Ford: sales goal for 2015 projected to be eight-million vehicles

Increasing sales in emerging countries and launching fuel-efficient small cars



 In its mid-term business plan "Mid-Decade Outlook" running through 2015 and published in June 2011, Ford expects its annual worldwide sales to increase by approximately 50 percent from the result in 2010 to 8 million vehicles in 2015. Most of the increase will come from sales expansion in emerging countries and increased sales of highly fuel-efficient, small cars. The mid-term business plan is expected to bring Ford to a major turning point from the time of business reconstruction to the time of business expansion.

 Ford has been quite active in the growth markets in Asian emerging countries. In China, in particular, a second plant in Chongqing began operating in February 2012 after which Ford's production capacity in China at the new and existing plants combined rose to 600,000 vehicles. Ford has plans to build a third plant in Chongqing and a new plant in Hangzhou by 2015 after which Ford's capacity will total 1.2 million vehicles.

 Ford reached an agreement with the United Auto Workers (UAW) in the US regarding a four-year labor agreement. Ford will hire more workers while increasing the ratio of lower hourly wage workers. Ford will also make additional investments to increase production in the plants in the US where the company is enjoying brisk sales.

 With regard to improving fuel efficiency, Ford will increase vehicles powered by EcoBoost, a direct injection turbocharged gasoline engine of low fuel consumption. Their sales will triple year-on-year to 400,000 units in 2012 and Ford plans to produce 1.5 million of that engine in 2013.

 Ford's worldwide vehicle sales in 2011 increased 3.1 percent over the previous year to 5,695,000 units thanks to sales increases in North America and Asia. The revenues also increased 5.7 percent along with 21.4 percent increase in pre-tax profit year-on-year. However, Ford's vehicle sales in the first quarter of 2012 declined 3.2 percent from the same period a year earlier to 1,358,000 units along with declines in revenues and pre-tax profit. The vehicle sales and performance increased in North America but the overall decline was inevitable because of the significant deficit in Europe suffering from a shrinking market after a borrowing binge.

Related reports:
Ford of Europe (Mar. 2012), Detroit Auto Show: US OEMs (Feb. 2012)
New regulations on fuel economy in US (2) (Nov. 2011), Ford in China (1) (Nov. 2011), (2) (Nov. 2011)

Mid-Decade Outlook: Asian markets account for 30% in sales in 2020 with small vehicles accounting for 55%

 In the Mid-Decade Outlook through 2015 announced in June 2011, Ford expects its worldwide sales to increase approximately 50 percent from the results in 2010 to 8 million vehicles a year in 2015 (worldwide sales in 2011 were 9,026,000 vehicles for GM and 8,160,000 vehicles for VW).

 To achieve that sales goal, Ford will continue its One Ford Plan (its vehicles sold in main markets in the world will have essentially the same design, manufacturing processes etc., to increase quality and reduce costs). In more concrete terms, Ford will expand the vehicle types that adopt global platforms and, at the same time, introduce small, fuel-efficient vehicles and strive to increase sales in emerging markets in Asia.

Ford:Mid-Decade Outlook through 2015 (announced in June 2011)

  Worldwide vehicle sales  Increase sales by 50 percent from 2010 to 8 million vehicles in 2015 (Ford's wholesale was 5,520,000 vehicles in 2010 and 5,700,000 vehicles in 2011). Most of the increase will come from sales in emerging countries such as China and India and, by the vehicle types, from sales of small-size vehicles.
 Increase the ratio of sales in Asia Pacific Africa to 32 percent of total sales (from 15.2 percent in 2010 and 15.8 percent in 2011) and the ratio of small vehicle sales to 55 percent (from 48 percent in 2010) by 2020.
Performance  Increase the automotive operating margins to 8-9 percent by 2015 (from 6.1 percent in 2010 and 5.4 percent in 2011). North America operating margin to be in the 8-10 percent range (from 8.4 percent in 2010 and 8.3 percent in 2011).
Capital spending  Invest US$ 6 billion a year on average through 2015 (US$ 3.9 billion in 2010, US$ 4.3 billion in 2011).
Debt reduction  Reduce automotive debt to US$ 10 billion by 2015 (from US$ 16.6 billion at March 31, 2011 and from US$ 33.6 billion at the end of 2009).
Means: Continue One Ford Plan to achieve the above goals.
Platform  Six million out of the 8 million vehicles sold globally in 2015 will be built on five global platforms (B, C, C/D, full-size commercial van and compact pickup).
Product planning  The lineup existent in 2009 will be re-modeled or significantly refreshed by 2014 (some models will be refreshed twice by 2014).
Emerging countries  Introduce lower-priced versions of global models in emerging countries (US$ 1,000 to US$ 2,000 lower than regular models), and increase local production of global models.

