form8k.htm
UNITED STATES
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: June 2, 2008
(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


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 140.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
Item 2.01 Completion of Acquisition or Disposition of Assets.

On March 25, 2008, Ford Motor Company (“Ford,” the "Company," "we," "our," or "us") signed a sale and purchase agreement (the “Sale and Purchase Agreement”) with Tata Motors Limited (“Tata Motors”) for the sale of our Jaguar and Land Rover operations ("Jaguar Land Rover").  The sale was completed on June 2, 2008.

Under the terms of the transaction, Tata Motors purchased 100% of the outstanding shares in Jaguar Cars Limited, Land Rover and related companies, and their respective subsidiaries, and certain assets used by Jaguar Land Rover, including ownership rights in, or licenses to use, related intellectual property and the assets of related national sales companies, that were owned by Ford affiliates not being transferred.

We received approximately $2.4 billion in cash for the sale of Jaguar Land Rover.  Included in this amount is about $100 million representing an estimate of purchase price adjustments for cash and debt balances transferred to Tata Motors at the time of sale.  As part of the transaction, we contributed about $600 million to the Jaguar Land Rover pension plans.  Accordingly, net cash received on June 2, 2008 totaled about $1.8 billion.  Total proceeds are subject to additional purchase price adjustments (e.g., relating to working capital, cash, and debt) which will be calculated and paid pursuant to the terms of the Sale and Purchase Agreement.
 
Item 8.01. Other Events.
 
We review and present our business results in two sectors: Automotive and Financial Services.  Within these sectors, our business is divided into reportable segments based upon the organizational structure used to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial results consistent with that structure.  Our Automotive sector results were formerly reported in the following five segments:  Ford North America, Ford South America, Ford Europe, Premier Automotive Group, and Ford Asia Pacific and Africa/Mazda.  Beginning with the first quarter of 2008, we changed our Automotive sector reporting to disclose the following seven segments:  Ford North America, Ford South America, Ford Europe, Volvo, Ford Asia Pacific Africa, Mazda and Associated Operations, and Jaguar Land Rover and Aston Martin. Included in each segment described below are the associated costs to design, develop, manufacture, and service vehicles and parts.

Ford North America segment includes primarily the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America (the United States, Canada and Mexico).  Also included within this segment is the sale of Mazda6 vehicles by our consolidated subsidiary, AutoAlliance International, Inc. (previously included in the results for Ford Asia Pacific Africa).

Ford South America segment includes primarily the sale of Ford-brand vehicles and related service parts in South America.

Ford Europe segment includes primarily the sale of Ford-brand vehicles and related service parts in Europe (including all parts of Turkey and Russia).

The Volvo segment includes primarily the sale of Volvo-brand vehicles and related service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa).

Ford Asia Pacific Africa segment includes primarily the sale of Ford-brand vehicles and related service parts in the Asia Pacific region and Africa.

The Mazda and Associated Operations segment includes our share of the results of Mazda Motor Corporation ("Mazda"), of which we owned 33.4% at December 31, 2007, as well as certain of our Mazda-related investments.

The Jaguar Land Rover and Aston Martin segment includes primarily the sale of Jaguar Land Rover brand vehicles and related service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa).  In May 2007, we completed the sale of our 100% interest in Aston Martin and, therefore, the sale of Aston Martin-brand vehicles and related service parts throughout the world are included within this segment up until the date of sale.

Exhibit 99.1, filed with this Report and incorporated herein by reference, updates "Item 8. Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended December 31, 2007 ("Form 10-K Report") (with revisions to Notes 13, 18, and 25 of the Notes to the Financial Statements, and an updated Report of Independent Registered Public Accounting Firm) to reflect the changes in our segment reporting structure described above.

 
 
 
 
Updates to the Form 10-K Report relate solely to the presentation of segment-specific disclosures on a basis consistent with the changes in segment reporting structure, and have no effect on our previously-reported results of operations, financial condition or cash flows in the Form 10-K Report.  All other information in the Form 10-K Report remains materially unchanged and has not been otherwise updated for events occurring after the date of filing of February 27, 2008.  The information in this Report should be read in conjunction with our Form 10-K Report and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008.


