DEARBORN, Mich., July 24 /EMWNews/ --



    -- Net loss of $8.7 billion, or $3.88 a share, for the second quarter

of 2008.



    -- Pre-tax special charges of $8 billion, including impairments of $5.3

billion for Ford North America long-lived assets and $2.1 billion for Ford

Motor Credit Company's operating lease portfolio.



    -- Pre-tax loss of $1 billion from continuing operations, excluding

special items.++



    -- Cost reductions of $1 billion, including over $600 million in North

America (at constant volume, mix and exchange; excluding special items).

The company remains on track to reach $5 billion in annual cost reductions

in North America by the end of 2008 compared with 2005.



    -- Strong profitability from Ford Europe and Ford South America.



    -- Automotive gross cash at June 30 of $26.6 billion (including cash

and cash equivalents, net marketable securities and loaned securities). +++



    -- Ford also today announced a significant acceleration of its product

and production transformation plan with the addition of several new

fuel-efficient small vehicles in North America and a realignment of its

North American manufacturing (see related release

http://media.ford.com/article_display.cfm?article_id=28660).








    Financial Results Summary               Second Quarter      First Half

                                       ---------------------------------------

                                          2008    O/(U) 2007 2008   O/(U) 2007

    --------------------------------------------------------------------------

    Wholesales (000) ++                   1,561      (212)   3,092      (331)

    Revenue (Bils.)++                     $38.6     $(5.6)   $78.0     $(9.3)



    Continuing Operations++

    -------------------------

    Automotive Results (Mils.)            $(670)  $(1,048)    $(18)    $(171)

    Financial Services (Mils.)             (334)     (439)    (270)     (669)

                                       ---------  --------  -------  ---------

      Pre-Tax Results (Mils.)           $(1,004)  $(1,487)   $(288)    $(840)



    After-Tax Results (Mils.)            (1,376)   (1,634)    (869)     (956)



    Earnings Per Share++++                (0.62)    (0.75)   (0.39)    (0.44)



    Special Items Pre-Tax (Mils.)       $(8,026)  $(8,469) $(8,426)  $(8,756)

    -----------------------------

    Net Income

    ----------

    After-Tax Results (Mils.)           $(8,667)  $(9,417) $(8,567)  $(9,035)

    Earnings Per Share                    (3.88)    (4.19)   (3.87)    (4.09)



    Automotive Gross Cash (Bils.)+++      $26.6    $(10.8)   $26.6    $(10.8)

    --------------------------------



    See end notes in back of release.



    Ford Motor Company (NYSE: F) today reported a second quarter net loss

of $8.7 billion, or $3.88 per share, including pre-tax special items

totaling $8 billion. This compares with a net profit of $750 million, or 31

cents per share, in the second quarter of 2007.



    Ford also today announced a significant acceleration of its

transformation plan with the addition of several new fuel-efficient small

vehicles in North America and a realignment of its North American

manufacturing (see related release

http://media.ford.com/article_display.cfm?article_id=28660).



    "We continue to take decisive action in response to the rapidly

changing business environment and remain absolutely committed to the four

elements of our business transformation plan," said Ford President and CEO

Alan Mulally. "Our European and South American operations are robust and

profitable. We have momentum in Asia. And we are uniquely positioned to

leverage our global assets and the global strength of the Ford brand to

quickly bring more small, fuel-efficient vehicles to North America."



    The 2008 operating data discussed below exclude Jaguar Land Rover,

which was sold on June 2, 2008. Jaguar Land Rover and Aston Martin data

are, however, included in the 2007 data, except where otherwise noted. See

tables following "Safe Harbor/Risk Factors" for the amounts attributable to

Jaguar Land Rover and any necessary reconciliations to U.S. GAAP.



    Ford's second quarter pre-tax operating loss from continuing

operations, excluding special items, was $1 billion, down from a year-ago

profit of $483 million. On an after-tax basis, Ford's second quarter

operating loss from continuing operations, excluding special items, was

$1.4 billion, or 62 cents per share, compared with a net profit of $258

million, or 13 cents per share, a year ago.



