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Ford Plans Major Entry Into Vehicle Recycling

26 April 1999

Ford Plans Major Entry Into Vehicle Recycling

    *  Significant environmental benefit seen through large reduction of auto
       parts at landfills
    *  Second similar move in a month toward transformation to a consumer
       company; will build closer customer relationships downstream in the
       business
    *  Offers growth opportunity in a healthy business; potential revenues of
       $1 billion or more

    DEARBORN, Mich., April 26 -- Ford Motor Company has
entered the automotive recycling business with the expectation of developing a
significant environmental enterprise for the company.
    Ford Motor Company has purchased a vehicle recycling operation in Florida
and plans to expand its presence substantially in the coming months.
    The first facility, located in Tampa, will continue to disassemble cars
and trucks for parts and, in the future, additionally will serve to gather
parts from Ford plants for recycling.  These parts will be made available for
resale principally to body shops, insurance companies and to retail customers.
    This acquisition marks another important step toward Ford Motor Company's
goal to become the world's leading consumer company providing automotive
products and services.  By entering this industry sector Ford Motor Company
will be able to interact with customers and service their needs even more
directly.
    "We are intent on transforming ourselves to a total consumer focus," said
Jacques Nasser, Ford Motor Company president and chief executive officer.
"This new venture not only helps that effort, but is directly aligned with our
corporate objective of environmental leadership.  We also see this as
potentially a billion dollar or more business for Ford Motor Company."
    Ford Motor Company is entering the vehicle recycling business for three
main reasons.  It will, first of all, help reduce the amount of auto parts
going to landfills.  Second, vehicle recycling is growing and represents a
healthy business proposition within the automotive value chain.  And third, it
will allow Ford Motor Company to be closer to its customers in that part of
the business after the sale.
    "To keep materials out of landfills and to make parts more readily
available makes sense for the environment, for our customers and for Ford
Motor Company," said Martin Saffer, acting chief executive officer of the new
company.  "We have a lot to offer a business like this and believe we can have
very positive impact."
    Ford Motor Company will be able to offer high-quality parts with a quick
turnaround to benefit all customers.  "We will apply our quality customer-care
standards to the business and will be able to provide reliable and timely
shipping of parts throughout the nation as our presence increases," said
Saffer.
    Earlier this month, Ford Motor Company purchased Kwik-Fit, Europe's
largest independent fast-fit repair chain.  Kwik-Fit will promote closer
customer relations and further solidify Ford Motor Company's role in the
repair and parts business.