Item 9.01. Financial Statements and Exhibits.

The following unaudited pro forma condensed statements of income (consolidated and sector) for the year ended December 31, 2007 and the three months ended March 31, 2008 have been prepared to present our results of operations as if the sale of Jaguar Land Rover had occurred at the beginning of the annual period.  The unaudited pro forma condensed balance sheets (consolidated and sector) as of March 31, 2008 have been prepared to present our financial position as if the sale of Jaguar Land Rover had occurred on March 31, 2008.

These pro forma financial statements do not purport to be indicative of the financial position or results of operations of Ford as of such date or for such periods, nor are they necessarily indicative of future results.  We have agreed with Tata Motors that we will continue to supply Jaguar Land Rover with engines, stampings and technologies.  The pro forma adjustments to our balance sheet reflect these activities; adjustments to the income statement do not, and these activities are not expected to be significant to our income/(loss) from continuing operations.

 
 
 

Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)

   
Three Months Ended March 31, 2008
    
Year Ended December 31, 2007
  
   
Historical
Financial
Statement
    
Pro Forma
Adjustments
Jaguar
Land Rover
    
Pro Forma
Financial
Statement
    
Historical
Financial
Statement
    
Pro Forma
Adjustments
Jaguar
Land Rover
    
Pro Forma
Financial
Statement
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
          
(unaudited)
    
(unaudited)
  
         
(a)
                
(a)
        
Sales and revenues
                                    
Automotive sales
   $ 39,117     $ (4,145 )   $ 34,972     $ 154,379     $ (14,861 )   $ 139,518  
Financial Services revenues
     4,396       —       4,396       18,076       —       18,076  
Total sales and revenues
     43,513       (4,145 )     39,368       172,455       (14,861 )     157,594  
                                                 
Costs and expenses
                                                
Automotive cost of sales
     35,455       (3,773 )     31,682       142,587       (12,722 )     129,865  
Selling, administrative and other expenses
     5,081       (380 )     4,701       21,169       (1,514 )     19,655  
Goodwill impairment
     —       —       —       2,400       —       2,400  
Interest expense
     2,542       —       2,542       10,927       —       10,927  
Financial Services provision for credit and insurance losses
     343       —       343       668       —       668  
Total costs and expenses
     43,421       (4,153 )     39,268       177,751       (14,236 )     163,515  
                                                 
Automotive interest income and other non-operating income/(expense), net
     92       (8 )     84       1,161       5       1,166  
Automotive equity in net income/(loss) of affiliated companies
     136       —       136       389       —       389  
Income/(Loss) before income taxes
     320       —       320       (3,746 )     (620 )     (4,366 )
Provision for/(Benefit from) income taxes
     97       (5 )     92       (1,294 )     (13 )     (1,307 )
Income/(Loss) before minority interests
     223       5       228       (2,452 )     (607 )     (3,059 )
Minority interests in net income/(loss) of subsidiaries
     122       —       122       312       —       312  
Income/(Loss) from continuing operations
   $ 101     $ 5     $ 106     $ (2,764 )   $ (607 )   $ (3,371 )
                                                 
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                                                
Basic income/(loss)
                                                
Income/(Loss) from continuing operations
   $ 0.05     $ —     $ 0.05     $ (1.40 )   $ (0.31 )   $ (1.71 )
Number of shares used to compute amounts per share
     2,188       2,188       2,188       1,978       1,978       1,978  
Diluted income/(loss)
                                                
Income/(Loss) from continuing operations
   $ 0.05     $ —     $ 0.05     $ (1.40 )   $ (0.31 )   $ (1.71 )
Number of shares used to compute amounts per share
     2,208       2,208       2,208       1,978       1,978       1,978  
 
See endnotes.