    Ford's second quarter revenue, excluding special items, was $38.6

billion, down from $44.2 billion a year ago. Adjusted to exclude Jaguar

Land Rover and Aston Martin from 2007 results, revenue would have been down

slightly, with lower volume, adverse product mix and lower net pricing,

partly offset by favorable exchange.



    Special items reduced pre-tax results by $8 billion in the second

quarter, or $3.26 a share, primarily reflecting charges associated with

asset impairments of $5.3 billion for Ford North America and $2.1 billion

for Ford Credit. Because of deteriorating economic conditions, demand has

declined substantially, particularly in North America. At the same time,

fuel and commodity prices have increased substantially. As a result, there

has been a significant shift away from large pickup trucks and traditional

SUVs in North America. This prompted a review of our long-lived North

American assets and Ford Credit operating lease portfolio, which led to the

pre-tax non-cash impairment charges.



    Automotive gross cash, which includes cash and cash equivalents, net

marketable securities, and loaned securities, was $26.6 billion at June 30,

2008, a decrease of $2.1 billion from the end of the first quarter.



    The decrease primarily reflects working capital increases, upfront

subvention payments to Ford Credit, and Automotive operating losses, offset

partly by the proceeds of the Jaguar Land Rover sale.



    The following discussion of second quarter highlights and results are

on a pre-tax basis and exclude special items. See tables following "Safe

Harbor/Risk Factors" for the nature and amount of these special items and

any necessary reconciliations to U.S. GAAP.



    SECOND QUARTER HIGHLIGHTS



    -- Posted profits of $582 million in Ford Europe and $388 million in

Ford South America.



    -- Launched the new Ford Kuga in Europe, a compact crossover vehicle

with the best fuel economy of any AWD vehicle in the segment.



    -- Completed the sale of Jaguar Land Rover to Tata Motors.



    -- Improved initial quality of Ford brand vehicles in the U.S. at a

rate faster than the industry average, according to J.D. Power and

Associates. Ford was the only full-line automaker to show continuous

quality improvement since 2004.



    -- Lincoln and Mercury finished fifth and sixth, respectively, in the

latest J.D. Power survey of customer satisfaction with dealership service.



    -- Achieved $1 billion in cost savings, including over $600 million in

Ford North America (at constant volume, mix and exchange; excluding special

items). The company remains on track to achieve $5 billion in annual cost

reductions in North America by the end of 2008 compared with 2005.



    -- Launched the 2009 Ford Flex, our all-new seven passenger crossover

vehicle with fuel economy that is equal-to-or-better-than its crossover

competitors, and Lincoln MKS, our new luxury sedan in North America.



    -- Confirmed the next-generation European Ford Fiesta and Ford Focus

will begin North American production in 2010 as Ford North America adds

more small cars, crossovers and fuel-efficient powertrains.








    AUTOMOTIVE SECTOR





    Automotive Sector*                   Second Quarter       First Half

                                        --------------------------------------

                                         2008   O/(U) 2007    2008  O/(U) 2007

    --------------------------------------------------------------------------

    Wholesales (000)                     1,561     (212)     3,092     (331)

    Revenue (Bils.)                      $34.1    $(6.0)     $69.1    $(9.6)

    Pre-Tax Results (Mils.)              $(670) $(1,048)      $(18)   $(171)



      *excludes special items

    For the second quarter of 2008, Ford's worldwide Automotive sector

reported a pre-tax loss of $670 million, compared with a pre-tax profit of

$378 million during the same period a year ago. The deterioration was more

than explained by lower volume and less favorable mix, particularly in the

North American full-size pickup and traditional SUV segments, unfavorable

net interest expense, lower net pricing, and changes in currency exchange,

partly offset by favorable cost changes.



