We will achieve this by:

• Building and maintaining a caring culture of partnership and mutual benefit
• Developing individual and team skills so employees can reach their full potential and contribute to the success of Ford Motor Company
• Creating a business climate that encourages innovation, learning and exceptional performance
• Actively pursuing the benefits derived from a diverse workforce, as well as those from the diversity of perspectives provided by our stakeholders

Progress Since Our Last Report

We have vital, sustained relationships with many stakeholders. The quality of these relationships contributes to our ability to achieve our goals and succeed in the marketplace. We are truly interdependent with our stakeholders.

During 2006, Ford's difficult financial condition and restructuring affected our stakeholders in many ways.

Our plan to return the Company to profitability will reduce salary-related costs through the elimination of the equivalent of about 14,000 salary-related positions, which represents about one-third of our North American salaried workforce. Most salaried employee departures were expected to be completed by the end of the first quarter of 2007. By agreement with the UAW, we also extended early retirement or separation packages to all U.S. hourly employees. Through year-end 2006, about 37,000 hourly employees represented by the UAW had accepted (and not rescinded) an early retirement or separation offer.

We have focused on communicating effectively about these changes and assisting departing employees in preparing for new opportunities. For more information go to Sustaining Ford.

Among our salaried employees, overall employee satisfaction for 2006 did not change from 2005 levels. Our comprehensive Pulse survey showed minor improvement in one performance area (Supervisor Satisfaction) and a minor decline in three performance areas.

We are working closely with our suppliers to implement programs to improve quality, find cost efficiencies and align our social and environmental practices. In 2006, we began a new supplier partner program called the Aligned Business Framework. Through this system, we are reducing the number of suppliers of different components but increasing our level of cooperation and commitment with these preferred suppliers. This system is cutting costs, improving quality, and increasing innovation and teamwork with our strategic suppliers. See Human Rights at Ford for information on our Aligned Business Framework.

In 2006, we attained our goal of having 100 percent of our preferred, or Q1, production supply facilities gain ISO 14001 environmental management certification.

Our dealers present our face to customers and communities and provide the Company with important feedback. We are working to strengthen our relationships with our dealers through open dialogue on key issues such as new products, vehicle quality and customer satisfaction.

We continue to make progress in embracing and fostering the diversity of our employees, customers and business partners, and we have been recognized for our achievements in these areas. Our diversity programs and progress are the key topic of the Quality of Relationships section for this report.