Ford Motor fires Americans while hiring overseas

Date: Monday, January 23, 2006 2:13 PM

JOB DESTRUCTION NEWSLETTER

January 23, 2006 No. 1403

The big news today is the Ford announcement that they will cut 30,000 jobs
and shut down at least 14 production plants. What you won't see in most of
these news stories is any connection between what is happening at Ford in
the U.S. versus what is happening in countries such as China, India, and
Thailand. Sometimes I have to wonder whether most reporters are so stupid
they can't connect these events together, or whether our press is so
corporatized that they have instructions not to publicize bad news about
the sorry state of our economy that could cause social unrest. It doesn't
take a genius to figure out what is going on at Ford and GM.

For reporters who don't have time to read the news much less to write it
objectively let me make it real simple - Ford is closing plants in the
United States and terminating the employment of thousands of highly paid
American workers while at the same time they are investing billions of
dollars in overseas production facilities - and they are hiring foreign
workers as fast as they can find them and train them.

CASE IN POINT: In 2003, Bill Ford, chairman and chief executive officer of
Ford Motor Company, went to China and announced that Ford was going to
invest over $1.5 billion in Chinese production facilities. Today he is
telling American workers that, "We will be making painful sacrifices to
protect Ford's heritage and secure our future."

So who is the "we" that Bill Ford is talking about? Obviously not himself
or the other fat-cats who are making bundles of bucks at Ford. The first
article included from Reuters is very typical - they talk about the
"deepening financial crisis" that Ford is suffering, and then in the very
next few paragraphs talk about how Ford made over $2 billion in 2005 while
their stock shot up by 4.4%. It appears that the American workforce is
being sacrificed on the altar of Ford's profit hungry job executioners.

Ford's own website is very useful to find out where they are spending all
of that money they will save by closing down U.S. production facilities. I
found these nuggets in a few minutes at the Ford website:

* Over $1 billion in China

* $500 million in Thailand. According to other news sources Ford's
investment in Thailand is more likely to be about $2 billion.

* $75 million in India

Don't let Ford fool you like the way most U.S. reporters are snowed - these
foreign production facilities are not being built to sell to local markets
as much as they are to export to the U.S. To read more about this swindle
read Alan Tonelson's "Race to the Bottom" or "End of the Line" by Barry C.
Lynn. Since you might not have those books handy, let's allow Ford to
explain how it works:

* Ford announces that Thailand was the largest vehicle exporter during the
1st quarter of 2005. More than 70% of the following vehicles were built for
export, mainly to the U.S.: Ranger 4X2 Hi-Rider Active and Ranger 4X4
Automatic.

* Ford Motor Companys President and chief operating officer Jim Padilla
hailed Thailand as a key production hub for one-tonne pickups.

* President Gloria Macapagal Arroyo of the Philippines gave Ford an award
for being their top exporter. In 2003 Ford exported $450 million worth of
cars and trucks.

Material Used for this Newsletter

http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-01-23T140752Z_01_WAA000156_RTRIDST_0_BUSINESSPRO-AUTOS-FORD-EARNS-DC.XML
Ford 4th-qtr profit up 19 pct, auto losses shrink

http://www.edmunds.com/insideline/do/News/articleId=108540
Ford Plans $1 Billion Asia-Pacific Investment

http://www.marketwatch.com/news/story.asp?siteid=mktw&guid=%7B693D643E%2D3ED0%2D4F62%2DAFEB%2D4AE021BA3760%7D
Ford cuts 30,000 jobs, shuts 14 plants
Automaker aims to cut costs by $6 billion by 2010

http://www.paddocktalk.com/news/html/modules.php?op=modload&name=News&file=article&sid=26167
Ford Achieves Record Sales, Fast Expansion in China

http://www.conway.com/ssinsider/snapshot/sf040301.htm
Ford Accelerating $1.5-Billion Chinese Expansion Plan

http://media.ford.com/newsroom/release_display.cfm?release=20544
FORD PHILIPPINES WINS AWARD FOR EXPORT PROGRAM

http://media.ford.com/newsroom/release_display.cfm?release=21854
CHANGAN FORD COMPLETES PRODUCTION CAPACITY EXPANSION TO 150,000 UNITS

http://media.ford.com/newsroom/release_display.cfm?release=22210
PADILLA ANNOUNCES ACCELERATION OF FORDS INVESTMENT PLAN IN THAILAND

http://media.ford.com/newsroom/release_display.cfm?release=21901
FORD COMMITS $75 MILLION TO SUPPORT FURTHER GROWTH IN INDIA

http://media.ford.com/newsroom/release_display.cfm?release=20841
AUTOALLIANCE THAILAND IS LARGEST VEHICLE EXPORTER DURING FIRST QUARTER OF
2005

http://media.ford.com/newsroom/release_display.cfm?release=22196
FORD PRESIDENT JIM PADILLA AFFIRMS THAILANDS IMPORTANCE AS KEY
PRODUCTION HUB FOR ONE-TONNE PICKUP TRUCKS

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-01-23T140752Z_01_WAA000156_RTRIDST_0_BUSINESSPRO-AUTOS-FORD-EARNS-DC.XML

Ford 4th-qtr profit up 19 pct, auto losses shrink
Mon Jan 23, 2006 9:09 AM ET

By Poornima Gupta

DETROIT (Reuters) - Ford Motor Co. on Monday posted a
higher-than-expected 19 percent increase in earnings, boosted by strength
in its finance arm and the sale of its Hertz Corp. rental car unit, even as
its core automotive division lost money.

