HELD-FOR-SALE OPERATIONS, DISPOSITIONS AND ACQUISITIONS

Automotive Sector

Held-for-Sale Operations

Russia. During the second quarter of 2011, we signed an agreement with Sollers OJSC establishing a new 50-50 joint venture in Russia. We will contribute our operations in Russia consisting primarily of a manufacturing plant in Vsevolozhsk, near St. Petersburg, and access to our Russian dealership network. Sollers will contribute two production facilities and will support the joint venture through its manufacturing capabilities, knowledge of the Russian market, experience in distribution and work with the Russian supply base. The joint venture will be named Ford Sollers and will be primarily engaged in manufacturing a range of Ford passenger cars and light commercial vehicles. The joint application by Ford and Sollers to the Russian government for participation in the new industrial assembly regime, which will reduce import duties for parts imported into Russia, was approved by the Ministry of Economic Development and Trade on

June 1, 2011. The transaction is expected to finalize and operations are anticipated to commence during the fourth quarter of 2011.

Upon closing of the transaction, we plan to deconsolidate our operations in Russia and account for Ford Sollers as an equity method investee.

At June 30, 2011, we classified the assets and liabilities of our operations in Russia as held for sale on our balance sheet and suspended depreciation and amortization on those assets. The assets and liabilities of our operations in Russia that are classified as held for sale are summarized as follows (in millions):



	June 30, 2011
Assets
Cash and cash equivalents	$	9
Receivables	48
Inventories	106
Net property	240
Other assets	16
Total assets of held-for-sale operations	$	419
Liabilities
Trade payables	$	98
Other payables	6
Accrued liabilities	25
Total liabilities of held-for-sale operations	$	129

Dispositions

ACH. On June 1, 2011, ACH completed the legal sale of its blow-molded fuel tank business presently located at its Milan plant to Inergy Automotive Systems. As a result of the terms of the arrangement, the value of the property remains on our balance sheet and is being amortized over the term of the new supply agreement.

Volvo. On August 2, 2010, we completed the sale of Volvo and related assets. As agreed, Volvo will retain or acquire certain assets presently used by Volvo, consisting principally of ownership of, or licenses to use, certain intellectual property. During the first quarter of 2011, the final true-up of the purchase price was adjusted upward by $9 million, lowering our pre-tax loss on the sale to $14 million. This favorable adjustment increased our previously-recorded receivable of $126 million to $135 million, which was received in April 2011.

Acquisitions

CPF. On March 15, 2011, we acquired the remaining interest in CPF, formerly Tekfor Cologne GmbH. CPF was a 50/50 joint venture with Neumayer Tekfor GmbH, which was previously consolidated as a variable interest entity. For additional discussion on the CPF acquisition, see Note 8.