2nd Quarter & Interim Results

Ford Motor Co
19 July 2000

Contact:  Media Inquiries     Securities Analysts   Shareholder Inquiries
          Karen Hampton       Mike Holland          800-555-5259 or
          313-594-4410        313-323-8221          313-845-8540

Ford earns $2.7 billion before charges in second quarter 
17th Consecutive Quarter Of Operating Earnings Improvement New Records For
Operating Profits, Revenues And Vehicle Sales 

DEARBORN, Mich., July 19, 2000 -- Ford Motor Company (NYSE: F) posted its 17th
consecutive quarter of improved operating earnings in the second quarter with a
record $2.7 billion, or $2.20 per diluted share of common or Class B stock, up
10 percent. The results compare with second quarter operating earnings in 1999
of $2.48 billion, or $2.00 per diluted share. 

As previously announced, Ford posted after-tax one-time charges in the second
quarter for asset impairments and restructuring costs in Europe totaling $1
billion (83 cents per share) and the spin-off of Visteon totaling $2.3 billion
($1.84 per share). Including these charges, Ford's after-tax net result was a
loss of $577 million, or 47 cents per share. During the same period in 1999,
Ford took an after-tax one-time charge of $146 million, or 11 cents a share,
related to the acquisition of Volvo Car. Including this charge, Ford's second
quarter 1999 net income totaled $2.34 billion or $1.89 a share. 

Second-quarter revenues were a record $44.5 billion, up 6 percent from $41.9
billion in the second quarter of 1999. 

'A strong overall product lineup and new hit products are driving our strong
operating earnings momentum,' said Jac Nasser, Ford Motor Company president and
chief executive officer. 'In addition, we are accelerating the transformation of
Ford Motor Company, evidenced by the deployment of consumer-driven Six Sigma,
our many e-business initiatives, our purchase of Land Rover, the difficult but
decisive actions in Europe and the spin-off of Visteon Corporation.' 

On June 28, Visteon Corporation (NYSE: VC) became an independent company through
a 100 percent distribution of Visteon stock to Ford shareholders. Visteon's
second quarter earnings were reported separately yesterday and are included in
Ford Motor Company's overall results as a discontinued operation, but excluded
from the company's automotive results. 

AUTOMOTIVE OPERATIONS
Ford Motor Company's worldwide automotive operating earnings were $2.1 billion
in the second quarter, up 15 percent from the same period a year ago. Worldwide
automotive revenues in the second quarter were $37.4 billion, up 5 percent
compared with a year ago. Operating after-tax return on sales (ROS) was 5.6
percent, up half a point from last year's second quarter. 

Worldwide vehicle unit sales were a record 1.99 million, compared with 1.93
million a year ago. Automotive cash was a record $25.6 billion at the end of the
quarter, up $3.2 billion from the same period last year, excluding Visteon. Net
cash was $14.8 billion, up $3.5 billion from a year ago. 

North America: Automotive operations in North America earned an operating record
$1.8 billion in the second quarter of 2000, up $127 million from the same period
a year ago. After-tax ROS was 6.7 percent. 

Total Ford Motor Company factory unit sales in the United States during the
second quarter were up 5 percent from the same period a year ago to a record
1.19 million units. The strong sales pace was aided by the continued strong
performance of the Ford Focus, Ford F-Series, Ford Explorer, Ford Expedition,
Lincoln LS, Jaguar S-Type, Volvo S40 and Volvo V70. 

Overseas Operations: Second quarter automotive operating earnings in Ford Motor
Company's overseas operations, including Europe, South America and Asia-Pacific,
totaled $228 million, up $147 million from the same period a year ago. 

Excluding one-time charges, automotive operating earnings in Europe in the
second quarter were $156 million, compared with $206 million in the same period
a year ago. 

'With our plan in place to improve efficiency, reduce capacity and fixed costs,
and accelerate our product offensive with 45 significant new products over the
next five years, we are confident our European operations are driving toward
sustained profitable growth,' said Nasser. 

FORD CREDIT: Ford Credit earned $388 million in the second quarter, up 16
percent from the second quarter of 1999. Return on equity was 13.4 percent, up
1.1 percentage points from a year ago. 

