<TABLE class=main_content><TBODY><TR><TD align=right colSpan=4>July 13, 2006

</TD></TR><TR><TD colSpan=4></TD></TR><TR><TD class=header07>To:</TD><TD colSpan=3>All Ford and Lincoln Mercury Dealers</TD></TR><TR><TD class=header07>Subject:</TD><TD colSpan=3>FORD CUTS ITS OWN PATH WITH BEST WARRANTY, ROADSIDE ASSISTANCE PACKAGE OF ANY FULL-LINE AUTO COMPANY</TD></TR><TR><TD colSpan=4></TD></TR><TR><TD colSpan=4>DEARBORN, Mich., July 13, 2006 - Ford Motor Company (NYSE: F) will significantly increase the powertrain limited warranties and roadside assistance programs for 2007-model Ford, Lincoln and Mercury vehicles as part of an accelerated product plan that includes more standard safety equipment, new technologically advanced engines and transmissions, wider availability of technologies like all-wheel drive and straightforward pricing that helps improve resale values.

• Ford cuts its own path with bold designs, more standard safety features, straightforward pricing and now the best warranty and roadside assistance packages of any full-line manufacturer.
• No-deductible, fully transferable powertrain limited warranty on 2007 Ford and Mercury vehicles is now five years or 60,000 miles - 66 percent better than all Chrysler Group and most GM nameplates.
• Lincoln's 2007 powertrain limited warranty is now six years or 70,000 miles - up to 20,000 miles and two years longer than Cadillac's.
• Ford to offer complimentary roadside assistance, including towing, fuel and lock-out service for the entire warranty period - services not offered by Toyota and Honda.
• New for the 2007 model year, Ford has made side air curtains or its advanced Safety Canopy system with rollover sensor standard equipment on 13 vehicles.
• Five additional Ford, Lincoln and Mercury products available with all-wheel drive for 2007.
• Ford continues to roll out straightforward pricing - new 2007 Ford Expedition to be the only full-size SUV priced under $30,000 offering standard three-row side curtain air bags

"Ford's goal is to be America's car company - the one that customers expect to set the standard for design, engineering and the ownership experience," said Cisco Codina, Ford group vice president, North America Marketing, Sales and Service.

"When we said Ford was going to look at the world through customers' eyes, we meant every word," he added. "That means bold design, more standard safety features, higher quality and, starting today, the best warranty and roadside assistance packages of any full-line manufacturer - American, European or Asian."

America's Car Company
Effective July 14, the powertrain limited warranty for 2007 Ford and Mercury vehicles will be five years or 60,000 miles, whichever comes first. That's an additional two years or 24,000 miles of coverage for such components as the engine and transmission beyond each vehicle's three-year or 36,000-mile bumper-to-bumper limited warranty.

For Lincoln, the powertrain coverage is now extended to six years or 70,000 miles - two years or 20,000 miles beyond the basic four-year or 50,000-mile bumper-to-bumper warranty. For all three brands, there are no deductibles for repairs, and the warranties are fully transferable to future owners at no cost.

The new Ford warranty programs are retroactive to the beginning of the 2007 model year, so customers who already have purchased a 2007 Ford, Lincoln or Mercury will automatically receive the added protection.

Ford and Lincoln Mercury also will offer complimentary roadside assistance for the entire basic and powertrain warranty period, including towing, fuel-fill and lock-out services. The Toyota, Scion and Honda brands don't offer roadside assistance programs on new vehicle purchases, and the programs offered by the Chrysler Group, the Nissan brand and most General Motors brands expire after only three years or 36,000 miles.

Performance, Efficiency and Quality
Behind Ford's move to adopt longer powertrain warranty coverage is one of the industry's most comprehensive engine, transmission and all-wheel drive development programs.

