Final Results

Ford Motor Co
21 January 2003

Contact:
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Media Information Center
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FORD'S 2002 OPERATING RESULTS IMPROVE
BY $1.7 BILLION VS. PRIOR YEAR



•Full-year profit of 47 cents per share, excluding unusual items. 

•Fourth-quarter profit of 8 cents per share, excluding unusual items. 

•Full-year Ford Credit profit of $1.38 billion, excluding unusual items. 

•Positive full-year automotive cash flow, excluding tax refunds. 

•Strong liquidity with $25 billion of automotive gross cash. 

•Exceeded 2002 non-product cost reduction milestone of $2 billion.



DEARBORN, Mich., Jan. 21 - Ford Motor Company (NYSE: F) today reported a net
loss, including unusual items and results from discontinued operations, of $980
million, or 55 cents per share, for full-year 2002. 

On an operating basis, Ford earned $872 million, or 47 cents per share, in 2002.
This excludes charges related to Statement of Financial Accounting Standard
(SFAS) Nos. 142 and 133, the sale of Kwik-Fit, restructuring actions and other
unusual items not related to results from discontinued operations. 

In 2001, Ford reported a net loss of $5.45 billion, or $3.02 per share.
Excluding charges for restructuring actions and other unusual items in 2001, the
loss was $782 million, or 44 cents per share.

Revenue for 2002 was $162.6 billion, up more than 1 percent from $160.8 billion
a year ago. Vehicle unit sales were 6,980,000, down slightly from 7,008,000 in
2001.

'In the first year of our turnaround, Ford improved its operating results by
about $1.7 billion,' said Chairman and CEO Bill Ford. 'Our earnings performance
demonstrates that we are making solid progress toward the goals outlined in our
Revitalization Plan. In 2002, we exceeded nearly all our commitments and are on
track to reach our mid-decade target of an annual $7 billion pre-tax operating
profit.' 

Ford realized success in a number of areas throughout 2002: 

     •Overall quality performance and customer satisfaction improved by all
      internal and external measures, in all major regions. 

     •U.S. retail share improved during the year.  

     •Ford Credit improved its operating results, lowered its leverage and
      paid $450 million in dividends, net of the January 2002 capital
      contribution. 

     •Ford Motor Company has the world's best-selling car (Ford Focus), truck 
     (F-Series) and SUV (Explorer).  

     •Ford was the best-selling brand of cars and trucks in the U.S. for the 
      16th year in a row.  

     •The F-Series pickup was the top-selling
      truck for the 26th consecutive year and the Ford Explorer was the 
      industry's best-selling SUV in the U.S. for the 12th year in a row. 

     •Jaguar had its fourth consecutive record sales year in the U.S., with 
      year-over-year sales improvement of 37 percent, and Land Rover enjoyed a 
      U.S. sales record in 2002 with sales up 51 percent.  

     •Products such as the Ford Thunderbird, Ford F-Series Super Duty,
      Lincoln Town Car and Volvo XC90 received accolades from customers and 
      awards from a number of third-party sources.

'Now, as we move into 2003, we are accelerating our efforts. As we just
demonstrated at the North American International Auto Show in Detroit, we have a
lot of exciting new products coming and we are well on our way to the product-
led recovery we've been talking about for the last 12 months,' said Mr. Ford.

Ford Motor Company, in its centennial year, will introduce an all-new F-150
pickup truck with five differentiated series that will span the full range of
consumer wants and needs. In addition, Ford Motor Company will introduce new
minivans for the Ford and Mercury brands in North America, the Ford Transit
Connect (commercial vehicle) and the Ford StreetKa (Ford's first European two-
seat roadster) in Europe, and an all-new Jaguar XJ sedan. The first units of the
Ford GT high-performance sports car also will be produced this summer. 


FOURTH QUARTER

Ford reported a net loss of $130 million, or 7 cents per share, for the fourth
quarter of 2002. This is an improvement from 2001 of $4.9 billion ($2.74 per
share). Excluding charges for restructuring actions and other unusual items,
Ford earned $150 million, or 8 cents per share. This is an improvement from 2001
of $1 billion (56 cents per share).

The non-recurring restructuring actions include primarily: 

     •Reduction of 950 positions at Jaguar, Land Rover and Volvo; 

     •Genk (Belgium) rationalization and transfer of Transit production to Ford 
      Otosan in Turkey; 

     •Improvements in Cologne (Germany) as a result of restructuring die-casting
      and forging operations, and other manufacturing actions.

