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: * 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. Sales Vehicle Unit Sales* (in billions) (in thousands) 2003  Over/(Under)  2002 2003  Over/(Under)  2002 2003 2002 2003 2002 Americas - Ford North America $ 83.6 $ 87.1 $ (3.5) (4)% 3,810 4,146 (336)  (8)% - Ford South America 1.9 1.5 0.4 27 210 195 15 8 Total Americas 85.5 88.6 (3.1) (3) 4,020 4,341  (321)  (7) Ford Europe and PAG - Ford Europe 22.2 18.9 3.3 17 1,609 1,561 48 3 - PAG  24.8 21.1 3.7 18 754 771 (17)  (2) Total Ford Europe and PAG 47.0 40.0 7.0 2,363 2,332 31 1 Ford Asia Pacific and Africa 5.8 4.4 1.4 32 353 300  53  18 Other Automotive - 1.1 (1.1) - Total Automotive $ 138.3 $ 134.1 $ 4.2 3 6,736 6,973  (237)  (3) 2003 Over/(Under) 2003 2002 2002 Market Americas - Ford North America 19.2% 19.9% (0.7) pts. U.S.* - Ford South America 11.5 9.9 1.6 Brazil* Ford Europe and PAG - Ford Europe 8.6 8.6 0 Europe* - PAG  1.3/2.1 1.2/2.2 0.1/(0.1) U.S./Europe  Ford Asia Pacific and Africa 13.9 13.2 0.7 Australia* * Excludes market share of our PAG brand vehicles (i.e., Volvo, Jaguar, Land Rover and Aston Martin). Details of Automotive sector market share for selected markets for 2003 and 2002 are shown below: 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. 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. Ford Europe and PAG Segment The Americas Segment 2 9