Press Release

Ford Credit Announces Third Quarter Earnings for 1996

10/18/96

Ford Credit Reports Third-Quarter Earnings

DEARBORN, Mich., Oct. 16 -- Ford Motor Credit Company's
net income for the third quarter of 1996 was $299 million, Chairman
William E. Odom and President Edsel B. Ford II announced today. The
earnings were $58 million lower than last year's third-quarter net
income of $357 million. Net income was $924 million for the first nine
months of 1996.

Compared with 1995, the reduction in third-quarter earnings reflected
higher credit losses. Higher levels of earning assets and higher net
interest margins were a partial offset. At Sept. 30, Ford Credit's
total net finance receivables and net investment in operating leases
were $91.8 billion compared with $83.2 billion a year earlier, a 10
percent increase.

"The competitive fight for car and truck financing in the U.S. is
still very tough, and we're also in a difficult part of the credit
cycle," said Odom. "Yet despite those conditions, our third quarter
results were respectable. Rising credit losses have impacted our
earnings, but in line with what the consumer finance industry as a
whole is experiencing."

During the third quarter, Ford Credit provided retail financing for
631,000 new and used vehicles sold in the United States. The company
financed or leased 36 percent of the new vehicles delivered by Ford
and Lincoln-Mercury dealers in the United States.

The company also provided wholesale financing for 79 percent of Ford
Motor Company sales to U.S. car and truck dealers.

"We're continuing to work to minimize the impact of credit losses,"
said Ford. "To further offset these losses, we're aggressively moving
forward with our global growth strategies, entering new markets and
developing new products to better serve our dealers and their
customers worldwide."

Ford Credit provides vehicle financing for more than 6,700 Ford,
Lincoln- Mercury, Ford Truck and affiliated automotive dealers, and
6.2 million retail customers in the United States, Canada, Mexico,
Puerto Rico, Australia, New Zealand, Japan, Indonesia, Korea and South
Africa.

The company provides vehicle financing for non-Ford affiliated
dealers, including private-label arrangements with Jaguar, Mazda and
other companies, through PRIMUS Automotive Financial Services,
Inc. subsidiaries in the United States, Canada and Australia.

Ford Credit's insurance operations, conducted through The American
Road Insurance Company, offer a variety of automotive insurance
products and services to dealers and retail customers, including
wholesale inventory insurance, extended service contracts, and credit
life and disability insurance.

Ford Credit also manages the activities of Ford Motor Company's
international vehicle financing affiliates in 21 other
countries. Financial results from these affiliate operations are not
included in Ford Credit's earnings.

Ford Credit is an indirect wholly owned subsidiary of Ford Motor
Company and is part of Ford's Financial Services Group.