Press Release

Ford's Trotman Urges Leadership on Environmental Issues

09/18/96

Ford Chairman Praises Industry Progress, Urges Leadership on
Environmental Issues


DETROIT, Sept. 16 -- The auto industry has done more to
address environmental concerns than is generally appreciated, and
should be trusted to do the right thing in the future, Ford Chairman
and Chief Executive Alex Trotman said at the Economic Club of Detroit
today.

Trotman also called on the industry to continue to earn that trust.

"The science may not be certain yet, but our critics are," he
said. "If we fail to take the lead in encouraging the markets and
discovering new solutions, extremism will win out over common sense
and science.

"That would be a very sad day for those of use who are concerned about
personal mobility, jobs and our standard of living."

Trotman said the auto industry is devoting billions of dollars to
environmental research and technology. He cited as an example a
research vehicle Ford is developing with advanced conventional and
hybrid electric powertrains. The projected fuel efficiency of this
mid-size family car could range from 60 to 70 miles per
gallon. Several breakthrough low emission powertrain configurations
are being studied as well as extensive use of light weight
materials. Completion of this research vehicle is scheduled for late
1998.

"We're determined to be a part of the answer, developing new
technologies and finding new solutions to environmental issues,"
Trotman said. "Environmental stewardship is certainly a global
challenge -- a challenge Ford takes very seriously."

As the vehicle population grows, worldwide concern over crowded roads
and increasing emissions is accelerating. Yet new customers continue to
demand the right to personal transportation.

"The challenge is finding the best approaches and the right balance
between societal concerns and customer priorities," Trotman said.

More regulation is not necessarily the answer. Trotman called for better
collaboration between government and industry to achieve the long-term
solutions required. A good example of this new cooperation is the
Partnership for a New Generation of Vehicles -- a U.S. joint
initiative between the automotive industry and government. Its am,
Trotman said, is to develop advanced automotive technologies that
could result in up to a threefold improvement in fuel efficiency
without sacrificing function, safety, performance or affordability.

The auto industry is designing and selling consistently "cleaner"
vehicles made with "cleaner" manufacturing processes, Trotman
said. "We have achieved much more than is generally appreciated."

He noted these improvements in the last few decades:

-- The average fuel consumption of passenger cars in the U.S. has been
cut in half since 1965.

-- Tailpipe hydrocarbon emissions into the air have improved 98
percent since 1965.

-- Vehicles are now one of the most recycled durable consumer
items. Seventy-five percent of the average car or truck is now
recycled.  A number of Ford products are higher.

-- Recycled consumer goods are now used to make vehicle parts.  For
example, Ford recently became the first automaker to use recycled
carpeting to make engine fan module for the Ford Windstar.

-- Steady progress is being made with alternative fuels research and
technology.  Ford offers the widest variety of alternative fuel
vehicles and a broad range of fuel choices -- natural gas, propane,
methanol, ethanol and electric vehicles.  Today, Ford announced the
formation of a co-located, dedicated team to direct the company's
global alternative fuel vehicle programs.

-- All of Ford's vehicles and manufacturing processes are free of CFC,
the ozone-destroying compound found in refrigerants, several years
ahead of the government mandate.

-- Energy usage at Ford's North American facilities has been reduced
by more than 25 percent since 1980.

"The auto industry should be leaders in the push for a cleaner
environment," Trotman said. "We aim to take the lead on new approaches
that preserve the environment and keep customer priorities front and
center."