Total revenue in the fourth quarter was $41.6 billion, up $869 million from a
year ago, despite a decline in the number of units sold. Worldwide vehicle unit
sales fell slightly in the fourth quarter to 1,791,000 from 1,813,000 a year
ago.

The following discussion of fourth-quarter and full-year results excludes
unusual items and includes results from discontinued operations in both years.
The discontinued operations resulted from holding certain non-core businesses
for sale. These include primarily Ford's automotive recycling business in the
U.S., the TH!NK electric vehicle business and the all-makes fleet leasing
business in Europe, Australia and New Zealand. 



AUTOMOTIVE OPERATIONS 

Ford's worldwide automotive operations posted a loss of $539 million, compared
with a loss of $1.96 billion in 2001. Worldwide automotive revenue was $134.4
billion, an increase of nearly three percent versus a year ago. 

In the fourth quarter, Ford's worldwide automotive operations incurred a loss of
$191 million on revenue of $34.7 billion, compared with a loss of $803 million
on revenue of $33.6 billion in the fourth quarter of 2001.

Automotive gross cash at Dec. 31, 2002 totaled $25.3 billion, including $2.7
billion of pre-funding for employee benefit expenses through a Voluntary
Employee Beneficiary Association (VEBA) trust. Gross cash exceeded automotive
debt by $11.1 billion at year-end, $7.2 billion better than at Dec. 31, 2001.
The company's full-year automotive operating cash flow, excluding tax refunds,
was positive.

North America: The loss in 2002 for Ford's automotive operations in North
America was $559 million on revenue of $94.1 billion. In 2001, those operations
had a loss of $2.15 billion on revenue of $90.8 billion. The full-year
improvement was primarily a result of the non-recurrence of costs associated
with the customer safety initiative to replace Firestone tires and the re-
stocking of dealer inventories, which were well below an optimal level at the
end of 2001.

In the fourth quarter, Ford's North America automotive operations posted a loss
of $124 million, compared with a loss of $916 million a year ago. The
improvement reflected better cost performance, net revenue and mix, offset
partially by lower volume. Revenue was $23.3 billion, compared with $23.2
billion in 2001. 

Europe: In Europe, Ford's automotive operations earned $12 million during the
full year in 2002, compared with a profit of $266 million in 2001. Revenue was
$32.1 billion, an increase from $31.9 billion a year ago. 

Automotive operations in Europe incurred a loss of $139 million on revenue of
$9.2 billion in the fourth quarter of 2002. This compares with a fourth quarter
2001 profit of $61 million on revenue of $8.5 billion. The decline in earnings
for both the fourth quarter and full year reflected a leaner product mix and
lower dealer stocks, offset partially by higher market share.

South America: Ford automotive operations in South America incurred a loss of
$296 million during full-year 2002, compared with the full-year loss of $225
million in 2001, more than explained by the effects of currency devaluation.
Revenue was $1.6 billion, down from $2.2 billion in 2001. 

Fourth quarter 2002 losses were $11 million on revenue of $354 million. This
compares with a fourth quarter 2001 loss of $46 million on revenue of $466
million. 

Rest-of-world: Ford's automotive operations in the rest of the world earned a
full-year profit in 2002 of $304 million, compared with $156 million in 2001.
The improvement reflected better performance at Mazda and Ford's Asia-Pacific
operations. Revenue in 2002 was $6.6 billion, up $700 million from 2001. 

In the fourth quarter of 2002, profits were $83 million, down from earnings of
$98 million in 2001. Revenue was $1.8 billion compared to $1.5 billion during
the same time period in 2001.



FORD CREDIT

Ford Motor Credit Company reported earnings of $1.38 billion in 2002, up $175
million from a profit of $1.2 billion a year ago. Return on equity was 9 percent
in 2002, compared with 7 percent in 2001. The increase in earnings reflected
primarily a lower provision for credit losses, offset partially by the net
unfavorable impact of receivables sales and lower net financing margins. The
provision for credit losses in 2002 was $3 billion, compared with $3.4 billion
in 2001. At year end, the allowance for credit losses was $3.2 billion - 2.47
percent of end-of-period receivables. 

In the fourth quarter of 2002, Ford Credit earned $382 million, up $376 million
from the same period a year earlier. The improvement reflected a lower provision
for credit losses and the net favorable impact of receivables sales, offset
partially by lower net financing margins. 

Ford Credit paid a dividend to Ford Motor Company of $700 million in December.
For the full year, Ford Credit's dividends, net of a January 2002 capital
contribution, were $450 million. 


