Exhibit
12
FORD
MOTOR COMPANY AND SUBSIDIARIES
CALCULATION
OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND
PREFERRED STOCK DIVIDENDS
(in
millions)
|
Restated
For
the Years Ended December 31
|
|||||||||||||||||||
|
|
First
Nine Months
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||||
|
Earnings
|
|||||||||||||||||||
|
Income
before income taxes and cumulative effects of changes in accounting
principles (a)
|
$
|
(9,363
|
)
|
$
|
1,079
|
$
|
4,109
|
$
|
914
|
$
|
4,036
|
$
|
(6,372
|
)
|
|||||
|
Less:
Equity in net (income)/loss of affiliates included in income before
income
taxes
|
(355
|
)
|
(303
|
)
|
(240
|
)
|
(155
|
)
|
137
|
351
|
|||||||||
|
Adjusted
income
|
(9,718
|
)
|
776
|
3,869
|
759
|
4,173
|
(6,021
|
)
|
|||||||||||
|
Adjusted
fixed charges (b)
|
6,742
|
9,091
|
9,136
|
9,996
|
10,977
|
11,911
|
|||||||||||||
|
Earnings
|
$
|
(2,976
|
)
|
$
|
9,867
|
$
|
13,005
|
$
|
10,755
|
$
|
15,150
|
$
|
5,890
|
||||||
|
Combined
Fixed Charges and Preferred Stock Dividends
|
|||||||||||||||||||
|
Interest
expense (c)
|
$
|
6,375
|
$
|
8,484
|
$
|
8,528
|
$
|
9,236
|
$
|
10,128
|
$
|
11,482
|
|||||||
|
Interest
portion of rental expense (d)
|
248
|
514
|
565
|
524
|
448
|
394
|
|||||||||||||
|
Preferred
Stock dividend requirements of majority owned subsidiaries and
trusts
|
—
|
—
|
—
|
190
|
353
|
55
|
|||||||||||||
|
Fixed
charges
|
6,623
|
8,998
|
9,093
|
9,950
|
10,929
|
11,931
|
|||||||||||||
|
Ford
Preferred Stock dividend requirements (e)
|
—
|
—
|
—
|
—
|
22
|
22
|
|||||||||||||
|
Total
combined fixed charges and Preferred Stock dividends
|
$
|
6,623
|
$
|
8,998
|
$
|
9,093
|
$
|
9,950
|
$
|
10,951
|
$
|
11,953
|
|||||||
|
Ratios
|
|||||||||||||||||||
|
Ratio
of earnings to fixed charges
|
(f
|
)
|
1.1
|
1.4
|
1.1
|
1.4
|
(f
|
)
|
|||||||||||
|
Ratio
of earnings to combined fixed charges and Preferred Stock
dividends
|
(f
|
)
|
1.1
|
1.4
|
1.1
|
1.4
|
(f
|
)
|
|||||||||||
|
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. (Capitalized interest: September
2006 YTD - $45 mil; 2005 - $67 mil; 2004 - $57 mil; 2003 - $63 mil;
2002 - $46 mil; 2001 - $44
mil)
|
|
(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 increased to an amount representing the
pre-tax earnings which would be required to cover such dividend
requirements based on our effective income tax
rates.
|
|
(f)
|
Earnings
for the year ended December 31, 2001 were inadequate to cover fixed
charges by $6.1 billion.
|
Earnings
for the first nine months 2006 were inadequate to cover fixed charges by $9.6
billion.