@Ford June 2010 (North America)

8/9/2019 @Ford June 2010 (North America)

1/32

Connecting North America

June 2010

inside:SuStainability RepoRt pullout

lc rd ccr

Gmkh tHRee

ec-R

Fiesta unleashed:

Its a Pretty Big Deal


2/32

celebrating

40 years

celebrating

40 years

40601 Ann Arbor roAd

Plymouth, mI 4 8170

(Ann Arbor roAd West of I-275)

servIce hours:

m-f 7:30-6:00

sAt 8:00-1:00

sAles Phone: 866-980-5963

servIce Phone: 866-980 -1107

shoWroom hours:

m/th 8:30-9:00

t/W/f 8:30-6:00

sAt 10:00-3:00

Hines Park

lincoln Mercury

PlyMoutH/canton, Mi

Joy Rd.

Ann Arbor Rd.

HaggertyRd.

275

WWW.HinesPark.coM
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3/32

June 2010 |

Connecting North America

6

14

3

10

3 Lincoln brandacceleration

Lincoln will have seven all-new

or signifcantly rereshed

vehicles in our years.

4 Eco-Route

Driving rom A to B in an

environmentally riendly way.

6 Consumerexperience

Dealers will drive

enhanced consumer

experience and growth.

7 Monthly sales

U.S. sales are up 23 percent,

Canada remains on top.

8 Perceptioncatches reality

Ford improves in ALG study.

10 Coming soon

The Fiesta is coming

with a class-leading push.

12 Road trip

American Journey 2.0

will create a new market

or technology.

14 Ken Block

Ford racer to light up

the Internet with

Gymkhana THREE debut.

15 OperationDrive one

Ford puts on national tour

and raises money

or military charity.

17 Northville plant

Explore the success o Henry

Fords village industry.

Publisher: Sara Tatchio |Associate publisher: Susan Krusel | Managing editor: Alice Aruto

Contributing editor: Jenn Corney |Advertising coordinator: Michele Holtcamp | Distribution: Neeley Edelman

Graphic designer: Julie Yeiter | Image coordinators: Brian Wybenga | Copy editor: Floyd Opperman

Photographers:Keith Tolman, Sam VarnHagen, Tom Wojnowski

Editorial: (313) 390-3569 |Advertising: (248) 318-6316 |Address changes: (313) 322-3131 (@Ford changes only)

No portion o this magazine may be reproduced without prior written consent o @Ford.

Items advertised in @Ford are not connected with Ford Motor Company. Availability, price, saety, quality and durability o

these items rest solely with the respective manuacturers. Ford assumes no liability or their use.

@Ford is available online at www.at.ord.com. The magazine is available six times a year in racks at all Ford acilities in the U.S. and Canada, an

mailed to retirees. Retirees may opt out o mail delivery, opt in or an e-mail copy or make @Ford address changes at: FWINFO ord.com.

A moe neacve @FordThroughout the magazine,

weve highlighted stories

that oer much more

inormation at @Ford

Online (www.at.ord.com).

Just look or the highl ights box like the one pictured here.

A similar logo is in the upper let corner o @Ford Online in

the rotating promo box section.

Cck @Frd ofr mr frm

www..frd.cm

AcceleratingLincoln momentum

Ford recently marked another important milestone in

our companys transormation as we solidied plans to

urther grow our Ford brand while accelerating Lincoln.

Earlier this month, we announced plans to introduce

seven new or signicantly upgraded Lincoln vehicles in the

next our years, including our rst-ever C-segment vehicle.

We also announced that we will end production

o Mercury vehicles in the ourth quarter o this year.

While Mercury served us well in the past, it now is time

to ully devote our resources and attention to growing

Lincoln just as we have been doing so successully

with the Ford brand.

We have a solid oundation or our Lincoln business and

now plan to accelerate the development o products withstandout design, class-leading technology and power-

trains that oer top perormance and uel-eciency.

This is an exciting time in our business and I would

encourage each o you to become amiliar with our

important plans or Lincoln as we urther grow the brand.

Thank you or your continued hard work and support.

Mark Fields

President, The AmericasFor more perspective rom MarkFields on the Lincoln and Mercury

news, see page 3.

4
http://www.at.ford.com/mailto:[email protected]://www.at.ford.com/http://www.at.ford.com/http://www.at.ford.com/http://www.at.ford.com/mailto:[email protected]://www.at.ford.com/


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2 | June 2010

Local

Rcg fr cr

Ford Motor Company

is proud o its 16 years o

support or the Komen

Race or the Cure. To date,Ford has dedicated over

$105 million to the cause

with over 50,000 employees

participating in the Race in

their local areas.

On May 22, Detroit hosted

its 19th Annual Race or the

Cure with about 2,000 people

joining the Ford team. To nd

a local race near you visit

www.komen.org.

Also, check out the latest

Warriors in Pink apparel atwww.shopwarriorsinpink.com.

Open 24 hours a day on www.villageford.comAll of our new and used vehicles have prices online, but please call for the latest incentives

on the vehicle of your choice to further reduce your price!

800-257-1538 23535 Michigan Ave., Dearborn, MI 48124

28 Years of Quality Customer Care in Sales and Service

In Dearborn. We have to be Better.

Open Saturday

ushr d Jh H. JhsRcv Frd Frdm awrd

At the 12th Annual Ford Freedom Awards John H.

Johnson and Usher Raymond IV, popularly known as

Usher, were honored.

Johnson, ounder and publisher o Johnson

Publishing, received the Ford Freedom Award.

Usher, chairman and ounder o Ushers New Look

Foundation, was awarded the Ford Freedom Scholar

Award.

I am truly honored to be named the Ford Freedom

Award Scholar and applaud the program or

encouraging youth as leaders and entrepreneurs,

Usher said. Young people have the power and

ability to create great changes in our communities

and the world. It is up to all o us to ensure youth have

the support, training and mentors to make their

dreams realities.

Frd md t 25ivv Cmsf 2010

Bloomberg

BusinessWeek

recently

recognized

Ford Motor

Company or

being one o

the 50 Most

Innovative

Companiesin 2010. Ford moved

rom 31 to 13 in the annual

rankings. Ford is making some

headway in the survey not only

because o a resh new lineup but

also its decisions to invest in such

emerging markets as Brazil.O the Top 25 ranked companies,

the majority were based outside o

the United States. The survey is

based o inormation gathered by

Bloomberg BusinessWeeks

partner Boston Consulting Group.

Vs h phs & Vds

2010 Rc fr h Cr

www..frd.cm
http://www.komen.org/http://www.shopwarriorsinpink.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.villageford.com/http://www.at.ford.com/news/multimedia/Pages/default.aspx?t=g&id=107http://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.at.ford.com/news/multimedia/Pages/default.aspx?t=v&id=403http://www.at.ford.com/news/multimedia/Pages/default.aspx?t=v&id=403http://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.businessweek.com/magazine/content/10_17/b4175034779697.htmhttp://www.at.ford.com/news/multimedia/Pages/default.aspx?t=g&id=107http://www.villageford.com/http://www.villageford.com/http://www.shopwarriorsinpink.com/http://www.komen.org/


5/32

June 2010 |

Corporate news

As Ford continues the growth o the Ford brand, it is

expanding and enhancing its Lincoln brand lineup with seven

all-new or signifcantly rereshed vehicles in the next our years.Ford also will end production o Mercury vehicles in the ourth

quarter o this year to devote its fnancial, product development,

production and marketing, sales and service resources toward

the continued growth o its core Ford brand while enhancing

the Lincoln brand.

Mark Fields, president o The Americas,shares more insight

on this announcement.

How oe h hel elve on o ONE Fo lan?

This is really the continued evolution o executing our

ONE Ford strategy. It all starts with being very consistent

and very devoted to having world-class products come into

the market place rom either Ford or Lincoln. Also, staying

ocused on our our product pillars o Quality, Green, Sae

and Smart. Its just the next step in the ONE Ford plan and

the next step in protably growing our business and bringing

satised customers along the way.

