Ford Committed To Further Growth In China

LOS ANGELES - April 6, 2006: Ford Motor Company took another important step forward today in its commitment to grow in China by pledging to export more vehicles from the United States to China. Ford's successful, volume export program—which was launched in 2003—will continue to ensure that Ford's operations in China are able to meet customer demand for U.S.-built Ford sport-utility vehicles. The volume export program includes both the Ford Escape, which is sold in China as the Ford Maverick, and the Lincoln Navigator.

While the volume of the two models is relatively modest at this time, the U.S.-made products play an important role in dealer showrooms in China: not only do they expand the product offerings and give customers more choice; the two SUVs help define Ford's brand presence in China, as Ford is known as a world leader in trucks and SUVs.

In 2005, Chinese customers purchased 2,787 Ford Mavericks, an increase of nearly 50 percent over 2004 and enough to place Maverick among the best-sellers in the Chinese imported SUV segment. And the sales growth continues: Maverick sales in the first quarter of 2006 were up over 30 percent year-over-year. With 423 sales in calendar year 2005, Lincoln Navigator helped define the market for "President Class," full-size SUVs.

The commitment to continue the export program was marked in a ceremony in Los Angeles attended by a Chinese delegation led by Madam Wu Yi, China's Vice Premier and Minister of Health, and included a number of senior officials from China's Ministry of Commerce. Additionally, Ford used the occasion to further its ongoing commitment to supply parts, components and other vehicle products to its key partners – Changan Ford Mazda Automobile Co., Ltd. (CFMA) and commercial truck maker Jiangling Motor Co. Ltd (JMC), in which Ford holds 30 per cent shares. Within the scope of this agreement and in addition to the Escapes and Navigators, Ford has committed to exporting approximately $120 million in parts, components and vehicles to its operations in China.

Ford Continues to Make Progress in Expanding China Market

"Continuing our export program is just one part of a larger effort to gather momentum for Ford in China," said David Snyder, executive director of Business Strategy for Ford Motor Company's International Operations. "All the pieces are beginning to fit into place – with our completed expansion in Chongqing, our operations in Nanjing currently under construction, and the good sales progress we are making with Changan Auto and with our commercial trucks through Jiangling Motor Corporation. I'm excited to see that we are beginning to achieve the sales and growth we have been working towards."

While SUV sales in China remain important, Ford's best-selling passenger vehicles in China are its award-winning cars: Fiesta, Focus and Mondeo, all of which are produced locally in Chongqing. Mondeo was named "2005 Car of the Year, China" by enthusiast magazine Motor Trend.

With the success of Mondeo and following the launch of Focus in China in the second-half of 2005, customer traffic and overall sales have been growing steadily for Ford. In calendar year 2005, Ford passenger vehicle sales – both import and locally produced – reached a record 64,223 units, an increase of more than 40 percent over 2004 and well ahead of industry growth. Commercial truck sales also soared in 2005, with 18,000 Ford Transits sold, an increase of 48 percent over 2004.

The positive sales trend is continuing in the early part of 2006, with sales of Ford cars and SUVs averaging more than 9000 units a month in the first quarter, more than double the volume in the first quarter of 2005. Including commercial trucks, Ford brand sales in early 2006 are averaging more than 10,000 units a month.