Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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(in millions)
For the Years Ended December 31
Three -----------------------------------------------------
Months
2003 2002 2001 2000 1999 1998
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<s> <c> <c> <c> <c> <c> <c>
Earnings
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Income before income taxes and cumulative effect
of changes in accounting principles $ 1,337 $ 953 $(7,422) $ 8,299 $ 9,857 $24,257
Equity in net (income)/loss of affiliates
plus dividends from affiliates (14) 132 856 99 (13) 88
Adjusted fixed charges a/ 2,142 9,595 11,242 11,263 9,339 9,120
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Earnings $ 3,465 $10,680 $ 4,676 $19,661 $19,183 $33,465
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Combined Fixed Charges and
Preferred Stock Dividends
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Interest expense b/ $ 1,976 $ 8,873 $10,863 $10,895 $ 9,020 $ 8,841
Interest portion of rental expense c/ 79 381 333 307 261 227
Preferred stock dividend requirements of
majority owned subsidiaries and trusts 95 353 55 55 55 55
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Fixed charges 2,150 9,607 11,251 11,257 9,336 9,123
Ford preferred stock dividend requirements d/ - 22 22 22 22 121
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Total combined fixed charges
and preferred stock dividends $ 2,150 $ 9,629 $11,273 $11,279 $ 9,358 $ 9,244
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Ratios
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Ratio of earnings to fixed charges 1.6 1.1 f/ 1.7 2.1 3.7e/
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.6 1.1 f/ 1.7 2.0 3.6e/
Discontinued operations are excluded from all amounts.
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a/ 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.
b/ Includes interest, whether expensed or capitalized, and amortization of debt
expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Motor Company increased to an
amount representing the pre-tax earnings which would be required to cover
such dividend requirements based on Ford Motor Company's effective income
tax rates.
e/ Earnings used in calculation of this ratio include the $15,955 million gain
on the spin-off of The Associates. Excluding this gain, the ratio is 1.9.
f/ Earnings for the year ended December 31, 2001 were inadequate to cover fixed
charges. The coverage deficiency was $6.7 billion for ratio of earnings to
fixed charges and $6.8 billion for ratio of earnings to combined fixed
charges and preferred stock dividends.