PRESS RELEASE

Ford Introduces Escort ZX2 at North American Auto Show

               Ford's Spirited ZX2 Designed for Younger Buyers
  


    DETROIT, Jan. 6, -- The 1998 Ford Escort ZX2, a new 130-
horsepower sporty coupe, is aimed at young buyers who want their cars to have
a nifty design, responsive engine power and a unique personality.
    The ZX2 was unveiled to the public Jan. 6 at the North American
International Auto Show in Detroit.
    "Young buyers are concerned about looking good and expressing individual
style through what they wear, own and drive," said Richard Parry-Jones, vice
president of Ford's Small/Medium Vehicle Center, which developed the ZX2.
    "They want a high-quality, fun-to-drive vehicle that also is affordable to
own and operate.  We believe the ZX2, with its sporty design and spirited
performance, will appeal to this segment," Parry-Jones said.
    "Like the Escort sedan, which features an engine with 25 percent more
horsepower than the previous model, the ZX2 coupe delivers another significant
Ford powertrain message," he said.  "For the ZX2, we sought performance that
was even more spirited and equipped it with a 130-h.p., 16-valve DOHC Zetec
engine."
    The ZX2's development as a true coupe differentiates it from many two-
doors in the small-car segment, according to Kaywin Goodman, ZX2 chief program
engineer.
    "Instead of building a two-door version of our four-door Escort, we gave
the car its own identity," Goodman said.  "It has a unique body and features
because we wanted the ZX2 to have a distinctiveness and appeal all its own."

                      Seeking Youthful Buyers On the Go
    The ZX2 is targeted at younger, more-affluent buyers who are more likely
than sedan buyers to be single.  The median age of the coupe buyer is expected
to be 32, compared with 39 for sedan buyers; median income $42,000, an
increase of $9,000 over sedan customers.  The number of college graduates
interested in the coupe is expected to rise to 38 percent, up 8 points.  Sixty
percent will be female, compared with 52 percent of sedan buyers.
    Young singles and young couples make up these buyers.  In their 20s and
30s, they are still living at home or just starting out on their own.  They
are open-minded and have a positive, "now" mentality.  They are on the go,
rarely spending evenings at home.  Just starting their careers, they work hard
and play hard.  Activities include working out, attending movies, enjoying
music, hitting the coffee shops and taking road trips.  They also are
environmentally and socially conscious.
    "Many of their interests center on having fun," said Brian Miller, Ford's
Youthful Brand manager.  "They are concerned about looking good, and peer
acceptance is important to them.  They express themselves through a youthful
and individual style.  Affordability also is important to them.
    "While the ZX2's design and available features are expected to appeal to
this group, the ZX2 also sends a message of affordability.  It is a car these
buyers can afford to own today," Miller said.

                          Function and Form Together
    The stylish, redesigned 1997 Escort laid the groundwork for ZX2's launch,
and the coupe was designed to build on the sales success of the 1997 sedans.
Since introduction of the redesigned 1997 sedans and wagons in March, the
Escort had reclaimed its place among the top 10 best-selling cars in the
United States and recaptured first place among subcompact cars through
November 1996.
    "With the sedan and wagon, we made a significant step forward in terms of
function, design, performance and the overall road worthiness of the Escort,"
Parry-Jones said.  "The coupe goes even further in building on the enhanced
reputation of the sedan and wagon and their message for product excellence,
refinement, style and value."
    Frameless door glass accentuates the ZX2's lines and coupe profile.  The
sheet metal, headlamps, taillamps and bumper fascias are unique to the ZX2.
Larger wheels and tires, unique wheel covers, and a power moonroof, all
available only on the coupe, add to the ZX2 personality.
    "The ZX2's styling and complementary driving behavior are going to be
popular with younger buyers, particularly women," Miller said.
    Research indicates that women especially are interested in safety and
security issues.  They equate quick acceleration with the ability to merge
safely into freeway traffic and responsive handling as a key to defensive
driving.  In addition to styling, they will look for such ZX2 features as the
segment's exclusive driver door remote entry with panic button, 24-hour
roadside assistance, and 10-minute battery saver.  The battery saver turns off
interior lights after 10 minutes, preventing battery drain.

                              A Flowing Interior
    The coupe's exterior personality is extended to the interior.  The
instrument panel is asymmetrical and flows into the door panels.  It houses a
segment-exclusive Integrated Control Panel for audio and temperature controls.
Seat sew patterns and fabrics are unique to the coupe.
    "The interior package results in spaciousness in the front seat, and a
rear seat with 33.4 inches of legroom -- only a quarter-inch less than the
sedan," Goodman said.
    A 60/40 split-fold rear seat allows long or large items, like skis, to be
carried -- with room to carry another passenger.  It provides the versatility
that young buyers want to meet their active lifestyles.
    The ZX2's distinctiveness continues under the car's skin.
    "The smoothness, NVH (noise, vibration and harshness) refinement,
transmission shift quality and powertrain all combine to make the driving
experience more enjoyable," Goodman said.
    The ZX2 suspension was developed with sporty driving in mind.  Steering is
crisp and agile.
    "The ZX2 provides drivers a true sporting experience and a great feel for
the road," Goodman said.
    The ZX2 will be sold in the United States, Canada and Mexico.  It will be
built in Hermosillo, Mexico, and will go on sale in April.