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Aggressively Restructure to Operate Profitably at the Current Demand and Changing Model Mix

Facility Closures

When the decision is made to close a facility, we take an active role in returning the property to productive use that will benefit the community. Ford wants to leave a positive legacy in the communities in which we have operated, and we are therefore committed to handling our environmental responsibilities and working with municipal leaders to ensure a smooth and successful transition to a new use.

Our first step is to assess and address any possible environmental issues on the property. The goal of our environmental assessment is to understand the environmental condition of the site and the actions needed to ensure that future use of the site will not pose any risk to human health or the environment. This assessment includes at least three steps. First, we survey all regulated materials that have been used or stored on the site during its use by Ford. Next, we review the documented history of the site's use to understand all possible areas that could have experienced environmental impacts. Finally, if necessary, we physically test areas on the site that we suspect may have faced environmental impacts based on our previous assessments. If any environmental issues are discovered, properties are cleaned up to the standard appropriate for its future use, whether industrial, commercial or residential. In some cases, Ford conducts any needed cleanup; in others, the purchaser of the property will perform the remediation. In certain instances, environmental monitoring of the property will take place even after redevelopment.

We also undertake extensive communications with community leaders, citizens and real estate partners to understand potential future uses for the property and the community's goals for the property. In some cases, Ford redevelops the property itself, but more often it seeks a well-qualified developer to buy and convert it. Some properties remain in industrial use. In other cases, the surrounding communities have changed since the plant opened, and new uses, such as retail, commercial or residential, are possible and desirable. In determining the future use of a site, Ford takes into account the environmental conditions, the community's needs – which often include a strong tax base – and the financial return. Ford has a corporate responsibility to maximize returns to our shareholders in the disposition of our properties. However, we always work with the community to see the property redeveloped into a productive and beneficial use. For example, Ford's Twin Cities Assembly Plant in Saint Paul, Minnesota, will be idled in 2009. The 143-acre site, located near the Minneapolis/Saint Paul International airport, overlooks the Mississippi River, and is surrounded by vibrant neighborhoods.

The city has convened a task force that includes community and Ford representatives and is facilitated by consultants experienced in community "visioning" projects. The task force's mission is to craft redevelopment scenarios for the city to weigh as it decides on new zoning for the property. The goal is to have a plan in place before the plant's scheduled shutdown.