Ford Cleveland Engine Plant #1 to Build Popular Duratec Engines

          New Program to Modernize Plant, Bring Jobs and Investment

    *  Projected annual production of 325,000 units
    *  Approximate employment to be 650
    *  More than $350 million investment in facility and tooling

    BROOK PARK, Ohio, July 18 Ford Motor Company
announced today that it will reopen the Cleveland Engine Plant #1 in late
2003.  The plant is being modernized to accommodate new production of the
Duratec V6, a sophisticated dual overhead cam (DOHC) aluminum engine.
Increased use of lightweight, advanced aluminum engines will help Ford meet
its environmental commitments.

    Annual production is projected to be 325,000 units a year.  More than $350
million is being invested in new equipment and tooling.  Over time, employment
will return to 650, the level of employment before it closed.  Today, over 250
workers are involved in the facility's modernization efforts.

    "This program will give the Cleveland Engine Plant #1 a new lease on
life," said Roman Krygier, vice president - Ford Powertrain Operations.  "The
plant's future is assured due in large part to the teamwork and dedication of
all of the parties involved."

    Cleveland Engine Plant #1, which turns 50 in December, was idled late last
year when the legendary 5.0-liter V8 was phased out of production.  Since that
time, a radical facility redesign and modernization effort has been underway.

    "Cleveland Engine Plant #1 has literally 'raised the roof' to accommodate
this new production," Krygier said.  "The roofline over a 372,000 square foot
section has been raised by four feet in height -- the construction industry's
largest roof-raising of its kind -- to allow for the installation of material
handling equipment."

    New ergonomically designed equipment will offer enhanced flexibility for
small-batch production in both engine assembly and component machining
operations.  This permits the plant to improve responsiveness to customer
demand and reduce inventory levels.

    Cleveland Manufacturing Site - Global Supplier of V6 Aluminum Engines

    "We're extremely pleased to have been awarded this engine production,"
said Kevin Bicking, plant manager - Cleveland Engine Plant #1 and #2 and
Cleveland Aluminum Casting Plant.  "To win the business, we had to demonstrate
a high degree of teamwork, quality and flexibility in our operation."

    The 1.9 million square foot Cleveland Engine Plant #1 was opened in
December 1951.  The facility has produced more than 32 million engines,
including the 221/260/289 V8 and the 240/300 (4.9-liter) I6.

    "The Duratec V6 has been a mainstay at the Cleveland Manufacturing Site
since its introduction in 1994," said Willie Hubbard, president - UAW Local
1250.  "We're glad to see that Cleveland's Duratec production will continue to
grow.  This decision is a tremendous vote of confidence in the Cleveland site
by the company."

    The Cleveland Manufacturing Site's dual engine facilities -- Cleveland
Engine Plant #1 and #2 -- will have the capacity to produce over one million
units a year once CEP1 opens in 2003.

    Duratec - DURAble TEChnology

    The DOHC Duratec V6 -- available in 2.5-liter and 3.0-liter displacements
-- is offered in the Ford Taurus, Escape, Mercury Sable, Cougar, Mazda MPV and
Tribute.  The engines feature durable, advanced technology and provide an
outstanding value to consumers.  The modular design delivers smooth,
responsive power-on-demand for added confidence and security.  The additional
production will allow Ford to meet increasing customer demand for the engines.

    "The Duratec V6 engine is popular with our customers, who value its
durability, refinement and best-in-class fuel economy benefits," Krygier said.
"The increased availability of this lightweight aluminum engine will help Ford
satisfy its customers and meet its environmental commitments."

    Cleveland Engine Plant #1 - Lean by Design

    Design of the production area is based on industry-leading lean
manufacturing principles from the Ford Production System (FPS).  Output,
quality levels and efficiency will be improved while reducing line-side
inventory and waste through the implementation of just-in-time delivery and
other best practices.  The use of value stream mapping and Six Sigma problem-
solving methods will result in reduced equipment operating costs and improved
quality.

    In keeping with the FPS team-driven approach, hourly employees will be
organized into functional workgroups, empowered to set their own goals as
needed to ensure continuous improvement in the key areas of employee safety,
customer satisfaction and labor productivity.

    "The Ford Production System works largely because of the participation of
our workforce," said Krygier.  "Leveraging the skills of all of our people is
critical for our success as a lean, competent and responsive manufacturing
system that delivers greater satisfaction and value to consumers."

    Lean-by-Design principles being applied at Cleveland Engine Plant #1
include:

    *  Use of strategically-located "marketplaces" to minimize the distance
parts need to travel, reducing a source of waste in the assembly process.

    *  Visual Factory techniques to simplify the manufacturing process
management.

    *  Reduction of inventory both lineside and dockside to reduce carrying
costs.