CROSSOVER SALES TO BOLSTER WEAK MONTH OVERALL

By Chris Kassab, FCN

DEARBORN, Sept. 30, 2005 -- While Ford Motor Company will report weak overall September sales figures on Monday, the company also is expected to show huge gains in what some describe as the hottest of all car segments – crossover utility vehicles.

The significant decline overall won't surprise the company in light of the highly successful "Ford Family Plan" sales blitz.

"We knew that September was going to be a tough month for us because it is a 'payback' month from the extremely strong sales that we enjoyed in June, July and August," said Al Giombetti, vice president, Sales. "There were so many vehicles sold this summer through the Ford Family Plan and General Motors' Employee Discount Pricing that the pool of people who hadn't already purchased a new car or truck dwindled by September."

Despite the decline in overall vehicle sales, Ford will report another large increase in sales of crossover utility vehicles.

"Our portfolio of crossovers has been extremely well received, starting with the Ford Escape," said Giombetti. "Many traditional SUV buyers are considering crossovers because they offer consumers versatility in a more fuel-efficient package."

The Ford Escape is the No. 1 seller in the crossover category industry-wide. Other entries from the Ford portfolio include the Ford Freestyle, Mercury Mariner, Volvo XC70 and the Volvo XC90. In addition, the Escape and the Mariner are available in hybrid versions. Ford is the only domestic manufacturer and one of the few global manufacturers to offer hybrid engine technology.

According to George Pipas, manager, Sales Analysis, Ford anticipated the shift from traditional SUVs to crossover utilities.

"For some time, we've expressed the view that traditional SUVs are declining, not just because of high gas prices but because baby boomers are getting older," said Pipas. "Baby boomers are becoming empty-nesters and many of them will not need a large vehicle as their households get smaller."

In the first eight months of 2005, Ford sales of crossover utilities were 42 percent higher than a year ago, which is the largest increase of any manufacturer in this category.

In addition to moving forward strongly in the crossover vehicle market, Giombetti says Ford's new lineup of vehicles will offer consumers a wide range choices that are innovative in design as well as function.

"The company has never been better positioned to meet the needs of consumers looking for fuel-efficient vehicles," said Giombetti. "We're expanding our lineup of passenger cars so we can offer consumers everything from Focus to Fusion to Five Hundred to Mustang and similar products at our Lincoln and Mercury dealers."

"Looking forward, we're in a great position particularly because in October, we will start reporting sales of Ford Fusions, Mercury Milans and Lincoln Zephyrs," said Pipas. "That's when the new lineup will start kicking in."