FORD MOTOR COMPANY'S U. S. SALES UP 4% IN JULY; TWELFTH CONSECUTIVE MONTHLY SALES INCREASE

DEARBORN, MI,  - U.S. consumers purchased or leased 356,949 cars and trucks from Ford, Mercury, Lincoln, Jaguar, and Volvo dealers in July enabling Ford Motor Company to post a four percent increase in sales compared with July 1998. Sales of passenger cars were 151,773, up 18 percent. Truck sales were 205,176, down four percent.

"Consumer demand for new cars and trucks remained strong in July," said Bob Rewey, Ford's group vice president for marketing, sales, and service. "We're pleased with our results, particularly our very strong showing in passenger cars."

Rewey acknowledges that competition in the U.S. auto market is intense. "That's not news, that's a fact," he said. "The product plans and business strategies that we put in place three years ago were based on the assumption that competition would intensify. It's great for consumers and Ford Motor Company because our focus on improving efficiency, eliminating waste, and developing innovative products has enabled us to be the 'and' company in North America - delivering better customer value 'and' improving margins."

"We believe there are three major factors driving record consumer demand in the U.S.," explained Rewey. "First, favorable economic fundamentals. Second, prices for new cars and trucks have been stable while incomes and household net wealth have increased. Third, innovative products. Each of our brands are benefiting from innovative products and an intense focus on the consumer."

In July, each one of Ford Motor Company's brands posted an increase in passenger car sales compared with July 1998. Jaguar sales more than doubled (up 104%) compared with a year ago thanks to the S-TYPE, Jaguar's all-new, mid-size sedan. Volvo's 29-percent sales increase reflected growing demand for its flagship sedan, the S80. Mercury's distinctively-styled Cougar continues to set sales records and attract new customers. The LS, an all-new, mid-size sedan, helped Lincoln post a 30-percent increase in car sales. Ford car sales were powered by the Mustang, redesigned for 1999. Mustang sales have increased 25 months in a row.

"If you examine our results, and the results of our competitors, you'll convince yourself that product is a key element in explaining this year's record-breaking sales pace," said Rewey. "We're extremely confident about the future because we have several innovative product introductions just around the corner."

July 19 marked the first day of production for two breakthrough Ford products - the Ford Focus at the Wayne (MI) Assembly Plant and the Ford Excursion at the Kentucky Truck Plant. The Ford Focus, already acclaimed as "European Car of the Year", and the Ford Excursion set industry standards in their segments. Production of the 2000 Ford Super Duty F-Series, the industry's first full-size pickup to achieve low emission vehicle status, also has started.