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Ford Motor Company (50PS)

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Thursday 18 July, 2002

Ford Motor Company

2nd Quarter Results

Ford Motor Co
17 July 2002


Contact:
Media:
David Reuter
1.313.594.4410
[email protected]

Securities Analysts:
Anne Bork
1.313.323.8221
[email protected]

Shareholder Inquiries:
1.800.555.5259 or
1.313.845.8540
[email protected]

Media Information Center
1.800.665.1515 or
1.313.621.0504
[email protected]

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



FORD REPORTS SECOND QUARTER
NET PROFIT OF $570 MILLION

•  Second quarter profit of 31 cents per share, excluding unusual items, beats
   consensus estimate by 5 cents per share

•  All-new Ford Expedition and Lincoln Navigator drive improvements in full-size
   and luxury SUV sales and segment share

•  Automotive gross cash at $24.9 billion, up $3.4 billion from last quarter

•  Continue to expect a modest profit for the full year

DEARBORN, Mich., July 17 - Ford Motor Company (NYSE: F) today reported a net
profit of $570 million, or 29 cents per share, in the second quarter of 2002.
Excluding unusual items related to the European end-of-life vehicles' directive
and Statement of Financial Accounting Standards (SFAS) No. 133, Ford earned an
operating profit of $610 million, or 31 cents per share. Ford lost $551 million,
or 31 cents per share in the second quarter of 2001, excluding unusual items but
including costs associated with the tire replacement action.

Ford's second quarter revenues were $42.3 billion, equal to last year's second
quarter. Worldwide vehicle unit sales in the 2002 second quarter were 1,854,000,
approximately equal to the previous year's quarter.

'The second quarter was an important leg on Ford Motor Company's journey to
financial health, but we still have much work to do,' said Bill Ford, chairman
and CEO.

'The successful introduction of the Expedition and Navigator, improved J.D.
Power quality ratings, continued improvements at Ford Credit and in Europe, as
well as further progress on our Revitalization Plan highlighted the
accomplishments of the entire Ford team.'

Ford made progress this quarter on many of the Revitalization Plan milestones,
including posting a 12 percent overall improvement, the most of any domestic
manufacturer, in this year's J.D. Power Initial Quality Study. Also, the
all-new Ford Expedition and Lincoln Navigator began arriving at dealerships late
in the second quarter and are driving improvements in full-size and luxury SUV
sales and segment shares. The sales success of these products is expected to
continue during the second half of this year. In addition, substantially
stronger sales at Jaguar and Land Rover, combined with the arrival of several new
premium brand products at dealerships later this year, are expected to
strengthen Ford's luxury vehicle lineup.

'We made progress against several of our Revitalization Plan milestones,
including a significant improvement in the J.D. Power quality study, but we are
not satisfied with our results,' said Nick Scheele, Ford president and chief
operating officer. 'Quality is our top priority and we expect further
improvements going forward.'

The company further rationalized its manufacturing capacity, remaining on track
to increase capacity utilization by 10 percentage points by year's end. Shifts
have been eliminated at the Edison and Ohio assembly plants, with an additional
shift elimination scheduled at the Wixom Assembly plant at the end of the
summer. The company has also realized more than $400 million in cash from the
divestment of non-core operations during the first six months of the year.

Second quarter 2002 results included the following non-cash, after-tax unusual
items.

  • $41 million charge for the projected costs related to legislation passed to
    date in selected countries to implement a European Parliament directive
    involving end-of-life vehicles

  • Net $1 million benefit relating to the accounting standard for derivative
    instruments and hedging activities (SFAS No. 133)

First half 2002 results included a non-cash $294 million charge for the final
transition, completed in the second quarter, to a new accounting standard for
goodwill (SFAS No. 142).

The following second quarter results exclude unusual items in both years:

AUTOMOTIVE OPERATIONS

Worldwide automotive operations earned $205 million in the second quarter,
compared with a loss of $1 billion a year ago. Worldwide automotive revenues
were $35.2 billion, compared with $34.6 billion a year ago.

Automotive gross cash at June 30 totaled $24.9 billion, including $1.5 billion
of pre-funding employee benefit expenses through a Voluntary Employee
Beneficiary Association trust.

North America: Strong production contributed to a $45 million profit in North
America in the second quarter. This compared with a loss of $1.1 billion in
the 2001 second quarter, which included costs associated with the customer
safety initiative to replace Firestone tires.