HERTZ: On July 14, the Hertz Corporation (NYSE: HRZ) announced record earnings
of $104 million in the second quarter, up 18 percent. Ford Motor Company's share
of Hertz' second quarter earnings was $84 million. 

DELIVERING SHAREHOLDER VALUE: 'We have laid the groundwork for continued growth
and success with our consumer focus, major product initiatives and restructuring
actions,' said Nasser. 'This along with our strong earnings and cash flow
momentum will allow the Company to continue to reward its shareholders.' 

In August, Ford Motor Company shareholders will vote on the company's Value
Enhancement Plan (VEP). Under the VEP, Ford shareholders will exchange their
current Ford common or Class B shares for new common or Class B shares, plus
additional new Ford shares or cash up to $10 billion total. 


Ford Motor Company and Subsidiaries 

                                  HIGHLIGHTS 

                      Second Quarter                First Half 
                     2000        1999      2000        1999      
                        (unaudited)           (unaudited)
Worldwide vehicle unit sales of cars and trucks (in thousands)                  
       
- North America      1,304         1,237        2,613         2,457      
- Outside North 
  America              687           691        1,289         1,246      
          Total      1,991         1,928        3,902         3,703      

Sales and revenues (in millions)                          

- Automotive      $ 37,366      $ 35,546      $ 73,541      $ 67,143      
- Financial 
  Services           7,153         6,361        13,872        12,313      
       Total      $ 44,519      $ 41,907      $ 87,413      $ 79,456      

Net income (loss) (in millions)                          

- Automotive      $ 1,052        $ 1,651      $ 2,604      $ 3,097      
- Financial Services  461            407          841          735      
Income from continuing 
  operations        1,513          2,058        3,445        3,832      
- Discontinued 
   operation (Visteon)162            280          309          485      
- Loss on spin-off 
   of Visteon      (2,252)        -          (2,252)        -      
        Total      $ (577)        $ 2,338      $ 1,502      $ 4,317      

Capital expenditures (in millions)                          

- Automotive      $ 1,453      $ 1,566        $ 2,952      $ 2,709      
- Financial Services  158          140            464          284      
       Total      $ 1,611      $ 1,706        $ 3,416      $ 2,993      

Automotive capital expenditures as a                          
percentage of sales   3.9%         4.4%           4.0%         4.0%      

Stockholders' equity at June 30                          

- Total (in 
  millions)      $ 24,643      $ 26,327      $ 24,643      $ 26,327      
- Annualized after-tax return on Common                          
   and Class B 
   stockholders' 
   equity            26.6%       38.7%          22.0%         35.0%      
                         
Automotive net cash at June 30                          
(in millions)                          

- Cash and marketable 
  securities      $ 25,557      $ 22,395      $ 25,557      $ 22,395      
- Debt              10,804        11,177        10,804        11,177      
Automotive 
 net cash         $ 14,753      $ 11,218      $ 14,753      $ 11,218      
                         
After-tax return on sales                          

- North American 
   Automotive         6.7%           6.7%          6.4%         6.2%      
- Total Automotive    2.9%           4.7%          3.6%         4.7%      
                         
Shares of Common and Class B Stock                          
(in millions)                          
- Average number 
  outstanding        1,205         1,211          1,206        1,211      
- Number outstanding 
  at June 30         1,205         1,210          1,205        1,210      
                         
Common Stock price (per share)                          
(adjusted to reflect Visteon spin-off)                          

- High                  $55        $65-1/4            $55     $65-1/4      
- Low                40-3/8         50-1/2         39-3/8      50-1/2      
                         
AMOUNTS PER SHARE OF COMMON                          
AND CLASS B STOCK AFTER                          
PREFERRED STOCK DIVIDENDS                          

Income assuming dilution                          
- Automotive            $ 0.86        $ 1.33        $ 2.12      $ 2.50      
- Financial Services      0.38          0.33          0.69        0.59      
         Subtotal         1.24          1.66          2.81        3.09      
- Discontinued 
operation (Visteon)       0.13          0.23          0.25        0.39      
- Loss on spin-off 
of Visteon               (1.84)         -            (1.84)      -      
         Total         $ (0.47)       $ 1.89        $ 1.22      $ 3.48      