Ford, facing a deepening financial crisis in North America, said
fourth-quarter net income rose to $124 million, or 8 cents a share, from
$104 million, or 6 cents a share, a year ago.

Excluding special items, the company earned 26 cents a share, soundly
beating the average analyst expectation of 1 cent a share.

Ford shares rose 35 cents, or 4.4 percent, to $8.25 on the Inet electronic
brokerage system on Monday after closing at $7.90 on the New York Stock
Exchange Friday.

Ford has been struggling with a loss in U.S. market share to foreign
rivals, stalled sales of its large sport utility vehicles due to high
gasoline prices and high commodity and health-care costs.

Losses at Ford's auto operations shrank to $12 million, before taxes and
excluding special charges, from $470 million a year ago, while its finance
arm contributed a profit of $737 million versus $859 million.

In North America, Ford lost $143 million during the quarter, before taxes
and excluding special items, compared to a loss of $470 million a year ago.
Ford cited cost cuts and pricing, partially offset by operating loses at
the Visteon Corp. car parts business activities, now controlled by
Ford.

Ford ended 2005 with a market share of 17.4 percent, excluding its luxury
brands, the lowest level since the late 1920s. The automaker is set to
announce details of its restructuring plan, including plant closings and
layoffs, later on Monday.

BIG HERTZ GAIN

Dearborn, Michigan-based Ford said total fourth-quarter revenue rose to
$47.56 billion from $44.92 billion a year earlier. Automotive revenues
jumped to $41.82 billion from $38.87 billion.

For the full year, Ford's North American vehicle operations lost $1.6
billion before taxes. Its worldwide automotive operations swung to a pretax
loss of $1 billion from a profit of $850 million in 2004.

Despite the loss, Ford was profitable for the full year, earning $2 billion
in 2005 as its finance arm posted a net profit of $2.5 billion.

"Excluding North America, our automotive operations made great progress in
2005. We must keep working to improve our business in each and every
region," Chairman and Chief Executive Bill Ford Jr. said in a statement.

During the fourth quarter, Ford reported a pretax gain of $1.08 billion on
the sale of Hertz, which was completed in December. The automaker sold the
unit to an investor group in a transaction valued at about $15 billion,
including the assumption of debt.

The automaker also took a charge of 68 cents per share for personnel
reduction programs and impairment of Jaguar and Land Rover assets.

Ford's fourth-quarter net earnings were also reduced by 12 cents per share
because of an accounting change related to its fixed-asset retirement.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.edmunds.com/insideline/do/News/articleId=108540

Ford Plans $1 Billion Asia-Pacific Investment
Date posted: 12-15-2005

BANGKOK - In a move to keep pace in the fast-growing Asian car market, Ford
Motor Company on Wednesday said it planned to invest $1 billion in products
and plants in the region in the next several years.

The company has already invested $2 billion in the area, including nearly
half of that in a Ford-Mazda joint truck venture in Thailand.

The company's truck venture in Thailand is expanding capacity from 155,000
trucks now to 200,000 by 2008. Speaking to reporters at the truck plant,
Ford president and chief operating officer Jim Padilla said he was
confident that Ford would be more successful in Asia than in North America,
according to Reuters.

"Ford intends to be even a stronger competitor in this region and in
Thailand with new products over the next several years," Padilla said.

What this means to you: At a time when Ford is slashing jobs and cutting
factories in North America, it is doing the exact opposite in Asia.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.marketwatch.com/news/story.asp?siteid=mktw&guid=%7B693D643E%2D3ED0%2D4F62%2DAFEB%2D4AE021BA3760%7D

Ford cuts 30,000 jobs, shuts 14 plants
Automaker aims to cut costs by $6 billion by 2010
By Shawn Langlois, MarketWatch
Last Update: 12:21 PM ET Jan. 23, 2006

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. on Monday said it will cut up
to 30,000 jobs and shut 14 manufacturing plants in an effort to slash $6
billion in costs by 2010 and restore its embattled North America auto
operations to profitability by 2008.

"The automotive market in North America is rapidly becoming as crowded and
fragmented as other global markets," said Chairman and CEO Bill Ford, "We
will be making painful sacrifices to protect Ford's heritage and secure our
future." Listen to conference call.

The widely-expected announcement, the second extensive restructuring since
Bill Ford took the helm in 2001, came on the heels of Ford's (F:
Ford Motor Company
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F8.36, +0.46, +5.8%) better-than-expected, fourth-quarter results, which
triggered a 9% surge in its stock price. See full story.

The company said, as part of its "Way Forward" plan, it will cut capacity
by 1.2 million units, or 26%, by 2008.

