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## 2003 COMPARED WITH 2002 

Details of the full-year Financial Services sector  Income/(loss) before income taxes  for 2003 and 2002 are shown below (in millions): 

<img src='content_image/52706.jpg'>

## Ford Credit 

The increase in income before income taxes primarily reflected improved credit loss performance and the net favorable market valuation of derivative instruments and associated exposures, offset partially by the impact of lower average net receivables. 

## Hertz 

The improvement in earnings primarily reflected an improved car rental pricing environment and lower costs. 

## LIQUIDITY AND CAPITAL RESOURCES 

## Automotive Sector 

Our strategy is to ensure we have sufficient funding available with a high degree of certainty throughout the business cycle. The key elements of this strategy include maintaining large gross cash balances, generating cash from operating-related activities, having a long-dated debt maturity profile, maintaining committed credit facilities and funding long-term liabilities over time. 

Gross Cash. Automotive gross cash includes cash and cash equivalents, marketable and loaned securities and assets contained in a short-term Voluntary Employee Beneficiary Association trust (“VEBA”) (see below). Gross cash as of December 31, 2004, 2003 and 2002 is detailed below (in billions): 

<img src='content_image/52707.jpg'>

