Excerpt From Ford Motor Company Business Plan - Improve Balancesheet

“Finance our plan and improve our balance sheet” An Excerpt from FORD MOTOR COMPANY BUSINESS PLAN

SUBMITTED TO THE SENATE BANKING COMMITTEE

December 2, 2008

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III. Finance our plan and improve our balance sheet The third pillar of our Plan is to finance the Plan and improve our balance sheet. As noted, we worked to obtain financing for our Plan by going to the markets in December 2006 to raise $23.5 billion in liquidity, consisting of $18.5 billion of senior secured debt and credit facilities, secured by substantially all of our domestic assets, and $5 billion of convertible debt. In addition, in 2006, we eliminated common stock dividends and in 2007 and 2008 we issued more than $3 billion in new equity (debt exchanges and direct issuances), sold Aston Martin, Jaguar, Land Rover and the majority of our investment in Mazda. At Ford Credit, and in light of the frozen capital markets, we have recently become more reliant on committed securitization capacity from banks and have embarked upon aggressive plans to develop new funding products. We are eligible for and are participating in funding programs from the European Central Bank and, more recently, the Federal Reserveʼs Commercial Paper Funding Facility (CPFF). We have provided feedback to the Federal Reserve and Treasury on their newest program (Term Asset Backed Securities Loan Facility) in hopes that changes can be implemented that, in our view, will result in better financing support for our U.S. customers and dealers. We also filed an Industrial Loan Company application with the FDIC earlier this year and we are hopeful that a favorable response will soon be forthcoming so we can diversify our funding capability and eliminate the competitive disadvantage created by certain competitors operating Industrial Loan Companies. Looking forward to 2009 and beyond, we intend to explore strategic alternatives for our Volvo business, including divestiture. We also intend to raise further equity capital when markets re-open and our business begins to improve, and we would explore balance sheet restructuring over time.

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APPENDIX <
http://www.pdfcoke.com/doc/8584772/Congressional-Submission-Appendix>

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