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FORD SETS FINANCIAL MILESTONES FOR 2000
DEARBORN, Mich., January 14, 2000 - To drive continued operating improvements,
Ford Motor Company [NYSE: F] is sharing its financial milestones for the
upcoming 12 months with employees, investors and the public for the fourth
consecutive year.
"Our milestones are designed to challenge and focus the entire Ford Motor
Company team, and we believe they provide investors with an unmatched level of
clarity and insight into our corporate objectives," said Jac Nasser, president
and CEO. "Since we first began setting milestones in 1997, the company has
delivered improved operating earnings in every quarter. In 2000, we will use
product excellence and innovative e-business initiatives to connect with
consumers and drive business-to-business improvements to extend our track
record and build lasting shareholder value."
The 2000 milestones are:
Total Company Milestone
- ------------- ---------
o Shareholder Value Ford stock total return in the top quartile of the S&P 500 over time
o Revenue Grow by $5 billion
Automotive Milestone
- ---------- ---------
o North America Record earnings
o Europe Improve results
o South America Improve results
o Rest of World Improve results
o Total Costs Down $1 billion from 1999 (at constant volume and mix)
o Capital Spending $9 billion
Automotive-Related Milestone
- ------------------ ---------
o Ford Credit Grow earnings by 10 percent and improve returns
o Hertz Record earnings (ninth year of increased earnings)
o Visteon Achieve independence
-2-
STATUS OF 1999 FINANCIAL MILESTONES
- -----------------------------------
Ford is on track to meet or exceed all of its full-year 1999 milestones,
excluding the milestones for Europe and South America:
Automotive Milestone 1999 Actual (First 9 Months)
- ---------- --------- ----------------------------
o North America ROS greater than 5 percent 6.3 percent
o Europe Grow earnings Results below milestone
o South America Improve operating results Results below milestone
o Total Costs* Down $1 billion from 1998 Down $700 million
o Capital Spending** $8.5 billion $5 billion
* At constant volume and mix
** Includes capitalized software
Automotive-Related Milestone 1999 Actual (First 9 Months)
- ------------------ --------- ----------------------------
o Ford Credit Grow earnings 10 percent $952 million, up 12 percent
o Hertz Record earnings $276 million, up 20 percent
o Visteon $1.5 billion in new business $1.7 billion in new business;
Earnings growth $640 million, up 11 percent
In 1999, Ford Motor Company completed the acquisitions of Volvo Car and
Kwik-Fit; began the development of e-businesses in partnership with
Microsoft's CarPoint, Oracle, Trilogy and others; created the Premier
Automotive Group; and launched several highly successful products, including
the Ford Focus in North America (Europe's Car of the Year for 1999, Automobile
Magazine's Automobile of the Year and the North American Car of the Year),
Volvo S40/V40, Lincoln LS (Motor Trend's Car of the Year), Jaguar S-TYPE and
Ford Excursion.
Earlier this month, Ford Motor Company and Yahoo! Inc. announced that the two
companies are teaming to develop personalized services for Yahoo!Autos
(http://autos.yahoo.com) tailored to specific Ford, Lincoln, Mercury and Mazda
vehicles, and soon Jaguar and Volvo vehicles.
Over the course of the year, Ford Motor Company will launch several new
products, including the Ford Explorer Sport Trac, F-Series SuperCrew,
Lincoln Blackwood and Ford Escape in North America. In Europe, Ford will launch
a redesigned Ford Transit, Galaxy MPV and Mondeo. The Volvo V70/V70XC will be
launched in both markets, and others around the world.
# # #
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:
a significant decline in industry sales, particularly in the U.S. or Europe; a
market shift from truck sales in the U.S.; or work stoppages at key Ford or
supplier facilities.