The document analyzes Ford's financial performance and recommends not investing in Ford stock due to projected negative equity value and low cash flow. It discusses Ford's competitive landscape, brand positioning, and product plans which include investing in hybrid and electric vehicles. Strategic recommendations are made to improve productivity and change production facilities to focus more on small cars.

1. Thursday, February 5 th , 2009 Matthew Clemson, Gavin McDowell, Stephanie Ramsay, David Spencer, Lindsey White FORD – ANALYST REPORT Group 10

2. Financial Performance (5-10 Year Outlook)

3. Revenue growth has severely lagged cost growth leading to slimmer margins, decreased cash flow, and ultimately, a steep decline in stock price. Ford’s Struggling Financial Performance

4. Ford’s Struggling Financial Performance

5. Stock Recommendations

6. With Ford levered to the hilt and cash flow projected to be very low, we forecast a negative equity value of $44 billion. Investors have a big hole to crawl out of before even reaching the current $1.80 per share. We Do Not Recommend Ford Stock

7. Marketing Landscape

8. Competitive Landscape Low Price/High Quality Low Price/Low Quality High Price/Low Quality High Price/High Quality

9. Re-Branding Amidst a Financial Crisis? Refreshed Brand Image and New Positioning

10. Competitive Landscape Low Price/ High Quality Low Price/Low Quality High Price/High Quality High Price/ Low Quality

12. Brand Positioning Crossroad?

13. Competitive Advantage

14. Competitive Advantage Used Vehicles Affordability of New Cars

15. Sustainable Competitive Advantage VALUE RARE INIMITABLE ORGANIZED Brand Equity Customer Loyalty Investment in Hybrid R&D Manufacturing Flexibility Green Awareness

16. Complementary Business Units

18. Key Acquisitions and Alliances

22. Product Plans

27. Productivity Measurements

29. New Domestics Lead Plant Utilization Metrics

30. Production Strategy

33. Strategic Recommendations

34. Company vs Analyst Comparison

35. Questions