• In 2001, Ford launched the new Duratec four-cylinder engine family, which now powers more than 4 million Ford and Mercury products including the Ford Escape Hybrid and the partial zero emissions (PZEV) Ford Focus, Ford Fusion and Mercury Milan.
• In 2004, Ford introduced its first six-speed automatic transmission to optimize power delivery and fuel economy. Six-speed automatics are now used in 12 different 2007 Ford, Mercury and Lincoln products, including the soon-to-be launched Ford Edge and Lincoln MKX crossovers.
• The Ford 4.6-liter, 3-valve MOD V-8, which was launched in 2004 and now powers the Ford Mustang, Explorer, Explorer Sport Trac and Mercury Mountaineer, has been named one of "Ward's 10 Best Engines" by Ward's AutoWorld magazine.
• This year, Ford will launch the all-new 3.5-liter Duratec V-6 in the 2007 Ford Edge, and the Lincoln MKZ and MKX. This engine delivers more than 260 horsepower with exceptional durability, refinement and fuel economy. It will power as many as one in five Ford, Lincoln and Mercury vehicles by 2010.

"Over the past five years, we've almost completely revamped our entire lineup of engines and transmissions, but it's just the beginning," said Barb Samardzich, vice president of Powertrain for Ford Motor Company. "We're extending our offerings of flex-fuel vehicles, building more hybrids, adding more six-speed transmissions and developing new technologies to give customers more power and efficiency."

Ford also is consolidating its position as the all-wheel drive leader, with all-wheel drive models of the Ford Fusion, Mercury Milan and Lincoln MKZ sedans launching this year, along with the all-new Ford Edge and Lincoln MKX crossovers.

Demand for the option will be fueled in part by owners leaving the SUV segment who don't want to sacrifice the security and traction of all-wheel drive. Ford research shows that 50 percent of luxury buyers and 73 percent of current SUV drivers want either all-wheel drive or four-wheel drive in their next vehicle.

Making Families Safer
As part of the company's overall drive to improve customer value and deliver safety innovation, Ford is moving aggressively to make side air bags and air curtains, which help protect drivers and passengers in side-impact collisions, standard equipment.

"Making families safer is the goal of our pledge to drive innovation in safety technology," said Codina. "That commitment and the customer focus at the heart of the Way Forward plan led us to accelerate our plans to make side air bags standard."

Driver and front-seat passenger side air bags are standard equipment on the Ford Explorer XLT, the Ford Explorer Sport Trac and the Lincoln Town Car. New for the 2007 model year, Ford has made side air curtains or its advanced Safety Canopy system with rollover sensor standard equipment on 13 vehicles:

1. Ford Fusion
2. Ford Five Hundred
3. Ford Freestyle
4. Ford Expedition (new)
5. Ford Expedition EL (all new)
6. Ford Edge (all new)
7. Ford Explorer (Eddie Bauer and Limited)
8. Mercury Milan
9. Mercury Montego
10. Lincoln MKX (all new)
11. Lincoln MKZ
12. Lincoln Navigator (new)
13. Lincoln Navigator L (all new)

The 2006 Ford Five Hundred and Mercury Montego with the Safety Canopy air curtain system earned the Insurance Institute for Highway Safety's highest "Top Safety Pick-Gold" rating after achieving the highest ratings in rear, frontal offset and side impact crash protection.

Straightforward Pricing
Ford is delivering new features and the improved warranties while simultaneously fulfilling the Way Forward plan's promise to introduce retail pricing that is clear, simple and straightforward. Ford began to implement the strategy with the launches of the 2005 Ford Mustang and the 2006 Ford Fusion, Mercury Milan and Lincoln Zephyr.

"Our straightforward pricing strategy is designed to make Internet comparison shopping easier for consumers, sharply reduce the need for large sales incentives and improve resale values," said Codina. "We are seeing meaningful improvements in each of these areas - that's the payoff when Ford cuts its own path."

For example, the resale value of the Ford Fusion, which launched last year with a strong 36-month lease-end residual value of 47 percent, is expected to improve by as much as 3 points for 2007 thanks in part to its strong performance in the marketplace and new standard side curtain air bags.

Ford is expecting much stronger resale values for other new products as well, including the redesigned 2007 Ford Expedition, which will be the only full-size SUV with standard three-row side curtain air bags and a starting price below $30,000 MSRP when it launches in September. Full pricing details for the Expedition will be released at a later date.

About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and 108 plants worldwide, the company's 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.

