A Message from Alan Mulally, President and CEO

(Excerpt from the 2010 Ford Motor Company Annual Report)

We are rapidly making the transition from fixing the fundamentals of our business to delivering profitable growth in all of our operations. To do this we are investing in an unprecedented amount of new products and technology worldwide. We have strengthened our product line-up so that we have best-in-class offerings in every major segment of the market, from small cars to large trucks. At the same time we are expanding our geographic footprint to fully participate in the rapid growth of newly emerging markets around the world.

Across the globe we are providing customers with great products, building a stronger business and contributing to a better world.

In 2010, Ford launched 24 new or redesigned vehicles in key markets around the world. These included a redesigned Ford Explorer, Ford Edge and Lincoln MKX and new Ford Fiesta in North America, a redesigned Ford C-MAX and new Ford Grand C-MAX in Europe, and the new Ford Figo in India. Our strong product line-up helped us increase our full year pre-tax operating profits in every region of the world, and gain market share in many countries.

For the full year, Ford had its first back-to-back market share increase in the United States since 1993, and the largest sales percentage increase of any full-line automaker. In Canada, Ford finished 2010 as the best-selling automaker for the first time in more than 50 years. Ford sales increased by 32 percent in China in 2010 and by 168 percent in India.

The wave of new products will continue in 2011 as we launch the new global Ford Focus in North America, Europe and Asia Pacific Africa. The Ford Focus Electric will go on sale in North America later in the year. The new global Ford Ranger also will hit markets in Asia Pacific Africa and Europe this year.

Looking further down the road, we also announced more than $9 billion in global investments for future growth, including: $4.5 billion in North and South America; $2.9 billion in Europe;and $1.7 billion in Asia Pacific Africa. At the same time, we sharpened our focus on our key brands, completing the sale of Volvo Car Corporation in August and discontinuing the Mercury brand in the fourth quarter. This will enable us to fully devote our resources to growing our core Ford brand while enhancing and strengthening our Lincoln luxury brand.

Our 2010 full year net income of $6.6 billion, or $1.66 per share, was an increase of $3.8 billion, or 80 cents per share, over 2009. For the full year, excluding special items, which are detailed on page 31, our pre-tax operating profit was $8.3 billion, an increase of $8.3 billion from a year ago. This increase reflects the profits made in every region of the world, led by strong performance in North America.

The progress we made improving our core Automotive business worldwide allowed us to significantly strengthen our balance sheet in 2010, even as we made substantial investments in our future. During 2010, we reduced Automotive debt by $14.5 billion, a 43 percent reduction. In addition, in March 2011 we reduced Automotive debt by an additional $3 billion related to the Trust Preferred securities. In total, those actions will lower ongoing annualized interest expense by about $1.2 billion.

The company finished the year with Automotive gross cash exceeding debt by $1.4 billion, an improvement of $10.1 billion from year end 2009. We ended 2010 with $20.5 billion of Automotive gross cash.

Ford Credit’s pre-tax operating profit of $3.1 billion, an improvement of more than $1 billion over last year, also contributed significantly to our full year results.

Along with improvements in our operating results, we continue to make significant progress on issues that impact the world around us, such as fuel economy and CO2 emissions. We have committed that all new or significantly refreshed vehicles will be best in class, or among the best in class, for fuel economy in their segment.

We continue to introduce fuel-saving technologies across a wide range of vehicles. In 2011 we will expand the availability of our fuel efficient EcoBoost family of engines by offering them in additional vehicles and markets around the world, including the 2011 F-150 in North America.

Last year we began delivering Ford Transit Connect commercial vans powered by lithium ion batteries to fleet customers. Later this year we will begin selling the Ford Focus Electric, a lithium ion all-electric powered car, to the general public. Two next-generation hybrid electric vehicles and a plug-in hybrid electric vehicle using advanced lithium ion batteries also will be available in 2012.

We are offering a range of electrified vehicles because we recognize our customers will have a range of needs that can’t be satisfied by one single solution. To make these vehicles as affordable as possible we are building them on our highest volume global platforms. We want to do everything we can to make it easier for our customers to begin using this fuel-saving, emissions-reducing technology.

Our contributions to a better world in 2010 also included the ongoing efforts of Ford Motor Company Fund and Community Services, our philanthropic organization, which supports non-profit organizations in three major areas: innovation and education, community development and American legacy, and auto-related safety education.

Ford employees around the world also were actively engaged in making a positive difference throughout the year. Our Ford Volunteer Corps, which was established in 2005, encourages salaried employees to take two work days per year to serve as volunteers. Last year some 27,000 Ford employees and retirees volunteered more than 112,000 hours to help people in their local communities.

We expect continued improvement in 2011, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of the Company. As the U.S economy continues to recover, we anticipate U.S. industry sales volumes will increase from 11.8 million units in 2010 to somewhere in the range of 13 million to 13.5 million units this year. We also expect to see strong growth in emerging markets such as China, India, Brazil and Turkey, which will offer us significant sales volume opportunities.

As we move forward we will continue to focus on delivering the key aspects of our One Ford plan, which are unchanged:

• Aggressively restructure to operate profitably at the current demand and the changing model mix;
• Accelerate development of new products our customers want and value;
• Finance our plan and improve our balance sheet; and
• Work together effectively as one team, leveraging our global assets.

We plan to build on our performance in 2010 with continued improvement in total company pre-tax operating profit, excluding special items, and Automotive operatingrelated cash flow in 2011. On a full year basis, we expect each of our operations to be profitable. In addition, our Automotive operating margin* is expected to be equal to or improved from the 6.1% achieved in 2010. We also expect solid profitability for Ford Credit in 2011, although at a lower level than 2010.

*Defined as Automotive pre-tax profits, excluding special items and excluding Other Automotive (consisting primarily of net interest expense), divided by Automotive revenue.

We achieved great success as we rebuilt our company in extremely challenging economic conditions. Now we are eager to show the world what a revitalized Ford Motor Company can accomplish in a growing global economy. We are one team with one plan and one goal: to continue serving our global customers with a full family of best-in-class products and delivering profitable growth for all associated with Ford.

As always, we thank you for your support of our efforts.

- Alan Mulally, President and CEO, Ford Motor Company