Source: Ford Press Release 2011.6.7
(Note) Ford expects the auto market volume to grow to the 95 million to 100 million range in 2015 (74 million in 2010).


Emerging markets: Enhancing production capacities in China, India, Thailand and Brazil

 Ford is accelerating operations in emerging countries in Asia and other regions to achieve the sales target of 8 million vehicles in 2015.

 In China, a second plant in Chongqing began operating in February 2012. Ford plans to build a third plant in Chongqing and a new plant in Hangzhou by 2015 after which Ford's capacity will increase to 1.2 million vehicles.

 In India, Ford will complete an assembly plant with 240,000 vehicles capacity and an engine plant with 270,000 units capacity by 2014. Ford will also enhance the existing engine plant and turn it into an engine supply base for foreign markets.

 In Thailand, Ford has increased annual production capacity of the AAT pickup plant, a joint venture formed with Mazda, from 120,000 to 140,000 vehicles. In May 2012, a new passenger plant built by Ford alone opened with annual capacity of 150,000 vehicles.

 In Brazil, Ford will build a new engine plant with annual capacity of 210,000 units. Ford will also enhance the production capacity of the existing powertrain plant.

China: Second plant in Chongqing starts operating while a third Chongqing plant and a new one in Hangzhou are being built to raise total capacity to 1.2 million vehicles in 2015

Second plant
in Chongqing
 Changan Ford Mazda Automobile's second plant in Chongqing, being built with US$ 490 million investment, began production in February 2012 with annual capacity of 150,000 vehicles. The new plant is also flexible enough to produce six different types of vehicles. The plant will initially produce the all new Ford Focus to be built on a global C platform. Combined with the existing plant in Chongqing and another in Nanjing, Ford's production capacity in China has increased to 600,000 vehicles.
Third plant
in Chongqing
 Changan Ford Mazda Automobile will invest US$ 600 million to build a third plant in Chongqing with annual capacity of 350,000 vehicles (announced in April 2012). When it starts production near the end of 2014, the new plant will further raise Ford's production capacity in China to 950,000 vehicles.
Hangzhou plant  Ford and Changan Ford Mazda Automobile will invest US$ 760 million (approximately RMB 4.9 billion) to build a new plant in Hangzhou, Zhejiang (announced in April 2012). Construction will start in the second half of 2012 and the new plant will start production in 2015 with an annual capacity of 250,000 vehicles. This will increase Ford's total production capacity in China to 1.2 million vehicles in 2015. Including the investment for the Hangzhou plant, Ford has laid out a total of US$ 4.9 billion in China since 2006.

China: Building a second engine plant and a transmission plant in Chongqing

Second engine plant
in Chongqing
 In June 2011, Changan Ford Mazda Automobile invested US$ 500 million and started construction of a second engine plant in Chongqing. The plant will start production in 2013 with an annual capacity of 400,000 engines. The company's engine production capacity, combined with the first plant, will be 750,000 engines.
transmission plant
 Changan Ford Mazda Automobile is investing US$ 350 million to build a transmission plant in Chongqing (construction work started in July 2011). The plant will start production in the fourth quarter of 2013 with initial capacity of 400,000 units of the 6-speed automatic transmissions that will be used in the Ford-brand vehicles manufactured by the company. This marks the first transmission plant ever built by Ford in China.

