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Ford Stock Repurchase Plan Increases Cash to Shareholders

18 September 2000

Ford Stock Repurchase Plan Increases Cash Distribution to Shareholders

    DEARBORN, Mich., Sept. 14 The Ford Motor Company
Board of Directors today approved a repurchase plan of up to $5 billion of
common and Class B stock.  Today's action adds to the original plan to
distribute up to $10 billion in cash to shareholders.  The shares would be
repurchased periodically in the open market with the plan expected to be
concluded substantially by the close of 2001.
    "Today's action goes beyond what we announced in April," said Henry
Wallace, group vice president and chief financial officer.  "At that time, we
said we were committed to distributing $10 billion in cash to our
shareholders.  The Value Enhancement Plan has been completed successfully, and
shareholders elected to receive a total of $5.7 billion.  Now, based on our
confidence and our financial strength, we have increased the total planned
cash distribution by $700 million," Wallace said.
    Wallace also noted that the annual dividend rate prior to the Value
Enhancement Plan was $2 per common and Class B share.  Ford has calculated
that an annual dividend of $1.14 would preserve the total cash payout to
shareholders who elected the all-stock option under the Value Enhancement
Plan.  Under that option, shareholders received 1.748 shares for each share of
common and Class B stock they owned.  Ford common and Class B shares now
outstanding total 1.89 billion.  Actual fourth-quarter dividends will be
declared by the board of directors in October for payment in December.
    The stock repurchase plan is in addition to the ongoing anti-dilutive
share repurchase program.  That program began in 1998 and is designed
primarily to offset the exercise effect of stock options.