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Ford Announces Q3 Retail Incentives

8 July 1998

Ford Motor Company Announces Third Quarter Retail Incentives

    DETROIT, July 7 --  Ford Motor Company has
announced retail customer incentives on its 1998 models effective July 8
through October 2, 1998.  Compared with the company's retail incentives
available at the end of the second quarter, cash and reduced-rate finance
terms available to qualified buyers are unchanged on most models.  Ford's
Customer Appreciation program, which expired on July 7, will not be continued
in the third quarter.
    Details of the national incentives follow.  Regional incentives also may
be available and may vary from national incentives.  Customer cash may be
applied toward a retail purchase or Red Carpet Lease of eligible vehicles.

                FORD MOTOR COMPANY NATIONAL RETAIL INCENTIVES
                       EFFECTIVE JULY 8-OCTOBER 2, 1998

                                 Customer      APR Finance Rate For Term Up To
                                 Cash OR        48 Months        49-60 Months
    1998 Models
      Ford Escort                $1,000            0.9%            3.9%
      Ford ZX2                    1,000            0.9             3.9
      Ford Contour                1,000            0.9             3.9
      Ford Taurus                   750            0.9             3.9
      Ford Mustang*                 750            4.9             6.9
      Ford Windstar               1,500            0.9             3.9
      Ford Ranger                 1,000            0.9             3.9
      Ford Econoline              1,000            3.9             4.9
      Ford E150/250 with
       RV Package                 1,500            3.9             4.9

      Mercury Tracer             $1,000            0.9%            3.9%
      Mercury Mystique            1,000            0.9             3.9
      Mercury Sable                 750            0.9             3.9
      Mercury Villager            2,000            0.9             3.9

    The following vehicles are available with reduced-rate financing from Ford
Credit (no customer cash alternative):

    APRs on Retail Contract Terms Up To
                               36 Mos.         48 Mos.        60 Mos.

    Ford Crown Victoria        ----------5.9%-----------        7.9%
    Mercury Grand Marquis      ----------5.9-------------       7.9
    Ford Explorer                 1.9%          2.9%            4.9%
    Mercury Mountaineer           1.9           2.9             4.9
    Ford F-Series Below
      8,500 Lbs.                  1.9           4.9             6.9

    *  Excludes Cobra models