Five Hundred, Freestyle, Montego Deliver on Ford's Push to Capitalize on Hot All-Wheel-Drive Trend

- Demand for well-equipped, all-wheel-drive (AWD) models outstrips supply in first months. - Sales mix of AWD versions of the Ford Five Hundred, Ford Freestyle and Mercury Montego has exceeded expectations. - Ford Motor Company sees continued growth in AWD, expects to sell more than 500,000 AWD-equipped vehicles by 2007, including more than 400,000 car-based products.

DEARBORN, Mich., Feb. 8 -- The winter of 2005 has seen demand for high-content, AWD cars hit an all-time high, helping Ford Motor Company's trio of new car-based products -- the Ford Five Hundred and Freestyle and Mercury Montego -- build momentum. Ford plans to answer consumer demand by adding more AWD models over the next several years. By 2007, Ford Motor Company expects sales of products equipped with AWD to exceed 500,000 units annually, including 400,000 car-based vehicles.

In addition to the new Five Hundred, Freestyle and Montego AWD products, Ford will add three additional AWD car-based products next year. The upcoming Ford Fusion, Mercury Milan and Lincoln Zephyr mid-size cars will further the company's AWD sales volume growth.

"Ford Five Hundred, Freestyle and Mercury Montego are tapping into a newfound demand for all-wheel-drive in innovative vehicles in the car and crossover market," says Earl Hesterberg, group vice president - Marketing, Sales & Service.

Sales of AWD Five Hundred, Freestyle and Montego have represented 25 percent, 55 percent and 35 percent of each vehicle line, respectively -- higher than initially anticipated.

Research Points to More Growth

More than 50 percent of new car buyers say they would like an AWD vehicle, while 33 percent of all new car buyers cross-shopped only vehicles with an available AWD system. Between 2000 and 2002, consumers' interest in and familiarity with AWD rose 54 percent. And the trend remained constant even when the AWD option was offered at a premium price and regardless of what part of the country the research was done.

Ford's Affordability Advantage

Affordability is a key driver in Ford's growth in AWD vehicles sales. AWD models of the Ford Five Hundred and Mercury Montego are priced as much as $5,400 less than the least expensive AWD-powered large sedan, while the Ford Freestyle is more than $3,100 less than the closest AWD-equipped crossover utility vehicle.

   Ford Five Hundred SE AWD         $24,595
   Chrysler 300 Touring AWD         $29,995         +$5,400
   Volkswagen Passat GLX 4Motion    $33,190         +$8,595

   Mercury Montego Luxury AWD       $26,795
   Audi A6 3.2 Quattro              $41,074        +$14,279
   Infiniti M35 3.5 AWD             $43,010        +$16,215
   Acura RL 3.5 SH-AWD              $49,470        +$22,675

   Ford Freestyle SE AWD            $27,470
   Buick Rendezvous CX AWD          $30,655         +$3,185
   Chrysler Pacifica Touring AWD    $31,605         +$4,135

"Consumer reaction to the Five Hundred AWD model has surpassed our expectations," says Steve Lyons, Ford Division president. "At under $25,000, an AWD Ford Five Hundred is a tremendous value to consumers who would have to pay $5,000 more for any other AWD sedan in this class."

Leadership Over Time

Over the past three model years, Ford Motor Company has added several AWD car-based products. In 2005, the company will sell nearly 300,000 AWD car-based vehicles -- 75,000 more than in 2004, a 33 percent increase.

By the end of 2006, Ford Motor Company will add AWD versions of the Ford Fusion, Mercury Milan and Lincoln Zephyr mid-size sedans to further increase overall volume of car-based AWD offerings. Future products beyond 2006 will also include AWD, with overall Ford Motor Company volume of such products exceeding 500,000 units annually by the end of 2007, including 400,000 car-based vehicles.