Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in millions)
| Nine | For the Years Ended December 31 | |||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||||
| 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | |||||||||||||||||||||
Earnings |
||||||||||||||||||||||||||
Income before income taxes |
$ | 759 | $ | (7,584 | ) | $ | 8,234 | $ | 9,854 | $ | 24,280 | $ | 10,124 | |||||||||||||
Equity in net (income)/loss of affiliates
plus dividends from affiliates |
117 | 857 | 99 | (12 | ) | 87 | 141 | |||||||||||||||||||
Adjusted fixed charges a/ |
7,387 | 11,277 | 11,316 | 9,388 | 9,161 | 10,896 | ||||||||||||||||||||
Earnings |
$ | 8,263 | $ | 4,550 | $ | 19,649 | $ | 19,230 | $ | 33,528 | $ | 21,161 | ||||||||||||||
Combined Fixed Charges and
Preferred Stock Dividends |
||||||||||||||||||||||||||
Interest expense b/ |
$ | 6,837 | $ | 10,894 | $ | 10,937 | $ | 9,065 | $ | 8,881 | $ | 10,559 | ||||||||||||||
Interest portion of rental expense c/ |
296 | 337 | 318 | 265 | 228 | 297 | ||||||||||||||||||||
Preferred stock dividend requirements of
majority owned subsidiaries and trusts |
258 | 55 | 55 | 55 | 55 | 55 | ||||||||||||||||||||
Fixed charges |
7,391 | 11,286 | 11,310 | 9,385 | 9,164 | 10,911 | ||||||||||||||||||||
Ford preferred stock dividend requirements d/ |
16 | 22 | 22 | 22 | 121 | 85 | ||||||||||||||||||||
Total combined fixed charges
and preferred stock dividends |
$ | 7,407 | $ | 11,308 | $ | 11,332 | $ | 9,407 | $ | 9,285 | $ | 10,996 | ||||||||||||||
Ratios |
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Ratio of earnings to fixed charges |
1.1 | f/ | 1.7 | 2.0 | 3.7 | e/ | 1.9 | |||||||||||||||||||
Ratio of earnings to combined fixed
charges and preferred stock dividends |
1.1 | f/ | 1.7 | 2.0 | 3.6 | e/ | 1.9 | |||||||||||||||||||
| 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. |
Prior periods have been changed.