FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS

IMMEDIATE RELEASE
FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS;
PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS
.. Based on current business planning assumptions, Ford expects both
its overall
and its North American Automotive business pre-tax results to be
breakeven or profitable
in 2011
.. Ford provided initial details of an accelerated vehicle
electrification plan
for a family of hybrids, plug-in hybrids and battery electric
vehicles. The plan
includes a Ford full battery electric vehicle (BEV) in a van-type
vehicle for commercial
fleet use in 2010 and a BEV sedan in 2011
.. Ford's plan calls for an investment of approximately $14 billion in
the U.S.
on advanced technologies and products to improve fuel efficiency
during the next
seven years
.. Ford said it will sell its corporate aircraft as part of its
overall cash improvement
plan
DEARBORN, Mich., Dec. 2. 2008 - Ford Motor Company this morning
submitted to Congress
its comprehensive business plan, which details the company's plan to
return to profitability
and outlines a request for potential access to a temporary bridge loan
in case the
current economic crisis worsens or there is a bankruptcy of a major
competitor.
In the plan, Ford said the transformation of its North American
automotive business
will continue to accelerate through aggressive restructuring actions
and the introduction
of more high-quality, safe and fuel-efficient vehicles - including a
broader range
of hybrid-electric vehicles and the introduction of advanced plug-in
hybrids and
full electric vehicles.
Ford is asking for access to up to $9 billion in bridge financing, but
reiterated
that it hopes to complete its transformation without accessing the
loan should Congress
agree to make the funds available.

Despite the serious global economic downturn, Ford said it does not
anticipate a
liquidity crisis in 2009 - barring a bankruptcy by one of its domestic
competitors
or a more severe economic downturn that would further cripple
automotive sales and
create additional cash challenges.
"For Ford, government loans would serve as a critical backstop or
safeguard
against worsening conditions, as we drive transformational change in
our company,"
said Ford President and CEO Alan Mulally, who will testify before
Congress this
week.
In the plan submitted to Congress, Ford reiterated that its One Ford
transformation
plan remains fully in place, anchored by four key priorities:
.. Aggressively restructure to operate profitably at the current
demand and changing
model mix;
.. Accelerate development of new products our customers want and
value;
.. Finance our plan and improve our balance sheet; and
.. Work together effectively as one team, leveraging our global
assets.
"Ford is committed to building a sustainable future for the benefit of
all
Americans," Mulally said. "We believe Ford is on the right path to
achieve
this vision.
"We appreciate the valid concerns raised by Congress about the future
viability
of the industry," he added. "We hope that our submission today helps
instill
confidence in Ford's commitment to change, including our
accountability and shared
sacrifice during this difficult economic period."
Ford's submission to Congress included new details about Ford's future
plans and
forecasts, including:
.. Based on current business planning assumptions - including U.S.
industry sales
for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and
15.5 million
units, respectively - Ford expects both its overall and its North
American automotive
business pre-tax results to be breakeven or profitable in 2011,
excluding any special
items.
.. As part of a continuing focus on building the Ford brand, the
company said it
is exploring strategic options for Volvo Car Corporation, including
the possible
sale of the Sweden-based premium automaker. The strategic review is in
line with
a broad range of actions Ford is taking to strengthen its balance
sheet and ensure
it has the resources to fund its plan. Since 2007, Ford has sold Aston
Martin, Jaguar,
Land Rover and the majority of its stake in Mazda.
.. Ford's plan calls for an investment of approximately $14 billion in
the U.S.
on advanced technologies and products to improve fuel efficiency
during the next
seven years.
.. Half of the Ford, Lincoln and Mercury light-duty nameplates by 2010
will qualify
as "Advanced Technology Vehicles" under the U.S. Energy Independence
and
Security Act - increasing to 75 percent in 2011 and more than 90
percent in 2014.
Ford said it has included these projects in its application to the
Department of
Energy for loans under that Act and hopes to receive $5 billion in
direct loans
by 2011 to support Ford's investment in advanced technologies and
products.

