RACING PUTS FORD ON FAST TRACK WITH CUSTOMERS

DEARBORN, July 10, 2006 (FCN) -- Each year, Ford Motor Company sponsors races on city streets, drag strips, giant speedways and small dirt tracks from Western Canada to Mexico City.

Racing enhances the company's brand image, supports a growing performance parts business and serves as a training ground for engineers. But then there are millions of reasons Ford races its cars and trucks -- the millions of fans dedicated to the sport.

"What we're trying to do with the racing program is build loyalty to the racing brand. Then when fans are ready to buy a car, our products get consideration," said Dan Davis, director, Ford Racing Technology.

Ford research shows that 54 percent of Ford customers are race fans. Most follow NASCAR, whose fan base at about 75 million.

"NASCAR fans are the most brand-loyal of any consumer group in the U.S." said Mel Poole, owner of Sponsor Logic, a North Carolina-based sponsorship consulting firm.

Ford supports teams in NASCAR's three major series – Busch, Craftsman Truck and Nextel Cup, which is the most visible and prestigious. Each of the 38 Nextel Cup races draws more than 100,000 spectators. Millions watch on TV to make NASCAR the second-most-watched sport on U.S. television.

Last year, Ford earned nearly $196 million worth of exposure during Nextel Cup telecasts, according to Joyce Julius and Associates, an Ann Arbor, Michigan-based company that measures the impact of corporate sponsorships.

Ford also is the official automotive partner of the Bridgestone Presents the Champ Car World Series Powered by Ford and supports the National Hot Rod Association Funny Car team owned by drag racing legend John Force

To attract younger customers, Ford offers the Focus Midget car as an entry-level, affordable racecar that competes in United States Auto Club -sanctioned events. By supporting the series, Ford creates outside sales for its ZETEC engine, which powers the Ford Focus , and gains additional exposure for young male and female drivers -- many between the ages of 16 and 20 -- and their fans.

"We know we sell incremental vehicles because of our racing program, and we sell enough to more than pay for the program," Davis said.

Racing brings another benefit to Ford. It is the foundation of the company's $50 million performance group business, which includes performance parts, racecars and merchandise. In the last two years, sales have increased about $9 million, coinciding with the new Mustang production car.

"In the 25-year history of the Ford Racing Performance Group, we have never seen sales like this," said Jamie Allison, program manager of the group.

A recent addition to the group is the Mustang FR500C racecar– dubbed "Boy Racer." Sold through select dealers around the country, the 420-horsepower pony car dominated the Grand–Am Cup series in its debut season last year, further fueling interest in Ford's performance offerings.

Racing also propels research and development at Ford. Kerry Baldori, former vehicle engineering manager for the production Ford Fusion, who served two years with the Newman-Haas Champ Car team says racing forced him to learn a lot very quickly.

“The racing experience has given me a lot more depth; to see how aerodynamics, tire pressure, spring settings, weight distribution all affect a car in one afternoon," said Baldori, currently the engineering control manager for Volvo Cars. "It would take six months to do that here at Ford."

In 1901, Henry Ford took the wheel of his legendary "Sweepstakes" race car and won his first and only race. The victory is generally credited with helping him launch Ford Motor Company, two years later, by attracting investors.

"That was more than 100 years ago, and we've been racing and winning ever since," Ford Chairman and CEO Bill Ford said recently. "Racing is in our DNA. It's what makes us great. And the business case for racing is stronger than ever."