Ford Motor Co.

Balanced geographic footprint. EBITDA margins in line with industry average. High dependence on large trucks for profitability. Exposure to intensely competitive, cyclical global auto market. Consistent operating cash flow. Improved financial flexibility with strong liquidity. Minimal debt leverage. Post retirement liabilities are better funded and derisked. The stable outlook on Ford Motor Co. reflects our expectation that over the next 12-24 months the company will maintain EBIT margins of 8%-10% in North America, post sustainable profit in Europe, and maintain steady profits in China, albeit amid a somewhat slower global economic recovery than our prior expectations. Our outlook also incorporates moderating profitability at its captive subsidiary, as a result of higher funding costs from rising interest rates, lower residual values

...Outlook The stable outlook on Ford Motor Co. reflects our expectation that over the next 12-24 months the company will maintain EBIT margins of 8%-10% in North America, post sustainable profit in Europe, and maintain steady profits in China, albeit amid a somewhat slower global economic recovery than our prior expectations. Our outlook also incorporates moderating profitability at its captive subsidiary, as a result of higher funding costs from rising interest rates, lower residual values because of lower used-vehicle prices, and decelerating asset growth....

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