Wh h he h me o ake acon?

Although a dicult decision, we think this is the right time to

take this action on Mercury. Weve gone though our normal

process this spring where we review and lock in our business and

product plans. It became evident that as weve seen the strength

o the Ford brand accelerate, many customers who would be

purchasing Mercury products have migrated to Ford vehicles.

So, we elt this was the optimal time to make this decision. Not

only will it allow us to ocus the majority o our eorts urtheraccelerating improvements weve seen in our Ford portolio, but

also allow us to ocus more on bringing Lincoln to the next level.

Wha chane fo he Mec ban?

During the past year or so, weve seen such an improvement i

the Ford brand. To put it into perspective, the Ford brands markshare hasgrown2.2 percentage points this year alone. Mercury

overall market share is 0.8 of a percentage point. The Ford

brands improvement has been twice Mercurys overall marke

share, and customers really like our new Ford product lineup.

Can o hae eal on lan fo he Lncoln ban?

We have a very clear vision or Lincoln. We are going to tak

specic actions, including:

Lincolns rst-ever C-segment vehicle

New Lincoln-exclusive powertrains, including an all-new

V-6 and advanced uel-ecient transmissions

EcoBoost engines available in all Lincolns from the

Navigator ull-size SUV to the new C-segment Lincoln

Fuel economy leadership with each new vehicle leading

to Lincoln emerging as the most uel-ecient luxury lineup on

the market

More useful technology and features than any other

competitor with a special ocus on comort and convenience

New advanced eatures include: ully retractable glass roos;

adaptive computer-controlled suspensions; electronic, push-

button gear-selectors; active noise control; and exclusive

MyLincoln Touch driver connect technology

Wha hol o meae be o fen an faml?

I think we should all recognize that as employees we are

the best advocates or promoting the Ford business and the

Lincoln business. There is inormation available to employeeshere in the magazine and on @Ford Online. I encourage you

to educate yourselves and help get the story out.

Lincoln brand to expand,Mercury phases out

June 2010 |

rom the Lincoln-Mercury

Division

1950The one-millionthMercury, one o 293,658vehicles manuactured bythe division this year, rollso the line

1953The height o Mercuryssuccess came in 1953when the division held5 percent total marketshare. Today Mercury

holds 0.8 percent U.S.market share

1955The Mercury Montclair isintroduced

1963-64First Mercury Maraudersand Comet Cyclonesdebut at the dawn o the

muscle car era

1966The 1967 Cougar isintroduced as Americasfrst luxury/sports carat a popular price andnamed Motor TrendsCaro the Year

1968The Cougar XR7/XR7GT-E and GT-G (Gurney)highlighted the pinnacleo Mercury perormance

1938The frst model, the1939 Mercury 8, goesinto production. It soldor $916 and boasted a95-horsepower V-8. Salesor the frst year total65,884 vehicles

1945Lincoln-Mercury Divisionwas established

1949The 1949 Mercury wasthe frst new oering

1992First Mercury Villagerminivan is builtat Ohio Assembly Plant

1996Mercury enters the SUVmarket with Mountaineer

2005

Mercury Mariner isintroduced. A hybridversion is added or the2006 model year

2006Mercury Milan isintroduced. A hybridversion ollows or 2010

2010The current Mercurylineup consists o ourmodels the Milan andMariner, along with thei

hybrid versions, the GraMarquis andMountaineer

with just under 400horsepower. Boss 302/Boss 428 Cobra Jetpowertrain optionsoered in 1970

1975Grand Marquisnameplate introducedand goes on to become

Mercurys longest-running, best-sellingnameplate, with morethan 2.7 million sold

1983Topa is introduced as a1984 model

1985Sable, oered as aspace- and uel-efcientront-wheel-drive sedanand station wagon, isintroduced

MErCury HistOry
http://www.at.ford.com/news/cn/Pages/FordtoExpandLincolnLineupandBrandEmphasis;MercuryProductionEndsinFourthQuarterof2010.aspxhttp://www.at.ford.com/news/cn/Pages/FordtoExpandLincolnLineupandBrandEmphasis;MercuryProductionEndsinFourthQuarterof2010.aspxhttp://www.at.ford.com/news/cn/Pages/FordtoExpandLincolnLineupandBrandEmphasis;MercuryProductionEndsinFourthQuarterof2010.aspxhttp://www.at.ford.com/news/cn/Pages/FordtoExpandLincolnLineupandBrandEmphasis;MercuryProductionEndsinFourthQuarterof2010.aspxhttp://www.at.ford.com/news/cn/Pages/FordtoExpandLincolnLineupandBrandEmphasis;MercuryProductionEndsinFourthQuarterof2010.aspx


6/32

When it comes to achieving thebest possible uel eciency, the

way you drive can be nearly as

important as the vehicle you drive.

Fords new MyFord Touch

driver connect technology

continues to build on the uel

efciency coach, SmartGauge

with EcoGuide, which debuted in

the 2010 Ford Fusion Hybrid and

Mercury Milan Hybrid and the

2011 Lincoln MKZ Hybrid. The

SmartGaugewith EcoGuide

cluster

provides real-

time uel

economy data

and illustrates

good

perormance

through a

growing

graphic o

leaves and

fowers.We have

learned that

when we

provide drivers

the inormation

and tools in an

interactive and entertaining way,

they want to drive more uel

eciently, said Jim Buczkowski,

director o Global Electrical and

Electronics Systems Engineering.

MyFord Touch provides an

unprecedented level o

inormation and interaction so

drivers can make the choice to be

more uel ecient.

MyFord Touch now also oers

drivers a new option to reach their

destination. In addition to the

astest and shortest routes an Eco-

Route will also be suggested.

The Eco-Route will not

necessarily be the astest or

shortest route; however, it is the

most uel ecient. The optioncharts a route avoiding congested

reeways while maximizing the

use o major roads, allowing the

driver to maintain an ecient rate

o speed. In testing the new Eco-

Route, Ford o Europe engineers

achieved up to a 15 percent

improvement in uel economy.

When drivers use Eco-Route

particularly in combination with

MyFord Touchs uel-economy

eedback and uel-ecient drivin

techniques they can achieve a

noticeable increase in uel

eciency, said Jennier Brace,

Ford user interace design

engineer.

Additionally, MyFord Touch

enables drivers to monitor and

track their vehicles uel economy

perormance and miles-per-gallo

averages or the past ve, 10 and

30 minutes. This data appears in

real-time as a bar chart next to th

uel gauge on the display. The dat

displayed can be customized by

the drivers to meet their needs an

hone their eco-driving skills.

MyFord Touch not only givesdrivers inormation they can use

to improve their driving habits,

but also expands on that

capability by engaging the

navigation system to give driver

a variety o options, Brace said.

The benets will be greater

because MyFord Touch and

MyLincoln Touch will be widely

available in the uture.

4 | June 2010

Smart

Eco-dvng pEco-driving techniques tested by Ford showed

that motorists coached in eco-driving cansignicantly improve the uel economy

perormance o their vehicles. Here are simple

tips that any driver can use:

1. Slow down and watch speed

2. Accelerate and brake smoothly

3. No prolonged idling

4. Check your tires

5. Keep up with maintenance

6. Travel light

7. Minimize use of heater and air conditioning

8. Close windows at high speeds9. Choose the right oil

10. Consolidate trips

For additional inormation on how to save on

gas, visit the Driving Skills or Lie Web site and

click on the eco-driving module. Fords eco-

driving initiative builds on the Alliance o

Automobile Manuacturers comprehensive

nationwide eort to promote eco-driving at

www.EcoDrivingUSA.com.

