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Ford Provides Details on Fourth Quarter Charges

14 January 1999

Ford Provides Details on Fourth Quarter Charges

    DEARBORN, Mich., Jan. 14 -- Ford Motor Company
today disclosed additional details on the one-time charges it expects to take
for the fourth quarter of 1998.  Directional estimates of two of the charges
were outlined in Ford's third quarter 10-Q report filed with the U.S.
Securities and Exchange Commission on Oct. 19, 1998.
    Employee Separation Programs:  Ford expects to record a pre-tax charge of
about $730 million for retirement and separation programs.  These special
programs, which were previously announced, reduced the workforce by about
2,200 persons in North America (all salaried), 2,000 in Europe (1,300 hourly
and 700 salaried) and 4,600 in South America (4,400 hourly and 200 salaried).
    Kia Motors Co.:  Ford expects to record a pre-tax charge of about $110
million to write-off its net exposure to Kia, including Ford's share of Mazda
Motor Company's exposure to Kia.  Ford sold its shares in Kia in a private
transaction that closed in the fourth quarter of 1998.
    Batavia Joint Venture:  Ford expects to record a pre-tax charge of about
$110 million related to the transfer of Ford's Batavia, Ohio transmission
plant to a new joint venture company formed by Ford and  ZF Friedrichshafen AG
of Germany.  The joint venture company will manufacture continuously variable
transmissions.  The transaction is expected to be completed in the first
quarter of 1999.
    The aggregate pre-tax amount of the charges is expected to be about $950
million (about $630 million after-tax or $0.51 per diluted common and Class B
share).
    The impact of these charges will be reflected in Ford's fourth quarter and
full-year 1998 results, which will be released on Jan. 21, 1999.