To accomplish that, Ford plans to close 14 manufacturing plants by 2012,
including seven vehicle assembly plants. Also, about one in five hourly
Ford employees in North America will lose his or her job over the next six
years along with some salaried workers and corporate officers.

"We're now well past the point in which one or two hit products can correct
the overcapacity we have or justify the staffing levels we maintain," said
Anne Stevens, Ford's COO of the Americas.

As a result, the following plants will by closed by 2008: St. Louis
Assembly, Atlanta Assembly, Wixom Assembly, Batavia Transmission, Windsor
Casting and two more assembly plants to be announced later this year.

United Auto Workers President Ron Gettelfinger and Vice President Gerald
Bantom issued a joint response describing the overhaul as "extremely
disappointing and devastating news for the many thousands of hard-working
men and women who have devoted their working lives to Ford.

"The impacted hourly and salaried workers find themselves facing uncertain
futures because of senior management's failure to halt Ford's sliding
market share," they added in a release.

David Cole, chairman of the Center for Automotive Research, said the
shake-up is a necessary and "excellent start" to a long-term fix.

"This is a major restructuring and the people inside Ford basically believe
they are betting their company on it," Cole said. Listen to the interview.

In 2006, Ford said it expects to take a $250 million charge for hourly
personnel separations and $220 million for fixed asset write-offs.

The company added it will no longer provide annual financial targets other
than to say its North America auto operations is expected to be
unprofitable in 2006 while its other global regions will turn in another
year of profitability.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.paddocktalk.com/news/html/modules.php?op=modload&name=News&file=article&sid=26167

Posted by: MSulka on Jan 17, 2006 - 09:44 PM

Ford Achieves Record Sales, Fast Expansion in China

* - The multiple brands under the Ford Motor Company flag achieved record
growth in China in 2005 compared to 2004.
* - New plants, new products and expansion of existing facilities comprised
the most important elements for completing Ford Motor Company's $1 billion
plus investment plan in China announced in October 2003. This lays a strong
foundation for further growth and new investment.
* - Through these sales results and the continuing investments, Ford Motor
Company is demonstrating its resolve to become one of the country's top
auto players, consistent with its global prominence.

Ford Motor Company reported a successful year of 2005 in China, featuring
record sales volume, solid business expansion and launches of exciting new
products. By leveraging the combined strengths of the company's portfolio
of strong global brands, partners and various business units, the company
is well poised to achieve its goal of becoming a top tier auto player in
China in the next ten years.

"For Ford Motor Company in China, 2005 represented a record year of sales
increase," said Mei Wei Cheng, chairman and CEO of Ford Motor China, Ltd.
"Despite the intensifying competition, we successfully maintained the
strong growth momentum carried from 2004 by accelerating the pace of
introducing new and upgraded quality products and services to meet market
demands."

Cheng said the estimated total sales of the Ford Motor Company's affiliated
brands in China is over 220,000 units in 2005, exceeding the target number
set for the year.

The sales of Ford, Lincoln, Land Rover, Jaguar and Volvo brands hit a
record 89,489 units. Each individual brand achieved significant growth over
2004, which is well above the domestic industry growth of an estimated 12
percent .

Mazda brand vehicles also achieved a strong sales growth in China in 2005
based on its sales of 96,000 units in 2004. Confirmed numbers will be
reported by Mazda Motor Corporation later separately.

Ford brand vehicles , both imported and locally produced , achieved total
sale s of 82,225 units, 46 per cent up from 2004. December of 2005 was the
strongest sales month ever for Ford brand in China .

Changan Ford Automobile Co., Ltd . (C hangan Ford ), the Ford Motor Company
's flagship joint venture with Changan Automotive Group (Changan Group) ,
registered record sales of 61,013 units, a 41 per cent increase from 2004.
The locally made, all-new Ford Focus, which was launched in late September
2005, continued to be very well received by customers and won 27 major
product awards by the end of the year. It has now become a leading player
in the country's mid-size car market and is expected to contribute to the
continued sales growth of Changan Ford in 2006.

The distribution network of Changan Ford has also been expanding rapidly to
meet the growing marketing and sales needs. By the end of 2005, the number
of the authorized Ford brand dealers reached 150, a 50 per cent increase
from a year earlier.

On the commercial vehicle front, the Ford Transit series produced in

inue to deliver against our investment commitment in China ."

In October 2003, Bill Ford, chairman and chief executive officer of Ford
Motor Company, visited China and announced that, together with its Chinese
partner Changan Automotive Group, the company was going to invest over $1
billion to expand operations in China .

In addition to the Chongqing effort, Ford Motor Company and partners
Changan Automotive Group and Mazda Motor Corporation have begun
construction of a new vehicle assembly facility in Nanjing . Moreover, in
Nanjing , construction is underway at a new engine plant by partners
Changan, Ford and Mazda. The adjacent engine and vehicle assembly sites in
Nanjing are expected to be operational in early 2007. Initial capacity at
Nanjing vehicle assembly will be 160,000 units annually.

