1. Indiana University SCOOP
Good evening, it is a real pleasure to be with you this evening.
I will get right to the point. Tonight, we are here from Ford Motor Company because we want you.
More precisely, we are here because we want the best that you have to offer. We want your energy, your enthusiasm and your ideas. Most importantly, we want you to be a member of our dynamic, diverse, and interesting team.
You see, it all comes together at Ford Motor Company. We sit at the middle of a dynamic industry that pulls the best products and services from the entire spectrum on offer and packages them into a product that connects viscerally with customers – providing much more than transportation, providing an accessory, an identity or just plain fun.
Consider this, every car we sell depends upon a microprocessor -- a computer -- to control the engine. Last year, we sold 7 million vehicles. That’s 7 million computers, not to mention the millions of stereos, mirrors, spark plugs and, yes, even recliners (seats) that go into our products.
There is a reason that Ford is an exciting Company. And there is a reason that we need your talent.
Ron Hoffman

2. Ford And Automotive Industry Financial Analysis In The Auto Industry
TODAY’S PRESENTATION
Ford And Automotive Industry
Financial Analysis In The Auto Industry
Ford is one of the most recognized brands around the world. Chances are that you know a fair bit about us. What I would like to do tonight is help round out that picture, providing you with a platform from which to learn even more.
We celebrated our centennial anniversary as an incorporated company on June 16, I will share with you some information on the first century of our company, the dynamic automotive industry and our plans for the next century. I will also give you a front-row tour of what it means to work at Ford and more specifically, what it means to work in Ford Finance.
.FORD.COM

3. This is the Ford Thunderbird that we introduced two years ago.

4. Ford Explorer Sport Trac
This vehicle is our Explorer Sport Trac which is a derivative from our popular Explorer. It offers the inside convenience of an SUV with a truck-like bed for carrying your kayak, surfboard, or bike.
Ford Explorer Sport Trac

5. SOME OF THE WORLD’S STRONGEST BRANDS
Ultimately, the strength of Ford is in its brands, representing the products and services that we provide to consumers throughout the world.
This graphic depicts Ford Motor Company’s portfolio of vehicle and service brands.
The combined power of these brands is an important competitive for Ford Motor Company.

6. Annual Sales $160 Billion
6.6 Million Vehicles Through 20,000 Dealers
Diverse, Global Team of 350,000 Employees

7. THREE-QUARTERS OF WORLDWIDE AUTO SALES ARE IN N
THREE-QUARTERS OF WORLDWIDE AUTO SALES ARE IN N. AMERICA, EUROPE AND JAPAN
2002 Sales By Region
Share Of World Market
Millions
Other
Asia- Pacific
12%
South
America 3%
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 56.0
Rest
Of World 9%
Japan
10%
75%
North
America
35%
Europe 31%
This slide provides a view of the global industry.
In 2002, three-quarters of new vehicle sales were made in North America, Europe and Japan.
Each of these three markets is different and no one automotive company dominates all three. The lack of a clear market leader makes these markets particularly competitive, requiring constant innovation.
In another twist, consider this: the majority of growth over the next five years will come in markets outside North America, Europe and Japan. Innovation in established markets is important, but imagination in conquering new markets will be even more so.

8. THE GLOBAL PLAYERS Global Automotive Market Share Unit Volume
General Motors
Ford
Toyota VW
Daimler-Chrysler
PSA
Honda
Nissan
Hyundai
Other
Total
14.8%
11.7
11.0
8.7
7.8
5.1
5.0
4.7
4.4
26.8
100%
8.3
6.6
6.1
4.9
4.4
2.9
2.8
2.6
2.4
15.0
56.0
Million
The auto industry may look monolithic and “old economy,” but take a look at how the industry has changed, just over the past 50 years. Nothing can be taken for granted – at least nothing other than the fact that the industry will be vastly different in 2020 than it is today.
The question I like to ask is, “who in 1950 would have predicted that the industry would look as it does today?” In 1950, the global industry was dominated by American manufacturers. Today, the five largest manufacturers include two American companies, one Japanese, one French/Japanese, and one German company. And a Korean manufacturer now has broken into the Top 10.
Charles Darwin said, “It is not the strongest of the species that survives, not the most intelligent, but the most responsive to change.”
The auto industry is not immune.
Million

