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## MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

Details of Automotive sector sales and vehicle unit sales for 2003 and 2002 are shown below: 

<img src='content_image/81459.jpg'>

* Included in vehicle unit sales of Ford Asia Pacific and Africa are Ford-badged vehicles sold in China and Malaysia by our unconsolidated affiliates totaling 33,906 and 17,404 units in 2003 and 2002, respectively. “Sales” above does not include revenue from these units. 

Details of Automotive sector market share for selected markets for 2003 and 2002 are shown below: 

<img src='content_image/81460.jpg'>

* Excludes market share of our PAG brand vehicles (i.e., Volvo, Jaguar, Land Rover and Aston Martin). 

## The Americas Segment 

Ford North America. The reduction in earnings primarily reflected the charges related to agreements with Visteon discussed above (see “2004 compared with 2003 – The Americas Segment: Ford North America”), lower vehicle unit sales, unfavorable net pricing and unfavorable changes in currency exchange rates, offset partially by cost reductions and favorable product mix. 

Ford South America. The improvement in earnings primarily reflected the non-recurrence of the adverse effects of currency devaluation in Brazil and Argentina, increased market share and continuing improvement in the business structure. 

## Ford Europe and PAG Segment 

Ford Europe. The increased loss primarily reflected the charges related to the Ford Europe Improvement Plan discussed above (see “2004 compared with 2003 – Ford Europe and PAG Segment: Ford Europe”), unfavorable net pricing, a less favorable product mix, unfavorable changes in currency exchange rates and a larger reduction in dealer stocks, offset partially by cost reductions and improved results at Ford Otosan, our joint venture in Turkey. 

PAG. The improvement in earnings primarily reflected cost reductions and improved product mix, offset partially by unfavorable changes in currency exchange rates and the non-recurrence of employee separation charges incurred in 2002. 