By 2007, with further planned expansion in Chongqing , combined total
production capacity at both sites will be approximately 360,000 units, 18
times that of 2003. The installed capacity can also be quickly increased
should the need arise.

NEW FOCUS TO DRIVE GROWTH IN CHINA

While in Chongqing , Padilla reviewed the recently launched Ford Focus.
With over 100 major international awards to its credit and more than 5
million units sold globally, Focus is one of Ford's most successful
world-class cars. The locally made Focus is expected to be the major
contributor to the continued sales growth of Changan Ford.

"I am confident that Focus is the right vehicle coming at the right time
for China ," noted Padilla. "It combines outstanding European design,
excellent German engineering and superior driving quality. People who drive
the all-new Focus just cant get enough of it. We expect it to cause the
same stir here as it has elsewhere in the world and believe it will be a
major catalyst for further growth for Ford in China ."

Padilla was also positive about Changan Ford's state-of-the-art production
line for the Focus localization. He said the production line "fully meets
the standards of Ford Global Quality Operating System, which ensures
Chinese customers enjoy the same high product quality as their peers in any
other places in the world."

Phil Spender, president and chief executive officer of Changan Ford is
optimistic about the future of Focus. He comments, "Focus is on track to
success. Response has been strong since launch, with orders and sales
exceeding Changan Ford expectations after just four weeks."

To meet the growing marketing and sales needs, Changan Ford is rapidly
expanding its sales network. To date, over 130 dealers have been authorized
and the number will reach 150 by the end of this year.

Jim Padilla, president and chief operating officer of Ford Motor Company
(right), together with Yin, Jiaxu, Chairman and President of Changan
Automotive Group (left), announced the completion of the 150,000 units
annual capacity expansion project at Changan Ford Automobile Co., Ltd. in
Chongqing. The expansion program includes a new stamping plant, engine
plant and assembly plant.

PARTNERSHIP WITH CHANGAN GROUP TO BE STRENGTHENED

Mei Wei Cheng, chairman and chief executive officer of Ford Motor ( China )
Ltd., attributed the success of Changan Ford to the long-term, strategic
partnership forged between Ford Motor Company and Changan Group, which
ensures sound communications and excellent synergies.

"I'm particularly impressed with the growth of Changan Group over the past
few years, which has helped us get a strong foothold among the top tier
Chinese auto makers," Cheng said. "Ford Motor Company is going to continue
to work closely with Changan Group and grow hand in hand towards a better
future."

He indicated that Ford Motor Company will introduce even more new products
for localization in a bid to meet the growing and quickly diversifying
demands of Chinese consumers. Currently, Ford Motor Company has four
products being locally produced: Fiesta, Mondeo and Focus by Changan Ford,
and Transit by Jiangling Motors Co., Ltd. (JMC).

COMMERCIAL VEHICLE TO BECOME ANOTHER SPOTLIGHT

On October 20, Padilla visited JMC based in Nanchang , the capital city of
Jiangxi Province . Ford Motor Company now owns 30 per cent of JMC, which
has produced the Ford Transit series since 1997 in addition to other
commercial vehicle models.

"JMC has maintained a good record of sustained growth and profitability
over the past few years despite the dramatic changes in the country's auto
market," Padilla said of his visit.

"Ford Motor Company is pleased with the return of its investment in JMC and
will provide further support to help it become a top commercial vehicle
manufacturer in China ."

In 2004, JMC sold over 12,000 units of Ford Transit. This year, the Ford
Transit series is expected to achieve a growth rate of over 40 per cent.

TO BUILD UP A BRAND NEW ENTERPRISE MODEL IN CHINA

As for the next step for Ford Motor Company in China , Padilla noted that
the company is "in a position to become one of the country's top auto
players. We are still confident of the growth potential for Ford Motor
Company in China ."

"One of our key corporate goals is to optimize our global footprint. In
line with this effort, we are working in measured way to build on our
automotive enterprise in China , by working with all our company's
affiliated brands, partners and business operations to achieve best
results," he said. "With this enterprise model well established, we're
confident we can face any challenges from the competition and will surely
provide Chinese customers with a complete line of products and services,
with superior quality and competitive price."

In addition to Ford brand products, other Ford Motor Company brands also
reported significant growth in China market. In the first three quarters
this year, Volvo has achieved a 50 percent sales growth over the same
period of last year. Land Rover and Jaguar have registered increases of 147
per cent and 60 per cent, respectively.

Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., U.S.A., manufactures and distributes automobiles in 200 markets
across six continents. With more than 328,000 employees worldwide, the
companys automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln , Mazda, Mercury and Volvo. Its automotive-related services
include Ford Credit and Quality Care. Ford Motor Company celebrated its 100
th anniversary in 2003.