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Most not have worked:

Here is the latest from Ford's own website:

FORD REDUCES NORTH AMERICAN VEHICLE PRODUCTION AS PART OF ACCELERATED ‘WAY FORWARD’ TURNAROUND



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21 percent fourth-quarter reduction is part of aggressive realignment of North American production – laying the groundwork for Ford's accelerated Way Forward turnaround.
Bill Ford: "We know this decision will have a dramatic impact on our employees, as well as our suppliers. This is, however, the right call for our customers, our dealers and our long-term future."
Further actions aimed at accelerating Ford's turnaround will be announced in September.
DEARBORN, Mich., Aug. 18, 2006 – Ford Motor Company [NYSE: F] announced an aggressive reduction of North American production as part of its broader efforts to accelerate the pace of its Way Forward turnaround.

The company said it is reducing North American fourth-quarter production by 21 percent – or 168,000 units – compared with the fourth quarter a year ago. The revised plan also reduces the company's previously announced third-quarter plan by 20,000 units.

Bill Ford, the company's chairman and CEO, outlined the decision to cut production in a note to employees, explaining the decision is part of broader efforts to accelerate the company's North American turnaround and saying full details of additional actions will be announced in September.

"We know this decision will have a dramatic impact on our employees, as well as our suppliers," Bill Ford told employees. "This is, however, the right call for our customers, our dealers and our long-term future."

For full-year 2006, Ford now plans to produce 3.048 million vehicles at its North American assembly plants – 1.134 million cars and 1.914 million trucks – a 9 percent reduction from 2005.

The revised production plan is expected to sharply reduce the supply of several models and reduce pressure on sales incentives and dealer inventory carrying costs. The plan also reflects expectations for lower industry sales of light trucks and truck-based sport utility vehicles, as high gasoline prices are expected to continue to encourage demand for more fuel-efficient passenger cars and crossovers.

Mark Fields, executive vice president and Ford's president of The Americas, said the "tough-but-important" reduction in production plans underscores the seriousness with which the company is approaching its North American turnaround.

"We are basing our business plans on the customer, and we are determined to match production and inventories with consumer demand," Fields said. "In doing so, we'll reduce incentive spending and inventory carrying costs for our dealers – with the intent to improve residual values for our customers and stabilize operating patterns for our plants and our suppliers."

The revised 2006 production plan is summarized in the table below:

2006 Production Over/(Under) 2005
Cars Trucks Total Cars Trucks Total
(000) (000) (000) (000) (000) (000)

First Quarter 316 560 876 52 (84) (32)
Second Quarter 328 569 897 34 (42) (8)
Third Quarter 255 395 650 * 45 (123) (78)
Fourth Quarter 235 390 625 (13) (155) (168)
Full Year 1,134 1,914 3,048 118 (404) (286)
*The previously announced third-quarter plan was 670,000 vehicles (255,000 cars and 415,000 trucks).

The new production plan will result in downtime at several assembly plants between now and the end of the year, including: St. Thomas, Ontario (Ford Crown Victoria and Mercury Grand Marquis), Chicago (Ford Five Hundred and Freestyle and Mercury Montego), Wixom, Mich. (Lincoln Town Car), Louisville, Ky. (Ford Explorer and Mercury Mountaineer), Michigan Truck in Wayne, Mich. (Ford Expedition and Lincoln Navigator), Twin Cities, Minn. (Ford Ranger) and all F-Series truck plants (Kansas City, Mo.; Norfolk, Va., Dearborn and Kentucky Truck in Louisville).

The following plants are expected to operate on straight time or overtime based on consumer demand: Hermosillo, Mexico (Ford Fusion, Mercury Milan and Lincoln MKZ), AutoAlliance International in Flat Rock, Mich. (Ford Mustang), Oakville, Ontario (Ford Edge, Lincoln MKX and Ford Freestar), Wayne, Mich. (Ford Focus), Kansas City, Mo. (Ford Escape and Mercury Mariner), Ohio Assembly in Avon Lake, Ohio (Ford Econoline) and Atlanta (Ford Taurus).

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's 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.

 

Yea, I got one eye on this.

Ed

 

I just wish they would tell the Ranger owners about the future in store for it. Is it going to go away, or stay? That's all I want to know. If it goes away I'll be forced to buy the little Toyota or something stupid like that. JUST TELL US!!!!! I won't go full size because I use my Ranger for work and home. Twice a year I get wood and mulch but thats about it. Plus if you go full size people call you to help them move. Not to mention gas prices.