Cash dividends          $ 0.50        $ 0.46        $ 1.00      $ 0.92      
                         
Ford Motor Company and Subsidiaries 

                              VEHICLE UNIT SALES 
                    For the Periods Ended June 30, 2000 and 1999 
                                 (in thousands) 

                     Second Quarter                     First Half              
                 2000            1999           2000                  1999      
                                                       
North America                                                        
United States                                                       

Cars            445                 448           925                    852    

Trucks          742                 679         1,464                  1,419    

Total United 
  States      1,187               1,127         2,389                  2,271    

                                                       
Canada           80                  80           159                   137     
Mexico           37                  30            65                    49     
                                                       
    Total North 
     America  1,304               1,237         2,613                 2,457     
                                                       
Europe                                                        
Britain         139                 136           254                   262     

Germany          83                 111           174                   201     

Italy            58                  61           107                   111     

Spain            54                  54            94                    97     

France           41                  53            83                    91     

Other countries 168                 154           308                   253     

Total Europe    543                 569         1,020                 1,015     

Other international                                                        
Brazil           35                  34            63                    56     
Australia        37                  33            61                    64     
Taiwan           19                  15            41                    32     
Argentina        12                  14            27                    29     
Japan             8                   9            17                    16     
Other countries  33                  17            60                    34     
                                                       
  Total other 
   international 144                122           269                   231     
                                                       
  Total worldwide vehicle unit 
   sales       1,991              1,928         3,902                 3,703     

Vehicle unit sales generally are reported worldwide on a 'where sold' basis and
include sales of all Ford-badged units, as well as units manufactured by Ford
and sold to other manufacturers.

Ford Motor Company and Subsidiaries 

                         CONSOLIDATED STATEMENT OF INCOME 
                  For the Periods Ended June 30, 2000 and 1999 
                                 (in millions) 
                 Second Quarter                                  First Half
           2000                     1999                     2000         1999 
                  (unaudited)                                   (unaudited)     
     
AUTOMOTIVE                                                        
Sales      $37,366                $35,546                     $73,541   $67,143 
                                                       
Costs and expenses (Notes 5 & 6)                                                
       
Costs of 
 sales      33,515                 30,796                      65,093    58,533 
Selling, 
administrative 
and other 
expenses     2,458                  2,296                       4,723     4,073 
Total costs 
and expenses35,973                 33,092                      69,816    62,606 
                                                       
Operating 
income       1,393                  2,454                       3,725     4,537 
                                                       
Interest 
income         389                    346                         757       685 
Interest 
expense        327                    337                         645       622 
Net interest 
income          62                      9                         112        63 
Equity in net 
income (loss) 
of affiliated 
companies       29                    (12)                         (3)       22 

Net revenue (expense) from transactions with                                   
Financial 
Services        20                    (17)                         10      (45) 
Income before 
income taxes - 
Automotive   1,504                  2,434                       3,844    4,577 

FINANCIAL SERVICES                                                        
Revenues     7,153                  6,361                      13,872   12,313 

Costs and expenses                                                        
Interest 
expense      2,311                  1,825                       4,524    3,713 
Depreciation 2,398                  2,391                       4,606    4,548 
Operating and 
other 
expenses     1,249                  1,101                       2,460    2,098 
Provision 
for credit 
and insurance 
losses         411                    372                         865      763 
Total costs 
and 
expenses     6,369                  5,689                      12,455   11,122 
Net revenue (expense) from transactions with                                    
                   
Automotive     (20)                    17                         (10)     45 
Income before 
income taxes - 
Financial 
Services       764                    689                       1,407   1,236 

TOTAL COMPANY                                                        
Income before 
income taxes 2,268                  3,123                       5,251   5,813 
Provision for 
income taxes   728                  1,034                       1,750   1,927 
Income before 
minority 
interests    1,540                  2,089                       3,501   3,886 
Minority 
interests 
in net 
income of 
subsidiaries    27                     31                         56      54 
Net income 
from 
continuing 
operations   1,513                  2,058                      3,445    3,832 
Net income 
from 
discontinued 
operation 
(Note 2)       162                    280                        309     485 
Loss on 
spin-off of 
discontinued 
operation 
(Note 2)     2,252                   -                         2,252      - 
Net income 
(loss)     $ (577)                 $ 2,338                   $ 1,502  $ 4,317 