.. From its largest light duty trucks to its smallest cars, Ford will
improve the
fuel economy of its fleet an average of 14 percent for 2009 models, 26
percent for
2012 models and 36 percent for 2015 models - compared with the fuel
economy of its
2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel
savings from
advanced technology vehicles of 16 billion gallons from 2005 to 2015.
.. Next month at the North American International Auto Show in
Detroit, Ford will
discuss in detail the company's accelerated vehicle electrification
plan, which
includes bringing to market by 2012 a family of hybrids, plug-in
hybrids and battery
electric vehicles. The work will include partnering with battery and
powertrain
systems suppliers to deliver a full battery electric vehicle (BEV) in
a van-type
vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford
said it will
develop these vehicles in a manner that enables it to reduce costs and
ultimately
make BEVs more affordable for consumers.
.. The 2007 UAW-Ford negotiations resulted in significant progress
being made in
reducing the company's total labor cost. Given the present economic
crisis and its
impact upon the automotive industry, however, Ford is presently
engaged in discussions
with the UAW with the objective to further reduce its cost structure
and eliminate
the remaining labor cost gap that exists between Ford and the
transplants.
.. As previously was announced, Ford plans two additional plant
closures this quarter
and four additional plant closures between 2009 and 2011. The company
also has announced
its intent to close or sell what will be four remaining ACH plants.
The company
said it will continue to aggressively match manufacturing capacity to
real demand.
.. Ford will continue to work to reduce its dealer and supplier base
to increase
efficiency and promote mutual profitability. By year end, Ford
estimates it will
have 3,790 U.S. dealers, a reduction of 606 dealers overall - or 14
percent from
year-end 2005 - including a reduction of 16 percent in large markets.
In addition,
Ford has been able to reduce the number of production suppliers
eligible for major
sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction
of 53 percent.
Ford eventually plans to further reduce the number of suppliers
eligible for major
sourcing to 750.
.. Ford also confirmed today that it has decided to sell its five
corporate aircraft.
In addition, Ford CEO Mulally announced that, should Ford need to
access funds from
a potential government bridge loan, he would work for a salary of $1 a
year - as
a sign of his confidence in the company's transformation plan and
future.
Ford also reiterated that it is canceling all bonuses to be paid in
2009 for all
management employees worldwide and foregoing bonuses for all employees
in North
America. The company also will not pay merit increases for North
America salaried
employees in 2009.
Ford said it is moving fully ahead with plans it announced this summer
to leverage
the company's global product strengths and bring more smaller,
fuel-efficient vehicles
to the U.S. The plan includes delivering best-in-class or among the
best fuel economy
with every new vehicle introduced. Ford also is introducing
industry-leading, fuel-saving
EcoBoost engines and doubling the number and volume of hybrid
vehicles.



This product acceleration will result in a balanced product portfolio
with a complete
family of small, medium and large cars, utilities and trucks. Ford
said it is increasing
its investment in cars and crossovers from approximately 60 percent in
2007 to 80
percent of its total product investment in 2010.
"Ford has a comprehensive transformation plan that will ensure our
future viability
- as evidenced by our profitability in the first quarter of 2008,"
Mulally
said. "While we clearly still have much more work to do, I am more
convinced
than ever that we have the right plan that will create a viable Ford
going forward
and position us for profitable growth."
# # #
Ford Motor Company, a global automotive industry leader based in
Dearborn, Michigan,
United States, manufactures or distributes automobiles in 200 markets
across six
continents. With about 224,000 employees and about 90 plants
worldwide, the company's
core and affiliated automotive brands include Ford, Lincoln, Mercury,
Volvo and
Mazda. The company provides financial services through Ford Motor
Credit Company.
For more information regarding Ford's products, please visit
www.ford.com.