Europe: In Europe, Ford earned $155 million and increased market share in the
second quarter, compared with earnings of $141 million a year ago. Overall
volumes were down due to a lower industry and the changeover to the all-new
Fiesta.

South America: Ford operations in South America lost $96 million, compared with
a loss of $70 million a year ago. South America continues to represent a
difficult business environment due to lower industry volume and currency
weakness. However, in Brazil, Ford market share increased 1.9 percentage points
over last year's second quarter on the strength of the all-new Fiesta.

Rest-of-World: Operations from the rest of the world earned a profit of $101
million, compared with a profit of $47 million in the 2001 second quarter. The
biggest improvement was at Mazda.

FORD CREDIT

Ford Credit posted its second consecutive quarterly improvement, earning $343
million in the second quarter. Compared with a profit of $399 million in the
second quarter of 2001, earnings were down because of higher actual credit
losses and the unfavorable impact of securitizations, offset partially by the
impact of currency changes in overseas markets and higher levels of managed
receivables. Higher actual credit losses reflected higher levels of unemployment
and bankruptcies in the United States. Over the past 12 months, increased
securitizations have resulted in lower owned receivables and related revenue,
offset partially by higher income from assets retained in securitizations and
servicing fees.

HERTZ

Hertz reported a second quarter profit of $53 million, down from last year's $59
million profit in the second quarter. Rental volume has started to recover due
to a pickup in summertime travel, but still remains lower year-over-year.

OUTLOOK

'We continue to expect a modest profit for the full year, but those results are
still unacceptable,' said Allan Gilmour, Ford vice chairman and chief financial
officer. 'We are continually monitoring our progress on the Revitalization Plan
and are intensifying our efforts to reduce costs and improve efficiency to
ensure that we stay on track.'

Investors can hear a review of second quarter results by Allan Gilmour, vice
chairman and chief financial officer, on the Internet at
http://www.shareholder.ford.com, http://www.streetevents.com (subscribers only)
or http://www.companyboardroom.com. The presentation will start at 9 a.m. EDT,
July 17.

Ford Motor Company is the world's second largest automaker, selling vehicles in
200 markets and with approximately 350,000 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 Credit,
Hertz and Quality Care.

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 US, 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; reduced availability of or higher prices
for fuel; 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,
emissions, fuel economy or other regulation resulting in higher costs and/or
sales restrictions; 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, increased warranty costs or
litigation; insufficient credit loss reserves; and our inability to implement
the Revitalization Plan.


                        SELECTED CONSOLIDATED DETAIL
                                            
                         2002 Compared with 2001

                                     Second Quarter          First Half
                                   2002          2001      2002       2001
                                      (unaudited)            (unaudited)

Worldwide vehicle unit sales of       
cars and trucks (in thousands)
- North America                   1,183         1,143     2,275      2,245
- Outside North America             671           713     1,256      1,416
 Total                            1,854         1,856     3,531      3,661

Sales and revenues (Mils.)
- Automotive                   $ 35,238     $  34,552  $ 67,559   $ 69,202
- Financial Services              7,094         7,762    14,630     15,558
 Total                         $ 42,332     $  42,314  $ 82,189   $ 84,760

Net income (Mils.)
- Automotive                   $    178     $  (1,194) $   (130)  $   (505)
- Financial Services                392           442       608        812
   Income before cumulative
   effect of change in
   accounting principle             570          (752)      478        307
- Cumulative effect of change in
  accounting principle                -             -    (1,002)         -
   Total net income            $    570     $    (752) $   (524)  $    307

Adjusted net income before
cumulative effect of change
in accounting principle
(Mils.) a/                     $    610     $    (551) $    502   $    580

Unusual items Mils.)
- SFAS 133                     $      1     $     (87) $     17   $   (159)
- End-of-life vehicle
  legislation                       (41)            -       (41)         -
- Mazda restructuring actions         -          (114)        -       (114)

Capital expenditures (Mils.)
- Automotive                   $  1,402     $   1,229  $   2,938  $  2,586
- Financial Services                119            99        300       230
   Total                       $  1,521     $   1,328  $   3,238  $  2,816

Automotive capital
expenditures as a
percentage of sales                4.0%          3.6%       4.3%      3.7%

Automotive net cash at
June 30 (Mils.)
- Cash and marketable
  securities                   $ 23,425     $ 16,205   $  23,425  $ 16,205
- VEBA                            1,480        2,729       1,480     2,729
   Gross cash including VEBA     24,905       18,934      24,905    18,934
- Debt                           14,050       12,061      14,050    12,061
   Automotive net cash
   including VEBA              $ 10,855     $  6,873   $  10,855  $  6,873

AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Income assuming dilution
- Automotive                   $   0.10     $ (0.66)   $   (0.08) $  (0.28)
- Financial Services               0.19        0.24         0.34      0.44
   Subtotal                        0.29       (0.42)        0.26      0.16
- Cumulative effect of
  change in accounting
  principle                           -           -        (0.55)        -
   Total                       $   0.29     $ (0.42)   $   (0.29) $   0.16

Adjusted net income before
cumulative affect of change
in accounting principle a/     $   0.31     $ (0.31)   $    0.27  $   0.31

Unusual items
- SFAS 133                     $      -     $ (0.05)   $    0.01  $  (0.09)
- End-of-life vehicle legislation (0.02)          -        (0.02)        -
- Mazda restructuring actions         -       (0.06)           -     (0.06)

  a/ Excludes unusual items disclosed by the Company

  Prior periods have been reclassed.


                    Ford Motor Company and Subsidiaries

                           VEHICLE UNIT SALES

                        2002 compared with 2001
                           (in thousands)

                                     Second Quarter            First Half
                                  2002            2001      2002        2001

  North America
  United States
   Cars                            389             397       773         760
   Trucks                          675             640     1,278       1,292
   Total United States           1,064           1,037     2,051       2,052

  Canada                            72              69       144         120
  Mexico                            47              37        80          73
   Total North America           1,183           1,143     2,275       2,245

  Europe
  Britain                          157             168       312         343
  Germany                           94             112       174         217
  Italy                             61              64       111         127
  France                            41              40        65          83
  Spain                             48              53        90          93
  Sweden                            36              31        66          64
  Other countries                  101             108       177         220
    Total Europe                   538             576       995       1,147

  South America
  Brazil                            34              40        62          75
  Argentina                          7               8        11          15
  Other countries                    6              10        15          18
    Total South America             47              58        88         108

  Other international
  Australia                         30              31        56          56
  Taiwan                            16              12        35          30
  Other Countries                   40              36        82          75
    Total other international       86              79       173         161

  Total worldwide vehicle 
       unit sales                1,854           1,856     3,531       3,661


Vehicle unit sales generally are reported worldwide on a 'where sold' basis and
include sales of all Ford-badged units, as well as units manufactured by Ford
and sold to other manufacturers.

Prior periods have been reclassed.


                AUTOMOTIVE GEOGRAPHIC AND COST OF SALES DETAIL
                          2002 Compared with 2001

GEOGRAPHIC DATA                  2nd Quarter                    First Half
                                           02 B/(W)                    02 B/(W)
                          2002    2001     Than 01      2002     2001   Than 01
PBT (Mils).

U.S.                      $86    (1,733)    $1,819      ($482)    (908)    $426
Canada/mexico              61        41         20         32      319     (287)
 North America           $147    (1,692)    $1,839      ($450)    (589)    $139

Europe                    231       212         19        408      350       58
South America            (141)     (109)       (32)      (220)    (190)     (30)
Rest of world             144        74         70        241       43      198
 Worldwide               $381   ($1,515)    $1,896       ($21)   ($386)    $365
                  
Net Income (Mils)
U.S.                       $8   (1,170)     $1,178      ($401)    (590)    $189
Canada/Mexico              37       27          10         16      201     (185)
 North America            $45  ($1,143)     $1,188      ($385)   ($389)      $4

Europe                    155      141          14        272      229       43
South America            (96)     (70)        (26)      (147)    (123)     (24)
Rest of world             101       47          54        155        6      149
  Worldwide              $205  ($1,025)     $1,230      ($105)   ($277)    $172

Sales (Mils.)

