FORD CONFIRMS SAARLOUIS AS THE SINGLE SOURCE FOR THE ALL-NEW FORD FOCUS; NEXT-GENERATION FORD C-MAX TO BE SINGLE SOURCED FROM VALENCIA

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Ford of Europe today confirmed it has decided to single source European production of its all-new Ford Focus, which will be launched in 2010, from its Saarlouis Plant in Germany. The next-generation Ford C-MAX, which goes into production in 2010, will be single sourced from Ford's plant in Valencia, Spain for all European markets and potentially for markets outside Europe.

"We announced last March that Saarlouis would be the lead plant for the next-generation Ford Focus – just as it is for the current Ford Focus – but also we said we were looking at a possible opportunity for a second production plant for a derivative of the vehicle," said John Fleming, Ford of Europe Chairman and CEO.

"Since then, we have continued to evaluate this possibility. We have however concluded that – in line with our global manufacturing strategy with its emphasis on maximizing investment efficiency and utilization of our manufacturing capacity and flexibility – we will single source the next-generation Ford Focus from Saarlouis and single source the all-new Ford C-MAX from Valencia. We can also confirm that Valencia will supply the needs of the European market and potentially markets outside Europe as well."

In March of this year, Ford announced a range of further actions intended to bring its capacity in line with the industry-wide, declining demand and sales. The company adjusted its sourcing plans to meet future business needs, given that demand is unlikely to improve significantly in the European market for some considerable time.

"Our objective is to return to sustainable profitability as soon as we can," said Mr. Fleming. "We've already shown that we will make the necessary decisions and do whatever is required to ensure that Ford of Europe emerges from the downturn as a leaner and stronger company, ready to take on the opportunities presented once the economic situation finally improves."