Automotive News World Congress Derrick Kuzak Group Vice

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

Our Plan • Aggressively restructure to operate profitably at the current lower demand 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 2

How We Plan Global Product Plan Principles Goal Principles Ensure a customer view of success • Achieve benchmark levels of: - % of volume new or significantly freshened - Average 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 3

Average Age of Portfolio (Years) Ford Lincoln 35% Improvement 2006 2007 2008 2009 Memo: Competitor A 3. 1 – 4. 2 yrs, Competitor B 3. 9 - 4. 8 yrs Slide 4 2010 2011

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

How We Work Achieving World Class Efficiency

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

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 8

Global Product Development System – Accelerating Product Development Calendar Year 2004 2006 2008+ New Top Hat Base 24% faster 49% faster Base 19% faster 27% faster All New Vehicle (Top Hat + Platform) Slide 9

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 10

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

Our Product Strategy

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 13

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 14

Design Leadership: Millimeters Matter Slide 15

Ford Verve Concept – North America Slide 16

Ford Verve Concept - China Slide 17

Ford Verve Concept - Europe Slide 18

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 19

“Infotainment” and Connectivity Partnering with the Best Slide 20

Microsoft & the Speed of SYNC • 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 Automotive Cycle Time Consumer Electronics Cycle Time Slide 21

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 22

The Sony Partnership Sony Branded Audio Unit Slide 23

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

Branding with the Best Slide 25

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 26

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

Fuel Economy and Performance Competitiveness - Flex % Fuel Economy Flex 3. 5 L 6 spd Auto FWD r tte e B Flex 3. 5 L 6 spd Auto AWD Competitor A AWD Competitor B AWD Competitor C % Performance Feel Slide 28

Fuel Economy and Performance Competitiveness - Escape I 4 er %Fuel Economy tt Be 2009 Escape 2. 5 L 6 spd Auto Competitor A Competitor B %Performance Feel Slide 29

Fuel Economy and Performance Competitiveness - Fusion I 4 r tte e %Fuel Economy B I 4 09 Fusion Auto FWD Competitor A Competitor B Competitor C %Performance Feel Slide 30

Eco. Boost Improved Fuel Economy + = (10 -20%) Direct Injection and Reduced Emissions (7 – 15%) and Equal or Better Performance Slide 31

Eco. Boost Torque Comparison Engine Torque Comparison 3. 5 L V-6 Eco. Boost 4. 6 L V-8 Slide 32

What’s Different – Ford’s Eco. Boost • 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 33

Eco. Boost Application can be Tailored Eco. Boost as a base Engine – Mid-Size Car %Fuel Economy Small I 4 Eco. Boost Powershift 2. 5 L 6 spd % Performance Feel Slide 34 er tt Be

Eco. Boost Can be Tailored Eco. Boost as a Premium Engine – MKS er % Fuel Economy tt Be 3. 5 L Eco. Boost 4. 6 L %Performance Feel Slide 35

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

Eco. Boost Consumer Perspective Payback of Incremental Purchase Price Through Fuel Economy Savings Lower Is Better Eco. Boost I-4 Diesel Slide 37 I-4 Hybrid

Eco. Boost Migration Plan Slide 38

Thank You Slide 39