Sustaining Ford

These changes directly affected our shareholders, employees, suppliers, dealers and the communities in which we operate. But the year also included developments that could help provide the foundation for recovery and growth. These developments included a rise in sales in Europe and several rapidly growing global markets (see 2007 Sales and Highlights), successful product introductions, the mapping of a path toward improved fuel economy globally and a major improvement in our financial results.

Another important accomplishment was the ratification of a new agreement between Ford and the United Auto Workers (UAW). The agreement enables us to make the necessary investment in global product development and flexible manufacturing, so we can bring to market the products and services that will make a difference for our customers and our Company.

This past year, it also became clearer that Ford's future success will be determined in no small part by how effectively it responds to sustainability challenges. Oil prices that topped $100 per barrel in early 2008 have fed consumer interest in automobiles that are thrifty in their use of fuel, causing a continued shift toward more fuel-efficient vehicles in most of our major markets. In rapidly growing economies, the interrelated issues of congestion, pollution and inadequate infrastructure threaten to slow the potential growth of the automotive market. Thus, offering vehicles with smaller environmental footprints, tackling the mobility challenges of rapidly growing urban centers and tailoring our products and services to increasingly diverse global markets are not peripheral to Ford's future success – they are a prerequisite to it. The balance of this section discusses some of the actions taken in 2007 to restore Ford's profitability – another prerequisite to future success.