Income (loss) attributable to Common and Class B                               
Stock after preferred stock 
dividends  $ (580)                 $ 2,335                   $ 1,495  $ 4,310 
Average number of shares of Common and Class B                                 
Stock 
outstanding 1,205                    1,211                     1,206    1,211 

AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK                                   
                    
Basic Income (Note 10)                                                        
Net income 
(loss) from 
continuing 
operations  $ 1.26                  $ 1.70                   $ 2.87   $ 3.17 
Net income 
(loss)       (0.48)                   1.93                     1.25     3.57 

Diluted Income (Note 10)                                                        

Net income 
(loss) from 
continuing 
operations  $ 1.24                  $ 1.66                  $ 2.81    $ 3.09 
Net income 
(loss)       (0.47)                   1.89                    1.22      3.48 
Cash 
dividends   $ 0.50                  $ 0.46                  $ 1.00    $ 0.92 

The accompanying notes are part of the financial statements. 

Ford Motor Company and Subsidiaries 

                         CONSOLIDATED BALANCE SHEET
                                (in millions)
                       June 30,  December 31, 
                         2000       1999 
                      (unaudited)     

ASSETS          
Automotive          
Cash and cash 
equivalents             $ 6,989     $ 2,793
Marketable securities     18,568     18,943
Total cash and 
marketable securities     25,557     21,736
          
Receivables                3,897     5,267
Inventories (Note 7)       6,251     5,684
Deferred income taxes      2,886     3,762
Other current assets       5,022     3,831
Current receivable 
from Financial Services    1,869     2,304
Total current assets      45,482    42,584
          
Equity in net assets of 
affiliated companies 
(Note 3)                   5,349     2,539
Net property              34,677    36,528
Deferred income taxes      3,587     2,454
Net assets of discontinued 
operation (Note 2)          -        1,566
Other assets              12,262    13,530
Total Automotive assets  101,357    99,201
          
Financial Services          
Cash and cash equivalents  1,675     1,588
Investments in securities    582       733
Finance receivables, net  121,217  113,298
Net investment in operating 
leases                     46,385   42,471
Other assets               10,919   11,123
Receivable from Automotive  2,445    1,835
Total Financial Services 
assets                    183,223  171,048
Total assets             $284,580 $270,249
          
LIABILITIES AND STOCKHOLDERS' EQUITY          
Automotive          
Trade payables           $ 14,840  $ 14,292
Other payables              3,933     3,778
Accrued liabilities        21,372    18,488
Income taxes payable        2,240     1,709
Debt payable within one year  862     1,338
Total current liabilities  43,247    39,605
          
Long-term debt              9,942    10,398
Other liabilities          31,906    29,283
Deferred income taxes         684     1,223
Payable to Financial 
Services                    2,445     1,835
Total Automotive 
liabilities                88,224    82,344
          
Financial Services          
Payables                    5,054     3,550
Debt                      149,063   139,919
Deferred income taxes       8,137     7,078
Other liabilities and 
deferred income             6,916     6,775
Payable to Automotive       1,869     2,304
Total Financial Services 
liabilities               171,039   159,626
          
Company-obligated mandatorily redeemable preferred securities of a subsidiary  
trust holding solely junior subordinated debentures of the Company (Note 8)     
                             674       675
          
Stockholders' equity          
Capital stock          
Preferred Stock, par value $1.00 per share (aggregate liquidation preference   
of $177 million)                *        *
Common Stock, par value 
$1.00 per share 
(1,151 million shares 
issued)                     1,151     1,151
Class B Stock, par value 
$1.00 per share 
(71 million shares issued)     71        71
Capital in excess of par 
value of stock              4,936     5,049
Accumulated other 
comprehensive income       (2,934)   (1,856)
ESOP loan and treasury 
stock                      (1,404)   (1,417)
Earnings retained for 
use in business            22,823    24,606
Total stockholders' 
equity                     24,643    27,604
          