 
 
 

Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
PRO FORMA CONDENSED SECTOR STATEMENT OF INCOME
(in millions, except per share amounts)
 
   
Three Months Ended March 31, 2008
    
Year Ended December 31, 2007
  
   
Historical
Financial
Statement
    
Pro Forma
Adjustments
Jaguar
Land Rover
    
Pro Forma
Financial
Statement
    
Historical
Financial
Statement
    
Pro Forma
Adjustments
Jaguar
Land Rover
    
Pro Forma
Financial
Statement
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
          
(unaudited)
    
(unaudited)
  
         
(a)
                
(a)
        
AUTOMOTIVE
                                    
Sales
   $ 39,117     $ (4,145 )   $ 34,972     $ 154,379     $ (14,861 )   $ 139,518  
Costs and expenses
                                                
Cost of sales
     35,455       (3,773 )     31,682       142,587       (12,722 )     129,865  
Selling, administrative and other expenses
     3,109       (380 )     2,729       13,660       (1,514 )     12,146  
Goodwill impairment
     —       —       —       2,400       —       2,400  
Total costs and expenses
     38,564       (4,153 )     34,411       158,647       (14,236 )     144,411  
Operating income/(loss)
     553       8       561       (4,268 )     (625 )     (4,893 )
                                                 
Interest expense
     528       —       528       2,252       —       2,252  
                                                 
Interest income and other non-operating income/(expense), net
     92       (8 )     84       1,161       5       1,166  
Equity in net income/(loss) of affiliated companies
     136       —       136       389       —       389  
Income/(Loss) before income taxes — Automotive
     253       —       253       (4,970 )     (620 )     (5,590 )
                                                 
FINANCIAL SERVICES
                                                
Revenues
     4,396       —       4,396       18,076       —       18,076  
Costs and expenses
                                                
Interest expense
     2,014       —       2,014       8,675       —       8,675  
Depreciation
     1,836       —       1,836       6,289       —       6,289  
Operating and other expenses
     136       —       136       1,220       —       1,220  
Provision for credit and insurance losses
     343       —       343       668       —       668  
Total costs and expenses
     4,329       —       4,329       16,852       —       16,852  
Income/(Loss) before income taxes — Financial Services
     67       —       67       1,224       —       1,224  
                                                 
TOTAL COMPANY
                                                
Income/(Loss) before income taxes
     320       —       320       (3,746 )     (620 )     (4,366 )
Provision for/(Benefit from) income taxes
     97       (5 )     92       (1,294 )     (13 )     (1,307 )
Income/(Loss) before minority interests
     223       5       228       (2,452 )     (607 )     (3,059 )
Minority interests in net income/(loss) of subsidiaries
     122       —       122       312       —       312  
Income/(Loss) from continuing operations
   $ 101     $ 5     $ 106     $ (2,764 )   $ (607 )   $ (3,371 )
                                                 
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                                                
Basic income/(loss)
                                                
Income/(Loss) from continuing operations
   $ 0.05     $ —     $ 0.05     $ (1.40 )   $ (0.31 )   $ (1.71 )
Number of shares used to compute per share
     2,188       2,188       2,188       1,978       1,978       1,978  
Diluted income/(loss)
                                                
Income/(Loss) from continuing operations
   $ 0.05     $ —     $ 0.05     $ (1.40 )   $ (0.31 )   $ (1.71 )
Number of shares used to compute per share
     2,208       2,208       2,208       1,978       1,978       1,978  
 
See endnotes.

 
 
 

Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2008
(in millions)
 
   
Historical
Financial
Statement
    
Pro Forma
Adjustments
Jaguar
Land Rover
      
Pro Forma
Financial
Statement
  
   
(unaudited)
    
(unaudited)
      
(unaudited)
  
ASSETS
                    
Cash and cash equivalents
   $ 33,751     $ —       $ 33,751  
      —       2,500  
(b)
     2,500  
      —       (600 )
(c)
     (600 )
      —       (514 )
(d)
     (514 )
Subtotal adjusted cash and cash equivalents
     33,751       1,386         35,137  
Marketable securities
     8,593       —         8,593  
Loaned securities
     6,746       —         6,746  
Finance receivables, net
     110,717       —         110,717  
Other receivables, net
     8,089       224  
(e)
     8,313  
Net investment in operating leases
     32,493       —         32,493  
Retained interest in sold receivables
     540       —         540  
Inventories
     11,721       —         11,721  
Equity in net assets of affiliated companies
     3,120       —         3,120  
Net property
     37,007       —         37,007  
Deferred income taxes
     3,331       —         3,331  
Goodwill and other net intangible assets
     2,064       —         2,064  
Jaguar Land Rover assets of discontinued/held-for-sale operations
     8,054       (8,054 )
(f)
     —  
Other assets
     16,687       —         16,687  
Total assets
   $ 282,913     $ (6,444 )     $ 276,469  
                           
