury fourth-quarter 2009 sales were up 13 percent versus a year ago – leading to the first full-year market share gain since 1995. Fusion sales rose 22 percent, setting a new annual record, and the F-Series was the No. 1 selling truck for the 33rd straight year.

In Europe, fourth-quarter sales increased 19 percent. Led by the Fiesta, Focus and Ka, Ford strengthened its position as Europe's No. 2 brand. Ford Europe's market share of 9.1 percent increased a half point for the year, setting an 11-year high. In South America, meanwhile, Ford Brazil achieved its best-ever full-year sales in 2009 by selling 325,000 units – a 15 percent sales increase over levels from the previous year. And, in our Asia Pacific Africa region, fourth-quarter sales rose 53 percent, with full-year sales up 15 percent in the region. Ford sales in China led the full-year increase, up 45 percent from 2008.

We're extremely pleased that we were able to report a full-year 2009 pre-tax operating profit. And we're on track toward profitability for full-year 2010.

More and more, consumers are recognizing that Ford is different, and the real difference is our great products, stronger business and the better world we are creating – particularly our leadership in quality, fuel efficiency, safety, smart technologies and value.

(For more information, please see the Economy section of this report.)