Blueprint for Sustainability - Corporate - Ford Motor Company

58GOVERNANCEGOVERNANCEGovernance5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContents5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewsince our last reportFurther integrated sustainability into our management systemsCreated a new position of Senior Vice President, Sustainability,Environment and Safety Engineering, which was upgraded toGroup Vice President in April 2008Published an updated Code of Conduct Handbook inmultiple languagesInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.In this sectioniIntegrating sustainability governance and managementReinforcing our commitment to ethical business practicesOur sustainability governance and management structuresInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Sound governance and management systemsenable a company to operate in a transparent andaccountable way. They provide effective oversightand help a company translate its aspirations intoaction while operating to high ethical standards.During 2007, Ford strengthened its sustainability governance,further integrated sustainability into key business processesand undertook initiatives that reinforce our commitment toconducting business ethically and with integrity. These effortsincluded the publication and dissemination of our new Code ofConduct Handbook in multiple languages.Integrating Sustainability Governanceand ManagementThe Ford Board of Directors’ Committee on Environmental andPublic Policy oversees sustainability issues for the company.At the executive level, in April 2007, Sue Cischke was appointedto a newly created position of Senior Vice President, Sustainability,Environment and Safety Engineering, reporting directly to Ford’sCEO. In April 2008, she was promoted to Group Vice President.Ms. Cischke oversees several important functions (see Figure 1opposite) and participates in the regular Business Plan andSpecial Attention Review meetings of Ford’s most seniorexecutives, helping to keep sustainability at the top of the agenda.During 2007, top executives reviewed several key sustainabilityissues, including Ford’s approach to human rights, the productfuel economy and CO2 strategy, the corporate sustainabilitystrategy and the 2006/7 Sustainability Report. Ford’s SustainableMobility Group, a cross-functional team based in Global ProductDevelopment, led the development of the fuel economy and CO2strategy. Executive compensation is affected by the company’sperformance in a range of areas, including sustainability.Beginning in 2008, our Board and top management will haveaccess to some of the preeminent thought leaders insustainability through Ford’s Transformation Advisory Council.These leaders will come together several times a year with Fordexperts to help shape our thinking about future technologiesand global trends. They will bring a unique blend of skill andperspective aimed at making Ford the leader in sustainability.They will also help us develop ideas to solve the challenge ofenergy independence and the threat of climate change.This system of governance and management, together with thestructures, processes and management systems discussed inour Web report, integrates sustainability strategy into Ford’sbusiness in an unprecedented way.Reinforcing our Commitment to EthicalBusiness PracticesOur Corporate Compliance Office has a comprehensive programin place to guide compliance with Ford Policies and Directivesand key legal requirements, and to provide training and educationon those requirements, as well as monitoring and auditing ofcompliance. The Corporate Compliance Office is part of Ford’sOffice of the General Counsel, and our corporate complianceprogram is overseen by a senior management compliancecommittee and the Audit Committee of the Board of Directors.Ford took a number of initiatives in 2007 to increase awarenessof and adherence to ethical business practices. We rolled outmandatory online courses for employees on several key ethicalwww.ford.com/go/sustainability

9 Contact details8 Supporting information7 The artworks6 Graphs and charts5 Icons5.1 How the icons are used4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContentsInformation Top 10factsiDirectionalsignpostCommunityaffairsLanguageglossaryQuote Contacttelephoneicon to be created please contact the Brand team,$CMIG brand enquiry.Where can I find these icons?If you would like any of these icons or for a newThe icon libraryQuestion Answer Do Don’t ExclamationContact fax Contactemail4 Typefaces2 The logoContentsXContactaddress9 Contact details8 Supporting information7 The artworks6 Graphs and charts5 Icons5.1 How the icons are used3 Colour Palette1 Toolkit overviewInternalactivities5Information Top 10factsiDirectionalsignpostCommunityaffairsLanguageglossaryQuote Contacttelephoneicon to be created please contact the Brand team,$CMIG brand enquiry.Where can I find these icons?If you would like any of these icons or for a newThe icon libraryQuestion Answer Do Don’t ExclamationContact fax ContactemailXContactaddressInternalactivities9 Contact details8 Supporting information7 The artworks6 Graphs and charts5 Icons5.1 How the icons are used4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContents5Information Top 10factsiDirectionalsignpostCommunityaffairsLanguageglossaryQuote Contacttelephoneicon to be created please contact the Brand team,$CMIG brand enquiry.Where can I find these icons?If you would like any of these icons or for a newThe icon libraryQuestion Answer Do Don’t ExclamationContact fax ContactemailXContactaddressInternalactivities559 Contact details8 Supporting information7 The artworks6 Graphs and charts5 Icons5.1 How the icons are used4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContentsInformation Top 10factsiDirectionalsignpostCommunityaffairsLanguageglossaryQuote Contacttelephoneicon to be created please contact the Brand team,$CMIG brand enquiry.Where can I find these icons?If you would like any of these icons or for a newThe icon libraryQuestion Answer Do Don’t ExclamationContact fax ContactemailXContactaddressInternalactivities5GOVERNANCE 9topics, enhanced our Policies and Directives pertaining toanti-bribery issues, and provided in-person anti-bribery training.One high-impact initiative in 2007 was the completion of a majorrevision of our ethical guidance document, now called the Codeof Conduct Handbook. The document was restructured andrevised to make it easier to understand and use as a referencemanual. In its new incarnation, the Code of Conduct Handbookis a compilation of the most important and relevant Policies,Directives and standards for Ford employees. It is now moreglobal in content and is available in 13 languages. The onlineversion available to personnel includes active links to the originalsource documents, thus providing a single source for therelevant information.The revised Handbook outlines employee behavior requirementsand provides background resources for a wide range ofbusiness-related situations, including gifts, favors and conflictsGovernance and Management StructuresBoard-level governanceBoard of DirectorsWilliam Clay Ford Jr.Executive ChairmanJohn R.H. Bond *Stephen G. Butler *Kimberly A. Casiano *Edsel B. Ford IIIrvine O. Hockaday Jr. *Richard A. Manoogian *Ellen R. Marram *Alan R. MulallyPresident and CEOHomer A. Neal *Jorma Ollila *Gerald L. Shaheen *John L. Thornton *William Clay Ford Sr.Director Emeritus* Independent DirectorSustainability managementGroup VP, Sustainability,Environment andSafety EngineeringGroup VP,GlobalManufacturingKEY BUSINESS PROCESSESBusiness Plan ReviewGlobal Product Development SystemGroup VP,Global ProductDevelopmentInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t Exclamationof interest; political activities; and competition and antitrust laws.While Ford has had well-developed Policies and Directivesfor many years, the new Handbook ensures that Fordemployees everywhere in the world receive consistentinformation and the tools they need to respond appropriatelywhen ethical issues arise.Virtually all salaried employees around the world are requiredto certify that they have reviewed the new Handbook. In 2008,contract personnel will also be required to make the certification.Employees also take mandatory online training on key ethicaltopics, including anti-bribery; gifts, favors, and conflicts ofinterest; internal controls; fair competition; and mutual respect.iWe assess compliance with our Code of Conduct Handbook,encourage employees to report potential ethical issues andprovide a variety of means for them to do so.Board CommitteesAuditXCompensationNominating and GovernanceEnvironmental and Public PolicyFinanceSustainable Mobility GovernanceDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesGroup VP,GlobalPurchasingSpecial Attention ReviewFord Production System5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewGroup VP,GlobalMarketingContentsPolicy DocumentsCorporate GovernancePrinciplesCommittee ChartersCode of Ethics forBoard of DirectorsPolicy DocumentsCode of ConductHandbookCode of Ethics for SeniorFinancial PersonnelPolicy Letters and DirectivesISO 14001 CertificationOrder-to-DeliveryFigure 1INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