U.S.                  $23,130  $22,569        $561    $44,299  $44,668    ($379)
Canada/Mexico           1,942    1,695         247      3,925    3,253      672
 North America        $25,072  $24,264        $808    $48,214  $47,921     $293

Europe                  8,186    8,080         106     15,350   16,764   (1,414)
South America             446      635        (189)       858    1,245     (387) 
Rest of world           1,534    1,573         (39)     3,137    3,272     (135)
  Worldwide           $35,238  $34,552        $686    $67,559  $69,202  ($1,643)


COST OF SALES                     2nd Quarter                    First Half
                                           02 B/(W)                    02 B/(W)
                          2002    2001     Than 01      2002     2001   Than 01
                         (Mils)  (Mils)    (Mils)       (Mils)  (Mils)   (Mils)
          
Total Costs and 
    Expenses           $34,673   $35,907    $1,234     $67,085  $69,138  $2,053
 Less: Depreciation        633       682        49       1,223    1,357     134
       Amortization        651       624       (27)      1,223    1,350     127
       Selling and Admin 2,324     2,288       (36)      4,606    4,749     143
       Postretirement 
                  Exp.*    572       351      (221)      1,060      728    (332)

Net Cost of Sales      $30,493   $31,962    $1,469     $58,973  $60,954  $1,981

Memo: Gross margin        13.5%      7.5%      6.0pts    12.7%     11.9%  0.8pts


*Now includes Benefit Expenses from Total Pension, Retiree Health Care, 
 and Retiree Life Insurance


                          SECOND QUARTER 2002 DATA SHEET

                            2002 Compared with 2001

                                          2002      2002           2001
                                        1st Qtr   2nd Qtr    2nd Qtr   Full Year
Market share Data (%)
   U.S.
      Car                                16.1%     16.7%      18.4%      17.7%
      Truck                              24.9%     25.7%      28.1%      27.4%
        Total                            20.7%     21.3%      23.2%      22.8%

   Europe
      Car                                11.7%     11.2%      10.9%      11.0%
      Truck                               8.4%      7.8%       8.5%       8.6%
        Total                            11.3%     10.8%      10.6%      10.7%

U.S. Total Marketing Costs (Ford/LM)
   Variable and Fixed
   (% of Gross Revenue)                  15.7%     15.6%      14.1%      14.7%

U.S. Sales Mix (Ford/LM)
   Fleet Sales (% of Total)                25%       28%        28%        23%
   Red Carpet Lease (% of Total)           14%       13%        17%        15%
   Red Carpet Lease (% of Retail)          19%       18%        24%        20%

U.S. Inventory (Days' Supply)
   Car                                     59        64         54         63
   Truck                                   66        68         66         60
    Average                                64        67         62         62

Avg. Portfolio Borrowing Rate
   Ford Credit (%)                        5.4%      5.1%       6.2%       6.1%

Worldwide Taxes
   Effective Tax Rate                    32.5%     32.5%   a/ 32.5%      32.5%

Common and Class B
  Shares Outstanding (Mils.)
   Average - actual                     1,807     1,813      1,819      1,820
   Average - assuming full dilution     1,805     2,112      1,810      1,810
   Period ended - actual                1,806     1,816      1,812      1,809

Common stock price (per share)
  High                                 $17.29    $18.23     $30.71     $31.46
  Low                                   13.90     14.88      24.00      14.93

Cash Dividends (per share)              $0.10     $0.10      $0.30      $1.05

a/ Includes dividends from Ford Motor Capital Trust


             2002 NORTH AMERICAN AND OVERSEAS PRODUCTION

                                               2002 Actual          2002 Planned
                                           First         Second        Third
                                         Quarter         Quarter      Quarter
                                           (000)            (000)        (000)

North American Production and Imports*

Car                                         392             426          315

Truck                                       660             755          625

 North American Production                1,052           1,175          940

Mexican Domestic Units                 Incl. Above    Incl. Above   Incl. Above

Imports (Volvo, Jaguar, Land Rover,
                   Fiesta)                   63              73           82

Total North America (Incl. Imports)       1,115           1,248        1,022

Overseas Vehicle Production                 612             666          632

Ford Worldwide                            1,727           1,914        1,654

Over/(Under) Prior

North America
 Units:
   Forecast                                   0               (5)          0
   Quarter                                   57              133        (226)
   Year                                     (13)              47         154

 Percentage:
   Forecast                                   0%               0%          0%
   Quarter                                    5%              12%       (18)%
   Year                                      (1)%              4%         18%

Overseas
 Units:
   Forecast                                   0              (17)          0
   Quarter                                  (57)              54         (34)
   Year                                     (87)             (50)         52

 Percentage:
   Forecast                                  0%              (2)%          0%
   Quarter                                  (9)%              9%          (5)%
   Year                                    (12)%             (7)%          9%

Worldwide
 Units:
   Forecast                                  0              (22)           0
   Quarter                                   0              187         (260)
   Year                                   (100)              (3)         206

 Percentage:
   Forecast                                  0%              (1)%          0%
   Quarter                                   0%              11%        (14)%
   Year                                    (5)%               0%          14%

