Ford of Canada submits business plan to Government

* Ford submitted to the governments of Canada and Ontario its business plan, saying it expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011.

As Canada's longest-established automaker and the direct employer of 10,000 people across the country, Ford Motor Company of Canada, Limited today submitted its business plan seeking government support for the auto industry in the areas of auto financing, fuel efficiency initiatives and consumer incentives.

Ford delivered its plan to the federal and Ontario governments outlining that it expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011, and detailing a request for access to a "stand-by" line of credit of up to $2 billion to be used only if necessary. The company believes it has the liquidity to weather the current economic crisis, however, it is asking for access to government-backed loans in case the economy significantly worsens, or in the event that a major competitor is forced into bankruptcy.

"At Ford, we are well on our way to transforming our company. Few companies have restructured more aggressively and we remain hopeful that we have enough liquidity to come through this financial crisis," said David Mondragon, president and CEO, Ford of Canada. "But the reality of the highly-interdependent North American automotive industry is that the collapse of one of our competitors would not only affect us, but would have a devastating ripple effect across the economy."

In its submission, Ford of Canada also asks the government to support auto financing stating that Canadian consumers deserve access to affordable loans and leases when shopping for a new vehicle and by providing support to the auto credit market, the government will help the more than one million Canadian vehicle buyers who rely on financing each year, and spur sales in an industry that is critical to the Canadian economy.

Ford of Canada also recommends that the federal and provincial governments continue to support the transition to new fuel efficient technologies in the Canadian auto industry to meet evolving consumer demand. In addition, the company is asking the governments to consider a variety of consumer stimulus actions, such as tax holidays for new vehicle purchases and incentives to encourage consumers to trade-in older vehicles and buy new, lower-emission vehicles.

To date, Ford's restructuring actions have delivered significant gains in product quality, fuel efficiency, safety and innovation:

* When it comes to initial quality, no automaker performs better than Ford, according to the 2008 U.S. Global Quality Research System.

* Ford is committed to being the best or among the best in fuel economy with every new Ford product in its segment.

* In 2009, Ford will introduce the EcoBoost family of engines which deliver up to 20 per cent better fuel economy and reductions in carbon dioxide emissions of up to 15 per cent, with no sacrifice to horsepower or torque. The Canadian-built Ford Flex will be among the first products to feature this revolutionary new powertrain.

* The Insurance Institute for Highway Safety (IIHS) in the U.S. has awarded Ford more "Top Safety Pick" ratings than any other manufacturer.

* MyKey™, a new technology exclusive to Ford, allows the vehicle owner to program a special key for the teen driver which will limit the vehicle's top speed and audio volume.

* The Automotive Journalists Association of Canada (AJAC) recently named the Ford Flex 'Best New CUV' in Canada in the $35,000 to $60,000 price category.

* Ford of Canada will launch seven new vehicles in 2009, including the all-new Lincoln MKT crossover to be built at the Oakville Assembly Complex.

* Also coming in 2009 is the new 2010 Fusion Hybrid with better fuel economy than the hybrid model of the Toyota Camry.

* Ford will improve the fuel economy of its product line-up by 14 per cent for 2009 models, 26 per cent for 2012 models and 36 per cent for 2015 models, compared to the fuel economy of its 2005 fleet.

* Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 61 billion litres between 2005 and 2015.

"We will continue to accelerate our transformation plans and we look forward to working collaboratively with our elected officials to help build a vibrant auto industry and healthy Canadian economy for the future," Mondragon said.

- Ford -