i5CLIMATE CHANGE 11The USCAP target zone is consistent with stabilizing GHGconcentrations at a level between 450 ppm and 550 ppm as wellas the CO2 reduction modeling that we have conducted.This section of our report discusses the risks and opportunitiesthat climate change poses for our company, our product CO2strategy in the context of our broader approach to climate changeand our participation in climate change public policy development.CLIMATE CHANGE RISKS AND OPPORTUNITIESThe past year has seen a seismic shift in the significance of theclimate change issue in public awareness, political debate andgovernment action, magnifying the risks and opportunities toFord posed by the issue. These risks and opportunities includethe following:Markets: Worldwide, record oil prices continue to drive buyersto shift from larger vehicles and light trucks to smaller vehicles,cars, crossovers and diesel-powered vehicles. Energy security isalso a major concern in several markets in which we operate. Inemerging markets, continued rapid growth in vehicle sales israising concerns about emissions and congestion. In NorthAmerica, the shift away from SUVs and light trucks continues toaffect our profitability and market share. In other regions of theworld, where our profitability is less dependent on large vehicles,our sales and market share have grown. These market shifts arevery significant to our company. Everywhere we operate, thefuture financial health of our company depends on our ability topredict market shifts of all kinds and to be ready with the productsand services our customers demand.Regulations: The regulation of GHG emissions affects many areasof our business, including our manufacturing facilities and theemissions from our vehicles. For example, in Europe, GHGemissions from manufacturing facilities are regulated through acombination of emission limits and market-based mechanisms.The EU Emission Trading Scheme regulations apply to nine Fordand Volvo facilities in the UK, Belgium, Sweden, Spain andGermany. Ford anticipated the start of this trading scheme andestablished internal business plans and objectives to maintaincompliance with the new regulatory requirements.Japan, South Korea and Taiwan have adopted fuel-efficiencytargets. The Chinese government has introduced weight-basedfuel consumption standards for passenger cars and light-dutycommercial vehicles. Ford’s product offerings comply with thestandards in all of these markets. We have established globalroles, responsibilities, policies and procedures to help ensurecompliance with emissions requirements and participate in tradinginitiatives worldwide. We are also participating in the developmentof policies affecting our facilities and products, as discussed onpages 17 to 19.Investment Community: Both mainstream investmentanalysts and those who practice socially responsible investingare assessing companies in the auto sector for their exposureto climate risks and their positioning to take advantage ofopportunities created by the issue. Thus, providing climatechange-relevantinformation to investors and shaping ourbusiness strategy with climate change in mind are importantelements of maintaining access to capital.Physical Risks: Extreme weather disrupts the production ofnatural gas, a fuel necessary for the manufacture of vehicles.Supply disruptions raise market rates and jeopardize theconsistency of vehicle production. To minimize the risk ofproduction interruptions, Ford has established firm deliverycontracts with natural gas suppliers and installed propane tankfarms at key manufacturing facilities as a source of backup fuel.Higher utility rates have prompted Ford to revisit and implementenergy-efficiency actions that previously did not meet ourinternal rate of return.Nancy L. GioiaA lot needs to happen tomake plug-in hybrid electricvehicles a reality. We arefocused on finding anaffordable solution to makea significant difference formany customers and ourenvironment. Great customervalue and a sustainablebusiness model are requiredto achieve this long-term goal.We’re not waiting for someoneelse to lead the collaboration.We’re pulling other industriesin and bringing forward thedata and dialogue to shapethe new business model.Nancy L. GioiaDirector, Sustainable Mobility Technologies andHybrid Vehicle Programs, Ford Motor CompanyInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONwww.ford.com/go/sustainability

5Ia12CLIMATE CHANGECLIMATE CHANGEFORD’S CLIMATE CHANGE STRATEGYTo respond to the risks and opportunities posed by the climatechange issue, our long-term strategy is to contribute to climatestabilization by:Continuously reducing the GHG emissions and energy usage ofour operationsDeveloping the flexibility and capability to market more lower-GHG-emission products in line with evolving market conditionsWorking with industry partners, energy companies, consumergroups and policy makers to establish an effective andpredictable market, policy and technological framework forreducing road transport GHG emissionsSustainable Mobility GovernanceTo plan and implement our strategic approach, we haveestablished sustainability-related governance systems, whichinclude a strong focus on fuel economy and CO2 improvements.The strategic direction is provided by a senior executivecommittee, made up of vice president and executivestakeholders, who guide the development of the vision, policyand business goals. (See Figure 1 on page 9.)Commitment – ProductsEuropean Automobile ManufacturersAssociation CO2 commitment (industry)Australian Industry-wide National AverageCO2 Emissions (NACE). Previously known asNational Average Fuel Consumption (NAFC)(industry)Canadian Greenhouse Gas Memorandum ofUnderstanding (industry)Commitment – OperationsTargetVoluntary target to achieve EU new car fleet average of 140 grams of CO2 per km by 2008;equivalent to 25% average CO2 reduction compared with 1995 2Voluntary target to achieve national average CO2 emissions of 222 g/km for lightvehicles under 3.5 tonnes gross vehicle mass by 2010. Requires an overall reduction in averageCO2 emissions of 12% between 2002 and 2010Industry-wide voluntary agreement to reduce GHGs from the Canadian car and truck fleet by5.3 megatonnes by 2010 compared to projected emissionsTargetRelated executive planning teams are responsible fordeveloping detailed and specific policy, product and technicalanalyses to meet objectives. These teams base their plans onscientific data and promote actions that will help achieve thecompany’s environmental ambitions, recognizing the need touse a holistic approach to effectively protect the environment.Metrics have been established and are reviewed regularly toensure satisfactory progress. We have also developedstrategic principles to guide our approach.In 2007, Ford’s top executives reviewed and approved theproduct CO2 strategy developed and proposed by theseteams. Also during 2007, the Environmental and Public PolicyCommittee (EPPC) of the Board of Directors reviewed thecompany’s climate change strategy, and the Chair of theEPPC briefed the full Board of Directors on the strategy. TheEPPC reviews progress on elements of the strategy each timeit meets.Global manufacturing energy efficiency (Ford) Improve energy efficiency by 6% between 2006 and 2008, following an improvement of 22%from 2000 to 2006iClimate Change-Related Commitments and ProgressInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsTable 1Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationUK Emissions Trading Scheme (Ford)UK operations to achieve a 5% absolute reduction target over the 2002–2006 timeframe basedon an average 1998–2000 baseline. Program concluded in 2007Chicago Climate Exchange (Ford) Reduce North American facility emissions by 6% between 2000 and 2010Greener Miles/Hybrid Offset (Ford)Alliance of Automotive Manufacturers(industry)Voluntary GHG Reporting (Ford)For more information visit:www.ford.com/go/sustainability5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsVoluntarily offset CO2 emissions from manufacturing MY2007 and MY2008 hybrid electric vehicles.Offer customers the opportunity to offset CO2 from drivingReduce U.S. facility emissions by 10% per vehicle produced between 2002 and 2012Voluntarily report facility CO2 emissions to national emissions registries in Australia, Canada, Mexico,the Philippines and the United StatesKEY: ACHIEVED ON TRACK MISSED TARGET – Under review by EU Commission2Auto industry progress to date toward meeting the voluntary targets has made a verysignificant contribution toward the EU’s overall efforts to address climate change. The industryhas consistently pointed out that the agreement constitutes one of the most challenging CO2reduction initiatives within the EU and that it is extremely ambitious, both technically andInformation Top 10factsLanguageglossaryQuestion Answer Do DoiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailConaddInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t Exc4 TypefacesiX3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressContents4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.economically. Despite increasingly adverse market conditions, Ford and the industry continueto work hard to move toward the 2008 calendar year target. The focus is now on developingappropriate 2012 calendar year targets. The performance of Ford brands in Europe against the1995 baseline is shown on the data overview, page 47.2 The logo1 Toolkit overviewContents