Total liabilities and 
stockholders' equity     $284,580  $270,249
- - - -
*Less than $1 million

The accompanying notes are part of the financial statements.
Visteon is reflected as a discontinued operation (Note 2)

Ford Motor Company and Subsidiaries

               CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
               For the Periods Ended June 30, 2000 and 1999
                                (in millions)
                        First Half 2000                First Half 1999          
                                     Financial                       Financial
                  Automotive          Services     Automotive          Services
                           (unaudited)                      (unaudited)         
          
Cash and cash 
equivalents at 
January 1               $ 2,793          $ 1,588     $ 3,143          $ 1,151
                              
Cash flows from 
operating activities 
before securities trading 9,181            9,466       8,572            4,074
Net sales (purchases) of 
trading securities          419               60         762              (86)
Net cash flows from 
operating activities      9,600            9,526       9,334            3,988
                              
Cash flows from investing activities                              
Capital expenditures     (2,952)            (464)     (2,709)            (284)
Acquisitions of 
receivables and 
lease investments          -             (44,986)     -               (39,237)
Collections of 
receivables and 
lease investments          -              22,211     -                 25,292
Net acquisitions of 
daily rental vehicles      -              (2,469)    -                 (1,901) 
Purchases of securities   (2,261)           (302)     (878)              (533) 
Sales and maturities of 
securities                 2,217             312       669                609
Proceeds from sales of 
receivables and 
lease investments          -               7,704        -               5,005
Net investing activity 
with Financial Services      45             -         (100)            -
Cash paid for acquisitions 
(Note 3)                 (2,060)             (76)     (5,834)          -
Other                      -                 190         (57)             (6)
Net cash used in 
investing activities     (5,011)          (17,880)     (8,909)       (11,055)
                              
Cash flows from financing activities                              
Cash dividends           (1,578)             -         (1,122)          (2)
Issuance (purchases) of 
Common Stock               (192)             -           (246)          -
Changes in short-term debt (707)           (5,588)         84        6,263
Proceeds from issuance of 
other debt                  205            22,321       1,619       13,874 
Principal payments on 
other debt                 (424)           (7,574)       (117)     (13,596)
Net debt repayments (new debt) 
with discontinued operations650              -           (961)          -
Net cash distribution (to) 
from discontinued 
operations                  (85)             -            232          -
Net financing activity with 
Automotive                   -               (45)         -            100 
Other                       694              517          539          (26)
Net cash (used in)/provided 
by financing activities  (1,437)           9,631           28         6,613
                              
Effect of exchange rate 
changes on cash              (1)            (145)         (43)          (187)
Net transactions with 
Automotive/Financial 
Services                  1,045           (1,045)        (717)           717
                              
Net increase (decrease) 
in cash and cash 
equivalents               4,196               87         (307)            76
                              
Cash and cash equivalents 
at June 30              $ 6,989          $ 1,675      $ 2,836          $ 1,227

Visteon is reflected as a discontinued operation (Note 2)

The accompanying notes are part of the financial statements.

Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
(unaudited)

1. Financial Statements - The financial data presented herein are unaudited, but
in the opinion of management reflect those adjustments necessary for a fair
presentation of such information. Results for interim periods should not be
considered indicative of results for a full year. Reference should be made to
the financial statements contained in the registrant's Annual Report on Form
10-K (the '10-K Report') for the year ended December 31, 1999. For purposes of
Notes to Financial Statements, 'Ford' or the 'Company' means Ford Motor Company
and its majority owned subsidiaries unless the context requires otherwise.
Certain amounts for prior periods were reclassified to conform with present
period presentation.

2. Discontinued Operation - On April 12, 2000, the Ford Board of Directors
approved a plan for the complete separation of Visteon Corporation from Ford by
means of a tax-free spin-off in the form of a dividend on Ford Common and Class
B Stock consisting of all shares of Visteon common stock. On June 28, 2000, Ford
distributed 130 million shares of Visteon, which represented its 100% ownership
interest, to Ford Common and Class B shareholders. 


