Re Agreement

Ford Motor Co
22 December 2005



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FORD AND THE UNITED AUTO WORKERS REACH HEALTH CARE AGREEMENT

DEARBORN, Mich., Dec. 22, 2005 - Ford Motor Company today announced that its
tentative agreement with the United Auto Workers (UAW) to reduce the Company's
health care costs has been ratified by the Ford-UAW membership.

The agreement, which is currently pending court approval, calls primarily for
modifications to the Company's hourly retiree health care plan, while continuing
to allow Ford to provide a competitive benefits package for hourly employees and
retirees.

'Ford is pleased to have reached an agreement with the UAW on the increasingly
important issue of health care,' said Joe Laymon, Ford Motor Company group vice
president, Corporate Human Resources and Labor Affairs. 'This agreement would
not have been possible without the leadership of UAW President Ron Gettelfinger,
UAW Vice President, National Ford Department, Gerald Bantom and Ford Motor
Company Vice President, Labor Affairs, Marty Mulloy.'

Much like the recent General Motors health care agreement with the UAW, Ford's
agreement includes contributions to an independent Defined Contribution
Voluntary Employee Benefit Association (VEBA) that will be used to subsidize the
cost of retiree benefits. This VEBA will be funded through specified company
contributions over the course of the next several years -$30 million in 2006,
$35 million in 2009 and $43 million in 2011 - as well as through active hourly
employee contributions through deferrals of portions of future wage and Cost-of-
Living Adjustment (COLA) increases.

Also as part of the agreement, Ford has committed to invest $900 million over
the course of the next five years for projects related to innovation and new
technology. This commitment would not have been possible without the savings
Ford expects to realize through the UAW health care-related agreement.

Overall, the agreement is expected to provide an average annual net corporate
savings of about $650 million on a pre-tax basis, including reduced health care
expenses and the impact of the VEBA contributions. Cash savings are projected to
be about $200 million per year. Ford estimates the agreement will result in an
overall reduction in its retiree health care (OPEB) liability of about $5
billion.

'This agreement not only helps us to address the rising costs of health care, it
will allow the Company to commit resources to strengthen its pledge to
innovation at the same time,' said Laymon. 'This further demonstrates that the
UAW truly is our partner as we continue to work together to tackle the issues
facing the domestic automotive industry today.'

                                 # # #

Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., manufactures and distributes automobiles in 200 markets across six
continents. With nearly 325,000 employees and 110 plants worldwide, the
company's core and affiliated automotive brands include Aston Martin, Ford,
Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related
services include Ford Motor Credit Company. For more information regarding
Ford's products, please visit www.fordvehicles.com.

Go to http://media.ford.com for news releases and high-resolution photographs.


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