---

Ford Dealers Form Joint Venture

25 August 2000

Ford Dealers Form Joint Venture to Bring Customers Direct Online Purchases Over Internet

    DEARBORN, Mich., Aug. 25 The Ford Dealer Council, with
4,200 dealer-members across the U.S., announced today the formation of an
Internet-based enterprise, FordDirect.com, that will offer services to
customers who want to purchase Ford brand cars and trucks online.
    FordDirect's website will allow customers to configure, select, price,
finance and initiate the purchase and schedule the delivery of a new car or
truck from participating Ford dealers all online within minutes, 24 hours a
day, seven days a week.  The transaction will be completed by a local Ford
dealer chosen by the customer, who can provide the necessary off-line support
both during and after the sale.  FordDirect.com will offer the largest
representation of Ford Division dealers available online.
    The new commercial enterprise will be jointly owned and supported by
participating Ford Division dealers and Ford Motor Company with an
independent management team appointed by the venture's board of directors.
Trilogy Software of Austin, Texas, has been selected by FordDirect to provide
the technology to create a new e-commerce platform to transform the consumer
buying experience.
    "This is an unprecedented partnership between an automotive dealer body
and a manufacturer," said Jerry Reynolds, chairman of the national Ford Dealer
Council.  "No other automaker can claim this level of cooperation with their
dealers.  We are breaking through the channel conflict that is sometimes
caused by the Internet and giving our customers a great new experience,"
Reynolds said.
    Reynolds continued:  "Consumers have sent a clear message.  The Internet
has become a major force in buying new cars and trucks and in the ownership
experience that follows.  Now, we have responded.  FordDirect will address the
selection and service shortcomings of today's existing online auto sites by
bringing superior geographic coverage, accurate information, and the broadest
range of services directly to consumers at the point-of-sale.  We combine the
off-line strengths of Ford and the dealer body with the convenience of the
Internet to create the ultimate 'clicks and bricks' customer experience."
    "This is a breakthrough," said Jim O'Connor, Ford Motor Company vice
president, and president, Ford Division.  "Earlier this year, our dealers came
to us with a proposal to join forces and invest with us to build the biggest
and best online direct purchase website," O'Connor said.  "We're excited about
it.  FordDirect is a cooperative effort between us and our dealers.  But the
real winners are our customers.  They can now buy a new car or truck online
with confidence and peace of mind, knowing that the entire experience is
backed by Ford and our dealer partners."
    The FordDirect management team will combine talent from the Ford Division
dealer body with Ford Motor Company personnel and the best e-commerce talent
available.
    Ford Motor Company will be an investor, but Ford Division dealers will
retain control of the new entity.  While the dealers' participation in the
venture is voluntary, the initial reaction from them has been enthusiastic,
and the vast majority is expected to join.  Specific percentages and other
terms of the investment are not disclosed.
    FordDirect will enable consumers to select specific cars or trucks with
the desired equipment, color and trim from inventories available at their
preferred dealers.  A special FordDirect e-price will reflect the maximum
price a dealer may charge a consumer using FordDirect for a vehicle configured
by the consumer.
    FordDirect is expected to be fully operational in September in California
and will expand across the U.S. with full implementation throughout the
country expected next year.