8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report May 21, 2003
(Date of earliest event reported)

FORD MOTOR COMPANY

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-3950	38-0549190
(Commission File Number)	(IRS Employer Identification No.)
One American Road, Dearborn, Michigan	48126
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 313-322-3000

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TABLE OF CONTENTS

Financial Summary

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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

EXHIBITS

Designation	Description	Method of Filing
Exhibit 99.1	Investor Presentation	Filed with this Report

Item 5. Other Information.

     A copy of an Investor Presentation posted to our website, filed as Exhibit 99.1 to this report, is incorporated by reference herein.

     Exhibit 99.1 to this report contains certain “non-GAAP financial measures” as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. The non-GAAP financial measures cover net pricing, cost performance, operating cash flows, managed leverage at our Ford Motor Credit Company (“Ford Credit”) subsidiary, and operating earnings per share. Each of these non-GAAP financial measures is discussed below, including the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) and the reasons why we believe the presentation of the non-GAAP financial measure provides useful information to our investors.

     Net Pricing. Slide 2 of Exhibit 99.1 states that our milestones are based, in part, on present net pricing planning assumptions for 2003 of less than zero in the United States (for Ford, Lincoln and Mercury brand vehicles) and less than 1% in Europe (for Ford brand vehicles), in each case at constant volume and mix, compared to 2002. This slide further indicates changes in net pricing of 0.2% and negative 1.4% in the United States and Europe, respectively, in the first quarter of 2003. The most directly comparable financial measure calculated and presented in accordance with GAAP to this net pricing measure is the period-over-period change in Automotive Sales. The period-over-period change in Automotive Sales is affected by changes in unit sales volume, product mix, foreign currency exchange rates, wholesale prices for vehicles sold and marketing incentives. The net pricing measure (which measures the combined effect of changes in wholesale prices and marketing incentives, while excluding the effects of changes in unit sales volumes, product mix, and foreign currency exchange rates) is useful to investors because it provides an indication of the underlying direction of changes in revenue in one performance measure. The change in Automotive Sales in the first quarter of 2003 compared with the first quarter of 2002 was 4.2% for the United States and 3.5% for Europe. Appendix 1 to Exhibit 99.1 contains a reconciliation of the change in net pricing in the first quarter of 2003 compared with the first quarter of 2002 to the change in Automotive Sales for the same periods.

     Cost Performance. Slide 2 of Exhibit 99.1 indicates that we have achieved $638 million in cost performance improvement for the first quarter of 2003. Slides 2 and 9 of Exhibit 99.1 indicate that we have a milestone to improve automotive cost performance by greater than $500 million in 2003 over 2002. The most directly comparable financial measure calculated and

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presented in accordance with GAAP to this cost performance measure is Cost of Sales and Selling, Administrative and Other Expense. Appendix 2 to Exhibit 99.1 contains a reconciliation of our non-GAAP cost performance financial measure to changes in Cost of Sales and Selling, Administrative and Other Expense. Cost of Sales and Selling, Administrative and Other Expense increased by $1.2 billion in the first quarter of 2003, compared with the first quarter of 2002. We believe that the use of the non-GAAP cost performance measure is useful to investors because it shows changes in our costs excluding the effects of changes that are influenced by external factors, such as our production volume, mix of products produced or foreign currency exchange rates. On this basis, we and our investors are able to determine whether or not our underlying cost structure is improving.

     Operating Cash Flows. Slide 2 of Exhibit 99.1 discusses our operating cash flows for the first quarter of 2003 and our milestone for operating cash flow for 2003. Slide 2 indicates that we had positive operating cash flow of $0.6 billion (excluding tax refunds) for the first quarter of 2003 and that we have a milestone related to Automotive operating cash flow of breakeven in 2003. The most directly comparable financial measure calculated and presented in accordance with GAAP to this cash flow measure is Cash Flows from Operating Activities Before Securities Trading. Appendixes 3 and 4 to Exhibit 99.1 contain a reconciliation between our non-GAAP operating cash flow measure and Cash Flows from Operating Activities Before Securities Trading. Cash Flows from Operating Activities Before Securities Trading for the first quarter of 2003 was $3 billion, $0.6 billion better than first quarter 2002. We believe the non-GAAP operating cash flow measure is useful to investors because it includes cash flow elements not included in Cash Flows from Operating Activities Before Securities Trading that we consider to be related to our operating activities (for example, capital spending). As a result, our operating cash flow measure provides investors with a more relevant measure of the net cash generated by our operations.

