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Debt and Pension

Debt/Unfunded Pension

BALANCE SHEET METRICS – AUTOMOTIVE SEGMENT & FORD CREDIT

For the Automotive segment, one of our key priorities is to maintain a strong balance sheet, while at the same time having resources available to grow our core business and invest in emerging opportunities. We believe we have sufficient liquidity and capital resources to continue to invest in new products and services that our customers want and value, transform and grow our business, pay our debts and obligations as and when they come due, pay a sustainable dividend, and provide protection within an uncertain global economic environment.

Ford Credit's primary funding and liquidity objective is to maintain a strong investment grade balance sheet with ample liquidity to support its financing activities and growth under a variety of market conditions, including short-term and long-term market disruptions.

Balance Sheet Summary

DEBT-AUTOMOTIVE SEGMENT

We manage Automotive debt levels with a leverage framework to maintain strong, investment grade credit ratings through a normal business cycle.

Automotive Segment Debt

DEBT – FORD CREDIT

Ford Credit's funding is diversified across markets, channels, and investors. Managed receivables are funded primarily with term debt and term asset-backed securities.

Financial Statement Leverage Reconciliation to Managed Leverage

PENSION

Our strategy is to reduce the risk of our funded defined benefit pension plans, including minimizing the volatility of the value of our pension assets relative to pension liabilities and the need for unplanned use of capital resources to fund the plans. The strategy reduces balance sheet, cash flow and income exposures and, in turn, reduces our risk profile.

Pension Update

For additional information, please see Ford Motor Company's 2016 10-K at
http://corporate.ford.com/investors.html and Ford Credit's 2016 10-K at https://www.ford.com/finance/investor-center.