Ford Motor Company Announces Additional Details of the Value Enhancement Plan

1 June 2000
Ford Motor Company Announces Additional Details of the Value Enhancement Plan
    DEARBORN, Mich., June 1 Ford Motor Company filed
preliminary proxy and registration statements with the U.S. Securities and
Exchange Commission today that outlined details of the $10 billion Value
Enhancement Plan (VEP) announced on April 14, including two new distribution
choices for shareholders.
    As described in the filing, in exchange for each share of Ford common or
Class B stock currently held, shareholders will be able to select one of the
following four choices:

    *  Option 1: One share of new common or Class B stock, respectively, plus
$20 in cash,
    *  Option 2: One share of new common or Class B stock, respectively, plus
new common stock with a value of $20,
    *  Option 3: One share of new common or Class B stock, respectively, plus
a combination of cash and new common stock with a total value of $20, or
    *  Option 4: Cash equaling the market value of Ford common stock.

    "We decided to broaden the choices to provide our shareholders increased
flexibility," said Henry Wallace, Ford Motor Company chief financial officer.
"Ford shareholders are a diverse group and we believe the Value Enhancement
Plan structure is responsive to their varied needs."
    The total cash distribution will be limited to $10 billion.  If the total
amount of cash elected by shareholders exceeds $10 billion, the all cash
elections (Option 4), and potentially the $20 cash elections (Option 1), will
be pro rated accordingly and the difference will be made up in additional new
common stock.
    The record and effective dates as well as other details regarding the plan
will be included in a final proxy statement, which the company expects to mail
to shareholders this summer.  At that time, shareholders will be asked to vote
on the VEP and to make their elections.  A shareholder meeting to approve the
VEP is expected to be held late this summer.
    In addition to shareholder approval, the preliminary proxy statement and
registration statement is subject to review by the Securities and Exchange
Commission.
    The Value Enhancement Plan distribution is separate from Ford Motor
Company's previously announced independence plan for Visteon Corporation, the
company's automotive components and systems subsidiary.  Under the Visteon
plan, shareholders will receive a distribution of Visteon stock based on the
number of Ford shares they own and the total number of Ford shares outstanding
on the distribution record date.  Actual timing and terms for the Visteon
distribution will be announced later.
    This notice does not constitute an offer of any securities for sale.  The
company urges investors to read thoroughly the Registration Statement on Form
S-4 filed with the Securities and Exchange Commission because it contains
important information.  You may obtain the Form S-4 for free on the Internet
at the SEC's World Wide Web site at http://www.sec.gov .  You may also obtain
the documents incorporated by reference in the Form S-4 from the Company by
calling 800-555-5259 (within the U.S. and Canada) or 313-845-8540 (outside the
U.S. and Canada), or via electronic mail at stockinf@ford.com .