China: Introducing 15 new models and 20 new powertrains by 2015

Plans through 2015  Ford plans to launch 15 new models in China by 2015. They will include four SUV models (EcoSport, a small SUV; Kuga, the foreign version of the new Escape; Edge, a midsize SUV; and Explorer, a full-size SUV).
 Ford will introduce twenty new powertrains in China by 2015 to achieve more than 20 percent improvement in fuel efficiencies and CO2 emissions of Ford vehicles produced in China. Ford will introduce the EcoBoost, a direct injection turbo, and will upgrade some other engines as well. The 1.0-liter EcoBoost will be produced locally. Ford will also introduce 6-speed ATs (including the PowerShift dual-clutch transmission) in place of the current 4-speed AT.
 Ford will improve or otherwise expand its sales network and increase the number of dealer outlets to 680 in 2015 (from 340 at the end of 2010).

Source: Ford Press Release 2011.5.19/2011.6.16/2011.11.21/2012.2.24/2012.4.5
(Note) Changan Ford Mazda Automobile has plans to dissolve the three-party joint venture and restructure them into two companies, namely Changan Ford and Changan Mazda. The company filed an application to that effect with the Chinese government in May 2010. But the government is concerned about over-capacity of production and very strict about foreign manufacturers entering the local markets. An official approval of the application by the government is still pending as of May 2012.


India: Building a new assembly plant and an engine plant in Gujarat

Sanand plant
in Gujarat
 In September 2011, Ford invested approximately US$ 1.0 billion and began constructing the Sanand plant in Gujarat, India. The plant will have an assembly plant and an engine plant and, when completed in 2014, will have an annual production capacity of 240,000 assembled vehicles and 270,000 engines.
Chennai engine plant  Ford will spend US$ 72 million to expand the existing engine plant near Chennai and increase its production capacity from 250,000 to 340,000 engines in mid-2012. The company plans to turn Ford India as an engine supply hub for major overseas markets.
Plans through 2015  Ford will launch eight new models in Indian markets by 2015. The first, the new Fiesta, was launched in July 2011. The second, the EcoSport (small SUV) is planned for launch in 2012.

Source: Ford India Press Release 2012.3.22


Thailand: Increasing production capacity of the AAT pickup plant and starting a new passenger car plant with an annual capacity of 150,000 units

AAT's pickup plant  Ford and Mazda will make an additional investment of US$ 27 million to add a new line in the pickup plant of their joint venture, AutoAlliance (Thailand) (AAT), and increase the plant's production capacity from 120,000 to 140,000 units (195,000 units including CKD). The new line will start production in May 2012 and produce the two companies' new pickups, the Ford Ranger and Mazda BT-50, for the Thai markets and exports (AAT has a passenger car plant with an annual production capacity of 100,000 cars).
FTM's new plant  Ford has made a sole investment of US$ 450 million to build a new passenger car plant, Ford Thailand Manufacturing (FTM), in the Eastern Seaboard Industrial Estate in Rayong province. The new plant was completed in May 2012 as Ford's second production site in Thailand after the AAT plant jointly operated with Mazda. The new plant is fully equipped from stamping to painting and final assembly facilities and has an initial production capacity of 150,000 vehicles (which has increased Ford's total capacity in Thailand to 445,000 vehicles). The plant is also capable of producing up to six different models concurrently, and will start producing the new Ford Focus for the ASEAN countries, Australia and New Zealand starting in June.
Plans through 2015  Ford plans to introduce eight new models in the ASEAN region by 2015. The new plant in Thailand is positioned as a key production site under that plan.