Holders of Ford Common and Class B Stock on the record date received 0.130933
shares of Visteon common stock for each share of Ford stock, and participants in
US employee savings plans on the record date received $1.72 in cash per share of
Ford stock, based on the volume-weighted average price of Visteon stock of
$13.1326 per share on June 28, 2000. The total value of the distribution
(including the $365 million cash dividend) was $2.1 billion or $1.72 per diluted
share of Ford stock.

As a result of the spin-off of Visteon, Ford recorded an after-tax loss of $2.3
billion. This represents the excess of the carrying value of Ford's net
investment in Visteon over the market value of Visteon on the distribution date.
Our financial statements have been restated to reflect Visteon as a
'discontinued operation' for all periods shown. The balance sheet at June 30
2000 no longer includes Visteon.  

Sales and selected income data for Visteon were (in millions):

                     Second Quarter             First Half           
                   2000         1999        2000           1999 
                              

Sales to Ford     $4,571       $4,614     $ 9,047          $8,969
Sales to non-Ford 
customers            738          449     1,487               866
Total Sales       $5,309       $5,063   $10,534            $9,835
                              
Income before 
income taxes       $ 266        $ 449     $ 503             $ 762
Provision for 
income taxes         (96)        (164)     (182)             (276)
Minority interest in net income of                               
subsidiaries          (8)          (5)     (12)               (1)
Net income         $ 162          $ 280     $ 309           $ 485
                              
3. Purchase of BMW's Land Rover business - On June 30, 2000, we purchased the
Land Rover business from the BMW Group for a purchase price of approximately 2.8
billion euros. Approximately two-thirds of the purchase price (equivalent of
$1.9 billion at June 30) was paid at time of closing. The remainder will be paid
in 2005. The acquisition involves the entire Land Rover line of products, and
related assembly and engineering facilities. It does not include Rover's
passenger car business or financial services business. 

The acquisition will be accounted for as a purchase. The assets purchased,
liabilities assumed and the results of operations of Land Rover will be included
in our financial statements on a consolidated basis beginning in the third
quarter of 2000. Our investment in Land Rover at June 30, 2000 is included in
Equity in net assets of affiliated companies. 

Ford Motor Company and Subsidiaries

NOTES TO FINANCIAL STATEMENTS
(unaudited)

4. Value Enhancement Plan - In April, 2000, our Board of Directors approved in
principle a recapitalization of the Company, known as the Value Enhancement
Plan. The recapitalization will be effected through the merger of Ford Value
Corporation, a wholly owned subsidiary of the Company, with and into the Company
pursuant to a Recapitalization Agreement and Plan of Merger, dated as of June
27, 2000 (the 'Agreement'). On June 27, 2000, our Board of Directors approved
the Agreement. The recapitalization is subject to shareholder approval;
shareholders of record on June 27, 2000 will be eligible to vote on the
recapitalization at a special meeting of shareholders scheduled for August 2,
2000.

In the recapitalization, holders of the Company's Common and Class B Stock will
exchange each share of Common or Class B Stock for one share of a new class of
Common or Class B Stock (depending on the class owned before the
recapitalization) and, at the holders' option, one of the following: (1) $20 in
cash, subject to adjustment, (2) a fraction of a share of a new class of common
stock with a value of $20, calculated as provided in the Agreement, or (3) a
combination of cash and a new class of common stock, with an aggregate value of
$20, also calculated as provided in the Agreement, with the relative cash and
stock portions determined pursuant to a formula intended to result in a
stockholder maintaining approximately 99% of his or her percentage ownership
interest in the Company. The total cash distributed in the recapitalization will
be limited to $10 billion.

5. Selected Automotive costs and expenses are summarized as follows (in
millions):

                   Second Quarter               First Half          
                 2000          1999        2000          1999
Depreciation     $718          $668      $1,412          $1,284
Amortization      628           572       1,202           1,133

6. European Charges - Following an extensive business review of the Ford Brand
operations in Europe, the Company recorded a pre-tax charge in Automotive cost
of sales of $1,568 million in the second quarter of 2000. This charge included
$1.1 billion for asset impairments and $468 million for restructuring costs. 
The effect on after-tax earnings was $1,019 million.

The asset impairment charge, attributable to excess capacity related to Ford's
performance in the competitive and regulatory environment in Europe, reflected
the write-down of certain long-lived assets from their carrying value to their
estimated fair value, as determined by an independent valuation of Automotive
Ford Brand operations in Europe.

