FORD MOTOR COMPANY AND PSA PEUGEOT CITROËN STRENGTHEN DIESEL ENGINE CO-OPERATION

London/Paris October 5, 2005: Ford Motor Company and PSA Peugeot Citroën have today announced the fourth phase of their groundbreaking diesel engine co-operation, with the launch of two new families of light, clean, efficient engines for their commercial vehicle and executive car lines.

This announcement is the latest in a series of successful steps within the co-operation, which has seen the two companies jointly design and develop a series of state-of-the-art diesel engines for use across their car and commercial vehicle brands. These engines are being successfully deployed across a wide range of products, from small superminis to the largest executive cars and now with commercial vehicles as well.

Ford Motor Company now uses engines produced through the collaboration in its Ford, Mazda, Volvo, Jaguar and Land Rover brands, while PSA Peugeot Citroën uses them in its Peugeot and Citroën products.

The programme was launched initially in 1998. Since then, more than four million diesel engines have been produced, making Ford Motor Company and PSA Peugeot Citroën jointly the world's leading diesel engine makers.

Major Investment for Phase 4

Phase 4 of the co-operation has seen a joint investment of €332 million for the development of two new engines.

Ford Motor Company will produce a dedicated 2.2-litre commercial diesel engine optimised for durability and ruggedness for the Ford Transit, and for PSA Peugeot Citroën's new LCVs, from its advanced Dagenham engine plant in Essex, England. Up to 200,000 of these engines will be produced per year.

PSA Peugeot Citroën will produce a 2.2-litre premium, high output diesel engine for both companies' medium/large and executive models from its Trémery plant, Moselle France. The Trémery plant is the world's largest diesel engine facility. It will produce these engines at a rate of up to 200,000 units per year.

Phase 4 of the co-operation was launched today by L.W.K. Booth, Executive Vice President Premier Automotive Group and Ford of Europe, and Jean-Martin Folz, CEO of PSA Peugeot Citroën.

Booth and Folz described the co-operation as "one of the most successful engine development programmes in the car business today."

They added: "We should also state that they are some of the best diesel engines on the road today, and they feature in small, medium and large cars in both premium and non-premium markets. Today's announcement adds commercial vehicles to the impressive mix and a premium 4-cylinder engine for passenger cars that was not planned initially in this fourth phase."

Both advanced common rail diesel engines feature a number of technical innovations. The new 2.2-litre diesel engine designed and engineered specifically for light and medium commercial vehicles features smart technology which allows its 'brain' constantly to adjust itself for maximum efficiency during the life of the engine. The new 2.2-litre premium diesel engine for executive passenger cars features a new Extreme Conventional Combustion System (ECCS), which reduces emissions at source while improving performance and running noise.

For more information please contact:

Ford Motor Company: Brian Bennett: bbennett@ford.com, +44 (0) 1268 401926 Simon Warr:swarr4@ford.com, +44 (0) 2070 256241 Rodney Kumar: rkumar48@ford.com, + 44 (0) 1268 401916

PSA Peugeot Citroën: Marc Bocqué: marc.bocque@mpsa.com, Tel + 33 1 40 66 50 71 Jean-Marc Sarret: jeanmarc.sarret@mpsa.com, Tel + 33 1 40 66 35 42 Jonathan Goodman: jonathan.goodman@mpsa.com, Tel: +44 (0) 20 7868 8876 Or visit: www.media.ford.com or www.psa-peugeot-citroen.com.

Notes to editors:

The first three phases of the Ford Motor Company/PSA Peugeot Citroën co-operation is summarised as follows:

Phase 1 of the co-operation was a 1.4 litre (1,399cc) common-rail turbo-diesel engine and used by Ford in the Fiesta and Fusion, by Peugeot initially in the 206 and later in the 307 and by Citroën in the C2 and C3. This was first announced in 2001. A 1.6 litre (1,590cc) common-rail diesel engine was also part of the Phase 1 announcement and, together with the 1.4-litre variant, is now used in a wide variety of Ford Motor Company and PSA Peugeot Citroën applications.

Phase 2 of the co-operation was a 2.0 (1,998cc), four cylinder common-rail turbo-diesel 16 valve unit, announced in early 2003.

Phase 3: While the first two phases of the project were led by PSA Peugeot Citroën, Phase 3 was led by Ford Motor Company. This was the production of a high performance V6 six-cylinder 24-valve unit, announced in June 2003. The first product to benefit from this engine was the Jaguar S-Type, followed by the Peugeot 607. Since then, it has also been installed in the Land Rover Discovery, Range Rover Sport and the new Jaguar XJ and will be fitted in the Peugeot 407 Coupe and the Citroën C6 when both cars are launched on the market.