Source: Mazda Press Release 2012.4.25, Ford Press Release 2012.5.2


Brazil: Building a new engine plant with 210,000 units capacity while increasing capacity of the existing powertrain plant

engine plant
 Ford will build a new engine plant in the City of Camacari in Bahia in northeast region of Brazil, by investing BRL 400 million (part of the BRL 4.5 billion investment covering 2010-2015) (announced in December 2011). This will be Ford's first engine plant in that part of Brazil while the company has a powertrain plant in Sao Paulo in the south of the country. It will have an annual production capacity of 210,000 engines and will produce high-performance, fuel-efficient engines.
powertrain plant
 Ford is investing BRL 500 million to expand annual production capacity of the Taubate plant in Sao Paulo. The company plans to increase capacities of the Sigma engines to 500,000 and of the transmissions to 520,000. The plant currently has 1,700 workers and Ford plans to hire 500 new workers (the time of expansion has not been disclosed).

Source: Ford Press Release 2011.12.19/2011.12.21


US: A new labor agreement between Ford and UAW will hire 12,000 additional workers by 2015

 In October 2011, an official agreement was reached between Ford and the United Auto Workers (UAW) regarding a new four-year labor agreement. The new agreement promises by Ford to hire 12,000 additional workers and to make an investment of US$ 16 billion at its plants in the United States. Ford expects that by offering buyouts for early retirements and additional hiring of entry-level employees the company will be able to suppress average wages and increase competitiveness in the United States.

 Ford is already upgrading its production structure at the plants in the US with investment promises. New facilities will be installed in the Kansas City plant to produce the commercial van, the Transit. AAI's Flat Rock plant will go on a two-shift operation to start production of the new Fusion,

Ford: A new labor agreement with UAW promises 12,000 new jobs by 2015

 In October 2011, Ford reached a labor agreement with the United Auto Workers (UAW). The agreement covers approximately 41,000 union members and remains in effect for four years. As agreed with the union, Ford will hire 12,000 additional hourly workers at its production sites in the United States by 2015 (including in-sourcing work from Mexico, China and Japan). Ford also is investing US$ 16 billion in its U.S. development and manufacturing operations (including US$ 6.2 billion in plant-specific investments).
 Ford will hire 5,000 new workers at four plants where additional production shifts are planned (out of the 12,000 jobs): Michigan plant, Chicago plant, Louisville plant and AAI's Flat Rock plant.
 The new labor agreement offers buyouts to workers on continued service for early quits and retirements. Most of the 5,750 last hired workers will be hired for entry level jobs of lower hourly wages to suppress the average wages. The hourly entry level wage starts from US$ 15.50 and the average wage is US$ 17. The average wage for unskilled workers other than those at the entry level is over US$ 28 (the hourly wage for entry level jobs will be raised to up to US$ 19.28 by the expiry of the labor agreement).

North America: Production of commercial van Transit and all-new Fusion starts in US plants

Kansas Cityplant  Ford is investing US$ 1.1 billion to build a new stamping plant in the Kansas City plant and update its facilities (announced in October 2011). Production of the Escape SUV is to be transferred in April 2012 to the Louisville plant to start production of the commercial van called the Transit and the next model of the F-150.
AAI's Flat Rock plant  With US$ 555 million investment, Ford is to add a second shift at the Flat Rock plant operated by Auto Alliance International (AAI), a Ford-Mazda joint venture company, to produce the new Fusion being launched in North America in the fall of 2012, in addition to the Mustang already in production (the current model of the Fusion is being produced in the Mexican plant but the new Fusion will be produced in the US as well in expectation of an increased demand) (announced in October 2011).
Mexican plant  Ford will invest US$ 1.3 billion in the Hermosillo plant in Sonora, Mexico, to hire 1,000 new workers and produce midsize sedans, the new Ford Fusion and the Lincoln MKZ (announced in March 2012).

Source: Ford Press Release 2011.10.19/2011.10.21/2012.3.30, Reuters 2011.10.4
(Note) Starting with the next model (to be launched in the second half of 2012), Mazda will transfer production of the Mazda 6 (Atenza in Japan), currently being produced at AAI for North American market, to Mazda's Hofu plant in Japan. Mazda is currently discussing the future of AAI with Ford.


New model launch: Launching the new Escape and the new Fusion/Lincoln MKZ in North America in 2012

 Ford is launching in North American markets in 2012 the new Escape, a small SUV built on a global C platform, and the new Fusion, a midsize sedan, and its sister model, the Lincoln MKZ, built on global C/D platforms. In 2013, Ford will redefine the Transit, a commercial van currently sold in Europe, as a global model and launch the all-new model in North America as well.

