Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Income Effect of Derivative Instruments [Table Text Block]

The following tables summarize by hedge designation the pre-tax gains/(losses) recorded in Other comprehensive income/(loss) ("OCI"), reclassified from Accumulated other comprehensive income/(loss) ("AOCI" ) to income and/or recognized directly in income (in millions):

	Second Quarter 2011							First Half 2011
	Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income		Gain/(Loss) Recognized in Income			Gain/(Loss) Recorded in OCI		Gain/(Loss) Reclassified from AOCI to Income		Gain/(Loss) Recognized in Income
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	69	$	42	$	2		$	194	$	36	$	2
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts - operating exposures					$	4						$	13
Commodity contracts					(27		)					(12		)
Other – warrants					1							1
Total					$	(22	)					$	2
Financial Services Sector
Fair value hedges:
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness					$	67						$	133
Ineffectiveness (a)					2							(16		)
Total					$	69						$	117
Derivatives not designated as hedging instruments:
Interest rate contracts					$	4						$	(4	)
Foreign currency exchange contracts					(74		)					(62		)
Cross-currency interest rate swap contracts					(17		)					(31		)
Other (b)					2							2
Total					$	(85	)					$	(95	)

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(a) For the second quarter and first half of 2011, hedge ineffectiveness reflects change in fair value on derivatives of $134 million gain and $46 million gain, respectively, and change in fair value on hedged debt of $132 million loss and $62 million loss, respectively.

(b) Reflects gains/(losses) for derivative features included in the FUEL notes (see Note 3).

NOTE 16.  DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

	Second Quarter 2010									First Half 2010
	Gain/(Loss) Recorded in OCI			Gain/(Loss) Reclassified from AOCI to Income			Gain/(Loss) Recognized in Income			Gain/(Loss) Recorded in OCI			Gain/(Loss) Reclassified from AOCI to Income			Gain/(Loss) Recognized in Income
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	(46	)	$	(10	)	$	—		$	(51	)	$	(13	)	$	—
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts - operating exposures							$	(45	)							$	(200	)
Commodity contracts							(12		)							(15		)
Other – warrants							—									1
Total							$	(57	)							$	(214	)
Financial Services Sector
Fair value hedges:
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness							$	52								$	105
Ineffectiveness *							2									—
Total							$	54								$	105
Derivatives not designated as hedging instruments:
Interest rate contracts							$	2								$	31
Foreign currency exchange contracts							(10		)							(90		)
Cross-currency interest rate swap contracts							96									88
Total							$	88								$	29

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*    For the second quarter and first half of 2010, hedge ineffectiveness reflects change in fair value on derivatives of $112 million gain and $155 million gain, respectively, and change in fair value on hedged debt of $110 million loss and $155 million loss, respectively.

Balance Sheet Effect of Derivative Instruments [Table Text Block]

The following tables summarize the notional amount and estimated fair value of our derivative financial instruments (in millions):

	June 30, 2011
	Notionals		Fair Value of Assets		Fair Value of Liabilities
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	6,260	$	215	$	72
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	2,631		92		78
Commodity contracts	2,224		24		46
Other – warrants	12		6		—
Total derivatives not designated as hedging instruments	4,867		122		124
Total Automotive sector derivative instruments	$	11,127	$	337	$	196
Financial Services Sector
Fair value hedges:
Interest rate contracts	$	7,850	$	260	$	—
Derivatives not designated as hedging instruments:
Interest rate contracts	63,604		660		205
Foreign currency exchange contracts	7,637		64		66
Cross-currency interest rate swap contracts	1,114		—		42
Other *	2,500		75		—
Total derivatives not designated as hedging instruments	74,855		799		313
Total Financial Services sector derivative instruments	$	82,705	$	1,059	$	313

 __________

*    Represents derivative features included in the FUEL notes (see Note 3).

NOTE 16.  DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

	December 31, 2010
	Notionals		Fair Value of Assets		Fair Value of Liabilities
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts	$	664	$	8	$	15
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	2,167		50		78
Commodity contracts	846		69		6
Other – warrants	12		5		—
Total derivatives not designated as hedging instruments	3,025		124		84
Total Automotive sector derivative instruments	$	3,689	$	132	$	99
Financial Services Sector
Fair value hedges:
Interest rate contracts	$	8,826	$	503	$	7
Derivatives not designated as hedging instruments:
Interest rate contracts	52,999		709		322
Foreign currency exchange contracts	3,835		24		73
Cross-currency interest rate swap contracts	1,472		25		189
Total derivatives not designated as hedging instruments	58,306		758		584
Total Financial Services sector derivative instruments	$	67,132	$	1,261	$	591