The restructuring charge included separation costs of $426 million and other
exit-related costs of $42 million. Separation includes a workforce reduction of
about 3,300 employees (2,900 hourly and 400 salaried) related to the planned
cessation of vehicle production at the Dagenham (U.K.) Body and Assembly Plant,
which will occur in two phases (in the third quarter 2000 and by first quarter
2002).

7. Automotive Inventories are summarized as follows (in millions):
                    June 30,     December 31,     
                     2000            1999      
Raw materials, 
work in process 
and supplies         $2,159     $2,035     
Finished products     4,092      3,649     
Total inventories    $6,251     $5,684     
               
U.S. inventories     $1,944     $1,811     

8. Company-Obligated Mandatorily Redeemable Preferred Securities of a Subsidiary
Trust - The sole asset of Ford Motor Company Capital Trust I (the 'Trust'),
which is the obligor on the Preferred Securities of such Trust, is $632 million
principal amount of 9% Junior Subordinated Debentures due 2025 of Ford Motor
Company.

Ford Motor Company and Subsidiaries

NOTES TO FINANCIAL STATEMENTS
(unaudited)

9. Comprehensive Income - Other comprehensive income includes foreign currency
translation adjustments, minimum pension liability adjustments, and net
unrealized gains and losses on investments in equity securities. Total
comprehensive income is summarized as follows (in millions):

                               Second Quarter               First Half          
                              2000           1999        2000          1999

Net income (loss)           $ (577)          $2,338     $ 1,502       $ 4,317
Other comprehensive income     (481)          (335)     (1,078)          (443)
Total comprehensive income  $(1,058)         $2,003      $ 424        $ 3,874

Effective January 1, 2000, the functional currency for Ford's automotive
operations in Brazil was changed from the U.S. dollar to the Brazilian real in
recognition of the primary currency of the environment in which Ford will
operate. The lower translated value of fixed assets and inventories in the first
quarter reduced other comprehensive income by about $350 million.

10. Income (loss) Per Share of Common and Class B Stock - Basic income per share
of Common and Class B Stock is calculated by dividing the income attributable to
Common and Class B Stock by the average number of shares of Common and Class B
Stock outstanding during the applicable period, adjusted for shares issuable
under employee savings and compensation plans.

The calculation of diluted income per share of Common and Class B Stock takes
into account the effect of dilutive potential common stock, such as stock
options. 

Income (loss) per share of Common and Class B Stock was as follows (in millions,
except per share amounts):

                      Second Quarter 2000               Second Quarter 1999     
    
                            Income          Shares     Income          Shares
                              
Net income from continuing 
operations                  $1,513          1,205     $2,058          1,211
Preferred stock dividend 
requirements                    (3)            -          (3)          -
Issuable and uncommitted ESOP
 shares                       -                (9)      -                (3)
Basic income and shares from 
continuing operations       $1,510          1,196     $2,055          1,208
                              
Basic income per share from 
continuing operations       $ 1.26                    $ 1.70          
Basic income per share 
from discontinued operation   0.14                      0.23          
Basic loss per share on 
spin-off of discontinued 
operation                    (1.88)                      -          
Basic income (loss) per 
share                       $(0.48)                   $ 1.93          
                              
Basic income and shares from 
continuing operations       $1,510          1,196     $2,055          1,208
Net dilutive effect of 
options                        -               26       -                29
Diluted income and shares 
from continuing operations  $1,510          1,222     $2,055          1,237
                              
Diluted income per share 
from continuing operations  $ 1.24                    $ 1.66          
Diluted income per share 
from discontinued operation   0.13                      0.23          
Diluted loss per share on 
spin-off of discontinued 
operation                    (1.84)                      -          
Diluted income (loss) 
per share                   $(0.47)                   $ 1.89          

                              First Half 2000               First Half 1999     
                            Income          Shares     Income          Shares
                              
Net income from continuing 
operations                     $3,445          1,206     $3,832          1,211
Preferred stock dividend 
requirements                       (7)           -           (7)          -
Issuable and uncommitted ESOP
 shares                          -                (8)       -               (4)
Basic income and shares 
from continuing operations     $3,438          1,198     $3,825          1,207
                              
