Restructure Proposals

Ford Motor Co
11 January 2002


Contact:
Todd Nissen 
1-313-594-4410 
[e-mail] 
(Financial)

Delia Dipietro 
1-313-322-1185 
[e-mail]
(Manufacturing)

Anne Marie Gattari
1-313-322-9211 
agattari@.ford.com 
(Human Resources)

Nick Sharkey
1-313-322-1524
[e-mail] 


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            FORD MOTOR COMPANY ANNOUNCES REVITALIZATION PLAN

                * North American restructuring actions outlined
                * Annual stock dividend reduced to 40 cents a share

DEARBORN, Mich., Jan. 11 - Ford Motor Company (NYSE:F) today announced several 
restructuring actions as part of its Ford Revitalization Plan, a product-focused
program designed to strengthen its position in the marketplace and improve its 
financial results. These actions will enhance the company's ability to produce 
the highest level of quality cars and trucks while reducing the cost structure.

'Our revitalization plan is based on executing the fundamentals of our business 
to build great products,' said Chairman and Chief Executive Officer Bill Ford. 
'what we are outlining today is a comprehensive plan that builds for the future.
It's going to take everyone in the extended Ford family - employees, suppliers 
and dealers - working together, over time, to make it work.'

The actions announced today include:

- New products: A product-led revitalization program which will lead to the 
introduction of 20 new or freshened products in the U.S. annually between now 
and mid-decade.

- Plant capacity: Reduction of North American plant manufacturing operating 
capacity by about one million units by mid-decade to realign capacity with 
market conditions.

- Hourly workforce: About 12,000 hourly employees in North America are affected 
by the actions completed in December or to be taken throughout 2002 and beyond. 
An additional 3,000 hourly employees were affected in 2001. Plans are being made
to reassign as many plant employees as possible.

- Salaried workforce: Last year's voluntary separation program for salaried 
employees and other related actions resulted in a 3,500-person workforce 
reduction in North America. This program will be extended to achieve an 
additional 1,500-person salaried workforce reduction to reach the goal of 5,000.
If necessary to meet this goal, an involuntary separation program will be used.

- Global workforce: More than 35,000 employees will be or already have been 
affected by combined actions around the world since January 2001. These include:
21,500 in North America - 15,000 hourly, 5,000 salaried and 1,500 agency 
employees - and 13,500 in the rest of the world.

- Material costs: A material cost-reduction program has been initiated with 
North American suppliers which shares design savings, with Ford receiving 65 
percent of implemented cost reductions and suppliers receiving 35 percent in the
first year. Designs will be developed that will help improve Ford's products and
overall quality. This program, along with other material cost reduction efforts,
is expected to improve ongoing annual profits before taxes by £3 billion by mid-
decade.

- Discontinued low-margins models: The Mercury Cougar, Mercury Villager, Lincoln
Continental and Ford Escort will be discontinued this year.

- Beyond North America: Revitalization plans beyond North American automotive 
operations include the continued implementation of the European Transformation 
Strategy, the Premier Automotive Group strategy, the turnaround in South America
and a revised direction for Ford Financial.  

-Divestitures: Ford is pursuing the sale of non-core assets and businesses. 
Ford's plans include $1 billion of cash realization from these actions in 2002.

- Dividend: The annual common stock and Class B stock dividend will be reduced 
from 60 cents a share to 40 cents.

These actions and those already taken are expected to improve pre-tax operating 
results to $7 billion annually, an improvement of $9 billion by mid decade. As 
part of the restructuring, the company will take an after-tax charge to fourth 
quarter earnings of $4.1 billion. The charge will cover several items, including
asset impairments and personnel costs.

Today's announcement is part of an ongoing aeries of steps the company has taken
over the past few months and will take in the future to restructure its 
business. Those taken earlier include the consolidation of car and truck product
development in North America, a 50 percent dividend reduction, a 7 percent pay 
reduction to contract labor firms, a voluntary separation program for North 
American salaried employees, the elimination of bonuses and raises for senior 
managers, a sharing of health care costs with U.S. salaried employees and 
retirees, and the elimination of the company match for U.S. salaried employee 
401(k) plans.

'Although the actions we're outlining today are difficult, they are necessary 
steps to lead Ford back to a strong financial and competitive position,' said 
Nick Scheele, president and chief operating officer. 'They will help us to 
address our problems, while at the same time permitting us to keep a sharp focus
on delivering great products. Quality and value will be the hallmarks of our 
cars and trucks.'

PLANT ACTIONS

Manufacturing plans over the next several years include: 1) Closing five plants:
Edison Assembly, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum 
Casting and Vulcan Forge; 2) No new products have been identified for two 
plants: Ohio Assembly and Cuautitlan Assembly, 3) Pursuing the sale of Woodhaven
Forging Plant, 4) Major downsizing and shift reductions at 11 plants; and 5) 
Line speed reductions and changes to operating patterns at nine plants.

'In order to remain competitive and profitable, we must make some hard decisions
to align capacity with our anticipated sales,' said Scheele. 'At the same time, 
the company is continuing its commitment to North American manufacturing 
operations with investments of about $20 billion over the next five years in new
product programs and spending to add flexibility and increase our ability to 
respond quickly to changes in market demand.'


FINANCIAL MILESTONES

In addition, the company today announced the following 2002 financial 
milestones:

Restructuring Priorities                   Milestones

- Communicate/implement plans              Report on progress
- Quality (U.S.)                           improve J.D. Power Initial Quality   
                                           Survey
- Capacity utilization (North America)     Improve by 10 percent
- Non-product related cost                 Reduce by $2 billion
- Divest non-core operations               $1 billion cash realization
                                           

Financial Results                          Milestones

- Pre-tax operating earnings               Positive
- Capital spending                         $7 billion
- Europe                                   Improve results
- South America                            Improve results

'We are confident we can achieve these goals through the efforts of our 
dedicated employee team, 'Bill Ford said. 'We know we have immediate challenges 
to face. It will be difficult, and in some cases, painful to turn things around.
But we will turn things around.'

Final results of the 2001 milestones will be announced when Ford releases its 
fourth quarter and full-year 2001 financial results on Jan. 17.

Ford Motor Company is the world's second largest automaker, selling vehicles in 
200 markets and with approximately 345,000 employees on six continents. Its 
automotive brands include Aston Martin. Ford, Jaguar, Land Rover, Lincoln, 
Mazda, Mercury and Volvo. Its automotive-related services include Ford 
Financial, Hertz and Quality Care.

Replays of the analyst meeting/news conference are available on 888-843-8996 
(domestic) and 630-652-3044 (international), passcode is 5255757.


Statements included 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; lower-than-anticipated market acceptance
of new or existing products, currency or commodity price fluctuations;
economic difficulties in South America or Asia; higher fuel prices; a market 
shift from truck sales in the U.S.; lower-than-anticipated residual values for 
leased vehicles; a credit rating downgrade; labor or Other constraints on our 
ability to restructure our business; increased safety or emissions regulation 
resulting in higher costs and/or sales restrictions; work stoppages at key Ford 
or supplier facilities; and the discovery of defects in vehicles resulting in 
recall campaigns, increased warranty costs or litigation.