Fords history in China can be traced to 1913, when its first Model T was
imported and sold in Shanghai . Presently, Ford owns 30% of the shares of
Jiangling Motors Corporation Ltd., which produces Ford commercial vehicle
Transit and other products. Ford Motor Company also has a 50-50-passenger
car joint venture with Changan Automotive Corporation Ltd., which is called
Changan Ford Automobile Corporation Ltd. Changan Ford has successfully
launched three Ford passenger cars models, Fiesta, Mondeo and Focus, to the
market. Ford Mondeo has won Motor Trend "2005 Car of the Year, China". The
all-new Ford Focus was launched in September. In early 2005, Changan Ford's
second passenger car plant in Nanjing started construction. On April 19,
2005 , Ford, Changan and Mazda announced a new three-way engine plant joint
venture, Changan Ford Mazda Engine Company Ltd., in Nanjing . The engine
company held its groundbreaking ceremony in late September, 2005.

On the import business, Ford Maverick, a member of the world-renowned Ford
SUV product line, is also on sale in China now. Lincoln Navigator, a
premium, full-size SUV was launched in China market in May, 2005.

Products of the other Ford Motor Company affiliated brands and partner;
including Jaguar, Land Rover, Volvo and Mazda are on sale in China as well.
Ford's service brand, Ford QualityCare, is also serving the customers in
China .

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=22210

PADILLA ANNOUNCES ACCELERATION OF FORDS INVESTMENT PLAN IN THAILAND

Jim Padilla, president and chief operating officer, Ford Motor Company

Ford Motor Company President and Chief Operating Officer Jim Padilla

reinforced Fords commitment to Thailand in his meeting with Deputy Prime
Minister and Minister of Industry, Suriya Jungrungreangkit.
Padilla confirmed that Ford Motor Company is accelerating its second phase
investment expansion of its Ford/Mazda (AAT) facility as committed by Bill
Ford in October 2003
Ford Motor Company is on track with its Baht 20 billion (US$500 million)
investment plan to support new vehicle programs, facility upgrades and
capacity expansion at its manufacturing plant

BANGKOK, Thailand, December 16, 2005 - Ford Motor Companys President and
Chief Operating Officer Jim Padilla met with Deputy Prime Minister and
Minister of Industry Suriya Jungrungreangkit today and announced the
acceleration of Fords second phase of investment at its Ford/Mazda (AAT)
manufacturing facility. The second phase investment will be made over three
years (2005 to 2008) and underpins Thailands importance as a major
international production hub for Fords one-tonne pickup truck.

"Firstly, let me congratulate Thailand on achieving a major milestone with
its 1,000,000 unit rolling off the production line in 2005. This is a major
step for Thailand in realizing its Detroit of Asia ambition and Ford
is pleased to play a major role in helping Thailand achieve this goal.
Thailand is the home of our one tonne pickup truck and Fords decision to
accelerate our investments here signals its importance to our Asian
manufacturing strategy," said Padilla.

Over the next three years, Ford and Mazdas manufacturing plant (Auto
Alliance Thailand) has mapped out an aggressive growth plan for its second
phase US$500 million investment which will include facility upgrades,
tooling and engineering. Ford and Mazda will also expand the plant
capacity, which will see it reaching 200,000 units per annum by 2008. It is
currently producing 155,000 units per annum.

Established in 1995, with an initial investment of more than US$500
million, Auto Alliance Thailand (AAT) has developed into a world-class
integrated vehicle manufacturing plant. Since the first truck came off the
line in May 1998, the plant has made a net trade surplus of US$2.7 billion.
In 2005, the plant will achieve a further milestone, by recording its best
year yet, with total production volume forecast at 155,000 units, which
includes export volume of more than 122,000 units.

Ford and Mazda has created incremental business for more than 148 local
component suppliers, from which AAT purchases more than Baht 30 billion
(US$752 million) of parts per annum. The plant, which uses 80% local
content delivers a product of superior quality, which is accepted by more
than 130 major markets around the world.

While Fords outlook for the regions automotive growth is promising,
Padilla also outlined some of the key challenges the company has to face on
a regular basis. These challenges emanate from a broad range of export and
import regulations, varied tax structures and selective free trade
agreements.

Padilla concluded by stating that Governments in the region, working in
cooperation with business, can play a key role in overcoming these
challenges to drive sustainable economic growth.

Ford Motor Company (NYSE: F), a global automotive industry leader based in
Dearborn, Mich., manufactures and distributes automobiles in 200 markets
across six continents. With more than 324,000 employees worldwide, the
companys core and affiliated automotive brands include Aston Martin,
Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its
automotive-related services include Ford Motor Credit Company.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=21901

FORD COMMITS $75 MILLION TO SUPPORT FURTHER GROWTH IN INDIA

Chennai, 28th October 2005: Following a two-day visit to India by Ford
Motor Company Chairman and CEO Bill Ford, the company has confirmed an
equity infusion of US$75 million to support further growth in the important
Indian market. During his visit, Ford reaffirmed the company's commitment
to the market by hosting the debut of the new Ford Fiesta, a four-door,
globally-engineered sedan scheduled to go on sale in India in the fourth
quarter of 2005.

In confirming the company's plans, Arvind Mathew, managing director and
president of Ford India, said, "To support the aggressive growth strategy
we have in place, Ford India will be augmenting its subscribed capital.
Ford India has received approval from Ford Motor Company for an additional
equity infusion of US$75 million to meet the needs of our future plans."