MyFord Touch encouragesdrivers to improve uel eiciencyb Krshr Scr

Cck @Frd ofr mr frm

www..frd.cm
http://www.ecodrivingusa.com/http://www.at.ford.com/http://www.at.ford.com/http://www.ecodrivingusa.com/


7/32

June 2010 |

Save up to $576 a year**versus comparable regularly priced AT&T or Verizon family unlimited plans

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Limited time offers; subject to change. Taxes and fees additional. Domestic only. Unlimited features are only for direct communications between two people. Monthly discount: Qualifying postpaid family-liable plan on two-year contract required; FlexPay, Even More Plus and certain other plans excluded. Monthlydiscount applied to recurring charges and not to overage, long distance, roaming, taxes and fees, or other charges. Initial activation fee waived only for new lines of service. Offer may not be combined with any other discounts. Device of fer: Expires 5/18/2010. Supplies may be limited . New activation of qualifyingvoice and data plan on two-year contract required. General terms: Credit approval, $35/line activation fee, and 2-year agreement may be required; up to $200/line earlycancellation fee applies to 2-year agreements. Proof of eligibility may be required. See brochures and T-Mobiles Terms & Conditions (includingarbitration provision) at T-Mobile.com for details. T-Mobile and the magenta color are registered trademarks of Deutsche Telekom AG. Even More is a service mark of T-Mobile USA, Inc. 2010 T-Mobile USA, Inc.

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8/32

Bolstered by a steady fow onew products, increased sales,

and a steadily improving image,

Ford and its dealers have reached

a key conjuncture in the

companys history.

We have built such good will,

based on the strength o our

products, creating a strong

business and we care that we

are in a place now where we can

really take Ford soaring, Ford

President and CEO Alan Mulally

told dealers and Ford employeesduring the 2010 Ford Dealer

Introduction Show last month

in Detroit.

Comparing his vision o a Forddealership to an Apple store with

its riendly, well-inormed sta,

breadth o product and speedy

transactions Mulally urged an

even closer working relationship

with dealers to dramatically

improve the customer experience

at Ford dealerships as a means o

urther dierentiating the

company rom its competitors.

The challenge is to go beyond

simply satisying customers, said

Frederiek Tony, vice president,Ford Customer Service Division.

The act is that customers can

be completely satised with their

retail experience and still not buy

rom us again because they

havent developed an emotional

connection. But loyal customers

are much more engaged

emotionally and wouldnt dream

o going anywhere else, Tony

explained.

Ford hopes to wrap a superior

consumer experience around its

Virtuous Circle strategy, which

consists o World-Class Products,

Eective Communications,

Strong

Brands, and

Net Revenue

Growth.

John Felice,

general

manager,

Ford, Lincoln

and MercuryMarketing,

took dealers

through the

our elements,

noting key

successes,

including

vehicle transaction prices, which

are part o Net Revenue Growth.

The company is doing a great

job, said Chris Lubbers, new carsales manager, Lubbers Ford in

Cheney, Kan. Ford is hitting

everything that is hot with

customers quality, uel econom

power, styling theyre hitting it

everywhere.

Lubbers was among 1,800 Ford

dealers and dealership personne

who attended the show.

One o the highlights was a driv

event that matched Fords newes

products against key competitor

According to Terry Kidd, dealeprincipal o Kidd Ford Lincoln

Mercury in Morrison, Tenn.,

Fiesta won easily over the Toyota

Yaris and Honda Fit.

There really is not much

competition. There is so much

more content to Fiesta. The car

itsel doesnt eel like a small car.

It looks and eels so much nicer,

said Kidd.

Fiesta is part o an aggressive

new-vehicle launch this year that

also includes the new 2011 Ford

Edge the rst vehicle to oer

MyFord Touch driver connect

technology the new 2011

F-Series Super Duty and three

new powertrains or the 2011

Ford Mustang.

Ken Czubay, vice president o

U.S. Marketing Sales and Service

who opened the meeting, thanke

the dealers or their support o th

company during the tumultuous

time since the last dealer introshow in 2008.

Your condence in our

business strategy, along with

your dedication, has helped us

prepare or whats ahead. And

on a personal note, I have never

been more proud than I am

today in what weve been able

to accomplish as a team,

Czubay said.

6 | June 2010

Teamwork

Ford dealers help driveconsumer experience, growthb Jh Fss

yr cfdc rsss srg, gwh r ddc,hs hd s rrfr whs hd. i hv vr mr

rd h i m d wh wv ccmsh s m.

Ken Czubay, vice president of U.S.

Marketing Sales and Service

Ford dealerslook to emulatethe Appleconsumerexperience.


9/32

June 2010 |

u.S. Mrk Shr 2010 yr--D vs. 2009

25%

MARKETSHAREPERCENTAGE

20

15

5

10

0

16.7%*

1.8

18.8%

0.4

9.2%

0.8

15.0%

0.9

10.4%

0.3

8.0%

0.8

14.6%

0.3

OTHER

7.3%

+0.1

Sales

Fords U.S. sales were up 23 percent

in May, the sixth consecutive monththe companys combined Ford,

Lincoln and Mercury brands

increased more than 20 percent

compared to year-ago levels.

Our laser ocus on uel eciency

and quality is paying o or our

customers and or Ford, said Ken

Czubay, vice president, U.S.

Marketing Sales and Service. Our

customers are rewarded because Ford

resale values continue to increase at a

rate higher than the overall industry

and they are rewarding us withincreased purchase consideration.

F-Series sales surged 49 percent in

May. Sales o Fords E-Series van were

up 34 percent while Transit Connect

posted its best sales month yet.

Fusion sales climbed 13 percent,

setting a new May record or the

companys midsize car, and Taurus

sales rocketed 98 percent. Mustang

recorded its highest retail share or

any month in a year.

The Ford lineup becomes more

ormidable when the new, award-winning 2011 Fiesta subcompact

debuts at Ford dealers throughout the

country. Ford U.S. Sales Analysis

Manager George Pipas says demand

or new car appears to be very strong.

A month ago our zone managers

visited dealers to take June production

orders.

The managers had about 5,000 unitsavailable, but dealers wanted 12,000,

Pipas said.

The new Fiesta is one reason Bank

o America Merrill Lynch Senior

Research Analyst John Murphy sees

Ford market share increasing during

the 2011 to 2014 models years.

Murphys annual Car Wars report

uses product cycle plans and

showroom age inormation to

orecast uture market share trends.

Fords recent gains should

continue, with share reaching the 17to18 percent range, supported by a

solid product cadence, stated Murphy

in his report released May 26. We

believe this will be driven by the

relative strength o its product

launches, which are increasingly

leveraging Fords global platorms.

Source: Manuacturers Reports

*Does not include Volvo

Ford sales climb23 percent in Mayb Jh Fss

SaleSto CoMe

Frd msdrsh Cd

Ford o Canada reported a 19 percent

increase in May sales compared to the

same period a year ago. Strongperormances rom the Ford Taurus,

Ford Edge and Lincoln MKX, which

saw increases o 242 percent, 65

percent and 74 percent, respectively,

helped to drive the results. With year-

to-date sales up 25 percent, Ford

continues to lead the market.