     Managed Leverage. Slide 2 of Exhibit 99.1 indicates that Ford Credit has a milestone to maintain managed leverage (i.e., its debt-to-equity ratio) in the low end of 13-14 to 1 range and that Ford Credit’s managed leverage for the first quarter 2003 was 12.8 to 1. Financial statement leverage is the most directly comparable financial measure calculated and presented in accordance with GAAP to our non-GAAP managed leverage financial measure. Appendixes 5 and 6 to Exhibit 99.1 contain a reconciliation of Ford Credit’s non-GAAP managed leverage measure to its financial statement leverage. We believe that the use of the non-GAAP managed leverage measure, which is the result of several adjustments to Ford Credit’s financial statement leverage, is useful to our investors because it reflects the way Ford Credit manages its business. Ford Credit retains interests in receivables sold in securitization transactions, and, with respect to subordinated retained interests, has credit risk. Accordingly, it considers securitization as an alternative source of funding and evaluates credit losses, receivables and leverage on a managed as well as a financial statement basis. As a result, the managed leverage measure provides our investors with meaningful information regarding management’s decision-making processes.

     In calculating its managed leverage ratio, Ford Credit adds the total amount of receivables sold in securitizations, net of retained interests, to its debt. It also deducts cash and cash equivalents because these generally correspond to excess debt beyond the amount required to support Ford Credit’s financing operations. It adds its minority interests to equity because all of the debt of such consolidated entities is included in total debt. It excludes the

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impact of Statement of Financial Accounting Standards (“SFAS”) No. 133 in both the numerator and the denominator in order to exclude the interim effects in changes in market rates because Ford Credit generally repays its debt funding obligations as they mature.

     EPS Excluding “Unusual Items”. Slide 15 indicates that we had earnings per share, excluding “unusual items”, of $0.47 per share in 2002. The most directly comparable financial measure calculated and presented in accordance with GAAP to this earnings per share measure is net income per share, which includes unusual items. Appendix 7 to Exhibit 99.1 contains a reconciliation between our non-GAAP operating earnings per share measure and earnings per share calculated based on net income. Net income for 2002 was negative $980 million or negative $0.55 per share. We believe that the use of the non-GAAP operating earnings per share measure in this context is useful to investors because it shows our earnings per share excluding the effects of items that we do not expect to recur in 2003, such as the cumulative effect of implementing SFAS No. 142 and the impact of major asset dispositions. By excluding these items our investors are able to make a more meaningful comparison to our forecasted earnings per share estimate for 2003.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on the date indicated.

	FORD MOTOR COMPANY (Registrant)
Date: May 21, 2003	By:	/s/ Kathryn S. Lamping Kathryn S. Lamping Assistant Secretary

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EXHIBIT INDEX

Designation	Description
Exhibit 99.1	Investor Presentation

EX-99.1 3 k77335exv99w1.htm INVESTOR PRESENTATION

Exhibit 99.1

FINANCIAL SUMMARY Allan Gilmour Vice Chairman & Chief Financial Officer

OVERVIEW OF 2003 Revitalization Plan is Working On Track for 2003 Automotive Breakeven -- Strong First Quarter Results Continuing Momentum on Key Business Fundamentals Major Acceleration of Cost Efforts in 2003 Cash and Liquidity Remain Strong 1