    Worldwide Automotive revenue for the second quarter of 2008 was $34.1

billion, down from $40.1 billion a year ago. Total company vehicle

wholesales in the second quarter were 1,561,000, compared with 1,773,000

units a year ago. The decrease reflected lower wholesales, primarily in

North America, and the exclusion of Jaguar Land Rover and Aston Martin

volume in 2008.



    North America: For the second quarter, Ford North America Automotive

operations reported a pre-tax loss of $1.3 billion, compared with a loss of

$270 million a year ago. The deterioration reflected unfavorable volume and

mix, especially in the full-size pickup truck and traditional SUV segments,

and unfavorable net pricing. The impact of these factors was partly offset

by cost reductions. Second quarter revenue was $14.2 billion, down from $19

billion a year ago.



    South America: For the second quarter, Ford South America posted a

pre-tax profit of $388 million, up from $255 million a year ago. The

increase reflected higher net pricing and improved volume and mix,

partially offset by unfavorable exchange. Second quarter revenue increased

to $2.4 billion, up from $1.8 billion a year ago.



    Europe: For the second quarter, Ford Europe pre-tax profits were $582

million, up from $262 million a year ago. The improvement was primarily

explained by favorable volume and mix, and cost reductions, partially

offset by unfavorable exchange. Second quarter revenue was $11.5 billion,

up from $9.2 billion a year ago.



    Volvo: For the second quarter, Volvo reported a pre-tax loss of $120

million, compared with a loss of $91 million a year ago. This reflected an

improvement from first quarter results. The decline primarily reflected

unfavorable volume and mix, unfavorable net pricing, and unfavorable

exchange, partially offset by cost reductions. Second quarter revenue was

$4.3 billion, compared with $4.4 billion a year ago.



    Asia Pacific Africa: For the second quarter, Ford Asia Pacific Africa

reported a pre-tax profit of $50 million, compared with a pre-tax profit of

$26 million a year ago. The improvement primarily reflected favorable net

pricing and cost performance. Second quarter revenue was $1.7 billion,

about the same as a year ago.



    Mazda: Ford earned $103 million from its investment in Mazda in the

second quarter, compared with $72 million a year ago.



    Other Automotive: Other Automotive, which consists primarily of

interest and financing-related costs, reported a second quarter pre-tax

loss of $336 million. This included net interest expense of $339 million.








    FINANCIAL SERVICES SECTOR





    Financial Services Sector*             Second Quarter      First Half

                                         -------------------------------------

    (in millions)                         2008   O/(U) 2007  2008  O/(U) 2007

    --------------------------------------------------------------------------

    Ford Credit Pre-Tax Results          $(294)    $(406)   $(261)   $(667)

    Other Financial Services               (40)      (33)      (9)      (2)

                                         ------    ------   ------   ------

    Financial Services Pre-Tax Results   $(334)    $(439)   $(270)   $(669)

                                         ------    ------   ------   ------

      *excludes special items



    For the second quarter, the Financial Services sector posted a pre-tax

loss of $334 million, compared with a pre-tax profit of $105 million a year

ago.



    Ford Motor Credit Company: Ford Credit reported a pre-tax loss of $294

million in the second quarter, compared with a profit of $112 million a

year ago. The decrease in earnings primarily reflected higher depreciation

expense for leased vehicles and higher provision for credit losses,

reflecting weakness in the North American vehicle auction market.



    2008 OUTLOOK



    "The second half will continue to be challenging, but we have

absolutely the right plan to respond to the changing business environment

and begin to grow again for the long term," Mulally said. "We have great

products entering the marketplace in the second half, including the Ford

Flex, Lincoln MKS and Ford F-150 in North America, the Ford Kuga in Europe,

and the Ford Fiesta in Europe and China. We continue to make progress on

every element of our plan, and we are accelerating the transformation of

Ford into a lean global company that delivers profitable growth for all."



