Community

Fundamental changes are under way within our industry and our Company, including increased competition globally and changing markets for our products, with the bulk of future sales growth expected to occur in emerging markets. At the same time, we and other companies are expanding sourcing in these lower-cost emerging markets, as a way to serve both local markets and the global supply chain. These changes are affecting not only how we manage our operations, but also how we engage with and affect the communities in which we operate.

In North America, we are taking some significant and difficult actions as part of our effort to restore our operations to profitability. These actions include idling facilities, reducing employment and reducing the amount we spend on charitable contributions. We recognize and regret that these actions will have negative consequences in the affected communities, and we are working closely with our stakeholders to manage them responsibly. See the Economy section for more information.

In addition to the changes under way in our North American operations, sourcing and sales trends mean Ford is operating in a greater number of emerging economies. Whether doing business in Michigan or Malaysia, we seek to respect and make a positive contribution to our host communities. Operating in emerging economies, however, does bring with it some new community issues for us to understand and manage.

One of these issues is human rights. Specifically, we must ensure that our products, no matter where they are made, are manufactured under conditions that demonstrate respect for the people who make them. We also must respect the rights of people living in the communities around our facilities, as well as our suppliers' facilities, who may be affected by those operations We view respect for human rights as not only a core operational issue, but also as a key to maintaining the trust and respect of local communities. That trust is critical if we want to continue to operate and, increasingly, sell our products in those locations. See the Human Rights section for more information.

The anticipated changes in the market for our products also have implications for how we engage with local communities. The mobility needs of potential customers in emerging markets differ in some fundamental ways from those in the developed markets the auto industry has primarily served to date. Local community engagement is a key strategy Ford is using to learn about and understand how best to meet the needs of these critical and fast-growing markets. See the Mobility section for more information.