HERTZ


Hertz reported full-year 2002 earnings of $127 million, up from $23 million in
2001. Hertz earned $16 million in the fourth quarter, compared to a loss of $58
million in the fourth quarter of 2001. The full-year and fourth-quarter
improvements when compared to 2001 reflected increases in pricing and cost
reductions.



OUTLOOK


'Although the outlook for the U.S. economy continues to be uncertain, we are
looking for 2003 to be another good year for car and truck sales,' said Allan
Gilmour, Ford vice chairman and chief financial officer. 'Throughout this year,
Ford Motor Company will remain focused on improving total cost and will
accelerate its implementation of the key Revitalization Plan elements. I am
pleased with the significant progress we made in 2002, and I am confident that
our progress will continue into 2003 and beyond.' 

Ford is estimating that industry demand will be about 16.5 million vehicles in
the U.S. Its North American production plans call for producing 1,035,000 cars
and trucks in the first quarter - up 25,000 units from production plans released
earlier this month. 

Investors can hear a review of fourth quarter and full-year 2002 results by Bill
Ford, Allan Gilmour and President and Chief Operating Officer Nick Scheele on
the Internet at www.shareholder.ford.com or www.streetevents.com. The
presentation will begin at 9 a.m. EST, Jan. 21.

Ford Motor Company, headquartered in Dearborn, Michigan, is the world's second
largest automaker, with approximately 335,000 employees in 200 markets on six
continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services
include Ford Credit, Quality Care and Hertz. Ford Motor Company will officially
observe its 100th anniversary on June 16, 2003. 



                                  - # # # -


Statements included or incorporated by reference herein may constitute 'forward
looking statements' within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve a number of risks, uncertainties,
and other factors that could cause actual results to differ materially from
those stated, including, without limitation: 

     •greater price competition in the U.S. and Europe resulting from currency
      fluctuations, industry overcapacity or other factors; 

     •a significant decline in industry sales, particularly in the U.S. or
      Europe, resulting from slowing economic growth, geo-political events or 
      other factors; 

     •lower-than-anticipated market acceptance of new or existing products; 

     •work stoppages at key Ford or supplier facilities or other interruptions 
      of supplies; 
     
     •the discovery of defects in vehicles resulting in delays in new model 
      launches, recall campaigns or increased warranty costs; 

     •increased safety, emissions, fuel economy or other regulation resulting in
      higher costs and/or sales restrictions; 

     •unusual or significant litigation or governmental investigations arising 
      out of alleged defects in our products or otherwise; 

     •worse-than-assumed economic and demographic experience for our post-
      retirement benefit plans (e.g., investment returns, interest rates, health
      care cost trends, benefit improvements); 

     •currency or commodity price fluctuations; 
    
     •a market shift from truck sales in the U.S.; 

     •economic difficulties in South America or Asia; 

     •reduced availability of or higher prices for fuel; 

     •labor or other constraints on our ability to restructure our business; 
   
     •a change in our requirements under long-term supply arrangements under 
      which we are obligated to purchase minimum quantities or pay minimum 
      amounts; 

     •a further credit rating downgrade; 
 
     •inability to access debt or securitization markets around the world at 
      competitive rates or in sufficient amounts; 

     •higher-than-expected credit losses; 

     •lower-than-anticipated residual values for leased vehicles; 

     •increased price competition in the rental car industry and/or a general 
      decline in business or leisure travel due to terrorist attacks, act of war
      or measures taken by governments in response thereto that negatively 
      affect the travel industry; and 

     •our inability to implement the Revitalization Plan. 


                    Ford Motor Company and Subsidiaries

                     CONSOLIDATED STATEMENT OF INCOME

             For the Periods Ended December 31, 2002 and 2001

                               (in millions)

                                             Fourth Quarter                   Full Year       
                                        2002              2001         2002               2001     
                                              (unaudited)                    (unaudited)
 
AUTOMOTIVE                         
Sales                               $ 34,661          $ 33,593     $134,425           $130,827
Costs and expenses     
Costs of sales                        32,401            37,200      125,137            128,417 
Selling, administrative and other
 expenses                              2,679             2,707        9,819              9,805 
 Total costs and expenses             35,080            39,907      134,956            138,222

Operating income/(loss)                 (419)           (6,314)        (531)            (7,395)
             
Interest income                          173               149          834                765
Interest expense                         331               372        1,368              1,376
  Net interest income/(expense)         (158)             (223)        (534)              (611)
Equity in net income/(loss) of 
affiliated companies                       6              (170)         (91)              (856)
Income/(loss) before income taxes
 - Automotive                           (571)           (6,707)      (1,156)            (8,862)
 