 The new model of the EcoSport, a small SUV originally developed in Brazil for emerging markets, will be sold starting in 2012 in a hundred countries including India and China, in addition to the markets in South America.

 With regard to electrified vehicles, Ford plans to more than triple its production capacity in North America in 2011 to over 100,000 vehicles by 2013. In addition to the Focus Electric launched at the end of 2011, Ford will produce the HV/PHV models of the C-Max, slated for launch in 2012, at the Michigan plant.

Ford: New models to be launched in North America during 2012 and 2014

Model Launch Outline
New Escape/Kuga Beginning
of 2012
 The Escape, the best-selling SUV in the US, and the Kuga, an SUV for Europe, used to be different models built on different platforms. They are now redesigned as an identical model built on the same global C platform as the new Focus. The new models are powered by the 1.6/2.0-liter EcoBoost or the 2.5-liter four-cylinder engine combined with the 6-speed SelectShift Automatic Transmission in North America. They will be sold under the name of Kuga in markets outside North America.
New Focus ST 2012  A high-performance version of the Focus and launched as a global model in 40 countries around the world. Being launched in the US for the first time. The new Focus ST for North America is produced at the Michigan plant. Powered by the 2.0-liter EcoBoost engine and the 6-speed MT. Has a maximum output of 250 PS and a maximum torque of 360Nm.
New Fusion/Mondeo Fall 2012  A midsize sedan to be sold as the new Fusion in North and South America starting in the second half of 2012, and as the new Mondeo in Asia and Europe in 2013. Built on the global C/D platforms and powered by the 1.6/2.0-liter EcoBoost engines. The HV and PHV models will also be available. The type fitted with the 1.6-liter EcoBoost engine will be Ford's first non-hybrid model fitted with the start-stop system.
New Lincoln MKZ End of
 A midsize luxury sedan that shares the platform with the Ford Fusion. Redesigned with appeal to young people to revitalize the somewhat declining sales of the Lincoln brand cars. Characterized by the 15.2 square foot panoramic roof, the largest in the world among the sedans in the market today. Powered by the 2.0-liter inline four-cylinder EcoBoost/3.7-liter V6 engine. The HV model will also be available.
New Transit 2013  A full-size commercial van. The North American version of the new Transit being launched in Europe in the second half of 2012. Unlike the front-wheel driven European version, the North American version is rear-wheel driven and larger in size than the European version. Powered by the 3.5-liter V6 EcoBoost engine. Positioned in North America as the successor to the commercial van Ford E-Series but is 300 pounds lighter and more than 25 percent more fuel efficient than the E-Series. Produced at the Kansas City plant in the US (production of the E-Series will continue for a while after the introduction of the Transit).
New Edge 2013  A midsize SUV. A sister model to the Lincoln MKX. Built on the global C/D platform.
New Lincoln MKX 2013  A midsize SUV. A sister model to the Ford Edge.
New Fiesta ST 2013-14  A high-performance version of the Fiesta. Powered by the 1.6-liter EcoBoost engine and has the maximum power of 180PS and maximum torque of 240Nm. To be introduced in North America after the new Focus ST.
(New model to be launched in emerging countries)
New EcoSport 2012  A small SUV designed for emerging countries and built on the global B platform. The original model launched in 2003 was sold mainly in South America but the new model will be sold in approximately 100 countries including South America, India, China and ASEAN. To be produced in Brazil, India and China.
Ford:Electrified vehicles to be launched from the end of 2011 to 2013
Model Launch Outline
Focus Electric End of
 Fitted with a 23kWh lithium-ion battery and a 92kW motor. Chargeable in 3-4 hours from a 240V charging station (20 hours from a 120V source) and runs up to 76 miles (EPA rating) per full-charge. Has EPA gasoline-equivalent fuel efficiency (combined) of 105MPGe and the price starts from US$ 39,995, same as General Motors' Chevrolet Volt (Nissan Leaf has a starting price of US$ 35,200). Produced at the Michigan plant.
C-Max Hybrid Second half
of 2012
 A HV version of the small MPV, C-Max. Produced at the Michigan plant.
C-Max Energi Second half
of 2012
 A PHV version of the small MPV, C-Max, with a targeted cruising range of 500 miles maximum. Produced at the Michigan plant.
New Fusion Hybrid Fall 2012  A HV version of the midsize sedan, Fusion. Produced at the Hermosillo plant in Mexico.
Fusion Energi 2013  A PHV version of the midsize sedan, Fusion. Produced at the Hermosillo plant in Mexico.

