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Ford Philippines' Flexible Fuel Technology Program Fast Tracked

Manila - March 30, 2006: Ford continues to strengthen its operations in the Philippines by fast tracking its flexible fuel engine and vehicle-manufacturing program. In December 2005, Ford Philippines announced that it will invest P 1 billion to build a flexible fuel engine plant in Sta. Rosa, Laguna. Flexible fuel engines are designed to run on either conventional gasoline or a combination of gasoline and bio-ethanol fuels.

Start-up activities have commenced with two companies being set up - an engine head machining company and an engine manufacturing company. Key technical people are being trained in a flexible fuel engine plant in the Asia Pacific region while equipment installation will soon begin to support full commercial production before the end of this year.

"The implementation of this new investment project is a demonstration that Ford's view of doing business in the Philippines remains positive. We also have a high level of confidence in the capability of the Filipino workforce," says Henry Co, President of Ford Group Philippines.

The new investment by Ford will also take the Philippine automotive industry to the next level of development by establishing its leadership in flexible fuel vehicle (FFV) technology in the region. Flexible fuel technology is part of Ford's global vision on innovation, and with this engine project, Ford intends to build the Philippines as its ASEAN Center of Excellence in Flexible Fuel Technology. With the engine plant also comes the plan to manufacture flexible fuel vehicles at the Sta. Rosa plant. Plans are on track to launch an FFV model in the first half of 2006.

To date, Ford Group Philippines has made significant contributions to the local economy with its export program. The company has cumulatively exported over 43,000 vehicles valued at more than US$540million. This success is also cascaded to its partners in the automotive parts makers industry, who are able to grow their businesses and are given the opportunity to reach other markets overseas via Ford’s export program.

To sustain the growth of its CBU export activities, Ford has intensified its export development program for suppliers through the Q1 Certification program. Through the Q1 Certification program Ford develops its suppliers into exporters to other Ford affiliates. Ford’s Q1 Certification Program mentors suppliers to adopt a set of fundamental quality and manufacturing disciplines to enhance the competitiveness of their products relative to a common set of expectations across all Ford affiliates. Highly experienced technical consultants have been dispatched to the Philippines from the US and regional headquarters to lead the program implementation. The program is on-going with 20 suppliers expected to be certified by 2006. Ford Philippines has set an ambitious target to have all manufacturing suppliers certified by end of 2007.

Ford remains committed to its export program as well as its innovation strategy. The competitiveness of its export program will be enhanced with the operation of the Flexible Fuel engine plant.