Automotive News World Congress Derrick Kuzak Group Vice President Global Product Development Ford Motor Company January 23, 2008

Slide 2 Our Plan Aggressively restructure to operate profitably at the current lower demand and changing model mix Accelerate the development of new products that customers want and prefer and to grow profitably –How We Plan –How We Work –Our Product Strategy Finance our plan and improve our balance sheet Work together

Slide 3 How We Plan Global Product Plan Principles GoalPrinciples Ensure a customer view of success Achieve benchmark levels of: - % of volume new or significantly freshened - Average age of portfolio - Number of unique showroom nameplates Achieve benchmark cadence of timing and scope of product change Reduce investment through simplification and increased efficiency Achieve benchmark levels of: - Platforms - Powertrain architectures and combinations - Order guide complexity Ford Brand vehicles shared globally Fully differentiated Ford-to-Lincoln vehicles Investment at benchmark levels

Slide 4 Average Age of Portfolio (Years) Ford Lincoln Memo: Competitor A 3.1 – 4.2 yrs, Competitor B yrs 35% Improvement

Slide 5 Investment Efficiency Improvement Commonality Part re-use and modular designs Complexity Reduction Orderable combinations Platform reductions Procurement Efficiencies Low-cost country die sourcing Direct tool sourcing with cost models On-line quoting for tools Direct gage sourcing / Generic gage designs Plant Manufacturing Physical-based costing Digital pre-assembly validation Flexible automation: body shop, plant facilities

How We Work Achieving World Class Efficiency

Slide 7 Product Development Objectives EfficiencyOutput Input # Programs Engineering Costs = = More exciting products, Greater efficiency, Less cost # Of programs weighted by market impact # Of programs weighted by market impact PD Factory Engineering costs Engineering costs

Slide 8 Product Development Efficiency Improvement Actions Global Product Development System First-time Through Capability Improved Virtual Capabilities Global Product Development Engineering Footprint Migration Giving Engineers Time To Engineer

Slide 9 Global Product Development System – Accelerating Product Development Calendar Year New Top Hat Base 24% faster 49% faster All New Vehicle (Top Hat + Platform) Base 19% faster 27% faster

Slide 10 Improved Virtual Capability Overall prototype spending cut in HALF over 3 year period –35% fewer prototype vehicles (Increased Virtual Capability and Commonality) –20% less cost per unit (Increased Commonality) –20% less spending on prototype tooling (Increased Virtual and Commonality)

Slide 11 Definition Proposal Top Hat Platform Core Commodities/Subsystems Top Hat Content and Vehicle Integration Systems/Commodities Shared within Platforms Lead Engineering/ Purchasing D&R Single Lead Design and Engineering Activity for all Top Hats of each Platform Single Lead Engineering Activity for each Platform Single Lead For each system Body Chassis E/E P/T Global Product Development - How We Are Working

Our Product Strategy

Slide 13 Global Ford Brand Product Strategy Bold, emotive exterior designs Great to drive Great to sit in -Comfort and convenience of a second home on wheels -Remarkably quiet Fuel Economy as a reason to buy Unmistakably a Ford in look, sound, feel All with exceptional value

Slide 14 Design Leadership … What It Takes New design process, focused on target customer and design progressives Engineering creativity and resolve to deliver winning designs Brand aligned, consistent Design DNA Exciting designs – “unexpected from Ford” - that bring customers to the showroom

Slide 15 Design Leadership: Millimeters Matter

Slide 16 Ford Verve Concept – North America

Slide 17 Ford Verve Concept - China

Slide 18 Ford Verve Concept - Europe

Slide 19 Global Ford Brand Product Strategy Bold, emotive exterior designs Great to drive Great to sit in -Comfort and convenience of a second home on wheels -Remarkably quiet Fuel Economy as a reason to buy Unmistakably a Ford in look, sound, feel All with exceptional value

Slide 20 “Infotainment” and Connectivity - Partnering with the Best

Slide 21 Generally, product cycle times in the automotive industry range 3 to 5 years The electronics industry evolves more rapidly SYNC is a Platform that can bridge these two industries –Applications can be built on top of the platform –Faster development of new features enabled through software –Software also provides upgradeability Microsoft & the Speed of SYNC Automotive Cycle Time Consumer Electronics Cycle Time

Slide 22 The Evolution of SYNC SYNC started with Hands-Free Phone and Media Player capabilities Now SYNC 911 Assist and Vehicle Health Report will be available later this year Ford will add in-vehicle GPS technology in 2008 to further enhance SYNC services SYNC will offer software upgrades through our dealerships

Slide 23 The Sony Partnership Sony Branded Audio Unit

Slide 24 Extending the Ford/Sirius relationship beyond media content to provide information and entertainment content through the Travel Link TM navigation system. This includes: –Real-Time Traffic –Movie Listings –Weather –Sports –Gas Prices Sirius & The Latest In Satellite Communications

Slide 25 Branding with the Best

Slide 26 Global Ford Brand Product Strategy Bold, emotive exterior designs Great to drive Great to sit in -Comfort and convenience of a second home on wheels -Remarkably quiet Fuel Economy as a reason to buy Unmistakably a Ford in look, sound, feel All with exceptional value

Slide 27 Showroom Fuel Economy Label Competitiveness 2008 vs 2007 Product Line

Slide 28 Fuel Economy and Performance Competitiveness - Flex % Performance Feel % Fuel Economy Better AWD Competitor C Flex 3.5L 6spd Auto AWD AWD Competitor B AWD Competitor A Flex 3.5L 6spd Auto FWD

Slide 29 %Performance Feel %Fuel Economy 2009 Escape 2.5L 6spd Auto Competitor A Competitor B Better Fuel Economy and Performance Competitiveness - Escape I4

Slide 30 Fuel Economy and Performance Competitiveness - Fusion I4 %Performance Feel %Fuel Economy I4 09 Fusion Auto FWD Competitor B Competitor C Competitor A Better

Slide 31 EcoBoost = (10-20%) and Improved Fuel EconomyDirect Injection Reduced Emissions (7 – 15%) Turbo-Charging Equal or Better Performance Downsizing + +

Slide L V-6 EcoBoost 4.6L V-8 EcoBoost Torque Comparison Engine Torque Comparison

Slide 33 What’s Different – Ford’s EcoBoost Learned from extensive R&A work and initial Mazda applications Optimized: a.Ports and chamber through extensive CAE for maximum efficiency without compromising performance. b.Combustion system for extended stoichiometric operation and maximized compression ratio. c.Cam events and turbo charger for low speed performance for best powertrain system matching

Slide 34 EcoBoost Application can be Tailored % Performance Feel %Fuel Economy 2.5L 6spd Small I4 EcoBoost Powershift Better EcoBoost as a base Engine – Mid-Size Car

Slide 35 %Performance Feel % Fuel Economy 4.6L 3.5L EcoBoost Better EcoBoost Can be Tailored EcoBoost as a Premium Engine – MKS

Slide 36 Fuel Economy as a Reason To Buy Near Term Fuel Economy Improvements Mid-Size Utility % Fuel Economy 150 LBSFinal EPAS, BMS, Fast Engine Warm-up, ADFSO, N/V opt Downsized PT with EcoBoost Technology 5 to 6 speed +ASC Aero and Parasitic Improvements

Slide 37 EcoBoost Consumer Perspective EcoBoost I-4 I-4 DieselI-4 Hybrid Payback of Incremental Purchase Price Through Fuel Economy Savings Lower Is Better

Slide 38 EcoBoost Migration Plan

Slide 39 Thank You