* Includes units produced for other manufacturers (e.g. Mazda and Nissan)


                       Ford Motor Company and Subsidiaries
                        CONSOLIDATED STATEMENT OF INCOME
                  For the Periods Ended June 30, 2002 and 2001
                                  (in millions)

                                              Second Quarter       First Half
                                             2002        2001   2002        2001
                                                (unaudited)       (unaudited)
AUTOMOTIVE

Sales                                     $35,238     $34,552  $67,559  $69,202

Costs and expenses
Cost of sales                              32,320      33,648   62,394   64,463
Selling, administrative and other expenses  2,393       2,336    4,729    4,842
 Total costs and expenses                  34,713      35,984   67,123   69,305

Operating income/(loss)                       525      (1,432)     436     (103)
Interest income                               172         218      284      473
Interest expense                              337         330      699      697
 Net interest expense                        (165)       (112)    (415)    (224)
Equity in net loss of affiliated companies    (19)       (162)     (80)    (340)

Income/(loss) before income taxes-Automotive  341      (1,706)     (59)    (667)

FINANCIAL SERVICES
Revenues                                    7,094       7,762   14,630   15,558

Costs and expenses
Interest expense                            1,891       2,484    3,887    5,044
Depreciation                                2,647       2,674    5,313    5,193
Operating and other expenses                1,179       1,342    2,738    2,779
Provision for credit and insurance losses     771         572    1,732    1,258
 Total costs and expenses                   6,488       7,072   13,670   14,274

Income before income taxes-Financial Services 606         690      960    1,284

TOTAL COMPANY
Income/(loss) before income taxes             947      (1,016)     901      617
Provision/(credit) for income taxes           282        (284)     256      287
Income/(loss) before minority interests       665        (732)     645      330
Minority interests in net income of 
    subsidiaries                               95          20      167       23
Income/(loss) before cumulative effect of 
  change in Accounting principle              570        (752)     478      307

Cumulative effect of change in accounting
 principle                                      -           -   (1,002)       -

Net income/(loss)                            $570       $(752)   $(524)    $307

Income/(loss) attributable to Common and 
 Class B Stock after preferred stock 
  dividends                                 $ 567       $(755)   $(531)    $300

Average number of shares of Common and 
 Class B Stock outstanding                  1,813       1,819    1,810    1,829

AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
Basic Income
 Income/(loss) before cumulative effect 
   of change in accounting principle       $ 0.31      $(0.42)   $0.26    $0.16
 Cumulative effect of change in accounting 
     principle                                  -           -    (0.55)       -
 Net income/(loss)                         $ 0.31      $(0.42)  $(0.29)   $0.16

Diluted Income
 Income/(loss) before cumulative effect of
  change in accounting principle           $ 0.29      $(0.42)  $ 0.26    $0.16
 Cumulative effect of change in accounting 
   principle                                    -           -    (0.55)       -
 Net income/(loss)                         $ 0.29      $(0.42)  $(0.29)   $0.16

Cash dividends                             $ 0.10      $ 0.30   $ 0.20    $ 0.60

The accompanying notes are part of the financial statements.


                    Ford Motor Company and Subsidiaries

                        CONSOLIDATED BALANCE SHEET

                             (in millions)
                                                      June 30,    December 31,
                                                         2002            2001
                                                    (unaudited)
 ASSETS
 Automotive
 Cash and cash equivalents                             $ 8,480       $  4,079
 Marketable securities                                  14,945         10,949
     Total Cash and marketable securities               23,425         15,028

 Receivables                                             2,356          2,214
 Inventories                                             7,522          6,191
 Deferred income taxes                                   2,595          2,595
 Other current assets                                    5,697          6,155
 Current receivable from Financial Services              1,939            938
     Total current assets                               43,534         33,121

 Equity in net assets of affiliated companies            2,317          2,450
 Net property                                           35,162         33,121
 Deferred income taxes                                   7,541          5,996
 Goodwill                                                4,712          5,283
 Other intangible assets                                 1,110          1,194
 Other assets                                            6,421          7,154
     Total Automotive assets                           100,797         88,319

 Financial Services
 Cash and cash equivalents                               4,623          3,139
 Investments in securities                                 638            628
 Finance receivables, net                              108,557        110,358
 Net investment in operating leases                     46,930         47,262
 Retained interest in sold receivables                  11,515         12,548 
 Goodwill and other intangible assets                    1,063          1,353
 Other assets                                           12,456          9,224
 Receivable from Automotive                              3,712          3,712
     Total Financial Services assets                   189,494        188,224

