FDM Group Regulatory News (FDM)

9 Aug 2006 15:23

Ford Motor Co09 August 2006 FOR IMMEDIATE RELEASE FORD CONFIRMS NEW SHELBY GT AND LINCOLN MKS SEDAN; $1 BILLION POTENTIAL INVESTMENT TO BUILD MORE PRODUCTS • New Ford Shelby GT to go on sale in January as the newest member of the Mustang performance car stable. • New Lincoln MKS flagship sedan to go on sale in 2008 - packed with more technology and features than any Lincoln before it, including innovative capless fuel-filler technology. • Nine new Ford and Lincoln Mercury vehicles go on sale in the next six months as part of the company's product-led turnaround - including the groundbreaking Ford Edge and Lincoln MKX crossovers in November. • Ford considering investments of up to $1 billion in several Michigan facilities as part of its product-led "Way Forward" turnaround and in partnership with the Michigan Economic Development Corporation. TRAVERSE CITY, Mich., Aug. 9, 2006 - Ford Motor Company (NYSE:F) will increasethe pace of new product introductions and respond to fast-changing consumer-buying trends as it accelerates its Way Forward turnaround plan and considersinvesting up to $1 billion in several of the company's Michigan facilities. MarkFields, Ford's president of The Americas, made that announcement today toindustry leaders at the Center for Automotive Research's 41st annual ManagementBriefing Seminars. "We are rebuilding our business for the future with an emphasis on more newproducts faster - and that includes more customer features and advancedtechnologies throughout our entire lineup," said Fields. "Even as we reduce ouroverall capacity in line with demand and make the tough but necessary cutbacksthroughout our business to secure our future, we are not retreating one bit fromthe necessary investments to bring out more products for our customers. Thecompetitive landscape and our future demand it." Investments Would Target Flexible Manufacturing, New Products Ford's potential $1 billion investment would be dedicated to expanding flexiblemanufacturing at several Ford facilities in Michigan and be used for theresearch and development of future products, advanced powertrain technologiesand hybrid vehicles. The investment is being considered in partnership with aMichigan Economic Development Corporation incentive package designed to "Today, the auto industry represents the single greatest engine of economicactivity in the world. And nowhere is the impact more profound than here inour back yard," Fields said. "Ford is proud to be part of Michigan, and our workto keep Ford's future part of this great state's future underscores our seriouscommitment to the people and the communities that have helped make us great formore than a century." The new investments are not yet finalized, Fields said, but Ford will continueto work with the state and the company's various facilities, and make decisionsas part of its Way Forward turnaround plan. "There is no vision for Michigan's new economy that does not include Ford carsand trucks designed, engineered and made in Michigan," said Michigan GovernorJennifer M. Granholm. "For more than a century, Ford and the state of Michiganhave been partners, and today we are affirming that our partnership willcontinue far into the future." More New Products Faster As part of plans to accelerate its turnaround, Ford will emphasize theintroduction of new products as core to going "farther and faster" throughoutits business. "We'll have more to say on the specifics of what we're accelerating inSeptember. But I can confirm that our plans include more new products, featuresand technologies throughout our lineup," said Fields. "We have nine new Ford andLincoln Mercury products going on sale in the next six months alone, and we arerebuilding our business for the future with an emphasis on new products." Among the new products are the Ford Shelby GT - on sale in January - and LincolnMKS flagship sedan, which will arrive in showrooms in 2008. Ford Shelby GT The 4.6-liter, 325-horsepower Ford Shelby GT will occupy a niche between theMustang GT and the Ford Shelby GT500 both in performance and appearance. It is aretail version of the Ford Shelby GT-H Mustang developed for Hertz that was thesurprise hit of the 2006 New York International Auto Show. "We know the combination of Mustang and Shelby is magic, and we proved it againwhen we revealed the Ford Shelby GT-H. The car received such rave reviews thatour dealers and customers asked for a version of their own," Fields explained."We listened, and we're delivering." The Ford Shelby GT will be on sale in January. Ford will reveal full productdetails this Sunday on its "Bold Moves: The Future of Ford" web-baseddocumentary (http://www.fordboldmoves.com ). Lincoln MKS The Lincoln MKS full-size flagship sedan will be based on the concept vehiclefirst shown at the North American International Auto Show in January. "The Lincoln MKS will take Lincoln craftsmanship and comfort beyond anythingwe've built before," Fields said. "Its design communicates power, motion andspeed, and it will be packed with more technology and features than any Lincolnbefore it." One new technology on the Lincoln flagship comes straight from Ford racing andthe Ford GT: a capless fuel filler. It eliminates the inconvenience offorgetting to put the gas cap back on after refueling and is better for theenvironment because no gas fumes escape. "Capless fuel filling will make its way throughout our lineup going forward, andit's the result of listening to customers," Fields said. "We know even smallinnovations deliver big customer benefits." The Lincoln MKS will be the next major step in establishing Lincoln as America'sluxury brand. Lincoln is building momentum - with retail sales up 8 percent forthe first half of 2006. The new Lincoln MKS flagship is designed to continue tointroduce a new face of Lincoln to the American public, building on thehallmarks of design, a business class experience and a smooth, confident ride. Fuel Economy, Aging Population Shape Tomorrow's Products Ford has identified two customer