Retirement Benefits and Share-based Compensation	12 Months Ended
Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION	RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION We are a participating employer in certain retirement, postretirement health care and life insurance, and share-based compensation plans that are sponsored by Ford. Share-based compensation plans are outstanding under Ford's two Long-Term Incentive Plans (“LTIP”): the 1998 LTIP and the 2008 LTIP. No further grants may be made under the 1998 LTIP. Grants may continue to be made under the 2008 LTIP through April 2018. Ford primarily issues two types of share-based compensation awards: stock options and restricted stock units (“RSU”). As described below, Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford's Annual Report on Form 10-K for the year ended December 31, 2012, filed separately with the Securities and Exchange Commission. Employee Retirement Plans Benefits earned under certain Ford-sponsored retirement plans are generally based on an employee's length of service, salary and contributions. The allocation amount can be impacted by key assumptions (for example, discount rate and average rate of increase in compensation) that Ford uses in determining its retirement plan obligations. Also, we are jointly and severally liable to the Pension Benefit Guaranty Corporation ("PBGC") for certain Ford IRS-qualified U.S. defined benefit pension plan liabilities and to any trustee appointed if one or more of these pension plans were to be terminated by the PBGC in a distress termination. We are liable to pay any plan deficiencies and could have a lien placed on our assets by the PBGC to collateralize this liability. Retirement plan service costs allocated to Ford Credit for our employees in the U.S. participating in the Ford-sponsored plans were $28 million, $26 million and $21 million for the years ended December 31, 2012, 2011 and 2010, respectively, and were charged to Operating expenses. The allocated cost for 2012 was equivalent to 10% of Ford's total U.S. salaried retirement plan service cost. Postretirement Health Care and Life Insurance Benefits Postretirement health care and life insurance benefits are provided under certain Ford plans, which provide benefits to retired salaried employees primarily in the United States. Our employees generally may become eligible for these benefits if they retire while working for us; however, benefits and eligibility rules may be modified from time to time. Effective January 1, 2012, Ford allocates costs to us for postretirement health care and life insurance on a service cost basis which is consistent with the basis used for allocating U.S. employee retirement plan service costs. Prior to 2012, postretirement health care and life insurance costs were allocated to us on a total plan cost basis. In addition, our liability to Ford for postretirement health care and life insurance of $328 million at December 31, 2011, which was included in Accounts payables - affiliated companies, was paid in full during 2012. Postretirement health care and life insurance assigned to Ford Credit for our employees in the U.S. participating in the Ford-sponsored plans increased Operating expenses by $4 million for the year ended December 31, 2012 and reduced Operating expenses by $22 million and $21 million for the years ended December 31, 2011 and 2010, respectively. The allocation for 2012 was equivalent to 12% of Ford's total U.S. salaried postretirement health care and life insurance benefits service cost. Stock Options Certain of our employees have been granted stock options, which generally have a vesting feature whereby one-third of each grant of stock options are exercisable after the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary. Stock options expire 10 years from the grant date using a three-year graded vesting methodology. Ford measures the fair value of stock options using the Black-Scholes option-pricing model. NOTE 16. RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION (Continued) Employee stock option expense allocated to Ford Credit for our employees participating in the Ford-sponsored plans was $2 million for the years ended December 31, 2012, 2011 and 2010, and were charged to Operating expenses. The allocated expense for 2012 was equivalent to 4% of Ford's total stock option expense. Restricted Stock Units Certain of our employees have been granted performance-based and time-based RSUs, which provide the recipients with the right to shares of stock after a restriction period. Ford measures the fair value using the closing price of Ford's Common Stock on grant date. Time-based RSUs generally have a graded vesting feature whereby one-third of each grant of RSUs vest after the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary. Ford's expense is recognized using the graded vesting method and is based on the fair value at grant date. Performance-based RSUs have a performance period (usually one year) followed by a restriction period (usually two years). Ford recognizes compensation expense when it is probable and estimable as measured against the performance metrics. Expense is recognized over the performance and restriction periods, if any, and is based on the fair value at grant date. RSU expense allocated to Ford Credit for our employees participating in these plans was $5 million, $6 million and $10 million for the years ended December 31, 2012, 2011 and 2010, respectively, and were charged to Operating expenses. The allocated expense for 2012 was equivalent to 5% of Ford's total RSU expense.

RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION

We are a participating employer in certain retirement, postretirement health care and life insurance, and share-based compensation plans that are sponsored by Ford. Share-based compensation plans are outstanding under Ford's two Long-Term Incentive Plans (“LTIP”): the 1998 LTIP and the 2008 LTIP. No further grants may be made under the 1998 LTIP. Grants may continue to be made under the 2008 LTIP through April 2018. Ford primarily issues two types of share-based compensation awards: stock options and restricted stock units (“RSU”).

As described below, Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford's Annual Report on Form 10-K for the year ended December 31, 2012, filed separately with the Securities and Exchange Commission.

Employee Retirement Plans

Benefits earned under certain Ford-sponsored retirement plans are generally based on an employee's length of service, salary and contributions. The allocation amount can be impacted by key assumptions (for example, discount rate and average rate of increase in compensation) that Ford uses in determining its retirement plan obligations. Also, we are jointly and severally liable to the Pension Benefit Guaranty Corporation ("PBGC") for certain Ford IRS-qualified U.S. defined benefit pension plan liabilities and to any trustee appointed if one or more of these pension plans were to be terminated by the PBGC in a distress termination. We are liable to pay any plan deficiencies and could have a lien placed on our assets by the PBGC to collateralize this liability.

Retirement plan service costs allocated to Ford Credit for our employees in the U.S. participating in the Ford-sponsored plans were $28 million, $26 million and $21 million for the years ended December 31, 2012, 2011 and 2010, respectively, and were charged to Operating expenses. The allocated cost for 2012 was equivalent to 10% of Ford's total U.S. salaried retirement plan service cost.

Postretirement Health Care and Life Insurance Benefits

Postretirement health care and life insurance benefits are provided under certain Ford plans, which provide benefits to retired salaried employees primarily in the United States. Our employees generally may become eligible for these benefits if they retire while working for us; however, benefits and eligibility rules may be modified from time to time.

Effective January 1, 2012, Ford allocates costs to us for postretirement health care and life insurance on a service cost basis which is consistent with the basis used for allocating U.S. employee retirement plan service costs. Prior to 2012, postretirement health care and life insurance costs were allocated to us on a total plan cost basis. In addition, our liability to Ford for postretirement health care and life insurance of $328 million at December 31, 2011, which was included in Accounts payables - affiliated companies, was paid in full during 2012.

Postretirement health care and life insurance assigned to Ford Credit for our employees in the U.S. participating in the Ford-sponsored plans increased Operating expenses by $4 million for the year ended December 31, 2012 and reduced Operating expenses by $22 million and $21 million for the years ended December 31, 2011 and 2010, respectively. The allocation for 2012 was equivalent to 12% of Ford's total U.S. salaried postretirement health care and life insurance benefits service cost.

Stock Options

Certain of our employees have been granted stock options, which generally have a vesting feature whereby one-third of each grant of stock options are exercisable after the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary. Stock options expire 10 years from the grant date using a three-year graded vesting methodology. Ford measures the fair value of stock options using the Black-Scholes option-pricing model.

NOTE 16. RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION (Continued)

Employee stock option expense allocated to Ford Credit for our employees participating in the Ford-sponsored plans was $2 million for the years ended December 31, 2012, 2011 and 2010, and were charged to Operating expenses. The allocated expense for 2012 was equivalent to 4% of Ford's total stock option expense.

Restricted Stock Units

Certain of our employees have been granted performance-based and time-based RSUs, which provide the recipients with the right to shares of stock after a restriction period. Ford measures the fair value using the closing price of Ford's Common Stock on grant date.

Time-based RSUs generally have a graded vesting feature whereby one-third of each grant of RSUs vest after the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary. Ford's expense is recognized using the graded vesting method and is based on the fair value at grant date.

Performance-based RSUs have a performance period (usually one year) followed by a restriction period (usually two years). Ford recognizes compensation expense when it is probable and estimable as measured against the performance metrics. Expense is recognized over the performance and restriction periods, if any, and is based on the fair value at grant date.

RSU expense allocated to Ford Credit for our employees participating in these plans was $5 million, $6 million and $10 million for the years ended December 31, 2012, 2011 and 2010, respectively, and were charged to Operating expenses. The allocated expense for 2012 was equivalent to 5% of Ford's total RSU expense.