    Ford's 2008 planning assumptions regarding the industry, operating

metrics and profit outlook are as follows:








    2008 Planning Assumptions and Operational Metrics

    -------------------------------------------------

                                                                 Full-Year

    Planning Assumptions       Full-Year Plan    First Half       Outlook

    Industry Volume (SAAR):    --------------    ----------      ---------



      -U.S. (million units)*        16.0            15.1         14.0 - 14.5

      -Europe (million units)**     17.6            17.5         17.2 - 17.4



    Operational Metrics

    -------------------

    Compared with 2007:

      --Quality                   Improve         Improved        On Track



                             Improve by about                      Over $3

      --Automotive Costs***     $3 Billion      $2.7 Billion       Billion



    Absolute Amount:

      --U.S. Market Share

        (Ford Lincoln           Low End of

        Mercury)             14% - 15% Range        14.7%          High 13%



      --Operating-Related         Negative     $(4.6) Billion  Greater Outflow

        Cash Flow                                                 than Plan



      --Capital Spending  

    About $6 Billion  $2.9 Billion       On Track



     2008 Operating and Overall Results Now Expected to be Worse Than 2007



    *    Includes medium and heavy trucks

    **   European 19 markets that we track

    ***  At constant volume, mix and exchange; excludes special items







    Ford's production volumes are shown below:





    2008 Production Volumes

    -----------------------

                                 Actual                  Forecast

                                             --------------------------------

                             Second Quarter   Third Quarter   Fourth Quarter

                             --------------   -------------   --------------

                                      O/(U)            O/(U)           O/(U)

                              Units    2007    Units    2007   Units    2007

                              -----   -----    -----   -----   -----   -----

                              (000)   (000)    (000)   (000)   (000)   (000)



    Ford North America         685    (126)     440    (197)    500    (141)



    Ford Europe                565      53      400     (16)    490       1



    Volvo                      112      (4)      80     (13)    110      (7)



    CONFERENCE CALL DETAILS



    Ford Motor Company [NYSE:F] will release second quarter 2008 financial

results at 7 a.m. EDT, Thursday, July 24. The following briefings will be

held after the announcement:



    At 9 a.m. EDT, Alan Mulally, president and chief executive officer, Don

Leclair, executive vice president and chief financial officer, and Mark

Fields, executive vice president and president, The Americas, will host a

call for the investment community and news media to discuss second quarter

results and provide more details on changes to Ford's overall plan.



    At 11 a.m. EDT, Peter Daniel, Ford senior vice president and

controller, Neil Schloss, Ford vice president and treasurer, and K.R. Kent,

Ford Motor Credit Company vice chairman and chief financial officer, will

host a conference call for fixed income analysts and investors.



    The presentations (listen-only) and supporting materials will be

available on the Internet at http://www.shareholder.ford.com . Representatives of

the news media and the investment community participating by teleconference

will have the opportunity to ask questions following the presentations.






    Access Information - Thursday, July 24

    Toll Free: 800-573-4754

    International: 617-224-4325



    Earnings: 9:00 a.m. EDT

    Earnings Passcode: "Ford Earnings"



    Fixed Income: 11:00 a.m. EDT

    Fixed Income Passcode: "Ford Fixed Income"



    Replays - Available after 2 p.m. the day of the event through July 31.

    http://www.shareholder.ford.com

    Toll Free: 888-286-8010

    International: 617-801-6888



    Passcodes:

    Earnings: 29481628

    Fixed Income: 55865600



    SATELLITE FEED DETAILS FOR PRODUCT B-ROLL



    At 2:30 p.m. EDT, Ford will feed b-roll of several vehicles referenced

in today's announcements for use by media. Broadcast-related questions will

be handled by Kelli Felker of Ford Communications at 313-322-1790 or

[email protected]. The coordinates are:






    Satellite: Horizon 2

    Transponder: 11K

    Band: KU - Analog (74.05 degrees West)

    UpLink:   (14420 Vertical)

    Downlink:  (12120 Horizontal)

    Allocated Bandwidth: (MHz) 36.000

    Audio:  6.2/6.8

    Ford Motor Company, a global automotive industry leader based in

Dearborn, Mich., manufactures or distributes automobiles across six

continents. With about 229,000 employees and about 90 plants worldwide, the

company's core and affiliated automotive brands include Ford, Lincoln,

Mercury, Volvo and Mazda. The company provides financial services through

Ford Motor Credit Company. For more information regarding Ford's products,

please visit http://www.ford.com .



