Stmnt re Vehicle Production

Ford Motor Co
18 August 2006

Contact:  Oscar Suris         George Pipas
          313-594-1106        313-323-9216
          [e-mail]     [e-mail]

FORD REDUCES NORTH AMERICAN VEHICLE PRODUCTION AS PART OF ACCELERATED
'WAY FORWARD' TURNAROUND

    •  21 percent fourth-quarter reduction is part of aggressive realignment
       of North American production - laying the groundwork for Ford's
       accelerated Way Forward turnaround.

    •  Bill Ford: 'We know this decision will have a dramatic impact on our
       employees, as well as our suppliers.  This is, however, the right call
       for our customers, our dealers and our long-term future.'

    •  Further actions aimed at accelerating Ford's turnaround will be
       announced in September.

DEARBORN, Mich., Aug. 18, 2006- Ford Motor Company (NYSE: F) announced an 
aggressive reduction of North American production as part of its broader efforts 
to accelerate the pace of its Way Forward turnaround.

The company said it is reducing North American fourth-quarter production by 21
percent - or 168,000 units - compared with the fourth quarter a year ago. The
revised plan also reduces the company's previously announced third- quarter plan
by 20,000 units.

Bill Ford, the company's chairman and CEO, outlined the decision to cut
production in a note to employees, explaining the decision is part of broader
efforts to accelerate the company's North American turnaround and saying full
details of additional actions will be announced in September.

'We know this decision will have a dramatic impact on our employees, as well as
our suppliers,' Bill Ford told employees. 'This is, however, the right call for
our customers, our dealers and our long-term future.'

For full-year 2006, Ford now plans to produce 3.048 million vehicles at its
North American assembly plants - 1.134 million cars and 1.914 million trucks -
a 9 percent reduction from 2005.

The revised production plan is expected to sharply reduce the supply of several
models and reduce pressure on sales incentives and dealer inventory carrying
costs. The plan also reflects expectations for lower industry sales of light
trucks and truck-based sport utility vehicles, as high gasoline prices are
expected to continue to encourage demand for more fuel-efficient passenger cars
and crossovers.

Mark Fields, executive vice president and Ford's president of The Americas, said
the 'tough-but-important' reduction in production plans underscores the
seriousness with which the company is approaching its North American turnaround.

'We are basing our business plans on the customer, and we are determined to
match production and inventories with consumer demand,' Fields said. 'In doing
so, we'll reduce incentive spending and inventory carrying costs for our dealers
- with the intent to improve residual values for our customers and stabilize
operating patterns for our plants and our suppliers.'

       The revised 2006 production plan is summarized in the table below:

                         2006 Production              Over/(Under) 2005
                     Cars    Trucks    Total        Cars    Trucks    Total
                     (000)     (000)    (000)       (000)     (000)    (000)

    First Quarter     316       560      876          52       (84)     (32)
    Second Quarter    328       569      897          34       (42)      (8)
    Third Quarter     255       395      650*         45      (123)     (78)
    Fourth Quarter    235       390      625         (13)     (155)    (168)
    ________________________________________________________________________
    Full Year       1,134     1,914    3,048         118      (404)    (286)

* The previously announced third-quarter plan was 670,000 vehicles (255,000 cars 
  and 415,000 trucks).

The new production plan will result in downtime at several assembly plants
between now and the end of the year, including: St. Thomas, Ontario (Ford Crown
Victoria and Mercury Grand Marquis), Chicago (Ford Five Hundred and Freestyle
and Mercury Montego), Wixom, Mich. (Lincoln Town Car); Louisville, Ky. (Ford
Explorer and Mercury Mountaineer), Michigan Truck in Wayne, Mich. (Ford
Expedition and Lincoln Navigator), Twin Cities, Minn. (Ford Ranger) and all 
F-Series truck plants (Kansas City, Mo.; Norfolk, Va., Dearborn and Kentucky 
Truck in Louisville).

The following plants are expected to operate on straight time or overtime based
on consumer demand: Hermosillo, Mexico (Ford Fusion, Mercury Milan and Lincoln
MKZ), AutoAlliance International in Flat Rock, Mich. (Ford Mustang), Oakville,
Ontario (Ford Edge, Lincoln MKX and Ford Freestar), Wayne, Mich. (Ford Focus),
Kansas City, Mo. (Ford Escape and Mercury Mariner), Ohio Assembly in Avon Lake,
Ohio (Ford Econoline), and Atlanta (Ford Taurus).


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




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