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Ford Motor Company 1999-Model Prices Announced

10 August 1998

Ford Motor Company 1999-Model Prices Announced

                    Average Vehicle Price Down 0.3 Percent

    DETROIT, Aug. 10 -- For the second consecutive year, Ford
Motor Company will hold the line on its average vehicle price while
providing enhanced emissions performance, adding new safety equipment and
other features on some models, and offering several all-new vehicles.  The
average price of Ford Motor Company's 1999 models will be down 0.3 percent
compared with present prices for comparably equipped models.
    Last year, Ford announced 1998-model introductory prices that were
unchanged, on average, from the final prices of comparably-equipped models and
adopted a simpler marketing approach for its cars.  Ford's 1999 model
introductory prices signal that the company intends to compete aggressively by
continuing to emphasize what customers value most -- the right product with
the right equipment at the right price.
    Ford's new pricing and car-marketing approach has worked well.  In 1998,
our retail car sales are up 5 percent, while industry car sales to retail
customers are down.  The models that had significant price reductions, like
Mustang and ZX2, were among the Ford cars on which sales improved the most.
Retail sales for 1998 versus a year ago for the same period are up 29 percent
for Mustang and 76 percent for ZX2.
    On trucks, Ford's 1998 pricing approach has provided another success
story.  The two-door Explorer Sport, on which prices were dropped for the 1998
model year, has experienced a 67 percent increase in retail sales in 1998.
For the 1999 model year, Ford will build on these successes by expanding the
simplified marketing approach introduced a year ago on cars to the company's
light trucks, except Econoline and F-Series Super-Duty models.
    Ford is able to continue to offer many of its vehicles at lower prices
than the models they replace thanks to the combined efforts of its employees,
suppliers and dealers to reduce costs, improve quality, and enhance customer
satisfaction.  Ford has realized cost savings of $4.3 billion in just the past
year-and-a-half, has been recognized by J.D. Power and Associates for
improvements in initial quality and customer satisfaction, and received high
marks for productivity in the 1998 Harbour Report.
    Ford's 1999-model line-up and suggested prices also deliver on its
commitments to lead the industry in low emissions vehicles at no charge to
customers.  All of Ford's sport utility vehicles for the 1999-model year will
be sold nationally as low emissions vehicles, and the all-new Ford Windstar
minivan meets ultra-low emissions vehicle requirements.  And, effective with
the announcement of its 1999-model introductory prices, Ford is the first
manufacturer to discontinue all separate charges formerly levied in some areas
for emissions equipment.
    Suggested retail prices announced today for 1999-model vehicles are
effective immediately.  Public introduction for most 1999 models is scheduled
for October 1, 1998.  Dealers are taking orders now for delivery to customers
upon receipt of the vehicles from the factory.