55ATMOSPHERIC co2 CONCENTRATION (PPM)200 300 400 500 600 700stabilizing atmospheric CO2 levels650 ppm: 2.3 – 3.7 °C550 ppm: 2.0 – 3.4 °C450 ppm: 1.7 – 2.8 °C19001950 2000YEARBlueprint for SustainabilityDuring 2007, we mapped a blueprint for sustainability, ourproduct CO2 strategy through the year 2030. We also beganimplementing the actions identified. These include incorporatingfuel-saving technologies into our product cycle plan andcontinuing research on and development of longer-termtechnologies. The product strategy builds on a series ofcommitments the company has made, or participated in,to reduce the greenhouse gas emissions from our productsand operations over the course of several years.(See Table 1 opposite.)To develop the product strategy, we analyzed the reduction incurrent greenhouse gas emissions that would be required toachieve the goal of climate stabilization. The analysis showedthat very large reductions in emissions will be required toINPUTS:Targeted CO2AtmosphericGlide PathCo2 reduction modelAUTO INDUSTRYVehicle fleetCO2 requirementsBUSINESS AS USUALENERGY INDUSTRYLow-fossil-carbonfuels glide pathInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationREDUCED RISK OFENVIRONMENTALIMPACTACCEPTED RANGETO MINIMIZEENVIRONMENTALIMPACTFigure 12050 2100 2150 2200 2250Information Top 10factsLanguageglossaryiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesCLIMATE CHANGE 13achieve the CO2 concentration accepted to minimizeenvironmental impacts. (See Figure 1.) Next, we analyzed thecurrent and projected contribution of light-duty cars and trucksto global greenhouse gas emissions (currently about 20 percentof CO2 emissions in the U.S and about 11 percent globally) andthe reduction needed to contribute to stabilization.We used these assumptions in a model that considers bothvehicle technology and fuel options. (See Figure 2.) The purposeof the model was to determine the best combination of optionsthat will yield the required emissions reductions at the mostaffordable cost. We then developed scenarios to assess howthe vehicle and energy sectors can work together, eachdeveloping its own optimal but coordinated strategies on fuelsand vehicle technologies. The output of this analysis is thetechnology plan shown on pages 20 to 21.Technologyoptimizationmodel5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsFord’s sustainability framework for CO2 and technology migration developmentQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressvehicle/fuelstrategic alignmentInternalactivitiesFuel development costminimization strategyWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsvehicle/technology MIGRATION planWELL-TO-TANK PLANReduce fossil CO2 contributionfrom fuel sourcesFigure 2INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

514CLIMATE CHANGECLIMATE CHANGEOur strategy development in 2007 and early 2008 has focusedon the CO2 emissions of our products, because they accountfor the greatest part of GHG emissions associated with ouractivities. Our current and planned efforts to implement theproduct strategy are outlined below. However, we recognizethat emissions from our facilities are also important. These arediscussed briefly below and in more detail in our Web report.The Web report also addresses the lifecycle emissions of thematerials and processes used to make our products.OperationsSince 2000, we have reduced our global operational energyuse by 30 percent and CO2 emissions from our facilities by39 percent. The U.S. Environmental Protection Agency hasrecognized our energy conservation efforts three years in arow (a first for an automaker), most recently with the 2008Energy Star Sustained Excellence Award.ProductsThe amount of CO2 generated by the light-duty vehicle sector isdependent on three major factors: 1) the fuel economy of thevehicles, which in turn depends on many characteristics of thevehicles themselves (such as their weight, powertrain andtwo seatersminicompact carssubcompact carsCOMPACT CARSaerodynamics); 2) the well-to-wheels 3 greenhouse gas profileof the fuels used in the vehicles; and 3) how the vehicles areused and maintained by their drivers. Our shorthand for this,and the organizing framework for the discussion that follows,is “Vehicle + Fuel + Driver = GHG emissions.” More recently,we have added government to the equation, recognizing theindispensable role of governments in coordinating actionsacross sectors, providing leadership in areas like infrastructuredevelopment to meet transportation demand and creating aharmonized legal and political framework that leverages marketforces to lead to the desired result.VehicleActions to improve the fuel economy of the vehicles we offer arethe most important element of our strategy for contributing to agoal of climate stabilization. We have made progress in improvingthe fuel economy of our vehicles, and these improvements willaccelerate as we implement our blueprint for sustainability.In the United States, the Corporate Average Fuel Economy(CAFE) of our cars and trucks has improved. It increased5.9 percent for the 2007 model year, compared to the 2006model year.Figure 310 20 30 40 MILES PER GALLON11iFUEL ECONOMY OF U.S. FORD VEHICLES BY EPA SEGMENTInformation Top 10factsLanguageglossary10 182523 24 24Question Answer Do Don’t Exclamation12 203218 19 19XDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddress12 213216 19 21Internalactivities2218 23 285 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContents42midsize cars112117 20 2446LARGE Cars111813 18 2225small station wagons15 233120 22 23midsize station wagons14 20 2419 19 19minivans13 182423 24 24suvs10 183214 1932small pickup trucks15 18 2315 18 23standard pickup trucks10 14 1814 16MINindustryAVgMAXvans10 13 17MINFORD FLEETAVgMAX10 20 30 403Emissions resulting from making, distributing and using the fuel.For more information visit:www.ford.com/go/sustainability

