Conversion Offfer Commenced

Ford Motor Co
02 July 2007


Contact:

 Media:           Equity Investment  Fixed Income            Investor Inquiries:
 Becky Sanch      Community:         Investment Community:   Georgeson, Inc.
 1.313.594.4410   Larry Heck         Rob Moeller             1.888.605.7541
 [e-mail]  1.313.594.0613     1.313.621.0881
                  [e-mail]    [e-mail]

FORD COMMENCES CONVERSION OFFER FOR 6.50% 
CUMULATIVE CONVERTIBLE TRUST PREFERRED SECURITIES

DEARBORN, Mich., July 2, 2007 - Ford Motor Company (NYSE: F) ('Ford') today
commenced a conversion offer related to the outstanding 6.50% Cumulative
Convertible Trust Preferred Securities (NYSE: F PrS) of Ford's wholly owned
subsidiary trust, Ford Motor Company Capital Trust II. 

The trust preferred securities, which were issued in 2002, have an aggregate
liquidation value of about $5 billion. Each trust preferred security has a
liquidation value of $50 and is convertible into 2.8249 shares of Ford common
stock at the holder's option. The subsidiary trust's sole assets are $5.2
billion principal amount of 6.5% Junior Subordinated Convertible Debentures due
2032 of Ford Motor Company, which will be cancelled to the extent trust
preferred securities are converted into Ford common stock. Through the
debentures and other instruments, Ford has effectively guaranteed the trust
preferred securities. 

The conversion offer is scheduled to expire at 5:00 p.m., Eastern Time, on
Tuesday, July 31, 2007, unless extended or earlier terminated, and is expected
to settle on Friday, August 3, 2007. 

Holders who elect to convert their trust preferred securities into shares of
Ford's common stock will receive 2.8249 shares of Ford common stock plus a
premium consisting of shares of Ford common stock valued at $14.25 for each
trust preferred security. The number of premium shares received will be
determined by the average market price of Ford common stock on July 25, 26 and
27, 2007 (assuming the offer is not extended).

'As we continue to make progress on restructuring our automotive operations to
return to profitability, we also are focused on improving our balance sheet,
which this conversion offer will do,' said Don Leclair, Ford's executive vice
president and chief financial officer. 

The conversion offer is being made pursuant to an offering circular and related
documents, each dated July 2, 2007. The completion of the offer is subject to
conditions described in the conversion offer documents. Subject to applicable
law, Ford may waive the conditions applicable to the offer or extend, terminate
or otherwise amend the offer. 

This press release is not an offer to convert, or a solicitation of an offer to
convert, any trust preferred securities. The conversion offer is being made only
on the terms and subject to the conditions described in the offering circular
and related documents, which will be distributed to holders of trust preferred
securities, who are advised to read such documents because they contain
important information. Copies of the offering circular and related documents
have been filed with the Securities and Exchange Commission as exhibits to a
Schedule TO and are available for free at the Commission's web site at
www.sec.gov. 

Holders of trust preferred securities may address questions about the conversion
offer or make requests for copies of the offering circular and related documents
for free to Georgeson, Inc., the information agent for the conversion offer, by
calling toll-free at 888-605-7541. 

Ford Motor Company Capital Trust II, a statutory business trust, was formed in
2001 under the laws of the state of Delaware and is a wholly-owned subsidiary of
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 260,000 employees and about 100 plants
worldwide, the company's core and affiliated automotive brands include Ford,
Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides
financial services through Ford Motor Credit Company.


                      This information is provided by RNS
            The company news service from the London Stock Exchange