Ford India with a present investment of US$375 million in facility and
operations is in its ninth year of business in the country. Ford India had
started in 1996 as a joint venture with Mahindra and Mahindra (M&M). In
March 2005, Ford India became a wholly owned subsidiary of Ford Motor
Company, after divestment of its crossholding portfolio with M&M.

Ford India manufactures and distributes automobiles made at its modern,
integrated manufacturing facility at Maraimalai Nagar, near Chennai. Spread
over 350 acres, the facility started as a greenfield project. Ford India
also has an operation to handle exports of auto components and kits.

Ford's present models in India include the Ikon, Mondeo, Endeavour and
Fusion. The all-new Ford Fiesta will soon be delivered to dealerships
across the country and will be available for customer test drives by mid
November 2005.

Ford will be represented by 115 dealerships facilities across 79 cities in
India by the end of 2005.

Ford India employs a large, local workforce of approximately 1800 highly
skilled personnel. The company has regional offices in Chennai, Mumbai and
Delhi.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=20841

AUTOALLIANCE THAILAND IS LARGEST VEHICLE EXPORTER DURING FIRST QUARTER OF
2005

Bangkok, Thailand, May 11, 2005 - AutoAlliance Thailand (AAT) is proud to

celebrate its achievement as the Number 1 Vehicle Exporter for completely
built-up (CBU) vehicles for the first quarter of 2005. To commemorate the
historic milestone, AAT employees were joined by the U.S. Ambassador to
Thailand, His Excellency Ralph Boyce, who paid a visit to the plant in
Rayong on May 6, 2005.

According to data released by The Federation of Thai Industries, the total
number of CBU exports from January to March for AAT reached a top ranking
of 19,388 units representing a 22.29% share of Thailand's total CBU exports
valued at 8.05 billion Baht. Compared to the same period last year, AAT
showed an increase of 32% in CBU exports, up 4,724 units from 14,664 units.

In the first quarter, AAT's completely knocked-down (CKD) exports reached
10,060 units - a 39% increase over same period last year - or equivalent to
value of 2.21 billion Baht. This brings AAT total export value in the first
quarter to 10.26 billion Baht.

Yuji Nakamine, president of AutoAlliance Thailand said, "Our success in
beating the competition to become the Number 1 Vehicle Exporter is a
significant accomplishment, which all our employees can be proud of. AAT
represents the successful partnership between Ford and Mazda where we are
recognized as a Center of Excellence for Quality by our customers all
around the world.

"In addition to our export success, AAT is proud to contribute to growth of
Thailands automotive industry and healthy economic development through
increased employment opportunities, growth of the supply base, technology
transfer and a positive trade balance. With our capability and strong
presence in Thailand, we are confident that AAT can support the Thailand's
vision to become the Detroit of Asia," added Nakamine-san.

AAT's first quarter results demonstrates strong performance fueled by new
product introductions such as the Ranger 4X2 Hi-Rider Active and Ranger 4X4
Automatic. In 2004, AAT's annual production reached 139,371 units
comprising 106,191 CBU units and 33,180 CKD units. Of the total CBU
production, more than 70% were built for export and 100% CKD export.

AAT exports the Ford Ranger and Mazda Fighter trucks to more than 130
countries worldwide including Europe, South America, Middle East,
Australia, New Zealand, South Africa and South East Asia. In addition, the
Ford Everest 7-seater SUV is exported to more than 50 countries such as
South East Asia, Middle East, Africa and South Pacific nations.

Today, AAT has surpassed 450,000th unit production and its volume exports
have contributed to increased revenue and a positive trade balance of more
than 59 billion Baht to Thailand's economy.

With a solid supply base of more than 100 component suppliers, AAT has
achieved 80 % local content. AAT purchases approximately 20 billion Baht
each year from Thai parts suppliers. In addition, Fords regional
manufacturing needs have created new export opportunities for its parts and
components suppliers, allowing them to export an estimated 2 billion Baht
annually. This has contributed significantly to the development of
Thailand's local supply base to support the growing automotive sector.

AAT is presently running at maximum capacity of 120,000 units CBU and
35,000 units CKD, at two-shift capacity. With approximately 2,700
employees, AAT has a strong workforce of engineers and skilled workers, and
is committed to people development, training and occupational safety.

Realizing the demands on AAT's production capacity, Ford Motor Company
chairman and CEO Bill Ford, had announced an additional 21 billion bhat
(US$500 million) investment to support new vehicle programs and AAT's
capacity expansion during his visit to the facility in October 2003. This
growth plan is currently being implemented in phases -- driven by new
vehicle programs, it requires investments in facility upgrades, additional
tooling and engineering, as well as an expansion of the plant's capacity to
200,000 units (both CBU and CKD), up from 135,000 units.

According to John Felice, president of Ford Thailand, "The phase-by-phase
capacity expansion at AAT is required to support the increasing global
demand for the Ford Ranger pickups particularly in Europe and Middle East.
Domestically, sales of Ford Ranger continue to be strong - in March, we
recorded the 4th Best Ranger Sales Month ever, which is an outstanding
achievement!"

