Ford China Unveils S-MAX and Announces Nanjing Research and Engineering Center

BEIJING, November 17, 2006 – Ford Motor Company continues its accelerated growth plan for China and is on track to deliver its strongest year to date with growth expected to exceed 100.8% (year on year) in 2006. Headlining Ford’s product line-up at Auto China 2006 is the all-new Ford S-MAX, which was named Car of the Year in Europe this week, and is the first Ford vehicle to introduce ‘kinetic design’ to China’s motoring enthusiasts.

At Ford, kinetic design stands for ‘energy in motion’ and that’s exactly what the Ford S-MAX delivers, making it one of the most exciting new vehicles to hit China’s roads and highways. Other product joining S-MAX at the show include Ford Focus, a star performer in its own right, so much so that Ford recently added a 5-door version, to keep ahead of consumer demand.

In addition to a strong product showing at Auto China 2006, Ford Motor Company also announces a major new investment - the opening of the Ford Research and Engineering Center – to be located in Nanjing, China. It will support Ford Motor Company's product development for worldwide operations while also making a major contribution to the future of China’s auto market.

" The Ford Research and Engineering Center represents another major milestone for Ford as it strengthens its manufacturing blueprint in China. It will offer a winning combination that leverages Ford's global expertise in research and engineering in addition to building China’s leading local talent. It will also work with Technical Development Centers at Ford Motor's joint ventures in China to support product development and procurement, "said Mei Wei Cheng, Chairman and CEO of Ford Motor (China) Ltd.

Earlier this week, Ford S-MAX, was voted Car of the Year by 58 of Europe’s leading motoring journalists across 22 European countries. No mean feat, Ford S-MAX knocked out 41 contenders to win this prized European automotive crown. In fact, Ford now has two cars in its China product lineup that have won this prestigious award, the other being the much-loved Ford Focus.

With its super streamlined ‘kinetic design’ Ford S-MAX, with its confident stance on the road and sharp yet fluid exterior lines is expected to be as big a crowd pleaser in China as it has in Europe. It aims to set new standards in driver comfort and style with its innovative driver focused technologies and inventive approach to seating, storage and flexibility of space. Ford enthusiasts will not have to wait long for S-MAX. Speaking at Auto China 2006, Mei-Wei Cheng, Chairman and CEO of Ford Motor (China) Ltd confirmed that S-MAX will be produced by Changan Ford and will be ready to roll off production lines in early 2007.

Joining S-MAX and Focus on stage is the Ford iosis Concept Car which gives Ford’s customers a strong sense of the future design direction the brand is taking.

The man behind the iosis Concept is Martin Smith, Executive Design Director for Ford of Europe, was also awarded ‘Outstanding Achievement Award’ by Autocar in London this week. Speaking at Auto China 2006, Martin stated, “What iosis does, is bring to life our new ‘kinetic design’ language in a compelling way. To us, ‘kinetic design’ is about expressing the energy in motion and power of our vehicles, seamlessly integrating strong visual cues with dynamic driving performance. It shows our customers the future design direction of Ford’s product line. A consistent and dynamic energy that will be embedded into our product DNA.”

He continues, “You only have to look at Ford S-MAX. Its bold ‘kinetic design’ offers function, space and flexibility alongside head turning ‘wow factor’ and dynamic drivability. This winning formula is what’s made Ford S-MAX such a success in Europe.”

Other products taking center stage for Ford will include Ford’s Reflex concept, which features a Diesel Hybrid Powertrain, the legendary Ford Mustang Shelby GT500 and the all-new Focus ST. A range of other locally produced blue oval favorites will also be on display.

"We are using Auto China 2006 to showcase the strength of our product range, reinforcing the depth and diversity of the Ford Motor Company product family. Our portfolio has something to appeal to everyone, from dependable and affordable transportation through to luxurious premium brands. In the future, Chinese customers can continue to expect more exciting, locally-made Ford vehicles that consistently deliver cutting-edge design and world leading technology, "said Mei Wei Cheng.

The full Ford Focus family will be on display at the show. Ranging from locally produced Focus 4-door and Focus 5-door through to the Focus China Circuit Championship (CCC) racing car and the visually stunning Focus ST. This convertible Focus has been a global success and is now making its first appearance in China at this years show. Ford Focus boosted the sales at Changan Ford Mazda Automobile in the first ten months of 2006 with retail sales totaling 56,151 units, representing more than 50% of total Ford product sales.

With strong sales momentum, Changan Ford Mazda Automobile is now one of the fastest growing auto makers in China. In 2007, total annual production capacity will exceed 410,000 units at Chongqing and Nanjing plants (combined). Ford also continues to expand its distribution network and will have 200 appointed dealers by the end of 2006.

"It is no secret that the China market is critical to our plans for building a stronger Ford Motor Company globally," said Mei Wei Cheng. "With sales volumes continuing to fuel growth, we are looking ahead and taking the required steps now to ensure our China operation is able to continue to meet the seemingly insatiable appetite for our products. In doing so, the China market will play an even greater role in the future growth and success of Ford Motor Company’s global operations."

For the year 2006, Ford Motor Company's China Sourcing Office is on track to source some $2.6 billion worth of auto parts and systems, supporting Ford Motor Company's global manufacturing operations and after sales customer services. The company is also actively expanding its auto financing business in the China market. Ford Automotive Finance has extended its auto financing services to more than 70 Chinese cities nationwide in just 18 months after starting operation, servicing Changan Ford Mazda Automobile and Jiangling Motor Company simultaneously.

As one of the largest exhibitors with 5,000 square meters of exhibition space, Ford Motor Company, comprising of six affiliated brands (Ford, Lincoln, Volvo, Land Rover, Jaguar and Mazda) will demonstrate its enterprise muscle, displaying a full fleet of show vehicles. Executives from Ford Motor Company, John Parker, Group Vice President of Ford Motor Company, Asia Pacific and Africa, Mei Wei Cheng, Chairman and CEO of Ford Motor China, and Martin Smith, Executive Design Director from Ford of Europe, attended the Ford press conference and show preview for media at Auto China 2006 in Beijing.