             
FINANCIAL SERVICES           
Revenues                               6,919             7,118       28,161             29,927
             
Costs and expenses              
Interest expense                       1,715             2,134        7,456              9,441
Depreciation                           2,609             2,583       10,240             10,164
Operating and other expenses           1,248             1,337        5,080              5,221
Provision for credit and insurance 
 losses                                  753             1,527        3,276              3,661 
 Total costs and expenses              6,325             7,581       26,052             28,487
Income/(loss) before income taxes
 - Financial Services                    594              (463)       2,109              1,440
 
             
TOTAL COMPANY           
Income/(loss) before income taxes         23            (7,170)         953             (7,422)
Provision for/(benefit from) income
 taxes                                   (48)           (2,130)         302             (2,097)
Income/(loss) before minority interests   71            (5,040)         651             (5,325)
Minority interests in net income/(loss) 
 of subsidiaries                          82                (9)         367                 24
Income/(loss) from continuing operations (11)           (5,031)         284             (5,349)
Cumulative effect of change in 
 accounting principle                      -                 -       (1,002)                 -
Income/(loss) from discontinued/
 held-for-sale operations                (15)              (37)         (63)              (104)
Loss on disposal of discontinued/
 held-for-sale operations               (104)                -         (199)                 -
Net income/(loss)                   $   (130)         $ (5,068)    $   (980)          $ (5,453)
Income/(loss) attributable to 
 Common and Class B Stock             
 after Preferred Stock dividends    $   (134)         $ (5,072)    $   (995)          $ (5,468)
             
Average number of shares of Common
 and Class B           
 Stock outstanding                     1,833             1,810        1,819              1,820
 
             
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK 
Basic income
 Income/(loss) from continuing
  operations                        $  (0.01)         $  (2.79)    $   0.15           $  (2.96)
 Cumulative effect of change
  in accounting principle                  -                 -        (0.55)                 - 
 Income/(loss) from discontinued/
 held-for-sale operations              (0.01)            (0.02)       (0.04)             (0.06)
 Loss on disposal of discontinued/
 held-for-sale operations              (0.05)                -        (0.11)                 -
 Net income/(loss)                  $  (0.07)         $  (2.81)    $  (0.55)          $  (3.02)
 
Diluted income
 Income/(loss) from continuing
  operations                        $  (0.01)         $  (2.79)    $   0.15           $  (2.96)
 Cumulative effect of change in
  accounting principle                     -                 -        (0.55)                 - 
 Income/(loss) from discontinued/
  held-for-sale operations             (0.01)            (0.02)       (0.03)             (0.06)
 Loss on disposal of discontinued/
  held-for-sale operations             (0.05)                -        (0.11)                 -
 Net income/(loss)                  $  (0.07)         $  (2.81)    $  (0.54)          $  (3.02)
 
Cash dividends                      $   0.10          $   0.15     $   0.40           $   1.05
 


                      Ford Motor Company and Subsidiaries

                          CONSOLIDATED BALANCE SHEET

                       As of December 31, 2002 and 2001

                                (in millions)

                                                           2002           2001

ASSETS                                                 (unaudited)   (unaudited)
Automotive
Cash and cash equivalents                              $  5,180       $  4,064
Marketable securities                                    17,464         10,949
   Total cash and marketable securities                  22,644         15,013

Receivables, net                                          2,065          2,181
Inventories                                               6,980          6,127
Deferred income taxes                                     3,462          2,595
Other current assets                                      4,551          6,153
Current receivable from Financial Services                1,062            938
   Total current assets                                  40,764         33,007
      
Equity in net assets of affiliated companies              2,470          2,450
Net property                                             36,364         33,022
Deferred income taxes                                    11,694          5,981
Goodwill                                                  4,805          5,213
Other intangible assts                                      812          1,125
Other assets                                             10,783          7,153
Assets of discontinued and held-for-sale operations          98            368
   Total Automotive assets                              107,790         88,319
      
Financial Services      
Cash and cash equivalents                              $  7,070       $  3,133
Investments in securities                                   807            628
Finance receivables, net                                 96,910        110,190
Net investment in operating leases                       40,055         45,388
Retained interest in sold receivables                    17,618         12,548
Goodwill                                                    752          1,042
Other intangible assts                                      248            223
Other assets                                             16,763          9,224
Assets of discontinued and held-for-sale operations       2,406          2,136
Receivable from Automotive                                4,803          3,712
   Total Financial Services assets                      187,432        188,224
      