"My congratulations to the leadership of Nakamine-san and the strong
commitment and dedication of the AAT team to deliver such outstanding
results!" said Felice. "Through the high product quality delivered by AAT
combined with all of our efforts focused on customer and service
satisfaction, Ford is confident that we will continue to see improvements
in our Sales and Service Satisfaction scores, as demonstrated by the
prestigious J.D. Power Customer Satisfaction Index Award won in 2004."

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=22196

FORD PRESIDENT JIM PADILLA AFFIRMS THAILANDS IMPORTANCE AS KEY
PRODUCTION HUB FOR ONE-TONNE PICKUP TRUCKS

Jim Padilla, president and chief operating officer, Ford Motor Company

Thailand continues to be a major manufacturing hub for Ford and Mazda

one-tonne pickup trucks, with exports reaching to 130 markets worldwide.
Ford-Mazda joint-venture manufacturing facility at AutoAlliance Thailand
(AAT) is a significant contributor to Thailand's economy - since 1998, AAT
has generated over Baht 167 billion (US$4.2 billion) in export earnings and
achieved a net trade surplus of Baht 109 billion (US$2.7 billion).
Ford and Mazda are on track with AAT facility upgrade and capacity
expansion, all part of an investment plan of Baht 20 billion (US$500
million) announced in October 2003. AAT capacity is expected to reach
200,000 units per annum by 2008.

BANGKOK, Thailand, December 14, 2005 - Ford Motor Companys President and
chief operating officer Jim Padilla hailed Thailand as a key production hub
for one-tonne pickups, underscoring the importance of its successful
Ford-Mazda joint-venture manufacturing assembly at AutoAlliance Thailand
(AAT).

The comment from the top executive of one of the world's largest automaker
follows Thailand's most significant achievement in its ambition to become
the region's leading automotive hub - the celebration of a major production
milestone: in November, local vehicle production for the year surpassed the
one million unit mark, an event of great nationalistic pride for Thailand.

"On behalf of Ford Motor Company, I wish to congratulate the Thai
government for achieving this important milestone which brings Thailand
closer to its vision to become the Detroit of Asia," said Padilla in
a speech to the members of the American Chamber of Commerce in Thailand
(AMCHAM) on Wednesday, December 14th.

"Thailand is no emerging market in the global automotive sector. Thailand
has emerged. The one-millionth milestone foretells the latent potential for
this market to grow further." With an industry forecast at 680,000 vehicles
this year, the volume is expected to hit one million units by 2012.

Padilla continued, "Ford Motor Company can truly take pride in our
considerable contributions towards the achievement of this one-millionth
milestone. Thailand is our production hub for the Ford Ranger and Mazda
Fighter pickups and these world-class products are exported to 130 markets
worldwide, all them outside of North America." (Editor's note: The Ford
Ranger sold in North America is an altogether different product from the
AAT-produced Ranger.)

"At our state-of-the-art assembly plant at AAT, we have been building Ford
and Mazda trucks for both domestic and export markets since the first truck
rolled off our production line in July 1998 when the region was mired by
the Asian financial crisis."

In spite of the crises and incrementally since, AAT has contributed over
Baht 167 billion (US$4.2 billion) in export earnings to Thailands
economy and achieved a net trade surplus of Baht 109 billion (US$2.7
billion) which is an enormous contribution to the country. In the first
quarter of 2005, AAT was Thailand's top vehicle exporter for completely
built-up (CBU) vehicles, with total exports of 19,388 units representing a
22.3 percent share of CBU exports valued at Baht 8.0 billion (US$200
million).

With more than 80 percent local content, AAT has more than 148 local
suppliers from which we purchase more Baht 30 billion (US$750 million)
worth of parts and components per annum. This has led to the growth of
upstream parts and components industry, which include many local small and
medium enterprises.

Ford Motor Company directly employs more than 4,200 people in Thailand, and
Bangkok has become the centralized location for Ford's regional
headquarters for its Asia Pacific and Africa operations. In addition, it is
estimated indirect employment generated from AAT's investment and
operations is between 25,000 to 30,000 jobs. This creation of a
technically-skilled labor force adds to value-creation which will serve the
long-term needs of Thailand's growing automotive industry.

In his AMCHAM speech, Padilla also confirmed that the Baht 20 billion
(US$500 million) joint-investment plan announced by Bill Ford in October
2003 to support new vehicle programs, facility upgrade and capacity
expansion is fully on track. He added that AAT was on course to achieve its
most successful year-to-date with capacity hitting 155,000 units for 2005
and further capacity increase expected to reach 200,000 units per annum by
2008.

"The success of Thailand's automotive industry is no surprise," Padilla
noted. Today, Thailand represents the biggest market for one-tonne pickups
of its kind in the world where the segment commands over 400,000 units a
year and continues to grow.