55% FUEL ECONOMY% FUEL ECONOMY25%20%15%10%5%0%50%40%30%20%10%0%WEIGHTREDUCTIONSHORT-TERMIMPROVEMENTSADDITIONALWEIGHTREDUCTIONepas, bms, fastengine warm-up,adfso, nv optdownsizedpowertrainwith gtditechnologyPreliminary data for the 2008 model year shows a 0.7 percentimprovement in CAFE compared to 2007, with a 1.3 percentimprovement for cars and a 4.0 percent improvement for trucks. 5As seen in Figure 3, our U.S. vehicles are generally competitivewith others in the industry in fuel economy, ranking better thanaverage in four of 12 categories, worse in five and the same inthree.Our 2008 North American lineup of fuel-efficient vehicles includesthe 2008 Ford Escape Hybrid, Mercury Mariner Hybrid and MazdaTribute Hybrid, which have the highest fuel economy in the SUVclass, and the Ford Ranger and Mazda B2300, which are leadersin the small pickup truck class. The Ford Taurus and MercurySable have the highest fuel economy for an all-wheel-drive largecar, according to the Environmental Protection Agency’s GreenVehicle Guide. The fuel economy of the Ford Taurus is 10 percentbetter than its predecessor model, the Ford Five Hundred, and the2008 North American Ford Focus gets up to 35 miles per gallonon the highway. For the 2009 model year, we will introduce hybridversions of the Ford Fusion and Mercury Milan sedans, bringingthe number of hybrid vehicles we offer in North America to five.In Europe, we have reduced the average CO2 emissions of thevehicles we sell by 14 to 33 percent depending on the brand,compared with a 1995 base. We have achieved these reductionsby introducing a variety of innovations, from the advancediX5- to 6-speed+ ascWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.TYPICAL near-TERM FUEL ECONOMY IMPROVEMENTS – midsize utility 4Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXaERO and parasiticimprovementsAERO TIRE DOWNSIZEDPOWERTRAINTRANSMISSIONEFFICIENCIESASSISTEDDIRECT STARTWITH GTDITECHNOLOGYDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.TYPICAL MID-TERM FUEL ECONOMY IMPROVEMENTS – SMALL CAR 4Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities2 The logo1 Toolkit overviewContentsELECTRICAL/STEERING/DRIVELINEEFFICIENCIESTOTALEFFECTTOTALEFFECTCLIMATE CHANGE 15Figure 4Figure 5common-rail diesel engines available on many of our vehicles tothe use of lightweight materials.Several advanced technologies come together in a new seriesof vehicles launched in Europe beginning in early 2008. The newFord Focus ECOnetic model, for example, uses Ford’s 1.6-literDuratorq TDCi diesel engine with 109 horsepower and standardDiesel Particulate Filter to achieve class-leading CO2 emissionlevels of just 115 g/km. The Ford ECOnetic vehicle portfolio willbe extended in 2008 to include other Ford volume sellers: first asub-140 g/km CO2 Mondeo ECOnetic, and then a sub-100 g/kmCO2 model in Ford’s all-new Fiesta range.Improvements in the fuel economy of our vehicles will accelerate aswe implement our technology plan, which includes short-, mediumandlong-term actions described on pages 20 to 21. The shorttermactions have been incorporated into our cycle plan, whichspecifies the vehicles we will build in the next five years. We areactively researching and developing the technologies to be used inthe mid to long term, including diesel hybrids and other clean dieseltechnologies; plug-in hybrids; biofueled vehicles; hydrogen internalcombustionengines; hydrogen fuel cell powertrains; and variouscombinations of these technologies, plus weight reductions.Figures 4 and 5 show how we will leverage complementarytechnologies to cut CO2 emissions significantly.INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSION4For an explanation of the terms used in these figures, see the glossary on page 20.5The percentage improvement in CAFE for cars and trucks combined is lower than the respectivepercentages for both cars and trucks primarily because the ratio of trucks to cars manufacturedis projected to increase from 2007 to 2008. Also, the CAFE figure is calculated based on volumeof vehicles manufactured as well as the fuel economy of each individual vehicle.For more information visit:www.ford.com/go/sustainability

i55CLIMATE CHANGE 17Hybrids: Time to Plug In?Using both an electric and a gas-powered engine, plug-inhybrid electric vehicles (PHEVs) allow drivers to travel somedistance on batteries alone by using a battery pack to storeenergy from the electric grid.In July 2007, Ford and Southern California Edison (SCE)announced a multi-million-dollar, multi-year evaluation anddemonstration program. Ford will provide SCE with ademonstration fleet of 20 2008 Ford Escape Hybrid SUVsthat will be benchmarked for performance characteristics.The Escape Hybrid platform will then be engineered by theFord product development team, with a battery companypartner yet to be named, to be fully PHEV capable.Some of the vehicles will be evaluated in typical customersettings in order to understand how PHEVs will interfacewith the electric grid and to develop a business model forSouthern California.In early 2008, we announced a partnership with the ElectricPower Research Institute to test the integration of PHEVswith utilities in the New York/New Jersey area.XThese projects and the technical challengesassociated with PHEVs are both discussedin more detail in our Web report.www.ford.com/go/sustainabilityFord Escape Hybrid PHEVInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationContentsiXMarket, Policy and Technological FrameworkAt Ford, we accept that simply “not getting worse” is not goodenough. The auto industry, along with suppliers, government,the fuel industry and consumers, need to work together toreduce CO2 levels from transportation so we can help bringdown atmospheric CO2 concentrations. To achieve real andlasting results, all global stakeholders must make long-termcommitments for a sustainable future.It’s important to note, though, that the auto industry is only onepart of the problem and can be only one part of the solution.Addressing the linked issues of climate change and energysecurity requires an integrated approach – a partnership of allstakeholders, including the automotive industry, the fuel industry,other industries and enterprises, government and consumers.It will also require the best thinking from all of these sectors.5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContentsFord is involved in numerous partnerships and alliances withuniversities, coalitions, NGOs and other companies to improveour understanding of climate change. For example, Ford is:A member of the United States Climate Action Partnership(USCAP), an alliance of major businesses and leading climateand environmental groups that have come together to developan economy-wide, market-driven approach to reducegreenhouse gas emissions, as discussed later in this section.Working closely with BP to explore vehicle and low-carbonfuel technologies.DirectionalsignpostCommunityaffairsQuote ContacttelephoneWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryWorking with the World Resources Institute on the EMBARQIstanbul project to reduce vehicle emissions and trafficcongestion in that city.A founding member of the Carbon Mitigation Initiative at PrincetonContact fax ContactemailUniversity to study the fundamental scientific, environmental andtechnical issues related to carbon management.A charter member of the Sustainable Transportation EnergyPathways Program at the University of California-Davis Instituteof Transportation Studies, which aims to compare the societaland technical benefits of alternative sustainable fuel pathways.A member of the Massachusetts Institute of Technology JointProgram on the Science and Policy of Global Climate Change.ContactaddressInternalactivitiesOur participation in these and other partnerships helps us toformulate improved strategies for products and policies that willin turn help to address climate change and energy security.We try to bring these perspectives to our participation in publicpolicy development. Climate change and the closely relatedconcerns of energy security and fuel prices are global issues,but policy approaches vary regionally. Everywhere we operate,we seek to be a constructive partner in developing policies thatwill be effective and efficient in reducing GHG emissions. In thissection, we describe our perspective and policy activities in theUnited States and Europe, two of our major markets.INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

