FORD ROLLS OFF 30,000TH VEHICLE FOR EXPORT

Reinforcing its position as the only automotive company that exports Philippine- made world-class vehicles, Ford Philippines recently celebrated another important milestone in its export program. With the presence of President Gloria Macapagal-Arroyo as the guest of honor, Ford Philippines presented its 30,000th export production vehicle and revealed an all-new export model - the Ford Focus. The Ford Focus is a European car that will soon be assembled at the Sta. Rosa plant and is expected to further boost Ford exports from the country.

"We are proud to achieve this 30,000th export production and even more excited about the unveiling of our newest export model, the Ford Focus. We are confident that with the production and export of the Ford Focus, our export numbers will increase dramatically and translate to better times for the local economy, increased jobs, and more pride in the ability of the Filipino to produce world-class quality European model vehicles like the Focus," said Henry Co, President of Ford Group Philippines.

Since the launch of the Ford Export Program in 2002, Ford Philippines has exported over 28,000 vehicles to four countries in the ASEAN region. Ford Philippines locally assembles the Ford Lynx and Escape, and the Mazda Tribute and Mazda 3 at its ISO-certified Laguna plant for export to Thailand, Indonesia, Singapore and Malaysia.

The Ford Export Program has also expanded to include the export of CKDs (completely knocked down kits) to Vietnam in October 2004.

Contributions to local economy, auto industry

To date, the company's export program has generated some $380 million from Philippine-made vehicles. Ford is also the only automotive company in the Philippines with a positive trade balance. In 2004 combined exports of vehicles and automotive parts amounted to $455 million vs. total imports of $160 million.

"Ford is proud to do its share to contribute to the automotive trade balance, as our export program shows that the Philippines is no longer just an importer, but also an exporter of world-class automotive products," said Henry Co, President of Ford Group Philippines.

"We would like to thank the government, particularly President Arroyo, for the support her administration has extended not only to Ford, but to the entire automotive industry. The rationalization of the excise tax law and the granting of export incentives has spelled the difference in making the auto industry more competitive with the rest of our ASEAN neighbors," Co added.

The Ford Export Program has also resulted in increased employment opportunities for Filipinos. About 12,000 jobs have been generated as a result of the export program. Employment at the Ford plant in Sta. Rosa alone had more than doubled as a result of the export program and is expected to reach 1,200 people in 2006.

Local suppliers have also expanded their businesses not only locally, but region-wide as well. In fact as a result of our export program, more local partsmakers have been given the opportunity to export their products to other Ford affiliates in North America, Europe, Taiwan, South Africa and Japan. On top of wiring harness, seats and fuel systems, our Philippine made automotive parts exports now include starters, alternators and carpets.

Ford is currently working with 61 local parts makers to procure 1,500 parts, with annualized purchases estimated at $43 million (P2.4 billion). Additionally, Ford will purchase some $420 million (P23 billion) in local parts for use in Ford affiliates around the world.

New car program

On his visit to the Philippines and during an audience with President Arroyo in October 2003, Ford Chairman and CEO Bill Ford announced an additional investment of $50 million to facilitate the expansion of the Ford Sta. Rosa plant.

The expansion was needed in preparation for the launch of Ford's New Car program. The Mazda 3 and the Ford Focus are the two models under the program.

The Mazda 3 was launched in August 2004 and is now being exported to other countries in ASEAN. The Ford Focus, a European car model, will soon be assembled at the Ford Sta. Rosa plant under the pledged New Car program.