2011 Ford Mustang

u.S. Vhc Ss2010 yr--Dt-Sg Crs d trcks

Rank Nameplate Units Sold

1 Ford F-Series 193,8432 Chevrolet Silverado 135,788

3 Toyota Camry 125,804

4 Honda Accord 122,725

5 Toyota Corolla/Matrix 118,625

6 Honda Civic 107,127

7 Nissan Altima 96,195

8 Ford Fusion 92,763

9 Chevrolet Malibu 87,597

10 Ford Escape 83,440

11 Chevrolet Impala 75,04012 Ford Focus 74,635

13 Hyundai Sonata 71,478

14 Honda CR-V 70,829

15 Dodge RAM 68,999

16 Toyota RAV4 68,427

17 Chevrolet Cobalt 67,253

18 Chevrolet Equinox 55,500

19 Toyota Prius 55,041

20 Chrysler Town & Country 51,342

21 Ford Edge 47,854

22 MAzDA3 47,793

23 Nissan Versa 47,775

24 VW Jetta 46,173

25 Ford Econoline 45,516

Source: Manufacturers Reports
http://www.at.ford.com/news/cn/Pages/FordSalesClimb23PercentinMay.aspxhttp://www.at.ford.com/news/cn/Pages/FordContinuestoLeadVehicleSalesinCanadaMaySalesUp19.aspxhttp://www.at.ford.com/news/cn/Pages/FordContinuestoLeadVehicleSalesinCanadaMaySalesUp19.aspxhttp://www.at.ford.com/news/cn/Pages/FordSalesClimb23PercentinMay.aspx


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8 | June 2010

Quality

Further demonstrating its

strong business results and gains

over the past two years, Ford wasnamed the most improved brand

last month in the Automotive

Lease Guide (ALG) study with a

7.6 percent improve-

ment over the all o

2009. In the study, Ford

also achieved the largest

gain o any automaker in

ALGs latest Perceived

Quality score.

These improving

perceptions o Fords quality have

been key to the companys

continued market share gains and

improved resale value.

We have made huge strides in

vehicle quality in recent years but

customer perceptions dont change

overnight so it is gratiying to see

our real-world improvements begin

to ully register with consumers,

said Jim Farley, Fords group vicepresident, Global Marketing.

The benets o improved

perception o quality are huge

rom market share to residual

values and purchase

considerations.

ALG noted that Ford residuals

have seen a huge upswing.

Fords average residual gained

U.S. $2,420 (January-June 2010

residual guides) compared to the

year-ago period; the average

brand change was about $615.

Fords goals have been

supported by an entire portolio o

all-new or redesigned products

that have been well-received both

in the marketplace and among

automotive critics, said Matt

Traylen, chie economist or ALG

ALG attributes several actors t

Fords improvement in perceivedquality. Ford improved vehicle

quality and launched well-receive

products and avoided bankruptcy

and a taxpayer bailout, unlike its

domestic competitors. Ford also

has limited brand-damaging

incentive spending and daily rent

feet sales.

ALG notes that the new Ford

Taurus and Fiesta have been well

received by the press and public.

Customers want to see that yo

can be reliable in your quality

month ater month, year ater

year, Farley said. Demonstratin

steady improvements in initial an

long-term durability over time is

helping us close the gap between

perception and reality.

Perception catches up to realityas Ford achieves quality gains
http://www.ubs.com/financialservicesinchttp://www.ubs.com/financialservicesinc


11/32

June 2010 |

Product

As vacation season begins, SuperDuty customers are towing their

boats, trailers and campers all over

the country. The 2011 Super Duty

provides best-in-class capability

and segment-rst technologies,

allowing customers peace o mind

as they tow a wide array o loads

or work or pleasure.

The 2011 Ford F-Series Super

Duty has class-leading capability,

but the key is putting it to work in

a way that is easy and seamless

or the customer, said DougScott, Truck Group marketing

manager. About 95 percent o

our Super Duty customers tow.

The wide array o standard and

available technology in the 2011

Super Duty can help customers

tow with more condence.Providing an additional level o

condence and control while tow-

ing is the latest Ford technology,

Trailer Sway Control, which uses

Fords AdvanceTrac with RSC

(Roll Stability Control). The sys-

tem uses sensors to measure wheel

speed, throttle position, steering

wheel angle, yaw rate and lateral

acceleration as well as an exclusive

gyroscopic roll-rate sensor.

Key to the Ford system is the

roll-rate sensor, using real-timeinput instead o calculations to

take countermeasures. When the

system detects a trailer yawing, it

applies asymmetric braking to

reduce the sway.

The towing customer is the

Super Duty customer, said Scott.

Thats why its so important to

provide the 2011 Super Duty cus-

tomer not only the most capability,

but also the right technology to

tow more condently.

Helping provide towing power

is the all-new Ford-designed,

engineered and built 6.7-liter V-8

turbocharged diesel engine or the

2011 Super Duty touting best-in-

class horsepower, torque and uel

economy. The engine will enable

increased towing control that

customers will experience. The

new 6.7-liter Power Stroke V-8

turbocharged diesel engines

integrated exhaust brake

increases engine exhaust back

pressure when

needed to help

slow the vehicle

and trailer while intow/haul mode.

The 2011 Ford

F-Series Super Duty delivers

class-leading towing capability

that the customer can manage

seamlessly and condently, which

is a combination our competitors

cant match, said Scott.

Tow like a pro with 2011F-Series Super Dutyb Jff Mjsk

Nearly 72percent ofSuper Dutycustomersconsider towincapability asextremelyimportant.

Vs h phs & Vds

2011 Frd Sr D ad Cmgwww..frd.cm

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Delivering 40 highway miles per

gallon, Fiesta gives buyers class-

leading uel economy without

asking them to make compromisesin perormance, ride comort or

interior quietness.

Fiesta arrives with brand name

recognition pushing 60 percent

among small car shoppers. This is

impressive awareness, especially

or a nameplate unavailable in

North America since the 1980

model year.

It didnt happen

by accident.

Two elements

have really driven

pre-launch brand

awareness or

Fiesta, said

Brand Manager

Sam De La Garza.

First, Fiesta has

been continuously

available in

Europe since

1976 with over

13 million sold

so many globe-

trotting car buyers

are aware o the

vehicle. Second, weve been very

active in the social media space.

The Fiesta Movement putting

100 social media activists behind

the wheel o European-spec

models, and asking them to blog,

tweet and post their experiences

really put Fiesta top-o-mind

among youthul, active and media-

savvy target customers.

Fiesta Movement agents

delivered, with benets.

Collectively, Fiesta agents drove

more than 1.5 million miles. Video

documentations o agent

escapades philanthropic,

cultural and adventuresome

missions generated more than

6.2 million YouTube views, more

than 750,000 Flickr views and

more than 4 million Twitter

impressions.

Fiesta Movement Chapter 2

hit the streets in March 2010,

consisting o 20 teams o two

agents each. Still rooted in social

media, Chapter 2 is bringing agen

generated content to new media

platorms and localized audience

i a e b eal

The ad campaign or the new

Fiesta is built around the theme,

Its a pretty big deal.

Thewhimsical 60 second

television ad that debuted during

American Idol takes center stage

this summer at theaters beore

projected blockbuster hits like

10 | June 2010

Cover story

Fiesta aims to set a new small-car

benchmark in small-car style, saety,

value and technology when it arrives

in North American Ford dealerships

this summer.

2011 Fiestaarrives in North

America

Set to change

perceptions

o small carsb Kh prc

Cck @Frd o

fr mr frmwww..frd.cm
http://www.fordvehicles.com/fiestamovement/http://www.youtube.com/user/FordFiesta#p/f/9/ZgQg-9d_Dtchttp://www.youtube.com/user/FordFiesta#p/f/9/ZgQg-9d_Dtchttp://www.youtube.com/user/FordFiesta#p/f/9/ZgQg-9d_Dtchttp://www.at.ford.com/http://www.at.ford.com/http://www.youtube.com/user/FordFiesta#p/f/9/ZgQg-9d_Dtchttp://www.youtube.com/user/FordFiesta#p/f/9/ZgQg-9d_Dtchttp://www.fordvehicles.com/fiestamovement/


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2009/10

Blueprint for Sustainability

The Future at WorkSEE OUR FULL REPORT

www.ford.com/go/

sustainability
http://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainability


14/32

Alan Mulally

President and Chief Executive Officer

We are providing affordable fuel economy

for millions of customers by introducing

fuel-saving technologies across a wide

range of vehicles.

William Clay Ford, Jr.

Executive Chairman

Creating a strong business and building

a better world are not conflicting goals

they are both essential ingredients for

long-term success.