    + The financial results discussed herein are presented on a preliminary

basis; final data will be included in our Quarterly Report on Form 10-Q for

the quarter ended June 30, 2008.



    ++ Excluding special items. See tables following "Safe Harbor/Risk

Factors" for the nature and amount of these special items and

reconciliation to U.S. Generally Accepted Accounting Principles ("GAAP").



    +++ See third table following "Safe Harbor/Risk Factors" for a

reconciliation of Automotive gross cash to GAAP.



    ++++ Earnings per share from continuing operations, excluding special

items, is calculated on a basis that includes pre-tax profit and provision

for taxes and minority interest. See tables following "Safe Harbor/Risk

Factors" for the nature and amount of these special items and

reconciliation to GAAP.



    Safe Harbor/Risk Factors



    Statements included or incorporated by reference herein may constitute

"forward-looking statements" within the meaning of the Private Securities

Litigation Reform Act of 1995. Forward-looking statements are based on

expectations, forecasts and assumptions by our management and involve a

number of risks, uncertainties, and other factors that could cause actual

results to differ materially from those stated, including, without

limitation:



    -- Continued decline in market share;



    -- Continued or increased price competition resulting from industry

overcapacity, currency fluctuations or other factors;



    -- An increase in or acceleration of market shift away from sales of

trucks, sport utility vehicles, or other more profitable vehicles,

particularly in the United States;



    -- A significant decline in industry sales, particularly in the United

States, Europe or South America, resulting from slowing economic growth,

geo- political events or other factors;



    -- Lower-than-anticipated market acceptance of new or existing

products;



    -- Continued or increased high prices for or reduced availability of

fuel;



    -- Currency or commodity price fluctuations;



    -- Adverse effects from the bankruptcy or insolvency of, change in

ownership or control of, or alliances entered into by a major competitor;



    -- Economic distress of suppliers that has in the past and may in the

future require us to provide financial support or take other measures to

ensure supplies of components or materials;



    -- Labor or other constraints on our ability to restructure our

business;



    -- Work stoppages at Ford or supplier facilities or other interruptions

of supplies;



    -- Single-source supply of components or materials;



    -- Substantial pension and postretirement health care and life

insurance liabilities impairing our liquidity or financial condition;



    -- Inability to implement the Retiree Settlement Health Care Agreement

with the UAW to fund and discharge retiree health care obligations because

of failure to obtain court approval or otherwise;



    -- Worse-than-assumed economic and demographic experience for our

postretirement benefit plans (e.g., discount rates, investment returns, and

health care cost trends);



    -- The discovery of defects in vehicles resulting in delays in new

model launches, recall campaigns or increased warranty costs;



    -- Increased safety, emissions (e.g., CO2), fuel economy, or other

regulation resulting in higher costs, cash expenditures, and/or sales

restrictions;



    -- Unusual or significant litigation or governmental investigations

arising out of alleged defects in our products or otherwise;



    -- A change in our requirements for parts or materials where we have

entered into long-term supply arrangements that commit us to purchase

minimum or fixed quantities of certain parts or materials, or to pay a

minimum amount to the seller ("take-or-pay" contracts);



    -- Adverse effects on our results from a decrease in or cessation of

government incentives;



    -- Adverse effects on our operations resulting from certain

geo-political or other events;



    -- Substantial negative Automotive operating-related cash flows for the

near- to medium-term affecting our ability to meet our obligations, invest

in our business or refinance our debt;



    -- Substantial levels of Automotive indebtedness adversely affecting

our financial condition or preventing us from fulfilling our debt

obligations (which may grow because we are able to incur substantially more

debt, including additional secured debt);



