Ford Motor (F) 10-Q 2006 Q2 Quarterly report

Exhibit 12

FORD MOTOR COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(in millions)

				For the Years Ended December 31
	First Half 2006			2005			2004			2003			2002		2001
Earnings
Income before income taxes and cumulative effects of changes in accounting principles (a)	$	(2,528	)	$	1,996		$	4,853		$	1,339		$	1,064	$	(7,325	)
Less: Equity in net (income)/loss of affiliates included in income before income taxes		(290	)		(303	)		(240	)		(155	)		137		550
Adjusted income		(2,818	)		1,693			4,613			1,184			1,201		(6,775	)
Adjusted fixed charges (b)		4,455			8,317			7,736			8,466			9,696		11,259
Earnings	$	1,637		$	10,010		$	12,349		$	9,650		$	10,897	$	4,484
Combined Fixed Charges and Preferred Stock Dividends
Interest expense (c)	$	4,231		$	7,710		$	7,128		$	7,706		$	8,847	$	10,830
Interest portion of rental expense (d)		168			514			565			524			448		394
Preferred Stock dividend requirements of majority owned subsidiaries and trusts		—			—			—			190			353		55
Fixed charges		4,399			8,224			7,693			8,420			9,648		11,279
Ford Preferred Stock dividend requirements (e)		—			—			—			—			22		22
Total combined fixed charges and Preferred Stock dividends	$	4,399		$	8,224		$	7,693		$	8,420		$	9,670	$	11,301
Ratios
Ratio of earnings to fixed charges		(f	)		1.2			1.6			1.1			1.1		(f	)
Ratio of earnings to combined fixed charges and Preferred Stock dividends		(f	)		1.2			1.6			1.1			1.1		(f	)
Discontinued operations are excluded from all amounts.

__________

(a)	Income before taxes includes equity income from unconsolidated subsidiaries.
(b)	Fixed charges, as shown above, adjusted to exclude the amount of interest capitalized during the period and Preferred Stock dividend requirements of majority owned subsidiaries and trusts. (Capitalized interest: June 2006 YTD - $34 mil; 2005 - $67 mil; 2004 - $57 mil; 2003 - $63 mil; 2002 - $46 mil; 2001 - $44 mil)
(c)	Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness.
(d)	One-third of all rental expense is deemed to be interest.
(e)	Preferred Stock dividend requirements increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on our effective income tax rates.
(f)	Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges by $6.8 billion.
	Earnings for the first half 2006 were inadequate to cover fixed charges by $2.8 billion.