Basic income per share from 
continuing operations          $ 2.87                    $ 3.17          
Basic income per share from 
discontinued operation           0.26                      0.40          
Basic loss per share on 
spin-off of discontinued 
operation                       (1.88)                       -           
Basic income per share         $ 1.25                    $ 3.57          
                              
Basic income and shares from 
continuing operations          $3,438          1,198     $3,825          1,207
Net dilutive effect of options     -              25       -                30
Diluted income and shares from
 continuing operations         $3,438          1,223     $3,825          1,237
                              
Diluted income per share from 
continuing operations          $ 2.81                    $ 3.09          
Diluted income per share from 
discontinued operation           0.25                      0.39          
Diluted loss per share on 
spin-off of discontinued 
operation                       (1.84)                      -          
Diluted income per share       $ 1.22                    $ 3.48          

Ford Motor Company and Subsidiaries

NOTES TO FINANCIAL STATEMENTS
(unaudited)

11. Segment Information Ford's business is divided into two business sectors
Automotive and Financial Services (including Ford Credit and Hertz); detail is
summarized as follows (in millions):

                Financial Services Sector                              
Second      Auto     Ford                          Other        Elims/ 
Quarter     Sector   Credit          Hertz         Fin Svcs     Other    Total
                                        
2000                                        
Revenues                                        
External 
customer $ 37,366     $ 5,778          $ 1,271          $ 84     $ 20  $ 44,519
Intersegment1,338          41                7            62   (1,448)     -
Total 
Revenues $ 38,704     $ 5,819          $ 1,278         $ 146  $(1,428) $ 44,519
Net income from 
continuing                                        
operations$ 1,052       $ 388            $ 104         $ (18)   $ (13) $  1,513
                                        
1999                                        
Revenues                                        
External 
customer $ 35,546     $ 4,961          $ 1,162          $ 247   $ (9)  $ 41,907
Intersegment1,398          58                8             46 (1,510)      -
Total 
Revenues $ 36,944     $ 5,019          $ 1,170          $ 293 (1,519)  $ 41,907
Net income from 
continuing                                         
operations$ 1,651      $ 335              $ 88            $ 2 $ (18)    $ 2,058
                                        

                               Financial Services Sector                        
     
First     Auto      Ford                           Other        Elims/     
Half     Sector     Credit          Hertz          Fin Svcs     Other     Total
                                        
2000                                        
Revenues                                        
External 
customer$ 73,541     $ 11,269      $ 2,402          $ 182     $ 19     $ 87,413
Inter-
segment    2,49      6     80           15            104   (2,695)        -
Total 
Revenues$ 76,037     $ 11,349      $ 2,417          $ 286  $(2,676)    $ 87,413
Net income from continuing                                         
operations$ 2,604       $ 741        $ 160          $ (29)   $ (31)     $ 3,445
                                        
Total 
assets   $104,363    $167,821      $11,451         $8,002  $(7,057)    $284,580
                                        
1999                                        
Revenues                                        
External 
customer $ 67,143     $ 9,824      $ 2,189          $ 303     $ (3)    $ 79,456
Inter-
segment     2,467         115           16             93   (2,691)        -
Total 
Revenues $ 69,610     $ 9,939      $ 2,205          $ 396  $(2,694)   $ 79,456
Net income from continuing                                         
operations$ 3,097       $ 635        $ 137          $ (10)   $ (27)    $ 3,832
                                        
Total 
assets a/$ 96,843     $147,996     $10,123          $7,684 $(6,481)   $256,165
- - - - -

a/ Net assets of discontinued operation of $1,938 as of June 30, 1999 is
included in Auto Sector total assets. 

'Other Financial Services' data is an aggregation of miscellaneous smaller
Financial Services Sector business components, including Ford Motor Land
Development Corporation, Ford Leasing Development Company, Ford Leasing
Corporation and Granite Management Corporation.

'Eliminations/Other' data includes intersegment eliminations and minority
interests. Interest income for the operating segments in the Financial Services
Sector is reported as 'Revenue'.