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Ford Announces Sourcing for New Global Engine Family

15 November 1999

Ford Announces Sourcing for New Global Engine Family
    DEARBORN, Mich., Nov. 12 -- Ford Motor Company will
produce a new global inline engine family for 2001 model-year and beyond
passenger cars and light trucks at its engine plants in Dearborn, Chihuahua
(Mexico) and Valencia (Spain), and Mazda Motor Corporation will produce the
engines at its plant in Hiroshima.
    "This all-new engine family has been under development jointly by Ford and
Mazda and is another example of how we are leveraging our strategic
relationship by combining our global product and engineering strengths," said
Roman Krygier, vice president - Ford Powertrain Operations.  "The result of
this strengthened Ford-Mazda synergy is a dynamic, consumer focused and
environmentally-responsible product line."
    Designed to address worldwide consumer expectations, the new engine family
delivers spirited performance while providing class-leading quality and value.
With its lightweight construction, state-of-the-art technological versatility
and flexible fuel capability, it also will help Ford meet its worldwide
environmental pledge.  Depending on consumer demand, expected annual
production globally is projected to be two million units -- roughly 25 percent
of Ford's annual engine production -- by 2004.
    "The plan developed by Powertrain's manufacturing team ensured that all of
the major stakeholders -- consumers, the environment, shareholders and our
employees -- came out a winner," Krygier said.
    The Chihuahua Engine Plant employs 940 hourly and 190 salaried employees.
The 1,102,000-square-foot engine manufacturing site includes a new 377,000-
square-foot addition, with an investment value of roughly $365 million, to
accommodate the new production.  Initial production is scheduled for the Third
Quarter of 2000, and annual production is expected to be 430,000 units.  The
plant currently builds the 2.0-liter 4-cylinder Zetec engines for the Ford
Contour and ZX2, Mercury Cougar and Mystique.
    The Dearborn Engine & Fuel Tank Plant, which manufactures the 2.0-liter
4-cylinder inline engine, employs 1,100 hourly and 130 salaried personnel.
The plant covers 2.2 million square feet and is located in the historic Rouge
industrial complex.  Ford is investing approximately $400 million to upgrade
the facility for this program.  Production of the new inline engines is
expected to begin in the Third Quarter of 2000.  The capacity is projected to
be 350,000 units annually.
    The introduction of the new inline engine family is being combined with a
restructuring of Ford's European manufacturing facilities to optimize capacity
utilization and minimize the need for further fixed cost investment.  European
production of the new inline engines will take place at Ford's Valencia Engine
Plant, with capacity for 700,000 units per year.  Ford intends to invest
around a quarter of a billion dollars in the facility, which has roughly 1,600
hourly and 125 salaried employees.  Production of four-cylinder Zetec-SE
engines -- currently divided between Valencia and the company's Bridgend
Engine Plant in Wales -- is being consolidated at Bridgend. Within the new
European configuration, Cologne Engine Plant in Germany has been designated
the sole global source for the 4.0-liter V6 OHC/SOHC engine that goes into the
Ford Explorer, the world's leading sports utility vehicle.
    Mazda Motor Corporation will produce an increment of approximately 425,000
inline engines annually on a new line located in its engine plant in
Hiroshima, Japan.  Production is expected to begin in the fall of 2001.  The
Hiroshima plant currently builds gasoline, diesel and rotary engines for
passenger cars and commercial vehicles.