18CLIMATE CHANGECLIMATE CHANGEdiverse and adequate supplies of low-GHG energy. Finally,Ford concurs that climate protection legislation must achievesubstantial GHG emission reductions from all major emittingsectors of the economy, including the transportation sector,and supports the recommendation that Congress enact policiesto reduce GHG emissions in the transportation sector.State: The issue of state regulation of vehicle greenhouse gasemissions continues to be a controversial one, and there werea number of new developments in 2007 and early 2008.FiestaUnited StatesFederal: In the United States, CO2 emissions from vehicleshave been regulated through Corporate Average Fuel Economyrequirements for more than 30 years. In December 2007,Congress enacted new energy legislation restructuring the CAFEprogram and requiring the National Highway TransportationSafety Administration (NHTSA) to set new CAFE standardsbeginning with the 2011 model year. The law requires NHTSAto set car and truck standards such that the combined fleet ofcars and trucks in the U.S. achieves a 35-mile-per-gallon fleetaverage by MY2020. In early 2008, NHTSA is expected toissue a proposed rule setting light truck CAFE standards forMY2012 and beyond, based on the provisions of the new law.A proposed rule setting new car CAFE standards is expectedto follow. Ford participated actively in the development of thelegislation and supported its final passage. The new regulationswill be very challenging, but our product CO2 strategy isdesigned to help us meet the anticipated standards.In 2007, Ford Motor Company joined USCAP, a group of33 companies and NGOs that recommends the promptenactment of national legislation in the United States to slow,stop and reverse the growth of greenhouse gas emissions overthe shortest period of time reasonably achievable. Ford supportsthe USCAP call for U.S. legislation to achieve the goal oflimiting global atmospheric GHG concentrations to a level thatminimizes large-scale adverse climate change impacts to humanpopulations and the natural environment, which will require globalGHG concentrations to be stabilized over the long termat a carbon dioxide equivalent level of 450–550 ppm.Specifically, Ford supports the call for short-, mid- and long-termtargets of between 100 and 105 percent of today’s levels withinfive years; between 90 and 100 percent of today’s levels within10 years; between 70 and 90 percent of today’s levels within15 years; and an emission target zone aimed at reducingemissions by 60 to 80 percent from current levels by 2050.Ford supports the prompt enactment of legislation andregulations to facilitate the achievement of these goals. Fordalso supports the USCAP recommendation of a cap-and-tradeprogram complemented with U.S. energy policies that result inIn 2002, the California legislature passed a law directing theCalifornia Air Resources Board (CARB) to promulgate ruleslimiting GHG emissions from motor vehicles. In 2004, CARBvoted to adopt a set of fleet average standards expressed ingrams per mile of CO2. Final rules incorporating these standardswere adopted in 2005. The standards are set to take effectbeginning with the 2009 model year, and they becomeincreasingly stringent through the 2016 model year. Severalother states, including New York, Connecticut, Massachusetts,Vermont, New Jersey, Pennsylvania, Rhode Island, Oregon,Washington, Maryland, New Mexico and Florida, have eitheradopted parallel regulations or are in the process of doing so.Under the federal Clean Air Act, states must receive a waiverfrom the Environmental Protection Agency (EPA) before theycan enforce state-specific rules related to vehicle emissions.On March 6, 2008, the EPA issued a final denial of California’swaiver request, and in early 2008, California initiated litigationchallenging the waiver denial. It is expected that this litigationwill continue throughout most of 2008, if not beyond. In additionto the waiver litigation, virtually the entire automobile industry isengaged in litigation seeking to overturn the state GHG rules onthe grounds that they are preempted by the federal CorporateAverage Fuel Economy law. It may be some time before theappeals in these cases are completed and the issue of federalpreemption is finally resolved.Ford supports the reduction of vehicle GHG emissions andis working aggressively toward the development andimplementation of products that emit less CO2 on a per-milebasis. But Ford believes that a single set of national GHG/fuelC-MAX FFVFor more information visit:www.ford.com/go/sustainability

CLIMATE CHANGE 19economy standards is in the best interest of consumers,dealers, automotive suppliers and vehicle manufacturers alike.The state GHG rules would impose fuel economy standardswhose rapid rate of increase and extreme stringency are notworkable within our business limitations. If the state GHG rulestook effect, we would be forced to implement severe productrestrictions in those states within two or three model years, andwe would not be the only manufacturer in that situation. This, inturn, would lead to at least three adverse consequences. First,consumers in those states with the GHG rules would have fewervehicles to choose from than consumers in neighboring stateswithout the GHG rules. Second, states with the GHG regulationswould experience a sharp decline in vehicle sales, affectingemployment in those states dependent on automobile sales,most notably at dealerships. Third, to the extent they can,consumers in states with the GHG rules would go to otherstates to get vehicles they cannot buy at home.We believe that Congress intended to prevent the adverseeffects of state-specific standards when it included languagein the CAFE law preempting state regulations “related to” fueleconomy standards. We will continue advocating for theprinciple that the fuel economy standards in the U.S. should beset exclusively on a nationwide basis, as they have been sincethe CAFE law was passed in 1975. We supported passage ofthe 2007 Energy Bill, which significantly raises the fuel economystandard our vehicles must meet. National standards canachieve all of the environmental benefits of state standards,without the economic disruption and unintended local andregional effects of state standards.EuropeThe EU is a party to the Kyoto Protocol to the United NationsFramework Convention on Climate Change, and has agreed toreduce greenhouse gas emissions by 8 percent below 1990levels during the 2008–2012 period. In 1998, the EU agreed tosupport an environmental agreement with ACEA (the EuropeanAutomobile Manufacturers’ Association, of which Ford is amember) on carbon dioxide emission reductions from newpassenger cars. The ACEA Agreement established an emissionstarget of 140 grams of carbon dioxide per kilometer (“g/km”) forthe average of new cars sold in the EU by the ACEA’s membersin 2008. This corresponds to a 25 percent reduction in averagecarbon dioxide emissions compared to 1995. To date, theindustry has made good progress, meeting an interim target for2003 (165–170 g/km); however, it is now apparent that theindustry will not achieve the 140 g/km target for the 2008 modelyear due to a number of factors, including consumer demandand the challenges associated with implementing various fuelsavingtechnologies.In 2005, ACEA and the European Commission reviewed thepotential for additional carbon dioxide reductions, with the goalof achieving the EU’s objective of 120 g/km by 2012. Thediscussions have advanced the concept of an integratedapproach to further reductions, involving the oil industry andFord Focus ECOneticother sectors. In 2007, the discussions suggested a 120 g/kmoverall target, with a vehicle target of 130 g/km andcomplementary measures making up the other 10 g/km inemissions reductions. In December 2007, the EuropeanCommission issued a proposal to regulate vehicle carbon dioxidebeginning in 2012 at a fleet average of 130 g/km, using a slidingscale based on vehicle weight. This provides different targets foreach manufacturer based on their respective fleets of vehicles,weight and carbon dioxide output. The proposal also establishesa penalty system as a provision for pooling agreements to shareor minimize the burden. This proposal is likely to be finalized bythe European Parliament in 2008 or 2009.Ford will play its part in achieving the required mandatoryobjective for vehicle CO2 emissions that will eventually be setby the EU. However, while the European auto industry is fullycommitted to continue reducing CO2 emissions from cars andsupports the (overall) EU objective of reaching a level of120 g/km, the industry believes that the EU Commission’sproposal does not offer the proclaimed balanced framework tocut CO2 emissions in the most effective way and to safeguardcompetitiveness and growth. Only a truly broad and integratedapproach involving all stakeholders – transport industries, fuelsuppliers, infrastructure providers, consumers and government –can result in larger and more cost-effective CO2 emissionreductions from road transport compared to focusing almostexclusively on vehicle technology. The industry will continue tocommunicate and clarify this message and trusts that theCouncil and the European Parliament will fully engage in anopen debate and reconsider the Commission’s strategy.INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