WelcomeMessage from the Executive Chairman

and President and Chief Executive Officer

In 2009, Ford Motor Company successfully weathered theworst business environment in generations, posting our f irst fullyear of positive net income since 2005. Our market share grewin North America, Europe and South America, while salesincreased in the rapidly growing Asia Pacific and Africa region.

These results show that our ONE Ford plan is working: we arebuilding great products, a strong business and a better world.During 2009, we:

(CO2) goal, which calls for a 30 percent reduction in the CO2emissions of our new U.S. and European vehicles by 2020,compared to the 2006 model year.

other vehicles that achieve best-in-class fuel economy.

efficiency in North America by 4.6 percent. Since 2000, wehave cut energy use at our global facilities by 44 percent.

better than the best in the business, according to severalglobal third-party assessments.

Insurance Institute for Highway Safety of any automaker 19 Ford vehicles in total and introduced a range ofsafety innovations.

We are optimistic about Fords future possibilities. This is oneof the most exciting times in our industry since mass automobileproduction began more than a century ago. New technologiesare radically transforming some of the most fundamental andenduring elements of the automobile. The companies that leadthese changes will create new green jobs and generate profitswhile reducing fuel use and CO2 emissions, benefiting both theeconomy and the environment.

As a global community, we have the opportunity to forge acompelling vision to contribute to addressing the issues ofeconomic growth, energy independence and environmentalsustainability. We see two key enablers of progress in theseareas: technologies and innovation will provide the solutions,while collaborative partnerships and a systems approach willhelp us implement them.

Collaboration and innovation are the foundation of our work inareas ranging from vehicle electrification to human rights in oursupply chain. Ford has a proud heritage of improving peopleslives and making their world a better place. We want to build onthis by being recognized as a trusted partner and operatingresponsibly and sustainably wherever we do business. Through

a decade of work and a disciplined reinvention of our Company,we have built sustainability into our business model.

Our Company has been through some tough times, but wehave emerged leaner, stronger and more focused. With thesupport of our stakeholders, we are creating an exciting and

viable company poised to deliver profitable growth for all.


15/32

Fusion HybridWeve doubled our hybrid vehicle production, and were on

the way to delivering the first of our pure battery electric and

plug-in hybrid vehicles.

More about sustaining Ford

www.ford.com/go/sustainability

After enduring several of the most difficult yearsin our Companys history, Ford turned a cornerin 2009. In the face of a global economic andfinancial crisis, as well as unprecedented events

in the U.S. automotive industry, Ford posted thefirst full year of positive net income since 2005,and a $17.5 billion improvement over 2008.

Despite the continued economic slump of 2009, which included the

bankruptcies of two domestic competitors and a nearly 40 percent

cumulative drop in new vehicle sales in the U.S. since 2005, we

gained market share in most of our business units across the globe,

including our first full-year market share gain in the U.S. since 1995.

Based on Fords improving performance, the gradually

strengthening economy, and our present assumptions, we now

expect to deliver solid profits this year with positive Automotiveoperating-related cash flow.

Our progress in 2009 offers the strongest proof yet that our

business strategy is successful and that we are forging a path

toward profitable growth through teamwork and leveraging global

scale. Three years ago, we created the ONE Ford plan to guide

our business toward better times. We cascaded the plan across

our global organization. And we are executing the plan.

Ford is steadfastly focused on creating a strong business that

builds great products that contribute to a better world. We continue

to press forward to globalize vehicle platforms that can be adapted

to meet specific regional needs. Flexible manufacturing capabilities

allow us to bring products to market with greater speed and

efficiency than ever before.

We believe that we have been able to weather these last difficult

years because our business and our sustainability strategies are

aligned and intertwined. But were far from complacent, and were

continuing to address adverse conditions. Notwithstanding many

positive signs of an economic recovery, the global business

environment remains extraordinarily challenging, with increasingly

intense competition from other automakers.

Our path toward long-term viability began well before the

recent economic downturn began. We have been fundamentally

restructuring our operations in ways that impact every part of our

business. We recognized that our business model needed to

change, and we have been changing it.

One key element of that is our increased focus on a more balanced

portfolio that includes more small and midsize vehicles, to respond

to consumer demands. Weve been very clear about our product

strategy to deliver improved fuel economy and reduced greenhouse

gas emissions through advanced technologies. Our blueprint for

sustainability, which highlights how we will meet our product

CO2-reduction goal, has positioned us to lead in the industry.

Offering vehicles with smaller environmental footprints, tackling the

mobility challenges of rapidly growing urban centers, and tailoring

our products and services to increasingly diverse global markets are

not peripheral to Fords future success they are central to it.

Read more online about:

ONE Ford plan

Our ONE Ford plan is anchoredby four key priorities:

SUSTAININGFORD
http://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainabilityhttp://www.ford.com/go.sustainability


16/32

More about climatechange and mobilitywww.ford.com/go/sustainability

Climate change has the potential to affect allparts of our business and is interconnected toother important issues from water availabilityand energy security to human rights and

mobility. Ford has developed a comprehensive,science-based global strategy to reducegreenhouse gas emissions and processes whileworking cooperatively with the public and privatesectors to advance climate change solutions.We believe this strategy is one of the factors thathas helped to transform our Companys currentand future products and prospects.

Our Goals

In early 2008, we announced a goal to reduce CO2 emissions from

our U.S. and European new vehicles by 30 percent by 2020, relative

to a 2006 model year baseline. We also set out a technology

migration plan embodied in our blueprint for sustainability that

details our near-, mid- and long-term product plans to meet this goal

(see graphic opposite). Despite challenging economic conditions, we

are making significant progress in implementing the plan and are on

track to surpass the goal. In addition, we have committed that all our

new vehicles will be best in class, or among the best in class, for fuel

economy in their segment. During 2009, we expanded our analysis of

potential greenhouse gas emission reductions to include the products

we sell in Brazil and China. In this analysis, we compared our current

product plans to potential reductions aligned with long-term CO2stabilization at 450 ppm, and considered the impact of low-carbon

fuels. This is a step toward developing goals for these markets.

Our Progress

In every region of the world, we are advancing toward our goals by

introducing new products and technologies that significantly cut fuel

consumption and emissions. For example, during 2009 and early

2010 we:

2 emissions from our 2009 model year U.S. and

European new vehicles by 12 percent and 6.7 percent,

respectively, compared to the 2006 model year.

engines, which

deliver up to 20 percent better fuel economy compared to

larger-displacement engines. Our new four-cylinder EcoBoost

engine was introduced in Europe, and we announced plans to

use it in China on the Ford Mondeo in 2010.

ECOnetic vehicles in Europe, including the second-generation

Focus and Mondeo. The Focus ECOnetic with stop/start

technology emits just 99 g/km of CO2.

engines, one gasoline and one diesel.

improved gearing ratios and aerodynamics.

fifth hybrid offering, which is expected to be the most fuel-effic

luxury sedan available in North America.

the number of flexible-fuel vehicles produced in the United Sta

by the end of 2010.

2013, including battery electric, plug-in hybrid and hybrid elec

vehicles that will also be introduced in North America by 2012

class of nimble commercial vans with outstanding fuel econom

The Transit Connect will be the basis for Fords first 21st centu

battery electric vehicle.

10 vehicles based on our new global compact car platform th

is expected to deliver up to 2 million vehicles annually by 2012

Ford is actively working to address challenges and opportunities

posed by widespread use of electric especially plug-in vehicl

Such a shift could cut greenhouse gas emissions from vehicles,

increase the use of domestic energy sources, decrease pressur

on petroleum stocks and reduce urban air pollution. But it will al

Ford FiestaWe introduced our new Fiesta global small car in Europe in 2008

and in China in 2009. When it launches in the United States in 2010,

it is expected to have best-in-class fuel economy in its segment.

We are on track to surpass our goal of a 30 percent reduction

in CO2 emissions from our U.S. and European new vehicles

by 2020, relative to a 2006 model year baseline.

CLIMATECHANGE AND

MOBILITY
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17/32

between automakers, government officials, utilities, transportation

providers and information technology companies.

