Indiana UniversityIndiana University

SCOOPSCOOP

Ron Hoffman

• Ford And Automotive IndustryFord And Automotive Industry

• Financial Analysis In The Auto Industry

TODAY’S PRESENTATIONTODAY’S PRESENTATION

WWW.MYCAREER .FORD.COM

Ford ThunderbirdFord Thunderbird

Ford Explorer Sport TracFord Explorer Sport Trac

SOME OF THE WORLD’S STRONGEST BRANDSSOME OF THE WORLD’S STRONGEST BRANDS

• Annual Sales $160 Billion

• 6.6 Million Vehicles Through 20,000 Dealers

• Diverse, Global Team of 350,000 Employees

THREE-QUARTERS OF WORLDWIDE AUTO SALES THREE-QUARTERS OF WORLDWIDE AUTO SALES ARE IN N. AMERICA, EUROPE AND JAPANARE IN N. AMERICA, EUROPE AND JAPAN

Millions

2002 Sales By Region Share Of World Market

North America 19.9

Europe 17.2

Japan 5.8

Other Asia Pacific 7.0

South America 1.8

Rest Of World 4.3

Total World 56.0Europe

31%

Japan10%

OtherAsia-

Pacific12%

NorthAmerica

35%

RestOf World

9%

SouthAmerica

3%75%

THE GLOBAL PLAYERSTHE GLOBAL PLAYERS

General MotorsFordToyota

VWDaimler-ChryslerPSA

HondaNissanHyundaiOther

Total

14.8%11.711.0

8.7 7.8 5.1

5.0 4.7 4.426.8

100%

8.36.66.1

4.94.42.9

2.82.62.4

15.0

56.0 Million

Million

Share Unit Volume

Global Automotive Market

Worldwide Light Vehicle Capacity (Mils. Of Units)

N. America 21 20%S. America 5 48Asia Pacific 26 26Europe 23 21Row 6 38 Total 81 25%

Memo:China 5 36%Japan 11 17Korea 4 27

Total(Mils.)

Excess(Pct.)

Proj. 2006 Capacity

REGION

615645

22222020

8178

50

ExcessDemand

ExcessCapacity (Pct.) 10% 28% 25%

1985 2002 PROJ.2006

GLOBAL EXCESS CAPACITY DRIVES COMPETITIVE GLOBAL EXCESS CAPACITY DRIVES COMPETITIVE PRESSURE IN ALL REGIONSPRESSURE IN ALL REGIONS

55

• Ford And Automotive Industry

• Financial Analysis In The Auto IndustryFinancial Analysis In The Auto Industry

TODAY’S PRESENTATIONTODAY’S PRESENTATION

FUNCTIONAL ORIENTATIONFUNCTIONAL ORIENTATION

North AmericaM

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WHO WE ARE AND WHAT WE WHO WE ARE AND WHAT WE DODO

• Functional proficiencies

• Broad business knowledge

• Business judgment and insight

• Drive for results

• Integrity

• Developing business leaders

OUR HERITAGE OUR ROLE

• Be the “glue” that holds the business together

• Provide strong leadership to drive results -- from strategy development through implementation

• Partner with operating management -- be seen to be a team member

• Provide high quality, timely financial information and analysis

OUR GLOBAL FINANCE TEAM -- 4,300 STRONGOUR GLOBAL FINANCE TEAM -- 4,300 STRONG

NorthNorthAmericaAmerica

58%58%

EuropeEurope26%26%

SouthSouthAmericaAmerica

10%10%

Asia-Asia-PacificPacific

6%6%

GLOBAL FINANCE DEPLOYMENTGLOBAL FINANCE DEPLOYMENT

Accounting20%

Treasury,Audit, Corp. Staffs

7%

FunctionalControllers’

Offices73%

Provides Framework To Accelerate Early Career Development

3 Challenging Assignments3 Challenging Assignments

Stewardship / MentoringStewardship / Mentoring

Finance Skill DevelopmentFinance Skill Development

FORD FINANCE CAREER FOUNDATION FORD FINANCE CAREER FOUNDATION PROGRAM PROGRAM

PROFESSIONAL DEVELOPMENTPROFESSIONAL DEVELOPMENTAT ALL LEVELSAT ALL LEVELS

• Personnel Development Committees (PDCs) at every level manage the development process

• Decisions made with input from employee supervisor and PDC to guide career development

• Professional development of employees is a key responsibility of all levels of management