     Total assets                                     $290,291       $276,543

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Automotive
 Trade payables                                       $ 17,312       $ 15,677
 Other payables                                          3,043          4,227
 Accrued liabilities                                    25,988         24,340
 Debt payable within one year                              241            302
     Total current liabilities                          46,584         44,546

 Long-term debt                                         13,809         13,492
 Other liabilities                                      35,222         30,868
 Deferred income taxes                                     361            362
 Payable to Financial Services                           3,712          3,712
     Total Automotive liabilities                       99,688         92,980

 Financial Services
 Payables                                                2,859          1,595
 Debt                                                  150,764        153,543
 Deferred income taxes                                  10,122          9,703
 Other liabilities and deferred income                   9,254          9,326
 Payable to Automotive                                   1,939            938
     Total Financial Services liabilities              174,938        175,105

Company-obligated mandatorily redeemable preferred and
 mandatorily redeemable convertible preferred 
securities of subsidiary trusts holding solely 
junior subordinated debentures of the Company            5,671            672

 Stockholders' equity
 Capital stock
 Preferred Stock, par value $1.00 per share
  (aggregate liquidation preference of $177 million)         *              *
 Common Stock, per 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                 5,868          6,001
 Accumulated other comprehensive income                 (2,932)        (5,913)
 ESOP loan and treasury stock                           (2,570)        (2,823)
 Earnings retained for use in business                   9,609         10,502
     Total stockholders' equity                          9,994          7,786

     Total liabilities end stockholders' equity       $290,291       $276,543


* Less than $1 million
The accompanying notes are part of the financial statements.

     
                       Ford Motor Company and Subsidiaries
                   CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                     For the Periods Ended June 30, 2002 and 2001
                                   (in millions)


                                        First Half 2002       First Half 2001
                                                  Financial            Financial
                                      Automotive  Services  Automotive Services
                                            (unaudited)        (unaudited)

Cash and cash equivalents at January 1   $ 4,079   $ 3,139   $ 3,374    $1,477

Cash flows from operating activities 
before securities trading                  8,109     8,592     6,336     6,995
Net sales/(purchases) of trading 
   securities                             (3,766)      (60)      482      (148)
 Net cash flows from operating activities  4,343     8,532     6,818     6,847

Cash flows from investing activities
 Capital expenditures                     (2,938)     (300)   (2,586)     (230)
 Acquisitions of receivables and lease 
     investments                               -   (43,444)        -    (48,003)
 Collections of receivables and lease 
     investments                               -    28,199         -     26,132
 Net acquisitions of daily rental vehicles     -    (1,896)        -     (2,362)
 Purchases of securities                  (1,030)     (320)  (10,729)      (485)
 Sales and maturities of securities          898       268    12,059        476
 Proceeds from sales of receivables and 
    lease investments                          -    19,430         -     10,141
 Net investing activity with Financial 
    Services                                  29         -      (460)         -
 Cash paid for acquisitions                  (67)        -    (1,868)      (742)
 Other                                         -       425       366        (35)
  Net cash (used in)/provided by
    investing activities                  (3,108)    2,362    (3,218)   (15,108)

Cash flows from financing activities
 Cash dividends                             (369)        -    (1,107)         -
 Net sales/(purchases) of Common Stock        92         -    (1,322)         -
 Proceeds from mandatorily redeemable 
   convertible preferred securities        4,900         -         -          -
 Changes in short-term debt                  (91)   (9,032)      (70)    (2,375)
 Proceeds from issuance of other debt        265    12,426       346     25,028
 Principal payments on other debt           (691)  (13,981)     (368)   (13,791)
 Net financing activity with Automotive        -       (29)        -        460
 Other                                       (14)      (44)      170       (362)
  Net cash (used in)/provided by financing 
    activities                             4,092   (10,660)   (2,351)     8,960


Effect of exchange rate changes on cash       75       249       (20)      (193)
Net transactions with Automotive
    /Financial Services                   (1,001)    1,001       100       (100)

 Net increase in cash and cash equivalents 4,401     1,484     1,329        406

 Cash and cash equivalents at June 30     $8,480    $4,623    $4,703     $1,883

The accompanying notes are part of the financial statements,
 
                      This information is provided by RNS
            The company news service from the London Stock Exchange
                          

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