Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
(a)
(in millions)
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2009
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2008
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2007
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2006
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2005
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Earnings
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Income/(Loss) before income taxes and cumulative
effects of changes in accounting principles
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$ | 3,026 | $ | (14,498 | ) | $ | (3,857 | ) | $ | (15,079 | ) | $ | 1,054 | |||||||
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Less: Equity in net (income)/loss of affiliated
companies included in income/(loss) before income taxes
(b)
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(151 | ) | (177 | ) | (412 | ) | (426 | ) | (303 | ) | ||||||||||
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Adjusted income/(loss)
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2,875 | (14,675 | ) | (4,269 | ) | (15,505 | ) | 751 | ||||||||||||
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Adjusted fixed charges (c)
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7,291 | 10,403 | 11,649 | 9,325 | 9,091 | |||||||||||||||
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Earnings/(Losses)
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$ | 10,166 | $ | (4,272 | ) | $ | 7,380 | $ | (6,180 | ) | $ | 9,842 | ||||||||
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Combined Fixed Charges
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Interest expense (d)
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$ | 6,858 | $ | 9,858 | $ | 11,089 | $ | 8,845 | $ | 8,484 | ||||||||||
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Interest portion of rental expense (e)
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261 | 325 | 348 | 329 | 514 | |||||||||||||||
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Total combined fixed charges
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$ | 7,119 | $ | 10,183 | $ | 11,437 | $ | 9,174 | $ | 8,998 | ||||||||||
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Ratios
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Ratio of earnings to combined fixed charges
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1.4 |
(f)
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(f)
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(f)
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1.1 | |||||||||||||||
_____________
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(a)
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Discontinued operations are excluded from all
amounts. There were no preferred stock dividends in the periods
displayed.
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(b)
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Excludes any impairments or writedowns that are
included in Equity
in net income/(loss) of affiliated companies shown on the statement
of operations.
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(c)
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Combined fixed charges, as shown above, adjusted to
exclude capitalized interest, and to include dividends from affiliated
companies as well as amortization of capitalized
interest. (Capitalized interest (in millions): 2009 - $29; 2008
- $53; 2007 - $51; 2006 - $58; 2005 - $67)
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(d)
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Includes interest, as shown on our statement of
operations, plus capitalized interest.
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(e)
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One-third of all rental expense is deemed to be
interest.
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(f)
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Earnings/(Losses) were inadequate to cover fixed
interest charges by (in billions): 2008 — $14.5; 2007 — $4.1; 2006 —
$15.4.
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