October 20, 2003

Ford, Changan Group to invest U.S. $1 billion in Chinese car production

Beijing, China – Ford Chairman and Chief Executive Officer Bill Ford announced on
Friday that Ford Motor Company and its partner in China, Changan Automobile Group,
will invest more than U.S.$1 billion over the next several years to expand
manufacturing capacity, introduce new products and expand distribution channels in
the Chinese automotive market.

The investment will initially support the addition of new products and expansion of
production capacity at its joint venture, Changan Ford in Chongqing, from the
current 20,000 units a year to 150,000, as well as establish a second car plant and
new engine plant. Details concerning locations of the new plants and the products
that will be manufactured will be announced at future dates.

“The automotive future of China is very bright, and we are participating fully in
its growth. I am pleased to reaffirm our long-term plans for China,” Ford said.

On October 15, Mr. Ford and Party Secretary Huang and Mayor Wang of Chongqing
witnessed the signing of memorandum of understanding that expands the strategic
partnership between Ford Motor Company and Changan Automobile Group, at the joint
venture Changan Ford. Mei-Wei Cheng, chairman and CEO for Ford Motor China, and Yin
Jiaxu, chairman and president, Changan Automobile Group, signed the memorandum
marking a new milestone in their efforts to expand.

The Ford chairman also joined senior Chongqing government and senior Changan
Automobile Group leaders to break ground at Changan Ford to increase production
capacity from the present 20,000 units a year to 150,000 units a year. In January
2003, the plant launched the Ford Fiesta, Ford’s first domestically produced car for
the Chinese market. In May, a second Ford passenger car model, Ford Mondeo, was

The expansion plans in China during the next few years also include construction of
a second automotive plant as well as an engine plant. The location will be announced

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