Regional Performance Highlights

Ford experienced strong sales and market growth in many of our regional markets in 2011. This section outlines our sales performance in our major regional markets and our plans for investments and new product launches.

North America

In the U.S., we are continuing to introduce highly desirable vehicles in the fastest-growing segments, especially more fuel-efficient vehicles. In 2008, we committed that every new or significantly redesigned vehicle we introduce will be best in class or among the leaders in its segment for fuel economy. We are meeting this goal by introducing more fuel-efficient gas engines, smaller vehicles and hybrid vehicles.

We are also introducing new products faster. We delivered on our promise to have 100 percent new or freshened product by 2010. Over the next four years there will be no letup in our cadence. We plan to have 152 percent of our portfolio be new or freshened between 2011 and 2016 in North America.

Ford’s sales in the U.S. were up 14.3 percent in 2011 compared to 2010.1 Ford’s market share2 for 2011 was 16.5 percent, up 0.1 percentage points over 2010 and 2.3 points over 2008. This marked the third consecutive year that our overall U.S. market share has increased. Our improvement in overall market share is primarily the result of favorable acceptance of our redesigned products, a product focus on industry growth segments, and customers’ increasing awareness and acceptance of our commitment to leadership in quality, fuel efficiency, safety, smart design and value. Our market share gain was led by strong sales of our new Ford Fiesta small car and Escape and Explorer utilities. In addition, the F-Series remains the top-selling vehicle in the U.S. for the 30th year in a row and top-selling pickup truck for the 35th year in a row.

The 2012 Ford Escape

In Canada, we remained the top-selling vehicle manufacturer for the second year in a row. We gained market share slightly, to 17.1 percent from 16.9 percent. Strong sales in 2011 primarily reflected increased sales of cars, which gained 14 percent over the prior year on a retail unit sales basis, in addition to our already strong truck sales performance. In 2011, Ford Canada had the best selling vehicle in six segments, with the Ford Fusion, Mustang, Escape, Explorer, Ranger, F-150 and Super Duty.

In Mexico our market share declined slightly, to 9.5 percent from 10.4 percent. Segmentation shifts in the industry away from trucks and utilities and toward cars contributed to our share decline. Fleet sales in Mexico also decreased in the last year as a result of government and commercial segment cutbacks. Our plans for near-term market share growth include new model launches – including in the fastest-growing segment, small cars.

Europe

In Europe we track sales and market share in 19 markets: Austria, Belgium, Britain, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden and Switzerland. Ford’s sales in European markets were up slightly in 2011 over 2010. We sold 1,602,0003 units in 2011, up from 1,573,000 in 2010. Our overall market share decreased slightly, to 8.3 percent from 8.4 percent.

Germany and Britain are our largest European markets. In Germany in 2011, Ford was the fastest-growing manufacturer (with retail vehicle unit sales up 17.6 percent compared with the prior year), and we increased market share by more than half a percentage point. This success was primarily driven by sales of the new Ford Focus, C-MAX and S-MAX, as well as record sales of Ford Transit vehicles. In 2011, Ford remained the market share leader in Britain, with 15 percent market share.

The Ford Focus with EcoBoost

In 2011, Ford’s share of the Turkish market held steady at 15.8 percent. Sales in Turkey increased by 10,000 units to 140,0004 in 2011 – a 7.6 percent increase over 2010. Ford also improved sales in Russia in 2011. In Russia, Ford’s 2011 sales were at 124,0005 units, up by 33 percent or 31,000 units compared to 2010. Over the next several years, we expect industry sales volumes in Russia to grow rapidly and perhaps even exceed sales volumes in Germany, Europe’s largest market.

In 2011, we continued to introduce exciting new vehicles, including the all-new Ford Focus in Europe. We will be introducing new or significantly refreshed products in Europe between 2011 and 2014. These include an all-new Ford Kuga and B-MAX, as well as a completely freshened commercial vehicle range starting with the Ford Ranger, which went on sale in 2011. Plus, Ford launched its first all-electric vehicle in Europe in 2011 – the Transit Connect Electric. The Focus Electric follows in late 2012.

Asia Pacific and Africa

Our Asia Pacific and Africa region encompasses 12 markets – including Australia, China, India, the ASEAN member states and South Africa – on three continents. The fastest-growing markets for automobiles are in rapidly developing countries like China and India. We expect 60 to 70 percent of our growth to come from the Asia Pacific and Africa region by 2020. To meet the growing demand, we have increased and are planning to increase further our dealer networks and manufacturing capacity in the region.

Ford’s wholesale sales in the Asia Pacific and Africa region were up 7.5 percent in 2011 compared to 2010, to 901,000 units from 838,000 units. Our overall market share for the region increased to 2.7 percent in 2011 from 2.4 percent in 2010.

South America

Ford’s principal markets in South America are Brazil and Argentina. Ford’s 2011 market share for the region was 9.3 percent, down 0.5 percentage points from 2010. Ford is the fourth largest automaker in Brazil. We are making our largest-ever investment in Brazil operations in a five-year period, by investing R$4.5 billion from 2011 to 2015 to accelerate the delivery of more fuel-efficient, high-quality vehicles, which customers in Brazil desire. South America will have versions of Ford’s global small and midsize vehicles by 2014, including Fiesta- and Focus-sized small cars and utilities, Fusion- and Mondeo-sized midsize cars and utilities, compact pickups and commercial vans.

We are continuing to invest in the rapidly growing markets of South America and Asia Pacific. At the same time, we know that our long-term success in these developing and revitalizing economies will depend on our offering new types of mobility solutions that are increasingly sustainable and tailored to the unique needs of these markets. Our sustainable mobility strategy is aimed at ensuring we do just that.