5520CLIMATE CHANGESUSTAINABLE TECHNOLOGIES AND ALTERNATIVE FUELS PLAN This section lays out our blueprint forsustainability, a plan for achieving our targetto reduce our vehicle CO2 emissions by30 percent by 2020.The analysis underlying the blueprint, described in moredetail on page 13, considers both vehicle technology andfuel pathways, since the two must work together, alongwith actions on the part of drivers, to contribute to climatestabilization. No single technology, especially in the nearto mid term, is the solution. It’s by deploying multipletechnologies that we get synergistic improvements of theorder of magnitude necessary to achieve our goal. Thisapproach is also important because different engine andfuel technologies will be appropriate for different regionsand operating conditions.iSUSTAINABLE TECHNOLOGIES AND ALTERNATIVE FUELS PLANInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Ford H2ICE Shuttle BusMany of these technologies are already deployed or underdevelopment. For example:Advanced Gas and Diesel – We offer a range of advanceddiesel vehicles in Europe. In addition, beginning in 2009we will be offering EcoBoost, an engine technology thatuses direct injection and turbocharging to improve thevehicle fuel economy of gasoline engines.Advanced Transmission – We are implementing a dualclutchtransmission technology that improves fuel economyby approximately 10 percent compared to traditionalautomatic transmissions.Ford Transit Connect Taxi ConceptHybrids and Future Powertrains – We now offer threehybrid vehicles and will start production on two more in2008. We are working with Southern California Edisonto test a fleet of 20 PHEVs to understand criticalimplementation issues surrounding plug-in vehicles.In addition, we are testing 30 H2ICEs and 40 hydrogenFCVs in real-world conditions.Vehicle Systems Efficiencies – We are working to makeevery vehicle system more efficient to improve fueleconomy. For example, we are applying EPAS across manyof our vehicles, which improves fuel economy by improvingpower steering efficiency.Weight Reductions and Aerodynamics – We haveimproved fuel economy through weight reductions by usingunibody vehicle designs. Examples include the Ford Edge,Lincoln MKX and Europe’s Ford Focus ECOnetic.For more information visit:www.ford.com/go/sustainabilityA detailed description of these technologiesis available in our Web report.www.ford.com/go/sustainabilityInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXGLOSSARY5- to 6-speed 5- to 6-speed advanced series compensated+ ASC transmissionADFSOAggressive Deceleration Fuel Shut OffAeroAerodynamicsBEVBattery Electric VehicleBMSBattery Management SystemsEcoBoost GTDI Fuel-efficiency-boosting Gasoline TurbochargedDirect InjectionEPASDirectionalsignpostFCVHEVCommunityaffairsH2ICENV optQuote ContacttelephonePHEVTireContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsElectric Power Assisted SteeringFuel Cell VehicleThe icon libraryHybrid Electric VehicleHydrogen Internal Combustion EngineOptimization of the engine speed (N) andvehicle speed (v) ratioPlug-in Hybrid Electric VehicleOptimized tire rolling resistance and pressure

ii55SUSTAINABLE TECHNOLOGIES AND ALTERNATIVE FUELS PLAN 211 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsSUSTAINABLE TECHNOLOGIES MIGRATION PLANInformation Top 10factsLanguageglossary2007 2012 2020High-volume implementation ofEcoBoost GTDI engines andimproved diesel enginesQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailNEAR TERM MID TERM LONG TERMBegin migration to advancedFull implementation of known technologytechnologyADVANCED GAS AND DIESELADVANCED TRANSMISSIONHigh-volume implementation ofefficient dual clutch and migrationfrom 4- and 5- speed to 6-speedtransmissionsContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Expand implementation ofefficient transmissionsThe icon libraryEcoBoost GTDI available in nearly all vehiclesHYBRID AND FUTURE POWERTRAINSIncreased hybrid applicationsContinued pilot testing of PHEVs andhydrogen vehiclesVEHICLE SYSTEMS EFFICIENCIESHigh-volume implementationof EPAS and BMSBegin implementation ofADFSO and Assisted Startweight reductionsWeight reductions through increasedunibody applications, smaller vehicleoptions and lightweight materialsaerodynamicsAerodynamics improvementsresulting in increase in fuel economyALTERNATIVE FUELS MIGRATION PLANEPAS, BMS, ADFSO and Assisted Start onnearly all light-duty vehiclesContinued weight reductions enabling useof smaller, more fuel-efficient engines1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsAdditional aerodynamics improvementsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsContentsVolumes begin to be displaced by alternativepowertrainsContinued transmission improvementsVolume introduction of PHEV, BEV, H2ICE,and/or fuel cell vehiclesContinued improvements in vehicle systemefficienciesContinued weight reductionsContinued aerodynamic improvements2007 2012 2020 2030NEAR TERMBegin migration to advancedtechnologyMID TERMFull implementation of known technologyLONG TERMVolume rollout of stretch technologies and alternativeenergy sourcesGASImprove fuel economy Increase clean diesel applications Fossil fuels ramp downFord MondeoBIOFUELSIncrease 1st generationapplicationsMercury MarinerFord FocusECOneticFord F-150 SportExplorer America2nd generation applications begin2nd generation applications at high volumeFord EdgeelectricityHEVs reach higher volume PHEVs enter market PHEVs reach high volumeFuel Cell VehicleHYDROGENH2ICEs and FCVs enter market2030Volume rollout of stretch technologies and alternativeenergy sourcesINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