A wide range of stakeholders will need to work together to develop

charging infrastructure, integrate electric vehicles with electricutilities, and knit vehicles and grids together into an efficient system.

During 2009 and early 2010 we:

a fleet of Ford-provided plug-in hybrid vehicles.

on new energy

management software that will help owners of plug-in electric

vehicles determine when and how to recharge their vehicles,

while giving utilities better tools for managing the expected

changes in energy demand.

several U.S. cities to explore sustainable mobility projects that

incorporate electric vehicles and infrastructure.

development to battery recycling.

Were also making progress in understanding and reducing our

climate footprint across our value chain. We reduced 2009

operational CO2 emissions by 9 percent globally compared to 2008

and earned our fifth consecutive Energy Star Award for Sustained

Excellence from the U.S. Environmental Protection Agency. In

addition, we announced our participation in the Carbon Disclosure

World Business Council for Sustainable Developments Scope 3

road testing projects both as a way to better understand

greenhouse gas emissions in our supply chain. Ford is the only

automaker participating in these two initiatives.

Climate Change PolicyWe are committed to advocating for effective and appropriate

climate change policy in the United States and around the world.

We are an active member of the U.S. Climate Action Partnership

(USCAP), a coalition of diverse stakeholders that has released

consensus recommendations for U.S. climate protection legislation.

The recommendations represent a balanced and integrated

approach to key linked issues that must be addressed in any

national climate legislation; however, we recognize that the

recommendations are not the only possible path forward. Our CO2product goal is aligned with the USCAP recommendations and with

the broad goal of climate stabilization. The goal also aligns our

product plans to meet or exceed recently announced fuel economy

Mobility

Most automakers define sustainable mobilityas reducing the

environmental impacts of the vehicles they offer by cutting the

vehicles lifecycle greenhouse gases and other emissions.

As indicated by the previous discussion, we see this as an important

piece of the picture and were working hard to achieve it.

But there are other important pieces as well. By 2050, there will be

nine billion people on Earth, 75 percent of whom will live in urban

areas. Putting nine billion people into private automobiles is neither

practical nor desirable.

At Ford, our goal is to make mobility affordable in every sense of

the word economically, environmentally and socially. We believethat creative collaboration and innovative technologies and services

that integrate diverse public and private modes of travel can

harness the benefits of mobility while reducing its environmental

and social impacts. By concentrating on providing affordable

transportation throughout the world and applying emerging

information technologies, we believe Ford can contribute to

addressing significant mobility challenges. For several years, Ford

has engaged with stakeholders including municipal and state

government officials, utilities, transportation planners and NGOs

to envision mobility solutions and pursue their implementation.


and opportunities

NEAR TERM

Begin migration to advanced technology

Significant number of vehicles withEcoBoost engines

Electric power steering

Dual clutch and six-speed transmissionsreplace four- and five-speeds

Flexible-fuel vehicles

Additional hybrid applications

Increased unibody applications

Introduction of additional small vehicles

Battery management systemsAerodynamics improvements

Stop/start systems (micro hybrids)

select markets

MID TERM

Full implementation o known technology

EcoBoost engines available in nearly all vehicles

Electric power steering high volume

Six-speed transmissions high volume

Weight reduction of 250750 lbs.

Engine displacement reduction facilitatedby weight reductions

Additional aerodynamics improvements

Increased use of hybrids

Introduction of battery electric and plug-in

hybrid vehiclesVehicle capability to fully leverage availablerenewable fuels

Diesel use as market demands

Increased application of stop/start

LONG TERMContinue leverage o hybrid technologies anddeployment o alternative energy sources

Increased percentage of internal combustionengines using renewable fuels

Volume expansion of hybrid technologies

Continued leverage of plug-in hybrid andbattery electric vehicles

Introduction of fuel cell vehicles

Clean electric/hydrogen fuels

Continued weight reduction through

use of advanced materials

2007 2011 2020 2030


18/32

2010 Ford TaurusThe 2010 Ford Taurus is one of the safest-rated large sedans

sold in America. It received five-star NCAP crash ratings for

frontal and side impact and good IIHS ratings in offset frontal

impact, side impact, roof strength and rear impact evaluations.

More about vehicle safety


Vehicle safety is one of four principles thatinform and guide Fords every design andengineering effort,1 and we continually work toraise the bar on safety. Based on the following

independent measures, Ford remains anindustry leader in motor vehicle safety.

Institute for Highway Safety, or IIHS) of any vehicle manufacturer.

Nineteen Ford vehicles earned this honor in 2009.

ratings for both frontal impact and side impact from the National

Highway Traffic Safety Administration (NHTSA) in its U.S. New

Car Assessment Program (NCAP) ratings.

and Ford Fiesta achieved Fords first three-star ratings for

pedestrian protection. These cars also joined the Focus, Mondeo,S-MAX and Galaxy in having best-in-class, five-star adult

protection and four-star child protection ratings.

Preventing Distracted Driving

as a contributing factor in motor vehicle crashes. Ford has been

conducting research on distracted driving for many years, and

weve recently taken a number of important actions to address it.

In 2009, Ford was the first vehicle manufacturer to support the

handheld texting while driving. Ford also clarified its employee

policies to explicitly ban the practice.

Fords voice-activated SYNC technology, first unveiled in 2007,

encourages drivers to use voice controls with hand-held devices s

as cell phones and MP3 players, enabling them to keep their eyes

the road and hands on the wheel. For example, when a text mess

arrives to a drivers cell phone, SYNC can read it aloud through

text-to-speech technology and then provide a list of canned replies

the driver to select rather than key-in manually. Also, SYNC locks o

certain features (such as adding or editing a phone book contact)

to program a key that can, for example, limit the vehicles top spee

to 80 mph and mute the audio system until the safety belt is buckl

for teen drivers) on the importance of avoiding distracted driving

the programs reach was expanded in the Asia Pacific region, wh

roughly 11,000 drivers were trained. Operation Teen Safe Driving

a joint effort between Ford and the state of Illinois that is mode

49 percent reduction in teen fatalities in the three years since the

program was launched.

Supporting Collaborative Research

On the research side, Ford is a leader in efforts to assess and ve

the effectiveness of active safety technologies. In January 2010,

Center in Germany joined forces in the Accident Avoidance by

Active Intervention of Intelligent Vehicles (interactIVe) project. The

consortium seeks to support the development and implementat

of active safety systems, and includes seven automakers, six

suppliers and 14 research institutes.

In 2010, Ford is bringing to market the

worlds first automotive inflatable sea

belts, combining traditional seat belt

and air bag technologies to help redu

head, neck and chest injuries for rearseat passengers.


protection technologies

1

VEHICLESAFETY


19/32

Engagement with Key Suppliers Corporate Management:

Ford is working with its strategic production suppliers at the

corporate level to enhance their policies, verification systems

and ability to influence their own supply chains. Our 90 Aligned

Business Framework suppliers commit to manage and assure

proper working and environmental conditions in their facilities andsupply chains, and we are measuring their progress in doing so.

Collaboration within the Automotive Industry: Ford is driving

collaboration between automakers and supply chain companies

on global working conditions issues through the AIAG.

Through these efforts, we have learned the importance of helping

to build the capability of suppliers to manage working conditions,rather than simply assessing their compliance with Ford and legal

learnings). We continue to see significant potential for collaborative

action by automakers to establish a common, effective and efficient

approach to ensuring sound working conditions in the automotive

supply chain.

Beyond our own industry, we are working with government leaders

to explore how to encourage multinational companies to act as a

positive force in protecting human rights in global trade, both

through work in their own supply chains and through advocacy.

More than 180,000 of our suppliers workers have been trainedin human rights based on Ford and joint automaker supplier

outreach programs.

