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)
Nine 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/ $ 5,171 $ 1,418 $ 1,050 $(7,324) $ 8,400 $ 9,860
Less: Equity in net (income)/loss of affiliates
included in income before income taxes (193) (155) 137 550 50 3
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Adjusted income 4,978 1,263 1,187 (6,774) 8,450 9,863
Adjusted fixed charges b/ 5,896 8,381 9,618 11,187 11,153 9,403
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Earnings $10,874 $ 9,644 $10,805 $ 4,413 $19,603 $19,266
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Combined Fixed Charges and Preferred Stock Dividends
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Interest expense c/ $ 5,478 $ 7,706 $ 8,847 $10,830 $10,781 $ 9,092
Interest portion of rental expense d/ 381 438 370 323 296 250
Preferred Stock dividend requirements of
majority owned subsidiaries and trusts - 190 353 55 55 55
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Fixed charges 5,859 8,334 9,570 11,208 11,132 9,397
Ford Preferred Stock dividend requirements e/ - - 22 22 22 22
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Total combined fixed charges
and Preferred Stock dividends $ 5,859 $ 8,334 $ 9,592 $11,230 $11,154 $ 9,419
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Ratios
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Ratio of earnings to fixed charges 1.9 1.2 1.1 f/ 1.8 2.1
Ratio of earnings to combined fixed
charges and Preferred Stock dividends 1.9 1.2 1.1 f/ 1.8 2.0
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.
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 that 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.