Source: Ford Press Release 2012.1.4/2012.1.9/2012.3.5/2012.4.2, Ford Website "Electrified Vehicles"


EcoBoost engines: Supplying 400,000 EcoBoost-powered vehicles in 2012, producing 1.5 million EcoBoost engines in 2013

 As a fuel-efficiency improvement solution, Ford is increasing the number of vehicles powered by the EcoBoost, a highly fuel-efficient, direct-injection turbocharged gasoline engine. Ford plans to triple the number of EcoBoost engine-powered vehicles from the previous year to 400,000 units in 2012. The company expects to produce 1.5 million EcoBoost engines around the world in 2013 and make them available on 80 percent of the Ford lineup.

Tripling the number of EcoBoost-powered vehicles to 400,000 in 2012

Mechanism  The EcoBoost engine is a low fuel consumption type gasoline engine based on Ford's original technology. It combines direct fuel injection, a variable intake and exhaust valve timing system and a turbocharger and delivers approximately 20 percent better fuel efficiency compared to Ford's conventional gasoline engines. The engine's displacement ranges from 1.0-liter, 1.6-liter, 2.0-liter to 3.5- liter versions. The EcoBoost engine is used in small to midsize passenger cars, SUV and pickup trucks.
Launch plan  Ford launched seven EcoBoost-powered models in 2011 and plans to launch eleven models in 2012 to triple the engine supply to 400,000 units from the previous year. The engine will be fitted in the Escape, a volume production small SUV, the Fusion, a main midsize model, the EcoSport, a small SUV for emerging countries with a 1.0-liter displacement, etc. Ford will expand supply of the EcoBoost-powered vehicles as eco-cars offered at an affordable price. Ford is determined to make the EcoBoost engines available by 2013 with 80 percent of Ford lineup around the world and with 90 percent of Ford lineup sold in the United States.
 Ford plans to produce 1.5 million units of EcoBoost engines a year in the world by 2013. In addition to increasing production at its plants in Europe and the United States, Ford is considering local production of the 1.0-liter EcoBoost engines in China (Ford has plans to produce 1.3 million units of EcoBoost engines in Europe in 2012-2015, of which 800,000 units will be 1.0-liter EcoBoost engines).

Source: Press Release 2011.11.21/2012.1.26/2012.5.10, Nikkei Sangyo Newspaper 2012.1.27


Vehicle sales: Global sales in first quarter 2012 decline by 3.2 percent to 1,358,000 vehicles owing to slow sales in Europe and Asia

 Ford's vehicle sales in 2011 increased by 3.1 percent year-on-year to 5,695,000 units. Sales in North America increased by 11.3 percent, and those in Asia Pacific Africa by 7.5 percent, both contributing to the company's overall results. The Fiesta, a small car launched in June 2010, and the redesigned Explorer SUV are selling briskly in the United States and the annual vehicle sales there topped two million vehicles for the first time after 2007.

 Ford's sales in January-March 2012 declined year-on-year by 3.2 percent to 1,358,000 vehicles. Sales in North America increased by 5.9 percent but those in Europe and Asia Pacific Africa declined by 13.9 percent and 10.3 percent, respectively.