trends that will take future products acrossthe auto industry into new directions. The first is a growing, worldwide demandfor sustainability and a smart energy policy. The second is a set of profounddemographic changes already affecting the auto industry that will accelerateduring the next decade. "Consumers are speaking loud and clear. They're telling us that the social andenvironmental trade-offs associated with automobiles are increasinglyunacceptable," said Fields. "They want cleaner, safer, more efficient vehiclesthat don't compromise on function or value. The auto companies best able todeliver vehicles that meet these needs will reap the rewards of increased marketshare and the financial rewards of technology innovation and leadership." Ford research shows that the percentage of Americans who say they are veryconcerned about the environment is approximately 70 percent, up nearly 10 pointsin the last five years. Fuel efficiency is now among the top three purchasedrivers, along with quality and safety. "That is why we at Ford remain absolutely committed to driving Americaninnovation throughout our company. It's why we continue to invest in E85 ethanolvehicles, hybrids, hydrogen and diesel. Even as we forge ahead with the toughtasks related to our turnaround, we are unwavering in our commitment to be aleader in delivering innovative products with technologies that use new fuels,reduce dependency on foreign oil and save our customers money through improvedfuel economy." The rapid rise of fuel prices also has accelerated another trend that began withthe aging of the Baby Boomer generation, Fields said. "Baby Boomers are downsizing every aspect of their lives - including theirhomes - and they are moving to smaller cars, crossovers, small SUVs and smallpremium utilities," Fields added. "They're also buying fewer medium and largeSUVs - a trend that actually started in 2003 and accelerated last year, whengas prices increased." This population shift will result in dramatic growth for crossovers and smallcars, as well as for premium utility vehicles, Fields explained. People-movers -including medium and large SUVs and minivans - will decline because therewill be a smaller pool of family-oriented buyers purchasing vehicles that theiraging parents had been driving. "The lesson we take from this tectonic shift is that listening to our customershas never been more important. We as an industry can't sit back and complainabout these changes. We have to act on them - and quickly," Fields said. "Theold saying 'If you build it, they will buy it' needs to be put to rest. 'If theywill buy it, we will build it' is the way we need to approach the future." New Products for New Customers and a Changing Marketplace With the fast-changing marketplace and the rise in demand for more fuel-efficient vehicles, Ford has kicked off its new-model year with a lineup of newcars, crossovers, hybrids, SUVs and trucks that puts the company in its bestposition ever to attract new customers. "Ford never has been in a better position than this model year to compete forcustomers in an environment of rising gas prices and higher demand for morepower, more performance and more features," said Fields. "We're also leading theway with bold American designs and innovations in our new vehicles hitting themarket this summer and fall." Key new products include: • Ford Edge and Lincoln MKX crossovers, which are expected to shake up this fast-growing market when they go on sale in November. • Ford Shelby GT500, which is now on sale as the most powerful production Mustang ever. • Lincoln MKZ, with its new 3.5-liter V-6 engine - which eventually will power one of every five Ford and Lincoln Mercury vehicles. • Ford Expedition, Expedition EL and Lincoln Navigator, which go on sale in September, and the new Lincoln Navigator L in December. The new SUVs offer more standard safety equipment, best-in-class towing for Expedition, a usable third row and additional cargo space. • Ford Explorer Sport Trac, which is now on sale with one of the segment's only V-8 engines. • Ford F-150 with increased towing to a best-in-class 10,500 pounds, new FX2 Sport edition and new 6.5-foot box for the Super Crew. • New all-wheel-drive versions of the popular Ford Fusion, Mercury Milan and Lincoln MKZ - a technology that more than half of new buyers say they want in their next vehicle. Ford also this year is: delivering more standard safety equipment on morevehicles, with a focus on rapidly increasing standardization of side air bagsand side air curtains; doubling the number of vehicles available with DVD- basednavigation systems; and quadrupling the number of vehicles available with SIRIUSsatellite radio. Ford also is responding to the skyrocketing customer demand to bring electronicdevices into cars and trucks by building in iPod connectivity in half of theFord and Lincoln Mercury lineup. The company predicts that iPod and other MP3player sales will reach 132 million units in 2009 - more than double the 57.7million sold in 2005. For the 2007-model year, built-in auxiliary audio-input jacks will be offered onthe Ford Edge, Explorer, Expedition, Mustang, Fusion, Sport Trac, Ranger, F-150,Mercury Milan, Mountaineer, Lincoln MKX, Lincoln MKZ, Navigator and Lincoln MarkLT. The jacks allow customers to bring any iPod or other MP3 player with astandard 3.5 millimeter audio output into their vehicle and play it through theaudio system. In addition, early next year, Ford and Lincoln Mercury dealers throughout theU.S. will begin offering Ford's TripTunes Advanced audio system - an iPodintegration feature that provides drivers with top sound quality and rechargingat the same time. TripTunes Advanced allows the driver to store the iPod in thevehicle's glove box and select music using the steering wheel or radio controls- including shuffling songs and skipping between tracks and play lists. Aug. 9, 2006 Go to http://media.ford.com for news releases and high-resolution photographs. This information is provided by RNS The company news service from the London Stock Exchange