Financial Health

It was July 1903, and Henry Ford was in trouble. His fledgling Ford Motor Company was barely one month old, yet his cash balance stood at less than $250 – a trifling amount on which to run a business, even a century ago. Salvation came in the form of $1,320 in payments from three customers eager to own his two-cylinder Model A. That cash infusion, which included one full payment and two deposits, kept Mr. Ford and his company afloat.

Fast forward 109 years to December 2012, when Henry Ford’s great-grandson brought one of those original three vehicles home. The cherry red 1903 Model A Rear Entry Tonneau, purchased at auction for $264,000 by Ford Executive Chairman Bill Ford, is believed to be the oldest surviving Ford vehicle and has earned pride of place in our lobby at our Michigan world headquarters, a symbol of just how far we have come.

This Model A kept our Company going during the first of many difficult times, allowing Henry Ford to pursue his vision of putting the world on wheels. Today, we’re continuing Mr. Ford’s journey – in times both good and bad – as we develop new technologies that are leading in quality, fuel efficiency, safety, smart design and value.

Since that very first production of three cars, we have gone on to build more than 300 million vehicles. Over the years, we have weathered many tough economic periods. Yet we have continued to focus on delivering the world’s best cars, utilities and trucks, including today’s lineup of vehicles that are more sustainable than ever, both in how we make them and how they operate.

Our efforts in 2012 highlight yet again our Company’s recent success in pulling through one of the most challenging periods in our history. We continued to adhere to our vital strategy that has emphasized decisive (and often painful) actions alongside steady, longer-range planning for future profitability. This approach, which we call our ONE Ford plan, is working, with 2012 concluding as one of our most profitable years ever in North America. Driven by strong results from Ford North America, we reported total Company full-year, pre-tax profit of $8 billion – our third year in a row of $8 billion or more in pre-tax profits.¹ In 2012, we also had our highest total Company fourth-quarter pre-tax profit in more than a decade. Moreover, we were the best-selling brand in the U.S., and the Ford Focus was the No. 1-selling vehicle nameplate in the world.²

Despite these successes, we faced a number of challenges in 2012 – such as the ongoing economic crisis in Europe and quality concerns in North America – that required us to adapt and continue to take decisive actions. Technology and economies around the world are changing so fast that the automotive industry of the future will look very little like the automotive industry of the past.

In 2012, our Company launched 25 vehicles and 31 powertrains globally, earned back our iconic Ford Blue Oval, developed a comprehensive plan for restoring profitability in Europe, invested for further growth in Asia Pacific and Africa, began the reinvention of Lincoln, pushed forward on our vision of sustainable mobility, and continued solid profitability at Ford Credit.

Today, we are in a much stronger financial position than we were five years ago, and we have transformed ourselves from the inside out. As our financial security strengthens, we are investing in future products, our people and our communities. In other words, the financial health of our Company has a ripple effect that goes well beyond our business itself as we work for profitable growth for all.