Investor News

• Ford Focus most improved model in the industry, besting last year’s score by 88 index points.
• Ford and Mercury posted solid improvements even as the industry average declined.
• Ford Escape (gas and hybrid versions combined) joins Focus in top 10 of most improved vehicles.

DEARBORN, June 26, 2008 – The Ford Focus is the most improved vehicle in the industry’s top study measuring customer-pleasing design, content, and vehicle performance.

In J.D. Power and Associates 2008 Automotive Performance, Execution and Layout (APEAL) StudySM, Focus raised its score over last year by 88 index points – the biggest improvement in the industry.

The popular compact car performed better than the segment average in every category, scoring especially well in the areas of fuel economy, audio/entertainment/navigation, interior styling and exterior styling.

This Focus appeal to buyers bears out in the marketplace:  Ford Focus retail sales are up 64 percent year-to-date, while industrywide retail sales of small cars are up 10 percent.  In response, Ford is increasing Focus production at the Wayne Assembly Plant in Wayne, Mich., where a third shift will be added to the plant’s body and paint shops in September.

Another strong seller among the Ford lineup, Escape, showed a 36 index-point improvement, putting it in the top 10 of most improved vehicles in the industry.  With Escape sales up 5 percent year-to-date over last year, Ford will increase production later this summer at Kansas City Assembly Plant.

Ford and Mercury brands both improved significantly in APEAL while the industry as a whole declined.

With a 14-point improvement over last year, Ford improved five positions to 22nd.  Lincoln came in at 12th place, and Mercury improved by 12 index points to finish in 29th place.  

These results were helped by the strong performance of the company’s newly redesigned vehicles.  The Ford Focus, Escape, Taurus, F-Series SuperDuty, and Mercury Mariner and Sable posted better APEAL scores this year than last.

“With standardized processes in design, product development and manufacturing, we’re showing dramatic improvements on all fronts,” said Bennie Fowler, Ford group vice president, Quality. “Everyone at Ford Motor Company should take pride in these accomplishments and keep working together toward our goal of world-class quality for our customers.”

Five Ford Motor Company vehicles received second or third honors in their segments:

• Ford Explorer Sport Trac, 2nd place in Midsize Pickup segment
• Mazda CX7, 2nd place in Compact Multi-Activity Vehicle (MAV) segment
• Mazda CX9, 2nd place in Midsize MAV segment
• Ford Focus, 3rd place in Compact Car segment
• Lincoln Navigator, 3rd place in Large Premium MAV segment

APEAL asks customers to assess their level of delight with the design, content, layout and performance of new vehicles after three months of driving.  In early June, J.D. Power and Associates released its Initial Quality Study (IQS) showing Ford brand improved by 8 points over last year, beating the industry average 7-point rate of improvement.  Ford and Mercury were among the study’s top non-luxury brands, with both placing in the top 10 among brands included in the study. Earlier this month, the Global Quality Research System (GQRS) durability study saw Ford brand improving at a rate of 3 percent versus the industry average of 1 percent.  Both reports position Ford Division solidly among the industry’s quality leaders.

Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 228,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.