2003 EXTERNAL MILESTONES 2003 Milestone * At constant volume, mix, and exchange (See Appendixes 1 and 2 for reconciliation to GAAP) ** Excluding tax refunds (See Appendixes 3 and 4 for reconciliation to GAAP) *** Incl. proceeds from divestiture of Axus; $930 million received by Automotive Sector **** (See Appendixes 5 and 6 for reconciliation to GAAP) Present Outlook Memo: First Qtr. January Outlook Full Year Industry Volume -- U.S. 16.5 million units No Change 16.2 -- Europe 17.0 million units 16.5 Mils. 16.6 Net Pricing* -- U.S. (Ford / LM) 0% <0% 0.2 % -- Europe (Ford) 1% <1% (1.4 )% Physicals Quality Improve in all regions On Track On Track Market Share Improve in all regions On Track On Track Automotive Cost Performance* Improve by at least $500 million > $500 Mils. $638 Mils. Capital Spending $8 billion On Track $1.4 Bils. Financial Results Automotive Income Before Taxes Breakeven On Track $659 Mils. Operating Related Cash Flows** Breakeven On Track $0.6 Bils. Ford Credit - Improve cash contribution to Parent On Track $1.0 Bils.*** - Maintain managed leverage in low On Track 12.8 end of 13-14 to 1 range**** Planning Assumptions 3

Market Factors Cost Performance Profit, Cash, and Liquidity Summary 5

INDUSTRY AND MARKET SHARE Industry Volume (Mils.) U.S. 17.1 16.3 (0.6 ) 16.5 Europe 17.2 16.6 (0.4 ) 16.5 Market Share U.S. Ford 17.5 % 17.7 % 0.4 Pts. Lincoln / Mercury 2.4 2.1 (0.1 ) Volvo 0.6 0.8 0.1 Jaguar 0.4 0.3 (0.1 ) Land Rover 0.2 0.2 0 Total Company 21.1 % 21.1 % 0.3 Pts. Europe Ford 8.7 % 9.1 % 0.2 Pts. Volvo 1.3 1.3 (0.1 ) Jaguar 0.3 0.3 0 Land Rover 0.6 0.6 (0.1 ) Total Company 10.9 % 11.2 % 0.0 Pts. Full Year 2002 2003 B / (W) 2002 April Year-to-Date 2003 Planning Assumptions Improve In all Regions 7

NET PRICING METHODOLOGY Calculated for U.S. sales of Ford and Lincoln Mercury cars and trucks European sales of Ford Brand cars and trucks (at constant exchange) Net pricing represents Change in average per unit wholesale delivered price excluding mix Change in average per unit expense of marketing incentives 9

4Q 2001 1Q 2002 1Q 2003 20345 20848 21716 First Quarter 2002 Per Unit* First Quarter 2003 $20,848 NORTH AMERICA NET REVENUE (FORD AND LINCOLN / MERCURY) $21,716 Fourth Quarter 2001 U.S. Net Price 0.2 % Mix / Other 4.0 Total 4.2 % $20,345 $868 $1,371 1 1

NET PRICING OUTLOOK U.S. Since the Revitalization Plan was announced, Ford has used revenue management to improve net revenue Progress going forward will be more difficult Second Quarter performance will be unfavorable due to new vehicle introduction timing Full year now expected to fall short of 0% net pricing milestone Europe Escalation of competitive marketing incentives will lead to net pricing below the 1% milestone 1 3

Market Factors Cost Performance Profit, Cash, and Liquidity Summary 1 5

COST PERFORMANCE IS ACCELERATING 2001 2002 -1 -0.5 0.5 2001 2002 Automotive Cost Performance* Better / Worse than Prior Year (Bils.) 2003 Milestone $0.5 Better Worse * At constant volume, mix, and exchange 1 7

2003 COST PERFORMANCE CONCEPTUAL REPRESENTATION Costs Increasing Product Programs - - - - Pension / Healthcare - - - - Depreciation / Amortization - - Costs Decreasing Material Cost Reductions + + + + Overheads + + + + Manufacturing / Engineering Efficiencies + + + Warranty / Quality + + + + + First Qtr. Full Year 2003 19

COST PERFORMANCE -- MATERIAL 2002 Material Cost Performance Compared With Prior Year 2003 Product Programs Cost Reductions Product Programs Cost Reductions Negative Balanced 21

