Ford CEO Remarks at 2007 Stockholders Meeting

I’m pleased to have this opportunity to address the shareholders of Ford Motor Company. I’d like to take a few minutes to explain what all of us on the Ford team worldwide are doing on your behalf.

Our entire global team is focused on four key priorities this year:

-aggressively restructuring to be profitable at a lower volume and changed product mix,- accelerating product development while reducing complexity and improving quality, - securing financing to complete our plans, and working together with teamwork and accountability.

Our most immediate concern is fixing our business in North America. We are taking the painful but necessary steps of idling 16 manufacturing facilities and substantially reducing our workforce. Altogether, we will achieve a $5 billion reduction in our annual operating costs by 2008 compared to 2005. We also have secured $23.5 billion in new funding to finance our restructuring, bringing our total automotive liquidity to $46 billion at year-end 2006.

Most importantly, we are accelerating our new product development. By the end of next year, 70% of our Ford, Lincoln and Mercury lineup will be all-new or significantly freshened, and we’ll speed up our product development time by 30-50%. Our plan is to return our North American automotive operations to profitability no later than 2009.

We are accelerating these efforts by using our worldwide resources more effectively. Working together as one global company is our biggest single opportunity to make rapid and dramatic progress. We’ve already begun to take better advantage of the tremendous potential this offers.

In December I announced a realignment to better leverage our global assets and capabilities. Under this new structure our three automotive business units – in the Americas, Europe and Asia – report directly to me.

In support of these business units we also created a single global product development organization. By sharing vehicle architectures, components and best practices from around the world, and maximizing economies of scale, we are taking full advantage of our global resources for the greater good of the entire company.

Along with these organizational changes, we have put in place new principles and work practices to help us unlock the full potential of our people and resources worldwide.

Everyone with a stake in the outcome is included in the decision making process. Together, we developed a single plan for our entire global enterprise, with clear performance goals. Although we work as a team, individuals are given responsibility and authority, and held accountable for delivering results. Achievements are measured by facts and data, not anecdotes and opinions.

I meet with my own senior management team once a week in a half day session to review progress toward our goals and address any roadblocks. Problems and concerns are discussed candidly and the entire team is enlisted to help find solutions. Mutual respect and a “find-a-way” attitude are key elements of every meeting, and the focus of discussion is always our plan.

The goal of all this is simple – to build more of the products that people really want and value. Products with striking designs that are safer, more fuel efficient and offer even greater value. Great products will strengthen our brands, and strong brands will help grow our business.

Our products also will define us as the company that cares about its customers and their communities. Bill Ford and I share the same vision of building clean, fuel efficient, environmentally friendly vehicles that protect their passengers and our planet. We believe that a company that acts responsibly and is concerned for the greater good will not only be admired, it will be rewarded with growth and sustained profitability.

We are moving quickly and making real progress, but it’s going to take time to turn things around. As we go forward, you can expect from us what I expect from my team – clearly stated goals and candid assessments of our progress based on facts.

Ford Motor Company already has a proud history to gain inspiration from, and many hopeful developments to build on.

We had record sales in China and India in 2006, and continued that strong momentum in the first quarter of this year. Ford Europe saw a sales increase of nearly five percent in 2006, and sales continued to rise in the first quarter, including best-ever March sales. The latest consumer survey shows the quality of our Ford, Lincoln and Mercury products in North America is now equal to Toyota and Nissan. This is the first time since we began tracking their quality against ours in 1981 that we've matched them. That's an incredibly important milestone in the history of our company. Our North American sales are under continuing pressure. But we've made great progress in building products consumers want to buy. Just three years ago, 70% of our U.S. retail sales were trucks and SUVs, and 30% were cars and crossovers. With the success of new products like Ford Fusion and Edge, today almost 50% of our retail sales are cars and crossovers. Our financial results in the first quarter were better than expected, thanks to cost cutting in North America and greater strength around the world, especially at Ford of Europe and PAG. Again, we’re not where we need to be, but we are making progress. This is a company filled with talented and dedicated people. We have outstanding supplier, dealer and union partners and substantial worldwide resources. There also is an incredible amount of goodwill that exists toward Ford around the world.

That’s a wonderful foundation to build on. We have many challenges ahead of us, but the transformation of Ford Motor Company is well underway. I think you’ll be pleased with what you see in the months and years ahead.