DEARBORN, Mich., July 24 /PRNewswire-FirstCall/ --

-- 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.