Case Study: Political Contributions

Ford Motor Company is an active participant in the United States' political process in a manner that is transparent and directly related to our business issues. We operate in a highly competitive and regulated environment, and believe that our participation in the democratic process is required if we are to fulfill our responsibilities to our employees, suppliers and shareholders.

Corporations are prohibited under U.S. federal and many state laws from making direct or indirect contributions to candidates or political parties. The Company has a policy not to make contributions to political candidates or organizations, nor to employ its resources for the purpose of helping to elect candidates to public office, even where permitted by law.

Ford Motor Company's political contributions to candidates in the United States are made solely through our corporate Political Action Committee: the Ford Motor Company Civic Action Fund (the Ford PAC). The Ford PAC is funded by voluntary contributions from eligible salaried employees and retirees. The Company does, however, pay the solicitation and administrative expenses of the Fund, which are minimal, as permitted by law. All contributions made to the Ford PAC and all distributions from the Ford PAC are in compliance with Federal Election Commission and applicable state regulations.

Political contributions by the Ford PAC are made in accordance with our business objectives that support our competitiveness in the global automotive industry. Ford PAC contributions are not made on the basis of social issues, party affiliation or political ideology. All Ford PAC contributions in excess of $1,000 must be approved by the Ford PAC Political Contributions Committee (PCC), a cross-functional group of Ford employees representing a broad range of organizational levels. Information with respect to contributions made by the Fund in connection with federal and state elections is publicly available at the Federal Election Commission and applicable state reporting authorities, respectively.

Where permitted by law, the Company occasionally makes contributions with respect to state and local ballot questions and referenda that have a direct impact on the Company's business (such as those dealing with local property taxes). Information with respect to contributions made in connection with ballot questions and referenda is publicly available through the appropriate local or state reporting authorities.

Ford Motor Company complies fully with all laws and rules governing our employees' interactions with officials at all levels of government (federal, state and local). Furthermore, all of our contact and dealings with government officials must not only comply with all applicable laws, but also with our global corporate Policies and Standards of Corporate Conduct.

Note that under federal law, foreign nationals are prohibited from making contributions in connection with any U.S. election and are thus not eligible to join the Ford PAC.