PRESENTATION

Our financial statements are presented in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. We show certain of our financial statements on both a consolidated and a sector basis for our Automotive and Financial Services sectors. Intercompany items have been eliminated in both the consolidated and sector balance sheets. Where the presentation of these intercompany eliminations or consolidated adjustments differs between the consolidated and sector financial statements, reconciliations of certain line items are explained below in this Note or in related footnotes.

In the opinion of management, these unaudited financial statements reflect a fair statement of the results of operations and financial condition of Ford Motor Company, its consolidated subsidiaries, and consolidated VIEs of which we are the primary beneficiary for the periods and at the dates presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012 ("2012 Form 10-K Report"). For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise.

We reclassified certain prior year amounts in our consolidated financial statements to conform to current year presentation.

Adoption of New Accounting Standards

Balance Sheet - Offsetting. On January 1, 2013, we adopted the new accounting standard that requires disclosures about offsetting and related arrangements for derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. See Note 3 and Note 12 for further disclosure regarding balance sheet offsetting.

Intangibles - Goodwill and Other. On January 1, 2013, we adopted the new accounting standard that provides the option to evaluate qualitative factors to determine whether a calculated impairment test for indefinite-lived intangible assets is necessary. The adoption of this accounting standard did not impact our financial condition or results of operations.

Comprehensive Income - Reporting of Reclassification Adjustments. During 2012, we early adopted the new accounting standard that requires us to disclose significant amounts reclassified out of each component of Accumulated other comprehensive income/(loss) ("AOCI") and the affected income statement line item only if the item reclassified is required to be reclassified to net income in its entirety. See Note 14 for further disclosure regarding the significant amounts reclassified out of AOCI.

NOTE 1. PRESENTATION (Continued)

Reconciliations between Consolidated and Sector Financial Statements

Sector to Consolidated Deferred Tax Assets and Liabilities. The difference between the total assets and total liabilities as presented in our sector balance sheet and consolidated balance sheet is the result of netting deferred income tax assets and liabilities. The reconciliation between the totals for the sector and consolidated balance sheets was as follows (in millions):



	June 30, 2013			December 31, 2012
Sector balance sheet presentation of deferred income tax assets
Automotive sector current deferred income tax assets	$	3,107		$	3,488
Automotive sector non-current deferred income tax assets	12,108			13,325
Financial Services sector deferred income tax assets (a)	168			184
Total	15,383			16,997
Reclassification for netting of deferred income taxes	(1,689		)	(1,812		)
Consolidated balance sheet presentation of deferred income tax assets	$	13,694		$	15,185

Sector balance sheet presentation of deferred income tax liabilities
Automotive sector current deferred income tax liabilities	$	265		$	81
Automotive sector non-current deferred income tax liabilities	387			514
Financial Services sector deferred income tax liabilities	1,713			1,687
Total	2,365			2,282
Reclassification for netting of deferred income taxes	(1,689		)	(1,812		)
Consolidated balance sheet presentation of deferred income tax liabilities	$	676		$	470

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(a)	Financial Services deferred income tax assets are included in Financial Services other assets on our sector balance sheet.

NOTE 1. PRESENTATION (Continued)

Sector to Consolidated Cash Flow. We present certain cash flows from wholesale receivables, finance receivables and the acquisition of intersector debt differently on our sector and consolidated statements of cash flows. The reconciliation between totals for the sector and consolidated cash flows for the periods ended June 30 was as follows (in millions):



	First Half
	2013			2012
Automotive net cash provided by/(used in) operating activities	$	4,404		$	2,656
Financial Services net cash provided by/(used in) operating activities	3,471			2,625
Total sector net cash provided by/(used in) operating activities	7,875			5,281
Reclassifications from investing to operating cash flows
Wholesale receivables (a)	(1,407		)	983
Finance receivables (b)	(179		)	(285		)
Consolidated net cash provided by/(used in) operating activities	$	6,289		$	5,979

Automotive net cash provided by/(used in) investing activities	$	(5,217	)	$	(3,848	)
Financial Services net cash provided by/(used in) investing activities	(7,416		)	(2,261		)
Total sector net cash provided by/(used in) investing activities	(12,633		)	(6,109		)
Reclassifications from investing to operating cash flows
Wholesale receivables (a)	1,407			(983		)
Finance receivables (b)	179			285
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector (c)	—			(201		)
Elimination of investing activity to/(from) Financial Services in consolidation	(16		)	(541		)
Consolidated net cash provided by/(used in) investing activities	$	(11,063	)	$	(7,549	)

Automotive net cash provided by/(used in) financing activities	$	136		$	501
Financial Services net cash provided by/(used in) financing activities	2,523			(1,590		)
Total sector net cash provided by/(used in) financing activities	2,659			(1,089		)
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector (c)	—			201
Elimination of investing activity to/(from) Financial Services in consolidation	16			541
Consolidated net cash provided by/(used in) financing activities	$	2,675		$	(347	)

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(a)

In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to operating) includes dealer financing by Ford Credit of used and non-Ford vehicles. One hundred percent of cash flows from these wholesale finance receivables have been reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is impracticable to separate.


(b)	Includes cash flows of finance receivables purchased/collected by the Financial Services sector from certain divisions and subsidiaries of the Automotive sector.


(c)	Cash inflows related to these transactions are reported as financing activities on the consolidated statement of cash flows and investing activities on the sector statement of cash flows.

NOTE 1. PRESENTATION (Continued)

Venezuelan Operations

On February 8, 2013, the Venezuelan government announced a devaluation of the bolivar from an exchange rate of 4.3 bolivars to the U.S. dollar to an exchange rate of 6.3 bolivars to the U.S. dollar, which resulted in a remeasurement loss of $186 million in the first quarter. Assets and liabilities at June 30, 2013 and the second quarter 2013 results of operations from our Venezuelan subsidiary are reported at this new exchange rate. Our investment in our Venezuela subsidiary was $710 million at June 30, 2013, including $621 million in cash and cash equivalents. As of June 30, 2013, our Venezuelan subsidiary had $298 million of U.S. dollar currency exchange requests pending with and in transit to the Commission for Administration of Foreign Exchange ("CADIVI"), including $283 million payable to other Ford consolidated affiliates.

The operating environment in Venezuela continues to be challenging, reflecting economic uncertainty and our limited ability to convert bolivars to U.S. dollars through CADIVI. Various restrictions on our ability to manage our operations, including restrictions on the distribution of foreign exchange by the authorities, have affected our Venezuelan operation's ability to pay obligations denominated in U.S. dollars and are constraining parts availability and our ability to maintain normal production, thereby restricting our ability to benefit from our investment in this operation.