522MOBILITYMOBILITYsince our last reportEngaged stakeholders and established partnerships formega-city mobility in several global citiesLaunched a prototype mega-city mobility project in Cape Town,South AfricaEstablished mobility business unitInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsIn this sectionMobility challenges and opportunitiesNew approaches to mega-city mobilityPartnerships for learning and actionMobilityInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewFrom Los Angeles to Bangkok and almosteverywhere in between, traffic increasingly movesat a crawl, compounding pollution and depletingever-more scarce and costly resources. Cars,trucks, buses, trains, motorcycles, bicycles andpedestrians share overtaxed infrastructure,making a simple trip to work or shop an arduousand risky experience. These trends suggest thata mobility model based on an endless increase inprivately owned automobiles may be headed fora dead end.Despite this gloomy outlook, we believe that creativecollaboration and innovative technologies and services canyield new solutions, and that these solutions can harness thebenefits of mobility while reducing its environmental and socialimpacts. These solutions will also benefit the companies thatoffer them.Ford is experimenting with new kinds of mobility products,services and technologies and reaching out to new kinds ofcustomers. In June 2008, we established a new business unitto develop and provide innovative, integrated urban mobilitysolutions. By engaging local communities and taking awhole-systems approach, we are building capabilities andpartnerships and launching prototype urban mobility projectsin several global locations.This section describes the actions Ford is taking to deepenour understanding of the future of mobility and to develop andtest sustainable mobility solutions for all of our global customers.35mega-cities will have a population of morethan 10 million by 2015For more information visit:www.ford.com/go/sustainability

MOBILITY23MOBILITY CHALLENGES AND OPPORTUNITIESMobility is a basic human need. Developed and emergingeconomies alike require transportation systems to get goods tomarket and people to the places where they work, shop, dine,gather and have fun.Automobiles have provided personal mobility for more than 100years. There are currently 900 million vehicles in the world, andthat number is increasing rapidly as individuals in developingmarkets reach new levels of prosperity; it could reach two billionby the middle of this century.This sounds like good news for an automotive company, andto some extent, it is. Our most rapid sales growth is taking placein emerging markets. But a business model built on privateownership of automobiles comes with inherent challenges,which are related directly to the following current and emergingmega-trends:Urbanization: By 2015, it is projected that at least 35mega-cities will have a population of more than 10 million.The migration of rural populations to urban areas oftenoutpaces infrastructure development, leading to overcrowded,substandard living conditions and inconvenient, congestedtransportation systems.Congestion: Each year, traffic congestion is estimated to costthe United States $67.6 billion, and the average metropolitandriver endures 27 hours of traffic delays. In many places,especially developing countries, traffic delays are considerablyworse, and are increasing at an alarming pace. As morevehicles crowd limited road networks, congestion increases.This, in turn, creates pollution, reduces fuel efficiency andwastes travelers’ time.Climate change: The transportation of people and goodsaccounts for about a third of global human-caused greenhousegas emissions. Stabilizing greenhouse gas emissions in theatmosphere will require a concerted effort on the part of theprivate and public sectors to achieve significant cuts intransport-related emissions, at a time when rapid growth inthe transportation sector is anticipated.Shifting demographics: Different regions of the world areexperiencing opposing population trends. Among the moredevelopedcountries, only the U.S. is growing in population;Europe, Russia and Japan are all shrinking. Regions of Africaand Asia are growing in population and will have large numbersof young people. But by the middle of this century, most of theworld will be much older on average. With most people living inurban areas, more and different forms of mobility will be neededto support independent living for seniors, the disabled andyoung people.Social inequality: The growing gap between rich and poorcreates enormous needs for innovative, affordable mobilitysolutions that meet human needs and help people build a betterway of life.Taken together, these trends point to increasingly diverse andfragmented markets for traditional automobile sales. They alsopoint to significant opportunities for companies that are able toprovide mobility and accessibility in new ways.Given our knowledge and experience, we believe this is an areain which Ford may be able to have particularly positive impact –and to develop a profitable new line of business in doing so.27hours of traffic delays endured by theaverage metropolitan driver each yearINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

i5i524MOBILITYMOBILITYContents1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsContents1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhat is New Mobility?As we reach the limits of conventional models of mobility,“new mobility” offers a practical route forward. New mobilityapproaches transportation needs and options from a systemsperspective. It relies on collaborative partnerships andinformation technology to bring existing services, products,technologies, infrastructure and design together intosomething that is greater than the sum of its parts – smarter,more sustainable, more convenient, more equitable, andbetter-connected.Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryMega-Cities: The Icon of PersonalMobility ChallengesMega-cities are urban areas with more than 10 millionresidents. At least 25 mega-cities already exist worldwide.Twenty are located in the developing world, as are sevenof the nine most populous. By 2015, there are projected tobe at least 35 mega-cities, with virtually all the growth indeveloping countries. Mega-cities experience a wide rangeof social and environmental problems, many of them relatedto mobility.Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryExamples of new mobility systems already exist, notablyHong Kong’s “Octopus” system, which uses a “smart card”to provide travelers with access to multiple transit servicesas well as ferries, parking and retail outlets. Other examplesexist in Bremen, Germany; Bogotá, Colombia; Paris, France;Curitiba, Brazil; Portland, Oregon; and more. Key features ofnew mobility systems include the innovative use of technologyto link diverse transportation systems such as rail, bus andsubway with car sharing, bike sharing and other options, toprovide flexible, seamless, door-to-door trips. Technologiescan also enable distance working, learning, medicine andshopping, thereby reducing the need for some trips altogether.And still other information technologies support thesustainable and efficient movement of goods in urban regions,a growing area of concern and opportunity for innovation.All of the mega-trends we have identified, as well as otherchallenges to sustainable mobility, are at their worst inmega-cities, and engender paralyzing traffic congestion, airpollution, vehicle-related injuries and fatalities, and healthproblems. Furthermore, social inequality and the dislocationof families and communities are increasing as people movefrom rural areas to mega-cities seeking economicopportunities. To develop mega-city mobility strategieswill require addressing the mobility needs of rural as wellas urban residents, as many mega-city problems couldbe improved by developing new approaches to thetransportation of people and goods between rural and urbanareas, and by reducing the need for rural-urban migration.New mobility also depends on something more oldfashioned:collaboration and partnership. Technology can“connect the dots,” but only humans can get the variedinstitutions and interests involved in urban mobility to worktoward a common end. Thus, new mobility projects likethose described in this section require extensive stakeholderengagement and establishment of trust between the manypartners with a role to play.Hong Kong’s ‘Octopus’ systemFor more information visit:www.ford.com/go/sustainability

