Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (a)
(in millions)
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2010
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2009
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2008
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2007
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2006
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Earnings
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Income/(Loss) before income taxes and cumulative effects of changes in accounting principles (b)
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$ | 7,149 | $ | 2,599 | $ | (14,895 | ) | $ | (4,286 | ) | $ | (15,490 | ) | |||||||
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Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes
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(538 | ) | (336 | ) | (382 | ) | (639 | ) | (599 | ) | ||||||||||
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Adjusted income/(loss)
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6,611 | 2,263 | (15,277 | ) | (4,925 | ) | (16,089 | ) | ||||||||||||
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Adjusted fixed charges (c)
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6,741 | 7,395 | 10,518 | 11,753 | 9,439 | |||||||||||||||
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Earnings/(Losses)
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$ | 13,352 | $ | 9,658 | $ | (4,759 | ) | $ | 6,828 | $ | (6,650 | ) | ||||||||
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Combined Fixed Charges
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Interest expense (d)
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$ | 6,173 | $ | 6,818 | $ | 9,787 | $ | 11,036 | $ | 8,804 | ||||||||||
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Interest portion of rental expense (e)
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204 | 258 | 322 | 344 | 327 | |||||||||||||||
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Total combined fixed charges
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$ | 6,377 | $ | 7,076 | $ | 10,109 | $ | 11,380 | $ | 9,131 | ||||||||||
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Ratios
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Ratio of earnings to combined fixed charges
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2.1 | 1.4 |
(f)
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(f)
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(f)
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__________
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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): 2010 - $20; 2009 - $28; 2008 - $50; 2007 - $47; 2006 - $53)
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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 — $14.9; 2007 — $4.6; 2006 — $15.8.
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