Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Income Effect of Derivative Instruments [Table Text Block]

The following tables summarize by hedge designation the pre-tax gains/(losses) recorded in Other comprehensive income/(loss) ("OCI"), reclassified from Accumulated other comprehensive income/(loss) ("AOCI") to income and/or recognized directly in income (in millions):

	Third Quarter 2011							First Nine Months 2011
	Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income		Gain/(Loss) Recognized in Income			Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income		Gain/(Loss) Recognized in Income
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	60	$	45	$	(4	)	$	254	$	81	$	(2	)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts - operating exposures					$	48						$	61
Commodity contracts					(344		)					(356		)
Other – warrants					(3		)					(2		)
Total					$	(299	)					$	(297	)
Financial Services Sector
Fair value hedges:
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness					$	45						$	178
Ineffectiveness (a)					(6		)					(22		)
Total					$	39						$	156
Derivatives not designated as hedging instruments:
Interest rate contracts					$	11						$	7
Foreign currency exchange contracts					12							(26		)
Cross-currency interest rate swap contracts					33							2
Other (b)					83							85
Total					$	139						$	68

 __________

(a) For the third quarter and first nine months of 2011, hedge ineffectiveness reflects change in fair value on derivatives of $372 million gain and $418 million gain, respectively, and change in fair value on hedged debt of $378 million loss and $440 million loss, respectively.

(b) Reflects gains/(losses) for derivative features included in the FUEL notes (see Note 3).

NOTE 16.  DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

	Third Quarter 2010								First Nine Months 2010
	Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income			Gain/(Loss) Recognized in Income			Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income			Gain/(Loss) Recognized in Income
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	67	$	(20	)	$	—		$	16	$	(33	)	$	—
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts - operating exposures						$	50							$	(150	)
Commodity contracts						25								10
Other – warrants						—								1
Total						$	75							$	(139	)
Financial Services Sector
Fair value hedges:
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness						$	60							$	165
Ineffectiveness *						3								3
Total						$	63							$	168
Derivatives not designated as hedging instruments:
Interest rate contracts						$	25							$	56
Foreign currency exchange contracts						65								(25		)
Cross-currency interest rate swap contracts						(80		)						8
Total						$	10							$	39

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* For the third quarter and first nine months of 2010, hedge ineffectiveness reflects change in fair value on derivatives of $83 million gain and $238 million gain, respectively, and change in fair value on hedged debt of $80 million loss and $235 million loss, respectively.

Balance Sheet Effect of Derivative Instruments [Table Text Block]

The following tables summarize the notional amount and estimated fair value of our derivative financial instruments (in millions):

	September 30, 2011
	Notionals		Fair Value of Assets		Fair Value of Liabilities
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	12,399	$	272	$	139
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	2,177		130		62
Commodity contracts	2,475		—		352
Other – warrants	12		3		—
Total derivatives not designated as hedging instruments	4,664		133		414
Total Automotive sector derivative instruments	$	17,063	$	405	$	553
Financial Services Sector
Fair value hedges:
Interest rate contracts	$	7,084	$	501	$	—
Derivatives not designated as hedging instruments:
Interest rate contracts	61,728		954		253
Foreign currency exchange contracts	6,086		125		47
Cross-currency interest rate swap contracts	1,025		8		7
Other *	2,500		158		—
Total derivatives not designated as hedging instruments	71,339		1,245		307
Total Financial Services sector derivative instruments	$	78,423	$	1,746	$	307

 __________

* Represents derivative features included in the FUEL notes (see Note 3).

NOTE 16.  DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

	December 31, 2010
	Notionals		Fair Value of Assets		Fair Value of Liabilities
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	1,324	$	8	$	15
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	2,201		50		78
Commodity contracts	846		69		6
Other – warrants	12		5		—
Total derivatives not designated as hedging instruments	3,059		124		84
Total Automotive sector derivative instruments	$	4,383	$	132	$	99
Financial Services Sector
Fair value hedges:
Interest rate contracts	$	8,826	$	503	$	7
Derivatives not designated as hedging instruments:
Interest rate contracts	52,999		709		322
Foreign currency exchange contracts	3,835		24		73
Cross-currency interest rate swap contracts	1,472		25		189
Total derivatives not designated as hedging instruments	58,306		758		584
Total Financial Services sector derivative instruments	$	67,132	$	1,261	$	591