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)
Three For the Years Ended December 31
Months ---------------------------------------------------------
2004 2003 2002 2001 2000 1999
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Earnings
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Income before income taxes and cumulative effects
of changes in accounting principles a/ $ 2,889 $ 1,370 $ 951 $(7,419) $ 8,311 $ 9,856
Less: Equity in net (income)/loss of affiliates
included in income before income taxes (60) (155) 137 550 50 3
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Adjusted income 2,829 1,215 1,088 (6,869) 8,361 9,859
Adjusted fixed charges b/ 1,977 8,428 9,653 11,218 11,264 9,326
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Earnings $ 4,806 $ 9,643 $10,741 $ 4,349 $19,625 $19,185
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Combined Fixed Charges and Preferred Stock Dividends
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Interest expense c/ $ 1,857 $ 7,753 $ 8,883 $10,860 $10,892 $ 9,015
Interest portion of rental expense d/ 115 439 370 323 296 250
Preferred Stock dividend requirements of
majority owned subsidiaries and trusts - 190 353 55 55 55
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Fixed charges 1,972 8,382 9,606 11,238 11,243 9,320
Ford Preferred Stock dividend requirements e/ - - 22 22 22 22
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Total combined fixed charges
and Preferred Stock dividends $ 1,972 $ 8,382 $ 9,628 $11,260 $11,265 $ 9,342
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Ratios
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Ratio of earnings to fixed charges 2.4 1.2 1.1 f/ 1.7 2.1
Ratio of earnings to combined fixed
charges and Preferred Stock dividends 2.4 1.2 1.1 f/ 1.7 2.1
Discontinued operations are excluded from all amounts.
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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.
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 of Ford Motor Company were 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.
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.