Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (a)
(in millions)
First Quarter | For the year ended December 31, | ||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
| Earnings | |||||||||||||||||||
| Income/(loss) before income taxes and cumulative effects of changes in accounting principles (b) | $ | (44 | ) | $ | (15,074 | ) | $ | 1,054 | $ | 4,087 | $ | 893 | $ | 4,021 | |||||
| Less: Equity in net (income)/loss of affiliates include in income/(loss) before income taxes | (78 | ) | (426 | ) | (303 | ) | (240 | ) | (155 | ) | 137 | ||||||||
| Adjusted income/(loss) | (122 | ) | (15,500 | ) | 751 | 3,847 | 738 | 4,158 | |||||||||||
| Adjusted fixed charges (c) | 2,844 | 9,321 | 9,091 | 9,136 | 9,996 | 10,977 | |||||||||||||
| Earnings | $ | 2,722 | $ | (6,179 | ) | $ | 9,842 | $ | 12,983 | $ | 10,734 | $ | 15,135 | ||||||
| Combined fixed charges and Preferred Stock dividends | |||||||||||||||||||
| Interest expense (d) | $ | 2,730 | $ | 8,841 | $ | 8,484 | $ | 8,528 | $ | 9,235 | $ | 10,128 | |||||||
| Interest portion of rental expense (e) | 91 | 329 | 514 | 565 | 524 | 448 | |||||||||||||
| Preferred Stock dividend requirements of majority-owned subsidiaries and trusts | — | — | — | — | 190 | 353 | |||||||||||||
| Fixed charges | 2,821 | 9,170 | 8,998 | 9,093 | 9,949 | 10,929 | |||||||||||||
| Preferred Stock dividend requirements (f) | — | — | — | — | — | 22 | |||||||||||||
| Total combined fixed charges and Preferred Stock dividends | $ | 2,821 | $ | 9,170 | $ | 8,998 | $ | 9,093 | $ | 9,949 | $ | 10,951 | |||||||
| Ratios | |||||||||||||||||||
| Ratio of earnings to fixed charges | 1.0 | (g | ) | 1.1 | 1.4 | 1.1 | 1.4 | ||||||||||||
| Ratio of earnings to combined fixed charges and Preferred Stock dividends | 1.0 | (g | ) | 1.1 | 1.4 | 1.1 | 1.4 | ||||||||||||
__________
| (a) | Discontinued operations are excluded from all amounts. |
| (b) | Income/(loss) before income taxes includes equity income/(loss) from unconsolidated subsidiaries. |
| (c) | 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 (in millions): 2007 YTD— $12; 2006— $58; 2005— $67; 2004 — $57; 2003 — $63; 2002 — $46) |
| (d) | Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness. |
| (e) | One-third of all rental expense is deemed to be interest. |
| (f) | 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. |
| (g) | Earnings for 2006 were inadequate to cover fixed charges by $15.3 billion. |