LIABILITIES AND STOCKHOLDERS' EQUITY
                          
Payables
   $ 24,014     $ —       $ 24,014  
Accrued liabilities and deferred revenue
     72,877       182  
(g)
     73,059  
Debt
     169,480       (317 )
(h)
     169,163  
Deferred income taxes
     2,901       —         2,901  
Jaguar Land Rover liabilities of discontinued/held-for-sale operations
     5,064       (5,064 )
(f)
     —  
Total liabilities
     274,336       (5,199 )       269,137  
                           
Minority interests
     1,466       —         1,466  
                           
Stockholders' equity
                          
Capital stock
                          
Common Stock, par value $0.01 per share (2,148 million shares issued)
     21       —         21  
Class B Stock, par value $0.01 per share (71 million shares issued)
     1       —         1  
Capital in excess of par value of stock
     7,988       —         7,988  
Accumulated other comprehensive income/(loss)
     657       (1,245 )
(f)
     (588 )
Treasury stock
     (184 )     —         (184 )
Retained earnings/(Accumulated deficit)
     (1,372 )     —  
(i)
     (1,372 )
Total stockholders' equity
     7,111       (1,245 )       5,866  
Total liabilities and stockholders' equity
   $ 282,913     $ (6,444 )     $ 276,469  
 
See endnotes.

 
 
 

Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
PRO FORMA CONDENSED SECTOR BALANCE SHEET
March 31, 2008
(in millions)

   
Historical Financial Statement
    
Pro Forma Adjustments Jaguar
Land Rover
      
Pro Forma Financial Statement
  
   
(unaudited)
    
(unaudited)
      
(unaudited)
  
ASSETS
                    
Automotive
                    
Cash and cash equivalents
   $ 18,663     $ 1,386  
(b)(c)(d)
   $ 20,049  
Marketable securities
     6,602       —         6,602  
Loaned securities
     6,746       —         6,746  
Total cash, marketable and loaned securities
     32,011       1,386         33,397  
Receivables, net
     4,164       224  
(e)
     4,388  
Inventories
     11,721       —         11,721  
Deferred income taxes
     562       —         562  
Other current assets
     6,206       —         6,206  
Current receivable from Financial Services
     225       —         225  
Total current assets
     54,889       1,610         56,499  
Equity in net assets of affiliated companies
     2,558       —         2,558  
Net property
     36,757       —         36,757  
Deferred income taxes
     8,557       —         8,557  
Goodwill and other net intangible assets
     2,054       —         2,054  
Jaguar Land Rover assets of discontinued/held-for-sale operations
     8,054       (8,054 )
(f)
     —  
Other assets
     5,966       —         5,966  
Non-current receivable from Financial Services
     2,003       —         2,003  
Total Automotive assets
     120,838       (6,444 )       114,394  
Financial Services
                          
Cash and cash equivalents
     15,088       —         15,088  
Marketable securities
     1,991       —         1,991  
Finance receivables, net
     114,642       —         114,642  
Net investment in operating leases
     29,962       —         29,962  
Retained interest in sold receivables
     540       —         540  
Equity in net assets of affiliated companies
     562       —         562  
Goodwill and other net intangible assets
     10       —         10  
Other assets
     7,464       —         7,464  
Total Financial Services assets
     170,259       —         170,259  
Intersector elimination
     (2,228 )     —         (2,228 )
Total assets
   $ 288,869     $ (6,444 )     $ 282,425  
                           