    -- Inability of Ford Credit to access debt or securitization markets

around the world at competitive rates or in sufficient amounts due to

additional credit rating downgrades, market volatility, market disruption

or otherwise;



    -- Higher-than-expected credit losses;



    -- Increased competition from banks or other financial institutions

seeking to increase their share of financing Ford vehicles;



    -- Changes in interest rates;



    -- Collection and servicing problems related to finance receivables and

net investment in operating leases;



    -- Lower-than-anticipated residual values or higher-than-expected

return volumes for leased vehicles; and



    -- New or increased credit, consumer or data protection or other

regulations resulting in higher costs and/or additional financing

restrictions.



    We cannot be certain that any expectation, forecast or assumption made

by management in preparing forward-looking statements will prove accurate,

or that any projection will be realized. It is to be expected that there

may be differences between projected and actual results. Our

forward-looking statements speak only as of the date of their initial

issuance, and we do not undertake any obligation to update or revise

publicly any forward-looking statement, whether as a result of new

information, future events, or otherwise. For additional discussion of

these risks, see "Item 1A. Risk Factors" in our 2007 Form 10-K Report.








    SECOND QUARTER AND FIRST HALF 2008 NET INCOME/(LOSS) COMPARED WITH 2007





                                          Second Quarter        First Half

                                         ----------------    ----------------

                                          2007      2008      2007      2008

                                         -------  -------    -------  -------

    Revenue (Bils.)

    --------

    Revenue (Excluding Special Items)    $44.2     $38.6     $87.3     $78.0

    Special Items*                           -       2.9         -       7.0

                                         -------  -------    -------  -------

       Revenue                           $44.2     $41.5     $87.3     $85.0

                                         =======  =======    =======  =======

    Income (Mils.)

    ------

    Pre-Tax Results from Continuing

     Operations (Excluding Special Items) $483   $(1,004)     $552     $(288)

    Special Items*                         443    (8,026)      330    (8,426)

                                         -------  -------    -------  -------

    Pre-Tax Income/(Loss) from

     Continuing Operations                $926   $(9,030)     $882   $(8,714)



    Minority Interest in Net

     (Income)/Loss of Subsidiaries         (85)      (89)     (143)     (211)

    (Provision for)/Benefit from

     Income Taxes                         (123)      444      (305)      349

                                         -------  -------    -------  -------

    Income/(Loss) from Continuing

     Operations                           $718   $(8,675)     $434   $(8,576)

    Income/(Loss) from Discontinued

     Operations                             32         8        34         9

                                         -------  -------    -------  -------

       Net Income/(Loss)                  $750   $(8,667)     $468   $(8,567)

                                         =======  =======    =======  =======



    *  Special items detailed later in special items table





    SECOND QUARTER AND FIRST HALF INCOME/(LOSS) FROM CONTINUING OPERATIONS

    COMPARED WITH 2007





                                          Second Quarter        First Half

                                         ----------------    ----------------

    (in millions)                         2007      2008      2007      2008

                                         -------  -------    -------  -------

    Pre-Tax Results from Continuing

     Operations (Excluding Special Items) $483   $(1,004)     $552     $(288)

    Minority Interest in Net

     (Income)/Loss of Subsidiaries         (85)      (89)     (143)     (211)

    (Provision for)/Benefit from Income

     Taxes applied to Pre-Tax Results

     from Continuing Operations

     (Excluding Special Items)            (140)     (283)     (322)     (370)

                                         -------  -------    -------  -------

    After Tax Result (Excluding

     Special Items)                       $258   $(1,376)      $87     $(869)



    Pre-Tax Special Items*                 443    (8,026)      330    (8,426)

    (Provision for)/Benefit from

     Income Taxes on Special Items          17       727        17       719

                                         -------  -------    -------  -------

       Income/(Loss) from

        Continuing Operations             $718   $(8,675)     $434   $(8,576)