COST PERFORMANCE -- OVERHEADS Examples of TVM Teams: Advertising and Sales Promotion IT Purchased Services Industrial Materials Construction and Site Management TVM TEAMS TO DATE IDENTIFIED ACTIONS YIELDING MORE THAN 10% THIS YEAR 23

GLOBAL PENSION AND HEALTHCARE COST PERFORMANCE Expense Pension $0.8 $0.1 $(0.7 ) Retiree Health Care and Life Insurance 2.5 2.1 (0.4 ) Total $3.3 $2.2 $(1.1 ) Cash Flow Pension Contribution $1.7 $ 0.5 $(1.2 ) Retiree Health / Life Benefit Payments 1.4 1.2 (0.2 ) Proj. 2003 (Bils.) Actual 2002 (Bils.) 2003 B / (W) 2002 (Bils.) 25

Market Factors Cost Performance Profit, Cash, and Liquidity Summary 27

2003 PROFIT OUTLOOK -- COMPARISON WITH 2002 2002 2003 Vol/Mix Net Price Cost Other East 0.47 0.7 -0.25 0.2 0.25 0.1 $0.47* $0.70 EPS 2002 2003 Volume / Mix Net Price Cost Reductions Other / Financial Services Revised Outlook Revised Outlook Year-Over-Year Change * Excludes "Unusual Items" - See Appendix 7 for reconciliation to GAAP 29

2003 PROFIT OUTLOOK -- SECOND HALF COMPARISON WITH FIRST HALF 2002 2003 Vol/Mix Net Price Cost East 0.1 0.14 -0.35 0.2 -0.1 0.45 EPS 1st Half 2003 2nd Half 2003 Ford North America International Operations Ford Credit Second Half Vs. First Half Q1 $0.45 Q2 ~ $0.10 $0.70 Lower Production Volume: - - Seasonality - - F-150 and Freestar Changeovers Higher Product Costs Improved Share from New Products Continued Cost Reductions Lower Securitization ~ $0.15 31

AUTOMOTIVE CASH AND LIQUIDITY (BILS.) 1999 2000 2001 2002 2003 LINES 9.1 8.9 8.6 7.8 7.7 CASH 23.8 27.3 17.7 25.3 26.6 Cash* Committed Credit Lines $8.6 $26.3 2001 $7.8 2002 $17.7 $25.3 2003 First Quarter $33.1 $34.3 $7.7 $26.6 * Cash and marketable securities (including VEBA) 33

Market Factors Cost Performance Profit, Cash, and Liquidity Summary 35

Revitalization Plan is Working On Track for 2003 Automotive Breakeven and Committed to Deliver Despite Intense Competitive Environment 2003 Milestones Consistent with Achievement of Revitalization Plan Continuing Momentum on Key Business Fundamentals Key Product Introductions Major Acceleration of Cost Efforts in 2003 Liquidity Remains Strong SUMMARY / CONCLUSIONS ON TRACK TO DELIVER EARNINGS GUIDANCE OF $0.70 EPS 37

APPENDIX 39

RECONCILIATION OF NET PRICING TO CHANGE IN AUTOMOTIVE SALES Appendix - 1 - Automotive Sales 2003 First Quarter $22,215 $21,716 $5,023 $12,525 2002 First Quarter 21,473 20,848 4,138 12,100 2003 B / (W) than 2002 $ 742 $ 868 $ 885 $ 425 Memo: Change in Automotive Sales 4.2 % 3.5 % Explanation of Change (Pct.) Mix, Exchange, Other 4.0 % 4.9 % Net Pricing 0.2 (1.4 ) Total 4.2 % 3.5 % North America Ford Europe (Mils.) (Per Unit) (Per Unit) (Mils.) 41

RECONCILIATION OF AUTOMOTIVE COST PERFORMANCE TO COST OF SALES AND SELLING, ADMINISTRATIVE, AND OTHER EXPENSE 2002 First Quarter Cost and Expenses $(32.2 ) 2003 First Quarter B / (W) 2002 Volume, Mix and Exchange-Related Cost Changes $ (1.8 ) Automotive Year-Over-Year Cost Performance 0.6 B / (W) 2002 First Quarter $ (1.2 ) 2003 First Quarter Cost and Expenses $(33.4 ) Bils. Appendix - 2 - 43

