Press Release

Ford Announces Production of New Transmission, 550 New Jobs

10/16/96

Production of New Ford Automatic Transmission to Create 550 Jobs

SHARONVILLE, Ohio, Oct. 14 -- Ford Motor Company
will produce an all new front wheel drive automatic transmission at
its Van Dyke (Michigan) and Sharonville (Ohio) Transmission Plants --
creating about 550 new jobs at the two plants. Approximately two
thirds of the new jobs will be at Van Dyke and the others at
Sharonville.

The new transmission will be installed in the next generation of small
cars built in Ford plants around the world. Production is due to
commence towards the end of the decade.

"With the support of the UAW, employees at both plants have shown a
strong determination to adopt new working practices and meet the
competitive cost and quality targets to secure this investment," said
John Huston, vice president - Powertrain Operations, Ford Automotive
Operations. "This will enable the company to improve our manufacturing
efficiency and create added value for our customers, while bringing
economic benefits in terms of jobs and exports."

Ernie Lofton, vice president and Director UAW National Ford Department
said, "This investment is an example of what the UAW has been working
to achieve for its members. It brings a new product and new jobs to
U.S. plants and it also recognizes that, at Ford, management and the
UAW are committed to working together to achieve world-class
competitiveness."

The market for automatic transmissions has further potential for
growth worldwide. While an automatic shift has been the overwhelming
choice in North America over a long period, it only accounts for about
10 percent of the European market and 17 percent in the rest of the
world.

In the past few years Ford has revised almost its entire automatic
transmission lineup, introducing either all-new or substantially
improved products. Further improvements will be introduced in the
years ahead, as Ford aims to provide the best customer satisfaction
and value in the industry.

This is the second major Ford investment at the Sharonville Plant in
the past year. A new flexible automatic transmission line is currently
being installed at the plant for the production of rear-wheel-drive
transmissions.  The $180 million line will begin operations early next
year.

Ford's request for a 10 year, 75 percent abatement of personal
property taxes on up to $90 million of investment at the Sharonville
plant was approved by the Hamilton County (Ohio) Board of
Commissioners and the Sharonville City Council in September.

The abatement does not affect prior assessments. In 1995, Ford Motor
Company paid more than $2.6 million in real and personal property
taxes to governmental units within Hamilton County.

The Sharonville plant currently builds the E40D automatic
transmission, which is installed in the best selling F-Series, the new
Ford Expedition and other light trucks. About 1,900 people are
employed at the plant.