Re Agreement

Ford Motor Co
26 March 2008


NEWS

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Ford Motor Company Announces Agreement to Sell Jaguar Land Rover to Tata Motors


DEARBORN, Mich., March 26, 2008 - Ford Motor Company (NYSE:F) announced today
that it has entered into a definitive agreement to sell its Jaguar Land Rover
operations to Tata Motors.

The transaction is the culmination of Ford's decision last August to explore
strategic options for the Jaguar Land Rover business, as the company accelerates
its focus on its core Ford brand and 'One Ford' global transformation.

The sale is expected to close by the end of the next quarter and is subject to
customary closing conditions, including receipt of applicable regulatory
approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon
closing will be approximately US $2.3 billion. At closing, Ford will then
contribute up to approximately US $600 million to the Jaguar Land Rover pension
plans.

'Jaguar and Land Rover are terrific brands,' said Alan Mulally, president and
CEO, Ford Motor Company. 'We are confident that they are leaving our fold with
the products, plan and team to continue to thrive under Tata's stewardship. Now,
it is time for Ford to concentrate on integrating the Ford brand globally, as we
implement our plan to create a strong Ford Motor Company that delivers
profitable growth for all.'

'This is a good agreement. It provides the Jaguar Land Rover management team and
employees with the assurances needed to maintain their focus on delivering the
best results for the business,' said Lewis Booth, executive vice president, Ford
Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land
Rover. 'I am confident that, under its new owner, Jaguar Land Rover will
continue to build upon the significant improvements and product successes it has
achieved in recent years.'

As part of the transaction, Ford will continue to supply Jaguar Land Rover for
differing periods with powertrains, stampings and other vehicle components, in
addition to a variety of technologies, such as environmental and platform
technologies. Ford also has committed to provide engineering support, including
research and development, plus information technology, accounting and other
services.

In addition, Ford Motor Credit Company will provide financing for Jaguar and
Land Rover dealers and customers during a transitional period, which can vary by
market, of up to 12 months.

The parties believe these arrangements will support Jaguar Land Rover's current
product plans, while providing Jaguar Land Rover freedom to develop its own
stand-alone capabilities in the future that will best serve its premium
manufacturer requirements.

The parties do not anticipate any significant changes to Jaguar Land Rover
employees' terms of employment on completion.

Speaking about today's agreement, Mr. Ratan N. Tata, Chairman of Tata Sons and
Tata Motors, commented: 'We are very pleased at the prospect of Jaguar and Land
Rover being a significant part of our automotive business. We have enormous
respect for the two brands and will endeavor to preserve and build on their
heritage and competitiveness, keeping their identities intact. We aim to support
their growth, while holding true to our principles of allowing the management
and employees to bring their experience and expertise to bear on the growth of
the business.'

Jaguar Land Rover's employees, trade unions and the UK Government have been kept
informed of developments as the sale process progressed and have indicated their
support for the agreement.

Speaking on behalf of Jaguar Land Rover, Geoff Polites, chief executive officer,
said: 'Jaguar Land Rover's management team is very pleased that Ford and Tata
Motors have come to an agreement today. Our team has been consulted extensively
on the deal content and feels confident that it provides for the business needs
of both our brands going forward.

'We have also had the opportunity to meet senior executives from Tata Motors and
the Tata group,' Polites continued. 'They have expressed confidence in the team
that has delivered significant improvements in Jaguar Land Rover's business
performance. We feel confident that we can forge a strong working relationship
with our new parent company, and we look forward to a bright and successful
future for Jaguar Land Rover.'

Ford Motor Company, a global automotive industry leader based in Dearborn,
Michigan, United States, manufactures or distributes automobiles in 200 markets
across six continents. With about 230,000 employees and about 100 plants
worldwide, the company's core and affiliated automotive brands include Ford,
Lincoln, Mercury, Volvo and Mazda. The company provides financial services
through Ford Motor Credit Company. For more information regarding Ford's
products, please visit http://www.ford.com/.

Safe Harbor

Statements included herein may constitute 'forward-looking statements' within
the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements are based on expectations, forecasts and assumptions by
management and involve a number of risks, uncertainties, and other factors that
could cause actual results to differ materially from those stated. We cannot be
certain that any expectation, forecast or assumption made by management in
preparing these forward-looking statements will prove accurate, or that any
projection will be realized. More detailed information about these and other
factors that could affect future results is contained in our filings with the
Securities and Exchange Commission. Our forward-looking statements speak only as
of the date of their initial issuance, and we do not undertake any obligation to
update or revise publicly any forward-looking statement, whether as a result of
new information, future events or otherwise. 

 







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