                                         =======  =======    =======  =======

    (Provision for)/Benefit from

     Income Taxes applied to

     Pre-Tax Results from Continuing

     Operations (Excluding

     Special Items)                      $(140)    $(283)    $(322)    $(370)

    (Provision for)/Benefit from

     Income Taxes on Special Items          17       727        17       719

                                         -------  -------    -------  -------

       (Provision for)/Benefit

        from Income Taxes                $(123)     $444     $(305)     $349

                                         =======  =======    =======  =======



    *  Special items detailed later in special items table







    TOTAL COMPANY - SPECIAL ITEMS





                             Second Quarter 2008        First Half 2008

                        ------------------------------------------------------

                                           Pre-Tax                     Pre-Tax

                                           Profit/                     Profit/

                        Wholesales Revenue (Loss)   Wholesales Revenue (Loss)

                        ---------- ------- -------- ---------- ------- -------

                           (000)   (Bils.)  (Mils.)   (000)    (Bils.) (Mils.)

    North America

    - Personnel

      Reduction

      Programs                              $(274)                     $(505)

    - Related OPEB

      Curtailments                            100                        111

    - ACH Plant Sales                        (303)                      (305)

    - U.S. Dealer

      Reductions

      (including

      Investment

      Write-Off)                              (39)                      (147)

    - Ballard

      Restructuring                             -                        (70)

                                           -------                     -------

    Subtotal North America

     (before Impairment)                    $(516)                     $(916)



    - Other Personnel

      Actions                                 (42)                       (58)

    - Jaguar Land Rover      51    $2.9        75      125     $7.0       75

    - Debt/Equity Swaps       -       -        57        -        -       73

                           -----  ------   -------    -----   ------   -------

    Subtotal Special Items

     before Impairments      51    $2.9     $(426)     125     $7.0    $(826)



    Impairments

    - North America

      Long-Lived Assets                    (5,300)                    (5,300)

    - Ford Credit Operating

      Lease Portfolio                      (2,086)                    (2,086)

    - Mazda Dealership

      Goodwill                               (214)                      (214)

    Subtotal Impairments      -       -    (7,600)       -        -   (7,600)

                           -----  ------  --------    -----   ------ --------

    Total Special Items      51    $2.9   $(8,026)     125     $7.0  $(8,426)

                           =====  ======  ========    =====   ====== ========

    Memo:

    Special Items Impact on

     Earnings Per Share*                   $(3.26)                    $(3.48)

    * Earnings per share for special items is calculated on a basis that

includes pre-tax profit, provision for taxes, and minority interest;

additional information regarding the method of calculating earnings per

share is available in the materials supporting the July 24, 2008 conference

calls at http://www.shareholder.ford.com .








    AUTOMOTIVE GROSS CASH RECONCILIATION TO U.S. GAAP





                                                      June 30, 2008    Memo:

                                  Mar. 31,  June 30,      B/(W)       Dec. 31,

                                    2008      2008    Mar. 31, 2008    2007

                                  -------   -------   -------------   -------

                                  (Bils.)   (Bils.)      (Bils.)      (Bils.)



    Cash and Cash Equivalents      $18.7     $16.9        $(1.8)       $20.7

    Marketable Securities            6.6       5.1         (1.5)         2.0

    Loaned Securities                6.7       7.4          0.7         10.3

                                  -------   -------   -------------   -------

      Total Cash/Market and       $32.0     $29.4        $(2.6)       $33.0

       Loaned Securities

    Securities-In-Transit           (0.7)     (0.1)         0.6         (0.3)

    Short-Term VEBA Assets*            -         -            -          1.9

    UAW-Ford Temporary Asset

     Account                        (2.6)     (2.7)        (0.1)           -

                                  -------   -------   -------------   -------

       Gross Cash                  $28.7     $26.6        $(2.1)       $34.6

                                  =======   =======   =============   =======

    * Historically, amounts accessible within 18 months; short-term VEBA is

no longer reported within gross cash as of January 1, 2008, consistent with

our new UAW VEBA agreement (which is subject to court approval).