Also in this playlist...
This transcript is automatically generated
It is -- -- stock to watch today shares of Ford are falling right now after the fourth quarter profit.
For the company did fall short the stock down about three and a half percent right now but it was the automaker's best annual earnings.
Since 1998 making 2011 -- second most profitable year.
The company's history -- -- man I don't will Ford Ford motors CEO president Alan Mulally ounce brakes talk to you again.
Pleasure good to see you well with -- so much to go over here but I got to start with Europe and Asia for 2011 neither Europe -- Asia was profitable for you.
-- you are -- scale back in Europe but how concerned are you about the European situation did that you're gonna have to cut more production in 2012.
Well I think that all of us continue to be concerned that about Europe especially as they deal with the sovereign debt issues.
But really happened yes towards the end of the year is economy really started to slow down of course that auto industry slowdown.
The neat thing about our operations in Europe is that we have been our restructuring the business and matching our production to the real demand over the years.
There's been a very good -- -- profitable operation for us.
But we got caught in those headwinds in addition to increasing commodities.
As -- put as you pointed out.
The flooding in Thailand really affected our operations in Asia Pacific but -- -- one off things and we provided guidance that will be expanding our.
Our profitability in the automotive sector -- next -- also.
You know the commodity issue that did affected that was a surprise to you understood your forecast was 2.2 billion spent on commodity costs for 2011.
It is 2.3 billion.
Are you the process right now the value waiting exactly what the commodity -- gonna be in particular in Europe for 2000 while.
All you bet it -- a very important part of our performance this last year because we had actually.
An estimate about a billion dollars more for commodities for 2011.
And as you point out it turned out to be about 2.3 billion dollars.
And that alone would be 2% on our operating margins or we would have been expanded that the margins themselves.
Now having said that.
We've also had a dramatic reduction in -- commodities worldwide and we believe that for 2012.
Is going to be pretty minimal and -- allow us now to get -- really back on track as far as our our operational margins expansion.
-- I also wanna ask you about the situation in China you know the government there -- that there's a possibility that interest rates on Chinese consumers are gonna.
We start being driven up -- your competitors are little more concerned about about the probably you are because -- your bread and butter but aren't concerned that you're gonna see a slowdown.
And China this year.
What show it's really interest in in China as you know we are when the fastest growing brands in China based on the strength of our products but also the fact that we are right now implementing four.
New production facilities in China.
And what's the need about China to pass we respect to your question is that they've had these very high growth rates which clearly are hard to sustain.
So the fact they've been working inflation and the -- the growth rates are now it's still very substantial you know eight to 10%.
But a lot more sustainable for us going forward and of course the automobile market.
-- right along with economic expansion so.
We are a very positive about the actions have been taken to -- exact growth in -- prudent way.
What you know speaking of things happening -- her home and obviously be important to the strength of North American sales to you Alan.
I do and ask you about the dividend I -- we -- we spoke back it up to over their analysts were clamoring for a big dividend -- -- did and the dividend.
You're gonna start that this year but the considering that you don't know what's gonna happen obviously with the company overseas.
How how committed are you to the dividend for 2012.
And -- if it wasn't more than violence.
A lot of people wanted it to be -- Where we are we are very committed and as as we yet shared.
That is the biggest consideration that that that we took into account was we wanna be able to once we started the dividend.
To be able sustain the dividend through an economic cycle.
So the fact that we have improved our balance sheet dramatically.
That were nearly back to investment grade.
And that liquidity we have plus we've got all of our new products funded.
Now as the right time for us to commit to that dividend.
And over time as economy grows in the business grows will will increase that -- dividend but.
That was a very important consideration for us we want to be able to and our plan is to sustain that dividend through.
Recycle all right well you know cost shareholders and investors either never happy with that if they.
Al let me ask you this what about jobs in the United States ran an election year it's going to be one of the biggest topics obviously as we move into.
That that the election in November what about job growth.
The North America what do you think.
Well we just so pleased -- -- to be able that contributed to the economic development and we yet shared today that.
We're gonna expand our our operations next year where you're growing in -- market share.
At three years in a row the first time since 1970 based on that strength of that fantastic family -- best in class products.
Also are expanding our production capability we've announce that.
We're going to hire 121000.
A new employees -- that -- we've improved every element of our competitiveness in the United States.
We are now exporting our vehicles around the world for example of the new -- explore that would make -- Chicago.
Sure we're going to be exploring that you explore to 93 countries around the world.
So we are we are the fact that we took this to affectionate to work every American tennis.
We are now -- would be -- corporation for the benefit of of of so many people.
Well -- to be fair about the stock is down today but over the last three months of 25%.
Alan Mulally -- -- talk to you.
Filter by section