Ford's sales volume by region (wholesale)

(1,000 units)
Europe Asia Pacific
PAG Special
2005 3,410 335 1,753 505 764 6,767
2006 3,051 381 1,846 589 730 6,597
2007 2,890 436 1,918 535 774 6,553
2008 2,329 435 1,820 464 359 5,407
2009 1,927 443 1,568 604 324 4,866
2010 2,413 489 1,573 838 211 5,524
2011 2,686 506 1,602 901 5,695
Jan.-Mar. 2011 615 114 432 242 1,403
Jan.-Mar. 2012 651 118 372 217 1,358
Source: Ford Q1 2012 Earnings Review
(Notes) 1. Wholesales include Ford-brand vehicles (including those produced by non-consolidated affiliates), vehicles produced by Ford and OEM-supplied to other manufacturers, and vehicles produced by Jiangling Motors, Ford's joint venture in China, carrying Chinese brands.
2. Vehicle sales in Europe include Ford-brand vehicles sold in Turkey and Russia by non-consolidated affiliates (67,000 units in 2010, 114,000 units in 2011).


Business results: Pre-tax profit in first quarter 2012 declines by 26.6 percent to US$ 2.04 billion due to deficits in Europe and Asia

 Ford's revenues in 2011 increased by 5.7 percent from the previous year to US$ 136.3 billion. Despite the deficits registered in Europe and Asia Pacific Africa, Ford's overall pre-tax profit increased by 21.4 percent to US$ 8.68 billion thanks to the profitable operations in North America and Financial Services. According to Ford's explanation, the deficits in those regions were attributable in part to a sharp rise in material costs in Europe and one-time expenditure related to the construction of seven plants in Asia.

 Revenues in the first quarter of 2012 declined year-on-year by 2.1 percent to US$ 32.4 billion and pre-tax profit declined by 26.6 percent to US$ 2.04 billion. The company's pre-tax profit in North America marked a record high since 2000 at US$ 2.13 billion, but the overall result was affected by the deficits in Europe and Asia Pacific Africa. Ford has posted a pre-tax operating profit for 11 consecutive quarters with most of the profit coming from North American markets.

 According to Ford's outlook for 2012 (announced in April 2012), Ford expects the worldwide automotive market to be 80 million vehicles including 14.5 to 15 million in the United States and 14 million in Europe. Ford's market share in 2012 in the United States is expected to be lower than the 16.5 percent share in the previous year, and that in Europe will remain unchanged at 8.3 percent. Ford expects an increase in pre-tax operating profit in the automotive sector and a loss in the financial services, with overall results to be about equal to the previous year.

Ford's business results by division

Revenue (US$ in billions) Pre-tax operating profit (US$ in millions)
2010 2011 Jan.-Mar.
2010 2011 Jan.-Mar.
North America 64.4 75.0 17.9 18.6 5,409 6,191 1,844 2,133
South America 9.9 11.0 2.3 2.4 1,010 861 210 54
Europe 29.5 33.8 8.7 7.2 182 (27) 293 (149)
Asia Pacific Africa 7.4 8.4 2.1 2.3 189 (92) 33 (95)
Other Automotive (1,493) (601) (249) (106)
Special items 8.1 (1,151) (82) (61) (255)
Total Automotive 119.3 128.2 31.0 30.5 4,146 6,250 2,070 1,582
Financial Services 9.7 8.1 2.1 1.9 3,003 2,431 706 456
Total Ford 129.0 136.3 33.1 32.4 7,149 8,681 2,776 2,038
Source: Ford 2011 Q4 and Full Year Earnings Review and 2012 Outlook, Q1 2012 Earnings Review
(Notes) 1. Ford's overall net profit was US$ 6.56 billion in 2010, US$ 20.21 billion in 2011, US$ 2.55 billion in the first quarter of 2011, and US$ 1.40 billion in the first quarter of 2012.
2. Special items under the pre-tax operating profit in 2011 include US$ 269 million for personnel-reduction cost, US$ 151 million for the discontinuation of the Mercury division, etc., US$ 109 million for the pension settlement cost at Belgian plant, US$ 401 million profit from FordSollers, etc.
3. Special items under the pre-tax operating profit in 2010 include US$ 853 million for debt reduction cost.

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