FDM Group Regulatory News (FDM)

29 Nov 2006 14:54

Ford Motor Co29 November 2006 NEWS Contact: Media: Investment Shareholder Inquiries:Marcey Evans Community: 1.800.555.5259 or1.313.322.9211 Raj Modi(Equity) 1.313.845.8540mevans13@ford.com 1.313.323.8221 stockinf@ford.com fordir@ford.com Rob Moeller (Fixed Income) 1.313.621.0881 rmoeller@ford.com FOR IMMEDIATE RELEASE FORD'S HOURLY BUYOUT ACCEPTANCES REACH 38,000 THIS YEAR DEARBORN, Mich, Nov. 29, 2006 - As part of a key objective of its North Americanturnaround plan, Ford Motor Company confirmed today that so far this year about38,000 of its UAW-represented hourly workers have accepted package offerings forvoluntary separations from the company. This figure includes approximately 30,000 buyout offers preliminarily acceptedduring the recent system-wide open enrollment period that concluded this weekfor Ford hourly workers, including those at the company's Automotive ComponentsHoldings (ACH) division. In addition, the figure includes about 8,000acceptances received earlier in 2006 during targeted plant-by-plant buyoutofferings to Ford and ACH employees. Of the 38,000 total acceptances,approximately 6,000 were by hourly employees at ACH. Ford began the year withabout 83,000 UAW-represented employees. The open enrollment period that began in October offered eight differentvoluntary buyout packages to all of Ford's UAW-represented employees. The offersincluded traditional packages for retirement-eligible employees, as well as non-traditional packages for employees with at least one year of service. Just overhalf of the buyouts accepted during the recent open enrollment period were byemployees who accepted one of the non-traditional packages, which providedoptions such as lump sum payments, tuition reimbursements or scholarship fundsfor family members. The acceptances are preliminary, as all buyout offers are voluntary and includean employee's opportunity to rescind acceptance up until the time of theirseparation from the company. The employee reductions will contribute towardmajor objectives of the accelerated Way Forward plan for turning around thecompany's North American operations. On Sept. 15, Ford announced its intentionto reduce its North American hourly workforce by 25,000 to 30,000 employees bythe end of 2008, including attrition and excluding employment reductions at ACH. "One of Ford's priorities, and a large cost component of our Way Forward planfor North America, is our ability to adjust manufacturing capacity with demand,while continuing to reduce operating costs and becoming more efficient," saidAlan Mulally, Ford president and CEO. "While I know that in many cases decisionsto leave the company were difficult for our employees, the acceptances receivedthrough this voluntary effort will help Ford to become more competitive. "We'd also like to thank the UAW for working closely with us in developingpackages that will help employees to move productively into a new phase of theirlives. It is clear that we were successful in providing appropriate options;this, in turn, is helping the company to meet its cost objectives." Hourly employees who accepted buyout packages during the recent enrollmentperiod will begin to leave the company in January 2007 and through the course ofthe year until all separations are completed by Sept. 1, 2007. "Ford and the UAW have addressed several important issues throughout the year,which have allowed the company to reduce costs and achieve efficiencies,"Mulally said. "Though there is more work to be done, recent history demonstratesthat together we can significantly improve Ford's business." Ford Motor Company, a global automotive industry leader based in Dearborn,Mich., manufactures or distributes automobiles in 200 markets across sixcontinents. With about 300,000 employees and more than 100 plants worldwide, thecompany's core and affiliated automotive brands include Aston Martin, Ford,Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-relatedservices include Ford Motor Credit Company. For more information regardingFord's products, please visit www.fordvehicles.com. This information is provided by RNS The company news service from the London Stock Exchange