AUTOMOTIVE OPERATING RELATED CASH FLOWS RECONCILIATION TO GAAP Cash Flows from Operating Activities before Securities Trading* $2.3 $ 3.0 Items Included in Operating-Related Cash Flows Capital Transactions with Financial Services Sector $(0.7 ) $ 0.7 Capital Expenditures (1.5 ) (1.4 ) Net Transactions Between Auto. and Financial Services Sectors** (0.4 ) (0.3 ) Other, Primarily Exclusion of Cash Inflow from VEBA Drawdown (0.9 ) (0.5 ) Total Reconciling Items $(3.5 ) $(1.5 ) Operating Related Cash Flows $(1.2 ) $ 1.5 Memo: Operating Related Excluding $900 million of Tax Refunds $ 0.6 * As shown in our sector statement of cash flows for Automotive ** Primarily payables and receivables between the sectors in the normal course of business, as shown in our sector statement of cash flows 1st Qtr. 2003 (Bils.) Appendix - 1 - (Page 10 of 10) 1st Qtr. 2002 (Bils.) $1.8

AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.2 $ 7.1 $ 1.9 * Marketable Securities 17.4 17.3 (0.1 ) Total Cash / Market. Sec. $22.6 $24.4 $ 1.8 VEBA 2.7 2.2 (0.5 ) Gross Cash $25.3 $26.6 $ 1.3 * Automotive cash flow as shown in our sector statement of cash flows 4th Qtr. 2002 (Bils.) 1st Qtr. 2003 (Bils.) 1st Qtr. 2003 B / (W) 4th Qtr. 2002 (Bils.) Appendix - 4 - 47

FORD CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Managed Receivables - includes owned receivables (the receivables Ford Credit owns and reports on its balance sheet) and receivables that Ford Credit sold in securitizations and continues to service Serviced-Only Receivables - receivables that Ford Credit sold in whole-loan sale transactions where Ford Credit retained no interest but continues to service Serviced Receivables - includes managed receivables and serviced-only receivables Leverage: Total Debt - - Financial Statement Leverage = Equity Total Debt Securitized Receivables Retained Interest on Securitized Receivables Cash and Cash Equivalents SFAS No. 133 Adjustments on Total Debt Equity Minority Interest SFAS No. 133 Adjustment on Equity - - Managed Leverage + - - - - - - = + - - Appendix - 5 - 49

FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $137.4 $137.3 Total Securitized Receivables Outstanding 66.0 73.3 Retained Interest in Securitized Receivables (9.6 ) (18.1 ) Adjustments for Cash and Cash Equivalents (7.6 ) (11.7 ) Adjustments for SFAS 133 (1.6 ) (6.1 ) Adjusted Debt $184.6 $174.7 Total Stockholder's Equity $ 13.1 $ 13.2 Adjustments for SFAS 133 0.4 0.5 Adjustments for Minority Interest * * Adjusted Equity $ 13.5 $ 13.7 Managed Leverage To 1* 13.7 12.8 Financial Statement Leverage = Total Debt / Equity 10.5 10.4 * Adjusted Debt / Adjusted Equity March 31, 2002 (Bils.) March 31, 2003 (Bils.) Leverage Calculation Appendix - 6 - 51

2002 RECONCILIATION TO GAAP NET INCOME AND EPS Operating Income $ 872 $ 0.47 Exclude Unusual Items FAS 142 Impairment $(1,002 ) Restructuring Ford of Europe (117 ) P.A.G. (106 ) Major Dispositions (Prim. Kwik-Fit) (525 ) Europe End-of-Life Vehicle (46 ) FAS 133 (Derivatives) (198 ) Tax Refund Interest 142 Total Unusual Items $(1,852 ) $(1.02 ) Net Income (GAAP) $ (980 ) $(0.55 ) Memo: Automotive $(1,956 ) Financial Services 976 Total $ (980 ) Per Share Amount (Mils.) Full Year Appendix - 7 - 53

EX-99.1

exv99w1