Ford, Navistar International Announce Joint Venture

    DEARBORN, Mich., Feb. 12 Ford Motor Company and
Navistar International Corporation , two leaders in the global
truck and engine business, announced today that they intend to form a joint
venture to build commercial trucks.  They also intend to explore opportunities
for greater cooperation in diesel engines for potential application in Ford's
full range of truck products.

    The alliance, yet to be named, will include production of Class 6 and 7
medium duty commercial trucks that will be marketed separately under the Ford
brand and Navistar's International(R) brand.  The alliance will also look
beyond medium trucks to explore opportunities in smaller commercial vehicles
and diesel engine applications.  It will be a 50-50 joint venture -- both
companies will have equal representation on the venture's board of directors,
and neither company will have an equity stake in the other's parent company.

    "This alliance will be an investment in the future of both companies,"
said Jim Donaldson, Ford's group vice president of Global Business
Development.  "It will create a global Center of Excellence for the design and
production of world-class commercial trucks and separately explores expanded
diesel truck engine applications.  This alliance between two industry leaders,
with a combined 189 years in the truck business, will bring together the
resources that both will need in order to compete in a tough and consolidating
market."

    "This joint venture will extend a strong business alliance with our
biggest customer," said John Horne, Navistar's chairman, president and chief
executive officer.  "In the truck market, it will lead to accelerated product
development and tremendous benefits of scale.  In the increasingly high-tech
world of truck diesel engine development, the agreement to explore future
truck diesel engine applications will enhance innovation, yielding economic
and environmental benefits.  We welcome this opportunity to build our
relationship with Ford into a true partnership that serves the needs of
customers globally."

    Initially, the joint venture will produce a common chassis for Class 6 and
7 commercial trucks (19,501 - 33,000 pounds gross vehicle weight) for sale in
North America.  Navistar will provide product design and engineering, vehicle
assembly operations and expanded diesel engine programs.  The trucks' cabs,
interiors, nomenclature and vocational focus will be distinctly Ford or
International and will be sold separately through Ford and International
dealers.  Navistar's facility in Escobedo, Mexico will build the trucks.  The
joint venture will also include a joint North American commercial truck
service parts program that will provide enhanced efficiency and streamlined
customer service.

    The alliance will also explore development of additional business ventures
for diesel truck engine products for global markets.  Horne added:  "This is a
strategic alliance that just begins to explore ways to deliver value to
customers through joint leadership and global scale.  We are excited about
moving forward with Ford Motor Company as their 'Center of Excellence' partner
for commercial trucks and diesel truck engine applications."

    "This new alliance, which will build on an already strong relationship
with Navistar -- supplier of our proven, best-selling Power Stroke diesel
engine -- will be great for our dealer body, our customers and for Ford
Division as a whole," said Jim O'Connor, Ford Division president.  "With
global consolidation in the commercial truck business, this tie with Navistar
will significantly improve the competitive position of both companies.  This
alliance will reinforce Ford's ongoing commitment to be a fierce competitor in
the commercial truck business."

    The joint venture is pending regulatory approval, due diligence and final
agreement on the business details by Ford Motor Company and Navistar
International Corporation.