Ford Reports $8.7 Billion Net Loss For Second Quarter 2008, Including Pre-Tax Special Charges of $8 Billion; Company Also Details Accelerated Transformation Plan+

DEARBORN, Mich., July 24 -- -- 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

* Historically, amounts accessible within 18 months; short-term VEBA is no longer reported within gross cash as of January 1, 2008, consistent with our new UAW VEBA agreement (which is subject to court approval).