Ford Announces More Jobs and Another New Mercury Vehicle For Chicago Operations

* Approximately 400 to 600 more jobs will be created at Ford's Chicago Assembly Plant and its nearby supplier campus. This is in addition to the 1,000 jobs previously announced for the supplier campus. * Chicago Assembly is Ford's first car plant in North America to utilize the Company's new flexible manufacturing system. The system will enable the plant to produce up to eight different models off two architectures. * Chicago Assembly will produce the 2005 Ford Five Hundred, Ford Freestyle and Mercury Montego and a future Mercury crossover.

CHICAGO, Feb. 4 -- Ford Motor Company Chairman and CEO Bill Ford today announced that 400 to 600 more jobs will be created at the Chicago Assembly Plant and nearby Chicago Manufacturing Campus. In addition, a fourth new vehicle, a future Mercury crossover, was announced.

About 300 new jobs will be added at the plant, while an additional 100 to 300 jobs will be created at the supplier campus. When Ford announced the creation of the supplier campus in May 2002, it projected the creation of 1,000 new jobs there. That number may now grow to as many as 1,300 new jobs. Today's announcement also will bring the plant's employment to 2,700.

"We are investing for the future here in Chicago and at all of our manufacturing facilities in North America," said Bill Ford, Chairman and CEO, Ford Motor Company. "My great-grandfather Henry Ford pioneered mass production; the flexible manufacturing systems we are installing take it into the 21st century.

"We're adding new jobs and this leading edge manufacturing technology to our Chicago Assembly Plant to build four exciting new products here. It's a winning combination for our customers and the Chicago community."

"On behalf of the people of Chicago, I want to thank Bill Ford and his management team for this vote of confidence in our city and in our outstanding workforce," said Chicago Mayor Richard M. Daley. "This will solidify Chicago's position as the nation's number-one manufacturing center, in terms of employment and gross regional product."

Under the UAW contract, Ford employees transferring from other facilities will be given preference for jobs at the assembly plant.

"This fourth new vehicle we're bringing to Chicago Assembly Plant will build on the design direction established by the Mountaineer and Monterey and the upcoming Montego and Mariner," added Jim Padilla, Ford Motor Company executive vice president and president, North and South American Operations. "This continues the momentum for Lincoln and Mercury." Lincoln-Mercury will introduce 11 new products in six new segments within four years.

Upgrades and new installations within Chicago Assembly Plant will make it one of Ford's new flexible manufacturing facilities. Assembly plants in Norfolk, Va., and Kansas City, Mo., were Ford's first to become flexible. The Company has committed to making 75 percent of its North American manufacturing plants flexible by the end of the decade. At Chicago, the flexible system will allow the plant to produce up to eight different models off two architectures. This flexibility enables the plant to better meet changing customer demands. It also minimizes product changeover time, provides initial investment and long-term savings, and improves quality through increased standardization.

The 2005 Ford Five Hundred, Ford Freestyle and Mercury Montego will be the first vehicles produced at Chicago using the new flexible system. A fourth product, a Mercury crossover vehicle, also will be produced at the plant.

The innovative Chicago Manufacturing Campus, scheduled to officially open later this year in conjunction with Chicago Assembly's new product lines, will be home to approximately nine Tier One and Tier Two production suppliers, plus logistics and tooling suppliers. The campus, which was developed in strong partnership with the state of Illinois and city of Chicago, will allow Ford to improve responsiveness, lower inventory costs, and control shipping costs and capital expenditures. The 155-acre campus is located about one-half mile east of the plant.

Residents of the supplier campus will include: Lear Corp., headliners; Tower Automotive, stampings; ZF Lemforder, suspension; Visteon, instrument panels, bolsters, HVAC components and fuel tanks; SY Systems Technologies, wiring; Summit Polymers Inc., console (injected plastics); Plastech, injected and blow molded plastics; Brose, door components; TDS Automotive, sequencing and automotive assembly; and the Ford Parts Depot, which moved from its former location in Melrose Park.

Ford Motor Company, headquartered in Dearborn, Mich., is one of the world's largest automakers, with approximately 318,000 employees in 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company observed its 100th anniversary on June 16, 2003.