9. Worldwide Light Vehicle Capacity (Mils. Of Units)
GLOBAL EXCESS CAPACITY DRIVES COMPETITIVE PRESSURE IN ALL REGIONS
Worldwide Light Vehicle Capacity (Mils. Of Units)
Excess
Demand
Proj Capacity 81
Total
(Mils.)
Excess
(Pct.) 78
REGION 20
N. America %
S. America 5 48
Asia Pacific
Europe
Row 6 38
Total %
Memo:
China %
Japan
Korea 4 27 22 50 5 61 56 45
By 2006, the auto industry is projected to have global excess capacity of 25%. We anticipate that the regions with highest excess capacity (China, Japan, and Korean) will shift their capacity to the regions where there is less excess capacity, such as North America.
1985
2002
PROJ.
2006
Excess
Capacity (Pct.) 10% 28% 25%

10. Ford And Automotive Industry Financial Analysis In The Auto Industry
TODAY’S PRESENTATION
Ford And Automotive Industry
Financial Analysis In The Auto Industry
Now let’s talk about Ford Finance.

11. FUNCTIONAL ORIENTATION
North America
Marketing and Sales
Product Development
Manufacturing
Ford Credit

12. WHO WE ARE AND WHAT WE DO OUR HERITAGE OUR ROLE
Functional proficiencies
Broad business knowledge
Business judgment and insight
Drive for results
Integrity
Developing business leaders
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
Ford Finance has a remarkable heritage and Ford Finance is noted for:
Functional proficiencies
Broad business acumen
Business judgment and insight
Integrity
Drive for results
Developing business leaders
Our role in the organization is to:
Provide strong leadership to drive results
Partner with operating management as business and strategic advisors with the total company view
Drive to reduce costs of capital and ensure we have access to capital markets
Provide high quality and timely financial information and analysis

13. OUR GLOBAL FINANCE TEAM -- 4,300 STRONG
North
America
58%
Europe
26%
Asia-
Pacific 6%
South
America
10%
Ford Finance enjoys a global presence and is well-represented throughout the company.
Just over half of these employees reside in North America.
Ford Finance offers a wide-range of opportunities for its leaders to gain knowledge and experience in the international marketplace.

14. GLOBAL FINANCE DEPLOYMENT
Treasury,
Audit, Corp. Staffs 7%
Accounting
20%
This slide provides a view of the global industry.
In 2002, three-quarters of new vehicle sales were made in North America, Europe and Japan.
Each of these three markets is different and no one automotive company dominates all three. The lack of a clear market leader makes these markets particularly competitive, requiring constant innovation.
In another twist, consider this: the majority of growth over the next five years will come in markets outside North America, Europe and Japan. Innovation in established markets is important, but imagination in conquering new markets will be even more so.
Functional
Controllers’
Offices
73%

15. Provides Framework To Accelerate Early Career Development
FORD FINANCE CAREER FOUNDATION PROGRAM
Provides Framework To Accelerate Early Career Development
3 Challenging Assignments
Stewardship / Mentoring
Finance Skill Development
As a newly hired Finance employee, you will be in the Career Foundation Program (CFP).
The objective of the CFP is to provide a framework to accelerate early career development.
This is achieved by:
Offering three challenging assignments
Stewardship and mentoring
Finance skill development, and
Visibility with upper management

16. PROFESSIONAL DEVELOPMENT AT 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
One aspect I particularly want to focus on is career development. As quickly as the world is changing, continuous learning is a must.
At Ford, we use professional development committees at every level to manage the development process. That means your immediate supervisor, the person who best knows your abilities and career objectives, plays a direct role in your career development.
An important part of that process is your input. Together with your supervisor, you develop a plan that works toward your goals.
Professional development of employees is a key responsibility of all levels of management. Finance relies heavily on intellectual capital. Developing people, providing them with the experiences they will need in the future, testing their abilities and providing meaningful feedback, is of paramount importance within Finance – and throughout the Company.