   Total assets                                        $295,222       $276,543
 
      
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive    
Trade payables                                         $ 14,606       $ 15,620
Other payables                                            2,485          4,224
Accrued liabilities                                      27,557         24,258
Debt payable within one year                                557            302
   Total current liabilities                             45,205         44,404
      
Long-term debt                                           13,607         13,467
Other liabilities                                        46,886         30,873
Deferred income taxes                                       303            362
Liabilities of discontinued and held-for-sale operations    225            162
Payable to Financial Services                             4,803          3,712
   Total Automotive liabilities                         111,029         92,980

Financial Services    
Payables                                                  2,724          1,484
Debt                                                    148,058        153,034
Deferred income taxes                                    11,644          9,686
Other liabilities and deferred income                     8,614          9,165
Liabilities of discontinued and held for sale operations    831            798
Payable to Automotive                                     1,062            938
   Total Financial Services liabilities                 172,933        175,105
      
Company-obligated mandatorily redeemable 
preferred securities of a subsidiary trusts 
holding solely junior subordinated debentures
of the Company                                            5,670            672
 
      
Stockholders' equity    
Capital stock
 Preferred Stock, par value $1.00 per share 
 (aggregate liquidation preference of $177 million)           *              *
 Common Stock, par value $0.01 per share
  (1,837 million shares issued)                              18             18
 Class B Stock, par value $0.01 per share 
  (71 million shares issued)                                  1              1
Capital in excess of par value of stock                   5,420          6,001
Accumulated other comprehensive income/(loss)            (6,531)        (5,913)
Treasury stock                                           (1,977)        (2,823)
Earnings retained for use in business                     8,659         10,502
   Total stockholders' equity                             5,590          7,786
 
   Total liabilities and stockholders' equity          $295,222       $276,543
       
*Less than $1 million
       



                      Ford Motor Company and Subsidiaries

                CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

               For the Periods Ended December 31, 2002 and 2001

                                (in millions)
                                                                              
                                                      2002                         2001                   
                                                        Financial                         Financial 
                                           Automotive    Services       Automotive         Services   
                                                   (unaudited)                  (unaudited)
                           
Cash and cash equivalents at January 1       $ 4,064     $ 3,133           $ 3,360         $  1,417
             
Cash flows from operating activities before 
 securities trading                            9,487      15,375             7,456           13,172
Net sales/(purchases) of trading securities   (6,206)        (23)            1,143              120
   Net cash flows from operating activities    3,281      15,352             8,599           13,292

Cash flows from investing activities
 Capital expenditures                         (6,776)       (502)           (6,301)            (651)
 Acquisitions of other companies                   -           -                 -             (737)
 Acquisitions of receivables and lease 
  investments                                      -     (81,806)                -          (94,061)
 Collections of receivables and lease 
  investments                                      -      45,777                 -           45,110
 Net acquisitions of daily rental vehicles         -      (1,846)                -           (1,412)
 Purchases of securities                       (3,446)      (609)          (12,489)            (734)
 Sales and maturities of securities             3,445        479            13,866              759
 Proceeds from sales of receivables and lease
   investments                                      -     41,289                 -           41,419
 Proceeds from sale of businesses                 257          -                 -                -
 Net investing activity with Financial Services 1,053          -               186                -
 Cash paid for acquisitions                      (289)         -            (1,998)               -
 Other                                              -        407               367              250
   Net cash (used in)/provided by investing
    activities                                 (5,756)     3,189            (6,369)         (10,057)
 
Cash flows from financing activities            
 Cash dividends                                  (743)         -            (1,929)               -
 Net sales/(purchases) of Common Stock            287          -            (1,385)               -
 Proceeds from mandatorily redeemable convertible 
  preferred securities                          4,900          -                 -                -
 Preferred Stock - Series B redemption           (177)         -                 -  
Changes in short-term debt                        (25)   (14,136)               38          (18,274)
 Proceeds from issuance of other debt             318     15,524             2,063           44,193
 Principal payments on other debt                (859)   (15,760)           (1,122)         (26,204)
 Net financing activity with Automotive             -     (1,053)                -             (186) 
 Other                                            (23)       361               261             (249)
   Net cash (used in)/provided by financing 
    activities                                  3,678    (15,064)           (2,074)            (720)
             
Effect of exchange rate changes on cash            37        336              (101)            (151)
Net transactions with Automotive/Financial 
  Services                                       (124)       124               649             (649)
            
   Net increase in cash and cash equivalents    1,116      3,937               704            1,716
             
Cash and cash equivalents at December 31      $ 5,180   $  7,070           $ 4,064         $  3,133
 





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