FORD BUILDING 'SOLID FOUNDATION' FOR LONG-TERM CHINA PRESENCE

BEIJING, June 8, 2004 - Ford Motor Company Executive Vice President Mark Schulz announced today that Ford has chosen Beijing for its first-ever global debut of an all-new concept car. "We wanted to show how much we value our Chinese customers," he said. "We are proud to introduce the next chapter of our China growth story."

The Focus concept sedan will be formally unveiled at Auto Show 2004 on June 9. It strongly hints at the design themes of the next generation Focus sedan that will go on sale in Asia-Pacific starting later this year.

Schulz also outlined the steps Ford Motor Company will be taking to ensure future growth in China. Speed is critical, he said, but so are prudence and patience. "Our primary concern is to build on solid foundations," he said.

And those foundations consist of partnerships, brand power, and customer loyalty. "We have confidence in the partners we have chosen," Schulz said. "We're confident of the potential to grow and to work closely with us over the long term."

Since most Chinese customers are first time buyers, brands in China are not yet deeply rooted, and the field is wide open, Schulz said. But Ford brings to China the brand that put the world "on wheels" as well as well established global luxury brands such as Volvo, Jaguar, Land Rover and Aston Martin.

Customer loyalty can be earned, Schulz noted, by having the manufacturer play a guiding role in establishing clear sales and service satisfaction goals at its authorized dealerships. Ford is expanding its dealer body across China and expects to have close to 100 by the end of the year.

Schulz noted the rapid progress of its joint venture Changan Ford. The first assembly line opened at the Chongqing plant in January 2003, just 21 months after groundbreaking. Five months after opening, Changan Ford was producing the Ford Mondeo, which is currently sold out through September.

In addition to the Ford Focus concept, Ford Motor Company also is displaying the Maverick Hybrid sport utility. While this SUV is not currently offered for sale in China, "we do want to make clear that China's environment is a front-of-mind question at the highest levels in Ford," Schulz noted. The hybrid SUV, known as the Escape in North America, debuted at the New York auto show and shows markedly improved fuel economy and reduced emissions in crowded urban driving conditions. "You could drive a Maverick Hybrid 15,000 miles and it would produce less than one-pound of smog-forming pollution," he said. "Or to put it another way, we have seen 576 miles of driving, 37 continuous hours behind the wheel on one tank of fuel under street conditions remarkably similar to those in Beijing - that works out to 37 miles per gallon."

In addition to Ford brand, the Beijing auto show will feature displays from Mazda, Volvo, Land Rover, Jaguar and Aston Martin. Auto China 2004 will mark the first time that Ford Motor Company has brought together its global brands in Beijing.

"We are ready for that bright future," Schulz said. "We have come a long way in a very short time."