NEWS

Contact:
George Pipas
1.313.323.9216
gpipas@ford.com

Media Information Center
1.800.665.1515 or
1.313.621.0504
media@ford.com

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


IMMEDIATE RELEASE
FORD MOTOR COMPANY'S MAY U.S. SALES DECLINE 10.5%

FORD EXPLORER MAY SALES ARE HIGHEST THIS YEAR AS ALL-NEW MODEL CONTINUES TO GAIN
SHARE IN SUV MARKET

DEARBORN, MI, June 1, 2001 - U.S. customers purchased or leased 372,798 cars and
trucks from Ford, Mercury, Lincoln, Jaguar, Volvo, and Land Rover dealers in
May, down 10.5 percent from last year's record May sales.

"I would like to thank our dealers," said Martin Inglis, Vice President, Ford
North America. "Once again, they have demonstrated their commitment to customer
satisfaction, and that they are the No. 1 retail organization in the car
business."

Sales highlights for the month included:

o        Jaguar, Volvo and Land Rover dealers all reported record May sales.

o        Lincoln Mercury dealers reported improved showroom traffic and sales of
         Lincoln Town Car, Continental, LS, and Navigator resulting from an
         attractive financing program offered by Ford Credit. Lincoln sales were
         17,118, down 1.4 percent from a year ago. In addition, Mercury
         Mountaineer sales were 4,368, up 4.5 percent.

o        Ford Explorer, America's best selling sport utility vehicle, achieved
         May sales of 36,904, its highest sales month in 2001. Since the
         introduction of the all-new 2002 model, Ford Explorer's share of
         segment has increased every month. Customer feedback about the new 2002
         Explorer has been extremely positive and has contributed to the
         vehicle's continued success.

"The redesigned 2002 Explorer has generated a lot of excitement from both our
customers and our salespeople," said Bert Boeckmann, owner and president of
Galpin Ford, the world's largest Ford dealer and Ford Motor Company's number one
selling SUV dealer since the Explorer's introduction in 1990. "Customers
overwhelmingly cite the improved performance and handling, body styling and
third row seating as their favorite new features."

o        Ford dealers delivered a record number (69,525) of "No Boundaries"
         sport utility vehicles (Ford Escape, Explorer, Expedtion, and
         Excursion). Ford is the best-selling brand of SUVs and one of the few
         brands to have achieved higher year-to-date sales of SUVs.

o        Ford F-Series pickup, America's best selling truck, achieved May sales
         of 75,952.

The company also announced further production actions to support the tire
replacement program. Ford Ranger production at the Twin Cities (MN) and Edison
(NJ) plants will be suspended the week of June 11. Previously, the company
announced that production at the Twin Cities and Edison plants would be
suspended for two weeks beginning May 28 and that Louisville production would be
suspended the week of June 4. In total, 31,000 lights trucks (8,000 Ford
Explorers and Mercury Mountaineers and 23,000 Ford Rangers and Mazda B Series
pickups) have been cut from the company's second quarter North American
production. Presently, the company plans to build 1,130,000 cars and trucks,
down 14 percent from the second quarter 2000.