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Ford Motor Company’s China Expansion Continue To Accelerate Record Sales Growth Of 86.6% For 2006


* Ford Motor Company affiliated brands achieved record sales growth in China in 2006, with total of 166,722 units, 77,360 units or 86.6% higher than 2005.
* Exciting products like Ford Focus, catered to Chinese consumers needs, are achieving tremendous sales.
* Ford Motor’s China strategy drives continuous expansion in plant capacity, new products, national dealer network, auto financing service, China sourcing operation and new research & engineering center.
* Through the outstanding sales performance and continuous diversification of its China operations, Ford Motor Company is on the track to become one of the country’s top auto players.

Shanghai, January 8, 2007 — With growth accelerating at its various China business units, Ford Motor Company announced today that it has delivered its strongest year to date in China, with year-on-year growth of 86.6 percent for the full year of 2006, outpacing the industry growth*.

Ford Motor Company’s affiliated brands, including Ford, Lincoln, Jaguar, Land Rover, and Volvo Car, reported 2006 full year retail sales of 166,722 units, 77,360 units and 86.6 percent higher than 2005. Among them, Ford Brand cars and commercial vehicles, sold 155,404 units, posting 73,306 units and 89.3 percent increase from its 2005 sales.

“I am very pleased to see that 2006 turned out to be a year of accelerated business expansions and significant sales growth for Ford Motor Company in China,” said Mei-Wei Cheng, Chairman and CEO of Ford Motor ( China) Ltd.

“China market is a critical part in our plans in building a stronger Ford Motor Company. By working closely with our partners, we laid out robust strategy to become one of the key auto players in the China market. The outstanding 2006 results clearly indicated that we are on the right track to achieve that goal.” Cheng explained.

Changan Ford Mazda Automobile Co., Ltd. (Changan Ford Mazda Automobile), Ford Motor Company’s passenger-car joint venture in China, registered record retail sales of 129,790 units of Ford Brand vehicles, 68,768 units or 112.7 percent above the company’s sales in 2005. The company is now one of the fastest growing auto makers in the country.

Changan Ford Mazda Automobile also produces Mazda and Volvo Car Brand products, starting in 2006 in Chongqing. Changan Ford Mazda Automobile’s new Nanjing assembly plant, with 160,000-unit initial production capacity, is scheduled to start production in the second half of 2007.

Ford Focus is this year’s most significant product success of Changan Ford Mazda Automobile, with retail sales totaling 78,430 units, making it one of the top selling models in the C segment market. In single month of December, 13,955 units of Ford Focus were sold, setting a new single model monthly sales record for Changan Ford Mazda Automobile.

47,651 units of Ford Mondeo were sold in the China market in 2006, rising 15 percent from 2005. The 2007 Model Year Ford Mondeo hit Chinese dealer showrooms in November of 2006 and has been receiving warm market response ever since.

Sales of Ford Transit, a commercial van produced by Ford Motor-invested Jiangling Motor Corporation, increased to 22,973 units, a 25.4 percent jump versus 2005, much higher than the commercial market growth rate**. Ford Transit is leading the industry segment and being perceived by commercial vehicle owners as a brand of excellence.

China sales of Ford Motor Company’s brands of luxury vehicles, including Jaguar, Land Rover and Volvo, both imported and locally produced, climbed to 10,914 units in 2006, rising by 4,073 units or 60 percent year-over-year. Volvo started local production of the S40 cars in July, 2006, which has contributed to the significant growth of Volvo cars in China.

The year 2006 also witnessed quick expansions of Ford Motor Company’s operations in China. “The Company’s $1 billion plus expansion plan, announced by Mr. Bill Ford in 2003, is about to be completed. Construction of Changan Ford Mazda Automobile’s Nanjing plant and Changan Ford Mazda Engine Company are both coming along very well, and will start production in 2007. Overall, our core strategic operations are now in place to deliver a successful implementation of our China strategy.” Said Mei-Wei Cheng.

Bill Ford announced in October, 2003 that the Company is to invest over $1 billion, together with China partners, in expanding production capacity, building a new engine plant, introducing new products and grow ing the national dealer network.

In 2006, Ford Motor Company’s business growth expanded beyond the 2003 announcement. Ford Automotive Finance ( China) Ltd., or FAFC, now offers its dealer stock financing services to the dealers of Changan Ford Mazda Automobile and

Jiangling Motor Corporation nationwide. By the end of 2006, in addition to the wholesale financing services covering over 100 Ford Brand authorized dealers, FAFC is offering retail financing service to end customers in 26 major cities across China.

Ford Motor Company’s China Sourcing Office (CSO) sourced $2.6 billion worth of auto parts and systems from China in 2006, to support Ford Motor Company’s global manufacturing operations and after sales customer services. China has become one of the key supply bases for the Company. CSO is working closely with suppliers in China to further enhance their product quality and technical capability, and to further expand the sourcing volume from China.

One of the latest business developments in China for Ford Motor is its research & engineering center in China, announced in November, 2006. This center with $27.5 million initial investment is to provide support to Ford Motor Company’s product development in worldwide operations across all brands.

“Our product development, production, distribution and supporting operations are now well positioned and are moving full speed ahead.” said Mei-Wei Cheng. “Through introducing more new and attractive products Chinese consumers love to own, we are confident to outpace the industry growth again in 2007. Ford Motor Company is quickly approaching our goal in becoming one of the leading auto players in the China market.”


*Automotive industry growth rate in China (excluding export), for the first 11 months of 2006, according to China Association of Automobile Manufacturers, is 26 percent.

**Commercial vehicle growth rate in China (excluding export), for the first 11 months of 2006, according to China Association of Automobile Manufacturers, is 12.8 percent.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., U.S.A., manufactures and distributes automobiles in 200 markets across six continents. The company’s automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit and Quality Care. Ford Motor Company celebrated its 100th anniversary in 2003.

Ford’s history in China can be traced to 1913, when its first Model T was imported and sold in Shanghai. Presently, Ford owns 30% of the shares of Jiangling Motors Corporation Ltd., which produces Ford commercial vehicle Transit and other products. Ford Motor Company also has a 50-50 passenger car joint venture with Changan Automotive Corporation Ltd., which is called Changan Ford Automobile Corporation Ltd. Changan Ford has successfully launched two Ford passenger cars models, Fiesta and Mondeo, to the market. Ford Mondeo won Motor Trend “2005 Car of the Year, China”. Its third product, the all-new Ford Focus, has been built in Chongqing since the 3rd quarter of 2005. In early 2005, Changan Ford’s second passenger car plant in Nanjing started construction. On April 19, 2005, Ford, Changan and Mazda announced a new three-way engine plant joint venture, Changan Ford Mazda Engine Company Ltd.

In March, 2006, the Chinese government approved Mazda’s investment in Changan Ford. The restructured company has been renamed as Changan Ford Mazda Automobile Co., Ltd. (CFMA). Changan, Ford and Mazda holds 50 per cent, 35 per cent and 15 per cent shares in CFMA respectively.

On the import business, Ford Maverick, a member of the world-renowned Ford SUV product line, has also been on s ale in China. Lincoln Navigator, a premium full-size SUV was launched in China market in May 2005.

Products of the other Ford Motor Company affiliated brands, including Jaguar, Land Rover, Mazda and Volvo are on s ale in China as well. Ford’s service brand, Ford Quality Care, is also serving the customers in China.


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