LIABILITIES AND STOCKHOLDERS' EQUITY
                          
Automotive
                          
Trade payables
   $ 17,692     $ —       $ 17,692  
Other payables
     4,248       —         4,248  
Accrued liabilities and deferred revenue
     26,533       182  
(g)
     26,715  
Deferred income taxes
     2,567       —         2,567  
Debt payable within one year
     1,445       (317 )
(h)
     1,128  
Total current liabilities
     52,485       (135 )       52,350  
Long-term debt
     25,608       —         25,608  
Other liabilities
     40,714       —         40,714  
Deferred income taxes
     846       —         846  
Jaguar Land Rover liabilities of discontinued/held-for-sale operations
     5,064       (5,064 )
(f)
     —  
Total Automotive liabilities
     124,717       (5,199 )       119,518  
Financial Services
                          
Payables
     2,080       —         2,080  
Debt
     142,427       —         142,427  
Deferred income taxes
     5,444       —         5,444  
Other liabilities and deferred income
     5,624       —         5,624  
Payable to Automotive
     2,228       —         2,228  
Total Financial Services liabilities
     157,803       —         157,803  
                           
Minority interests
     1,466       —         1,466  
                           
Stockholders' equity
                          
Capital stock
                          
Common Stock, par value $0.01 per share (2,148 million shares issued)
     21       —         21  
Class B Stock, par value $0.01 per share (71 million shares issued)
     1       —         1  
Capital in excess of par value of stock
     7,988       —         7,988  
Accumulated other comprehensive income/(loss)
     657       (1,245 )
(f)
     (588 )
Treasury stock
     (184 )     —         (184 )
Retained earnings/(Accumulated deficit)
     (1,372 )     —  
(i)
     (1,372 )
Total stockholders' equity
     7,111       (1,245 )       5,866  
Intersector elimination
     (2,228 )     —         (2,228 )
Total liabilities and stockholders' equity
   $ 288,869     $ (6,444 )     $ 282,425  
 
See endnotes.

 
 
 

Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE PRO FORMA FINANCIAL STATEMENTS

 
(a)
Carve-out of Jaguar Land Rover results included in our historical financial statements.
 
(b)
Cash proceeds from the sale of Jaguar Land Rover of $2.5 billion, which includes a purchase price adjustment of about $200 million for cash (net of debt) that would have been transferred to Tata Motors had the sale occurred on March 31, 2008.
 
(c)
Contribution to Jaguar Land Rover pension plan.
 
(d)
Jaguar Land Rover cash balances that would have been transferred to Tata Motors had the sale occurred on March 31, 2008.
 
(e)
Trade receivables from Jaguar Land Rover (eliminated as an intercompany transaction in our historical financial statements).
  
(f)
Carve-out of assets, liabilities, and accumulated other comprehensive income/(loss) of Jaguar Land Rover included in our historical financial statements.
 
(g)
Liabilities incurred in connection with the sale of Jaguar Land Rover.
 
(h)
Jaguar Land Rover debt that would have been transferred to Tata Motors had the sale occurred on March 31, 2008.
  
(i)
Estimated gain/(loss) on sale of Jaguar Land Rover as if sold on March 31, 2008.

 
 
 
 
EXHIBITS
 
Designation
  
Description
  
Method of Filing
         
Exhibit 23.1
  
Consent of Independent Registered Public Accounting Firm.
  
Filed with this Report
         
Exhibit 99.1
  
"Item 8. Financial Statements and Supplementary Data" from Ford Motor Company's Annual Report on Form 10-K for the year ended December 31, 2007 (revised to reflect changes in segment reporting structure).
  
Filed with this Report

 
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 hereunto duly authorized.

   
FORD MOTOR COMPANY
   
(Registrant)
     
Date:  June 2, 2008
By:
/s/  Louis J. Ghilardi
   
Louis J. Ghilardi
   
Assistant Secretary

 
 
 
 
EXHIBIT INDEX


Designation
Description

Consent of Independent Registered Public Accounting Firm.

"Item 8. Financial Statements and Supplementary Data" from Ford Motor Company's Annual Report on Form 10-K for the year ended December 31, 2007 (revised to reflect changes in segment reporting structure).