More about human rights


Today, Fords Code of Basic Working Conditions (CBWC), adoptedin 2003, applies throughout our global operations and our $65 billion

no matter where they are made are manufactured under conditionsthat demonstrate respect for the people who make them. We are asignatory to the United Nations Global Compact and actively

Sustainability Advisory Groups convened by the Global Compact.

We aim to leverage Fords global supply chain to make a

positive impact in the markets in which we do business, using

a three-pronged approach:

Engagement with Individual Supplier Facilities: Training

and capability building form the basis of Fords supply chain

working conditions program, supported by assessments ofindividual factories (totaling more than 600 to date). Through

Ford-administered programs and those conducted in conjunction

with other automakers and the Automotive Industry Action Group

(AIAG), we have trained 1,773 managers from 1,478 supplier

companies on systemic solutions to working conditions challenges.

to their own management and employees as well as to clearly

communicate expectations to their suppliers, thereby expanding

the impact significantly.

Ten years ago, stakeholders challenged Ford totake a leadership role in addressing human rightsissues in the automotive industry by developingsystems and programs to ensure sound working

conditions in Ford facilities and our supply chain.We recognized compelling business reasons totake up the cause: we believe that people aremost likely to excel in an environment that aimsfor excellence. We also understand the positiveimpact our actions can have on our 176,000employees and the million people who workfor companies in our supply chain.

In early 2010, Corporate Responsibility Officermagazine ranked

Fords human rights efforts first among companies included in

its 100 Best Corporate Citizens list. Ford was also deemed one of

the Worlds Most Ethical Companies by the Ethisphere Institute.

Ford was the only automaker to receive either recognition.


Conditions

training and assessment status

HUMANRIGHTS


20/32

Performance Overview

We define sustainabilityas a business model that creates

value consistent with the long-term preservation and

enhancement of environmental, social and financial capital.

Below are some key indicators of our performance

in these areas. See the full data set and notes at

www.ford.com/go/sustainability.

Contact

Preparing this summary oers a valuableopportunity or us to assess and improveupon our progress and perormance. Tocontinue to do so, we need your eedback:

Thomas A. Niemann

Ford Motor Company

One American Road

Dearborn, MI 48126, U.S.A

[email protected]

For additional notes to accompany this data go to the full reportwww.ford.com/go/sustainability

FORD DATA 2009/10

ECONOMY/QUALITY 2007 2008 200

Global Quality Research System things gone wrong (three months in service), total things gone wrong per 1,000 vehicles 1,405 1,206 1,10

Global Quality Research System customer satisaction (three months in service), percent satisfed 76 77 8Sales satisaction with dealer/retailer, Ford brand, U.S., 82 84 8

Sales satisaction with dealer/retailer, Ford brand, Europe, net promoter score 80 81 7

Service satisaction with dealer/retailer, Ford brand, U.S., 72 74 7

Service satisaction with dealer/retailer, Ford brand, Europe, net promoter score 68 70 6

Shareholder return Bloomberg total return analysis, percent -10 -66 33

Net income/loss, $ billion -2.7 -14.7 2.

Sales and revenue, $ billion 172.5 146.3 118.

ENVIRONMENT 2007 2008 200

Ford U.S. eet uel economy, combined car and truck, miles per gallon (higher mpg reects improvement) 25.3 26.0 27.

Ford U.S. eet CO2 emissions, combined car and truck, grams per mile (lower grams per mile reects improvement) 352 340 32

Ford Europe eet CO2 emissions, grams per kilometer (based on production data or European markets)Ford 149 146 13

Volvo 190 182 17

Worldwide acility energy consumption, trillion BTUs 65.6 61.0 51.

Worldwide acility energy consumption per vehicle, million BTUs 10.8 12.2 11.

Worldwide acility CO2 emissions, million metric tons 6.1 5.4 4.

Worldwide acility CO2 emissions per vehicle, metric tons 1.02 1.09 1.0

North American Energy Efciency Index, percent (2000 base = 100 percent) (lower percentage reects improvement) 74.4 69.9 65.

SOCIETY 2007 2008 200

Employee satisaction, Pulse survey, overall, percent satisfed 64 66 6

Overall dealer attitude, Ford, relative ranking on a scale o 1100 percent (summer/winter score) 69/64 68/69 80/7

Overall dealer attitude, Lincoln Mercury, relative ranking on a scale o 1100 percent (summer/winter score) 66/64 64/66 71/6

Ford Motor Company Fund contributions, $ million 37 33 2

Corporate contributions, $ million 17 16

Volunteer corps, thousand volunteer hours 86 100 10

Lost-time case rate (per 100 employees), Ford Motor Company 0.9 0.7 0.

Lost-time case rate by region (per 100 employees), Ford Motor Company

Americas 1.2 1.0 0.

Asia Pacifc and Arica 0.1 0.1 0.2

Europe 0.7 0.6 0.

U.S. saety recalls, number per calendar year (including legacy vehicles on the road or 10+ years) 15 10

U.S. units recalled, number o million units (including legacy vehicles on the road or 10+ years) 5.5 1.6 4.5

IIHS Top Saety Picks, number o vehicles 6 14 1

1

Printed in U.S.A.

30% post-consumer waste paper. Please recycle.

net promoter score

net promoter score
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21/32

June 2010 | 1

The Twilight Saga: Eclipse.

The Fiesta Web site eatures

webisodes by popular Fiesta

Movement agents proving why

the Fiesta is better than the

competition. Additionally, theInspired by Color andWhats

Your World? campaigns reach out

to Arican-American and Hispanic

communities.

Fea momenm bl

The latest-generation Fiesta

just reaching North America

has already sold more than

750,000 units since it rst went

on European sale in late 2008.

Asian markets welcomed Fiesta

last year, where it is quickly

gaining popularity.

From Brussels to Bangkok,

Fiesta oers small car buyers a

stylish, uel-ecient choice.

Yet Fiesta doesnt ask small car

buyers to compromise on

available luxury, technology or

interior quietness. Fiesta oers a

total o 15 class-exclusive eatures

and technologies many o which

are unavailable in higher-priced

vehicle segments.

From leather seating suraceswith contrast-color piping to

SYNC, Fords voice-activated

communications and

entertainment system with trac,

directions and inormation, an

acoustic laminated windshield to

reduce road and wind noise, and a

drivers side knee air bag, Fiesta

oers buyers more o what they

want and value in a small car.

Fiesta is the initial North

American oering to eature

kinetic design language, both

inside and out. Aimed at conveying

a sense o driving dynamics even

when standing still Fiesta isrecognizable as a Ford, thanks to

common cues such as the

trapezoid-shaped lower grille.

Vibrant hues like the available

Lime Squeeze Metallic, Bright

Magenta Metallic

and Yellow Blaze

Metallic make

sure that

Fiesta in

versatile

ve-door

hatchbackor our-door

sedan congurations

shows its true colors.

Inside, the Fiesta centerstack

seemingly amiliar in design and

layout to the touch pad on a cell

phone connects the console

to the instrument panel and

contains audio and HVAC

controls. SE series models eature

25 percent recycled material in

seating suraces, helping Fiesta

keep it green.

Its class-leading total o seven

air bags including a drivers

knee air bag eectively raises

the bar on small car saety.

With a global track record o

pleasing customers, Fiesta

returns to North America

to change the way people think

o small cars.

Fs fcs:sMALL CAr Big ON sAFEty

A class-leading array o seven air bags, including an

exclusive drivers knee bag, AdvanceTrac stability

control and a tire pressure monitoring system add

to unsurpassed occupant saety

grEAt HAstE, LEss FiLLiNg

120 horsepower, our valves per cylinder and 40 mpg

(highway). Have your cake, and eat it, too

trANsFOrMAtiONAL

trANsMissiON is

AutOMAtiCALLy ECONOMiCAL

The Fiesta six-speed PowerShit Automatic is based

on uel-eicient manual transmission technology,

providing the user riendliness and accessibility o a

conventional automatic

KiNEtiC dEsigN HELps yOu

tO sEE, ANd BE sEEN iNDragons eye headlamps aid driver visibility, adding a

kinetic design cue that tells the world a stylish Ford

Fiesta and its driver are on the move

tHE HAtCH is BACK!

