Source: Ford Motor Company

DEARBORN, Mich., Aug. 1, 2005 - Ford Motor Company is bringing manufacturer suggested retail prices (MSRPs) for its 2006 Ford, Lincoln and Mercury products closer to the final transaction price to deliver better value and to simplify the purchase process for customers. Beginning this month, Ford Motor Company will introduce True Blue Pricing to realign MSRPs on its Ford, Lincoln and Mercury products to better reflect final selling prices, lowering the sticker prices on most 2006 model year vehicles.

"We're going to sell on the strength of our products rather the amount of the incentive," said Steve Lyons, group vice president North American Marketing, Sales and Service. "With a strong, fresh product lineup we are best positioned to take advantage of this pricing strategy."

Responding to the Virtual Marketplace
More than 70 percent of new vehicle buyers today use the Internet as a source of product information, including pricing. However, according to Edmunds.com, fewer than 15 percent of online shoppers click through to see what incentives are available for a particular vehicle. As a result, many customers don't see the lowest possible prices that might be available on a vehicle.

With 60 million visitors expected to visit fordvehicles.com - the most widely shopped Web site among OEMs - in 2005, Ford Motor Company's True Blue Pricing plan is designed to cut the confusion and communicate a more straightforward pricing and value message to the customer.

New Products Leading the Way at Ford
As all-new and significantly freshened vehicles enter the Ford product showroom, they will offer the features customers are looking for - with outstanding value communicated through sticker prices that line up more closely with transaction prices. Ford is adding significant new content to the new 2006 Explorer while reducing price by an average of $1,750 less than the 2005 model. Similarly, the company is undercutting the competition with the introduction of the all-new Fusion mid-size sedan, setting an aggressive starting MSRP of $17,795. "We're expanding on a winning formula we piloted with the Mustang, Five Hundred and Freestyle earlier in the year in reducing the gaps between MSRP and actual transaction prices," said Ford Division President Darryl Hazel. "Introducing a new vehicle at the right price not only makes the vehicle immediately more competitive, it also helps deliver stronger residual value." ....

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