Full Year 2021 Adjusted EBIT by area
North America...$ 7,377
South America...$ (121)
Europe..........$ (154)
China...........$ (327)
International Markets Group $ 622
Automotive Total..........$ 7,397
Mobility........$(1,030)
Ford Credit.....$ 4,717
Corporate Other..$ (1,084)
Adjusted EBIT...$ 10,000
It looks like NA automotive did quite well, and global performed as usual. Looking at this, it isn't apparent to me how our LL5+ are claiming a 135% globally a job well done while saying that the NA GSRs/LL6s didn't contribute enough.
Oh, that's right it is a Cash Flow problem. That is the metric that was used for 50% of the GSR/LL6 bonus calculation.
I see a (1.8b) hit to FCF on inventory. Would our executive team care to explain why we are carrying almost 2b in inventory?
There was (2.3b) on interest. We owe money. Interest is due.
(3.1b) on All Other and timing differences. That's a lot of "other" money, but 2021 was a difficult year and I will assume this money went to that.
(1.9b) on global redesign. Very nice, NA salary staff's bonus metric was penalized because you fired our co-workers. High class sportsmanship there.
(3.7b) Changes in debt. Paid off some high interest debt. Makes sense.
(0.4b) Shareholder distributions. Must pay those that contribute the most.
Whose bright idea was to base the NA GSR bonus metrics off of FCF? What control does a GSR/LL6s have over those FCF factors identified above? And why does it seem that our LL5+ were not graded on the same dismal cash flow metric?
How it appears to me if I am reading the earning slides correctly, NA auto contributed to 73% of our earnings. Ford Credit contributed 47%. Combined, those two groups contributed 12b of your 10b EBIT, or roughly 121%. Basically, you have really angered the group that designs, develops, industrializes, sells, and finances your most profitable products. And you rewarded yourself while doing so. This is not great leadership.