Fiesta is available as a our-door sedan or as a

versatile ive-door hatchback

gEt yOur BOrON!

Fity percent o the rigidly sae Fiesta body structure

is comprised o high-strength steels

tEtHEr yOur tEENs MyKEy

MyKey speed and audio system limits helps parents o

young drivers to program peace-o-mind

tHiNKs gLOBALLy, ACts

LOCALLy

With more than 750,000 uel-eicient new Fiestas

already sold around the world, Fiesta arrives to lower

your carbon ootprint where you live, work and drive
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22/32

Normally a road trip setting outrom a college campus isnt news.

But or the occupants o two Ford

Fiestas that let the University o

Michigan-Ann Arbor (U-M ) on

May 13, history was in the making.

The weeklong journey more a

research project than vacation

marked the rst ever social-

media-connected road trip.

In one Fiesta, Ford engineers T.J.

Giuli, Joe Rork,

Joe Ross and Tom

Alexanderdemonstrated

three

experimental in-car sotware

programs, known as apps,

engineered by the Ford Research

and Advanced Engineering

(R&AE) and IT teams.

In the second Fiesta, threestudents rom U-M John

Ciccone, Collin Hockey, Sang Park

used Caravan Track, an app they

developed as part o a 12-week

course called Cloud Computing in

the Commute.

We believe this is the rst time

vehicles will be socially connected

through the Internet during a

cross-country trip, said Giuli, a

Ford research engineer. All the

apps explore new boundaries in

the use o digital tools to expandsocial links.

The Ford app Automatic Blog

attempts to elevate the car, dubbed

@AJtheFiesta, to its rightul

standing as an equal member o

the team. The car automatically

blogs or tweets statements about

the journey based on

inormation it gathers

rom various vehicle data

sensors.

For example, i one

assumes that a happy car

is one thats zipping

along an open road or

negotiating tight curves,

explains Giuli, the

powertrain sensors can

indicate to the car that its

in one o those un situations, and

the car can then indicate that with

a tweet or blog post.

Caravan Track, the U-M

student app, allows clusters o

vehicles traveling together to

track each other along the

journey. Ater identiying a rout

users can see ellow travelers an

view vehicle telemetry including

uel level and speed.

The app also tracks each vehicl

maps routes, sends alerts aboutstops along the way, and sends

text notications about road

conditions and hazards via a

multiple choice interace that

eliminates the need to type.

Projects like American Journey 2.

involving teamwork with univer-

sity students ollowed by hands-

on testing, represent a signican

developmental shit or Ford.

I were going to lead in

shaping tomorrows world-on-

wheels, said Venkatesh Prasad,

group and technical leader o the

Inotronics team in Ford Researc

& Advanced Engineering, we

need a top talent pool rom which

to draw.

At the road trips nal

destination, Maker Faire in San

Mateo, Cali., May 22, the U-M

students and Ford engineers had

the chance to share their work

with global leaders in technology

development.This event demonstrates that

we at Ford do not view cars and

trucks as just vehicles but as

platorms or development,

Giuli said. Whether someone

at Maker Faire is a car enthusiast

or a techie or a programmer,

weve invited them to come

interact with the vehicle and help

us shape the uture.

12 | June 2010

Smart

American Journey 2.0:A new road tripb ad S

The AmericanJourney 2.0introduces thecar as the nexttechnologyplatform.

Fw aJ h Fs

twr

wr.cm/aJhFs
http://twitter.com/AJtheFiestahttp://twitter.com/AJtheFiesta


23/32

June 2010 | 1

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24/32

Ken Block continues to make aname or himsel in the world o

rally racing. Block and co-driver

Alex Gelsomino won the 100 Acre

Wood Rally or the th time this

year and Block is the only

American competing in the

World Rally Championship.

However, or most, Block is

synonymously known as the guy

who does those gymkhana videos

or the co-ounder o DC shoes. In the

all o 2008 Block posted a testing and

practice video that took the internetby storm. Overall, the gymkhana

videos have garnered more than

30 million YouTube views.

Gymkhana (Jim-kah-nuh) is

identied in therst video as an

automotive sport taking place in a

large open area requiring driversto skillully maneuver their cars

around obstacles, 360 degree turns

and gure eights. The course

encourages the use o acceleration,

braking and o course, driting.

The great thing about

Gymkhana or me is that it is

amazingly un to do, said Block.

I cant wait to start lming in the

Gymkhana THREE 2011 Ford

Fiesta. I just did one day o testing

in the U.K. with it and it is

extremely un to drive. It hasamazing power and control.

Built by Olsbergs Motorsport

Evolution (MSE), the 2,425-pound

Gymkhana THREE Fiesta sports a

purpose-built Olsbergs engine

capable o up to 850 brake

horsepower, but is restricted to650 horsepower to give Block the

torque band he needs to control

the car. Equipped with an

Olsbergs MSE Maktrak

(magnesium) six-speed paddle-

shit sequential transmission, it is

capable o 660 lb.-t. o torque at

4000 rpm and needs a mere two

seconds to go rom 0 to 60 mph.

I rst met Ken Block on YouTub

watching his Gymkhana video an

it was amazing, said Jamie Allison

director, North America Fordmotorsports. Ken is a cross over

athlete, his skills are sharpened

rom competing at the highest leve

in both Rally America in a 2011

Fiesta and in World Rally Champion

ship in a 2011 Ford Focus.

14 | June 2010

Racing

Gymkhana THREEwill unleash the Fiestab ac arff

Coupon amount is subject to change. See dealer for

details. John Deeres green and yellow color scheme, the

leaping deer symbol and JOHN DEERE are trademarks of

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now, were offering Ford employees an

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this powerful performer. To learn more

about the challenge and the EZtrak,visit JohnDeere.com/Challenge or go

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25/32

The Operation Drive one tourhonors men and women o the

armed orces and raises money or

the National Military Family

Association (NMFA).

The tour visits 10 bases bringing

an action-packed day to armed

orce members and their amilies.

The tour includes a precision

driving course, burnout challenges,

a test drive o a new Ford vehicle,

interactive displays, classic car

show and a visit rom Bill Goldberg.

Family has always been at thecore o our company, and through

Operation Drive one, were not

only honoring our military amily

but also providing their amilies

with un, interactive events to

enjoy together, said John Felice,

general manager, Ford, Lincoln

Mercury Marketing.

In the Drive one 4 UR Troops

event participants will test drive

new Ford products: each test drive

donates $20 (up to $10,000) to the

local chapter o NMFA.Bill Goldberg ormer wrestling

champ and actor joins the tour

or a meet-and-greet and will be

accompanied by his rare 1970

Boss 429 Lawman Mustang.

I am so proud and

excited to join Ford in

support o Operation

Drive one and recognize

the men and women o

the armed orces who

serve our country every

day, said Goldberg. I

we can provide a break

or our troops and their

amilies while raising

money or a great cause,

theres nothing Id rather

be doing over the coming

months.

As a part o the tour,

12 active duty and veteran

service members also willreceive an expenses-paid

trip to attend the Ford

Championship Weekend

NASCAR races. Two o the

12 nalists will win a new

2011 Ford Mustang, with

the grand-prize winner

receiving an exclusive

Toby Keith concert or

their home base.

June 2010 | 1

Charity

ev ds MCAS Miramar Marine Base,

San Diego, CA

June 12, 2010

Fort Hood Army Base,

Killeen, TX

July 17, 2010

MCAS Cherry Point Marine

Base, Cherry Point, CA

July 30, 2010

NS Norfolk Naval Station,

Norfolk, VA

August 7, 2010

Ft. Benning Army Base,

Columbus, GA

October 8, 201

Documents

@Ford June 2010 (North America)