"This huge market for one-tonne pickups also translates into an intensely
competitive landscape and an even more demanding customer base. To this
end, while both the Ford Ranger and Mazda Fighter have enjoyed a
respectable share of the segment, we realize it is innovation through the
introduction of new products featuring advancements in safety, technology,
environment and design that will drive the future of Ford Motor Company's
success not only in Thailand but in every market worldwide."

Padilla cited the recently launched Ford Focus, the first E20-capable sedan
in Thailand as a great example of a new range of products to be brought to
Asia Pacific while hinting at more new products to be revealed in 2006.

Thailand represents an excellent success story for Ford in Asia Pacific.
"Strategically, Thailand plays a key role to our growth strategy in this
region. However, I would reiterate that Ford takes an integrated approach
to this region. For example, our approach to an integrated manufacturing
strategy in ASEAN calls for plant specialization and complementation which
promotes regional balance of trade and higher ASEAN local content.

"This business model has worked well with Thailand being our production
base for pickups and its derivatives while the Philippines produce
passenger cars and compact SUVs. In addition, Ford's regional manufacturing
footprint in ASEAN includes assembly plants in Malaysia as well as Vietnam
for domestic production," said Padilla.

While Ford's outlook for the region's automotive growth is promising,
Padilla also outlined some key challenges in building a successful global
operation in Asia Pacific. "The business models we have used in North
America and Europe do not necessarily apply," he said bluntly.

"We need to apply innovative thinking to all our processes and practices if
we want to succeed in Asia Pacific. This means making the right strategic
investments and ensuring we have the best teams of people in place to
combine our Ford 'blue oval' knowledge and experience with understanding
and insight of local markets and consumer tastes."

In closing his AMCHAM remarks, Padilla added, "As Asian governments
continue to evolve and grow alongside their economies, we continue to face
challenges from a broad range of export and import regulations, varied tax
structures and what can best be described as a selective free trade
agreements. For sustainable returns on long-term investments, it is
absolutely necessary to create an environment of clarity and consistency in
government policies followed by speedy and transparent implementation of
such policies."

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=20774

PHILIPPINES: BACKGROUND - QUICK FACTS - HISTORY

Ford Motor Company Philippines (FMCP)
A subsidiary of Ford Motor Company, Ford Motor Company Philippines began
building the Ford Lynx 4-door passenger car in its Santa Rosa plant in
September 1999 and the Ford Ranger pick-up in March 2000. Presently, it
assembles Ford Lynx/ Laser, Ford Escape and the Mazda 3 and Mazda Tribute
for both the domestic and export markets. Its export markets include
Thailand, Indonesia, Singapore, Malaysia and Vietnam.

Rosa, Laguna
Land Area of 21.4 hectares
3 Plant Area of 30,000 square meters
Production Capacity of 25,000 units per year (1 shift)
Manpower 756 (79%male and 21% female)
First and only volume exporter of CBU
Announced an additional investment of $50 million in 2003
Began exports of CKD packs in Oct 2004 to Vietnam
Cumulative exports over 28,000 units

Population:
84 Million

Market:
Left-hand drive

Currency:
Philippines Peso
(1USD = 56 PHP)

2004 Total Market:
88k units

2004 Ford Sales Volume:
7,317 units

Ford Dealers
5 dealers/20 outlets

Mazda Dealers:
3 dealer

Available Ford Vehicles:
Chateau Wagon (E-150)
Explorer
Escape
Expedition
Lynx
Ranger
Everest

Available Mazda Vehicles:
Mazda 6
Mazda Tribute
Mazda 3

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://media.ford.com/newsroom/release_display.cfm?release=20544

FORD PHILIPPINES WINS AWARD FOR EXPORT PROGRAM

Ford Philippines has been recognized by the Export Development Council

(EDC) as a Top Export Performer for its exemplary export performance for
2003 during awarding ceremonies in Malacaqang.

The recognition also cited Ford, whose exports exceeded in the amount of
US$100 million, for contributing to "national growth and economic
development through competitive Philippine exports."

Henry Co, President of Ford Philippines, was on hand to receive the award
from President Gloria Macapagal Arroyo and Department of Trade & Industry
(DTI) Secretary and EDC Chairman Cesar Purisima.

The EDC Award is given annually, with Ford as the only vehicle manufacturer
recipient this year.

Since the launch of the Ford Export Program in 2002, Philippine-made Ford
and Mazda vehicles such as the Ford Escape and Laser, and Mazda Tribute and
Protigi, have already been successfully exported to Thailand, Indonesia
and Singapore. A total of 24,000 units of completely built-up vehicles have
been exported to date.

Malaysia is the latest country to be added to the growing list of Ford's
export markets, further expanding the company's reach in the ASEAN market
and reinforcing its position as the country's only exporter of completely
built-up (CBU) vehicles.

Ford remains to be the only car manufacturer in the Philippines with a
positive trade balance. In 2003 alone, Ford Motor Company has cumulatively
exported $450 million, while imports amounted to only $146 million.
Contributing to this positive trade balance is the export of finished
vehicles assembled at the local plant. The export program has assisted the
growth of the Philippine parts industry with annualized parts purchases at
P1.5 billion.

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