MOBILITY25NEW APPROACHES TO MEGA-CITY MOBILITYAs we continue to compete for a share of automobile sales inboth mature and rapidly growing markets, we are simultaneouslydeveloping a new business model – called mega-city mobility– based on providing innovative, integrated urban mobilityproducts, services and technologies. We have spent severalyears developing the mega-city mobility concept and process.Because we believe that mobility solutions must be tailored tolocal economic, cultural and infrastructure characteristics, theprocess begins with building a network of committed privatesectorand public-sector partners. It also includes extensivestakeholder engagement to identify critical problems andpromising solutions.During 2007 and early 2008, we moved forward with buildingnetworks to support a mega-city mobility pilot project in CapeTown, South Africa, and explore potential projects in other locationsaround the world. We have also begun planning for projects inChicago, Washington DC, Los Angeles, Detroit and Atlanta, andwe are participating, with the World Resources Institute’sEMBARQ project, in a mobility program in Istanbul, Turkey.We have a business presence in all of these locations and haveworked over the years to build trust with potential partners andstakeholders through our commitment to sustainability reporting,support for human rights and engagement with local communities.These locations also have major unmet mobility needs.We have found that public and private entities in these cities areconcerned about mobility problems and are receptive to potentialsolutions. During 2008, we will launch the Cape Town project,described on the following page, as a prototype. Our goal for theyear is to complete the design of 10 to 12 hub/network sites tolink transportation modes.The environmental and social case for mega-city mobility iscompelling. We believe the business case for Ford’s involvementis equally compelling. We are moving ahead with these prototypeprojects, which will help us understand the practicalities ofproviding integrated urban mobility services. By partnering withdiverse organizations and providing real solutions for challengingproblems, we’re learning valuable lessons about how we canmeet customer needs well into the future.PARTNERSHIPS AS AVENUES FOR LEARNINGAND ACTIONIn our view, developing practical, broad-based sustainablemobility solutions will require the combined efforts of a rangeof private-sector partners representing transportation, energy,telecommunications, real estate, logistics and more, as well asgovernment and consumer partners. That is why the followingpartnerships have been a key element of Ford’s sustainablemobility strategy.Sustainable Mobility and Accessibility Research andTransformationSMART – an interdisciplinary initiative at the University ofMichigan in Ann Arbor – takes a collaborative, systemsapproach to developing innovative, sustainable andconnected mobility and accessibility solutions in globalurban regions. SMART is a key partner in Ford’s mega-citymobility projects, providing the conceptual foundations andco-developing the partnerships and pilot projects. We areconvinced that our partnership with SMART will produce anew systems approach for addressing the increasinglycomplex challenges to achieving sustainable mobility andaccessibility globally, while at the same time transforming thetransportation industry into a more sustainable and equitablenew mobility industry.Georgia TechFord and Georgia Tech have a strong cooperative relationship,focused particularly on sustainability. At present, GeorgiaTech is assisting Ford by:developing the business case for mega-city mobility,especially pertaining to finance, information technology andvehicles (including fuels, design, carbon and powertrains)building on the results of Ford’s prototype projects,particularly with regard to software device connections.The Prince of Wales ForumFord has taken part in The Prince of Wales’ InternationalBusiness Leaders Forum for seven years. The Forum’smission is to promote responsible business leadership andpartnerships for social, economic and environmentallysustainable international development, particularly in newand emerging market economies. Ford has participated in theForum’s Business and Environment and Business and Povertyprograms. Through these venues, Ford leaders have gaineda better understanding of global sustainable developmentissues and the variety of perspectives on the role ofcorporations in contributing to sustainability. Also, the Princeof Wales’ Cape Town leadership team joined with SMART andFord to convene, lead and manage the Cape Town project.INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

i526MOBILITYMOBILITYContents1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsCape Town, South Africa, sits near the southern tip of theAfrican Continent. With a metropolitan population of morethan 3 million, Cape Town is the capital of the Western CapeProvince. It is also the legislative capital of South Africa,playing host to the National Parliament and many othergovernment offices. With a spectacular setting between thesea and the mountains, Cape Town is a popular touristdestination and will be a host of the World Cup in 2010.To prepare for the tournament, local officials are seeking toupgrade the city’s transportation systems, from its aging taxifleet to its bus and rail systems. The city also wants to buildon the legacy created by the World Cup to provide solutionsto persistent problems of congestion and access to mobilityfor the poor. Because of congestion and air-qualityconcerns, there is talk of policies that would restrict privatetransportation into the city by the end of the decade. Fordhas acted as a catalyst to engage a wide range of public andprivate interests in planning an innovative, integrated mobilitysystem to serve both local residents and World Cup visitors.Innovation and CollaborationFord and the University of Michigan’s Sustainable Mobility andAccessibility Research and Transformation (SMART) programhave been working since January 2007 to develop a newmobility project in Cape Town. In January and July of 2007,Ford and its partners convened stakeholder engagementmeetings. Participants included private-sector leaders, localthought leaders and government and transportation officials,Information Top 10factsNew Mobility Solutions for Cape Town, South AfricaLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryas well as taxi, minibus and bike entrepreneurs. A follow-upmeeting in late January 2008 confirmed plans to establish atleast two “mobility hubs” in the fall of 2008, followed by eightmore in time for the World Cup.A mobility hub is a transfer point where multiple mobility optionsand services come together. It represents one point in a “newmobility hub network,” an integrated system of hubs throughouta city that connect to provide seamless, convenient, sustainable,safe and affordable door-to-door trips for everyone – rich andpoor. Hubs can be simple places where two modes of transportmeet. Or they can be more elaborate and beautifully designed,connecting many transport modes and services and offeringinformation, community services, commerce, recreation,refreshment and culture. The integrated mobility provided byhubs can be enhanced by information technology that providesreal-time travel and schedule information, either at kiosks orthrough mobile phones.In Cape Town, the hubs will link multiple mobility services,including buses and metro trains, minibuses, taxis, car-sharevehicles and bike-share vehicles. They will also includerestaurants and shops. Travelers will eventually be able touse a software device, connected through a cell phone orinformation kiosk, to access integrated, multi-modal, realtimetravel information. To date, resources to move thisproject along have been provided by Ford’s corporate office,Ford of South Africa and SMART (University of Michigan).Cape Town, South AfricaFor more information visit:www.ford.com/go/sustainability

i5MOBILITY27The World Resources Institute/EMBARQ ProjectEMBARQ is the World Resources Institute’s Center forSustainable Transport. EMBARQ fosters government–business–civil society partnerships whose members arecommitted to solving transportation-related problems. Our firstjoint effort, begun in July 2006, is designed to reduce vehicleemissions and traffic congestion in Istanbul, Turkey, byunderstanding mobility patterns, needs and opportunities. TheIstanbul project is supported by EMBARQ’s global strategicpartners, the Shell Foundation and Caterpillar Foundation, withadditional project support from Ford, BP and Shell.Thus far, EMBARQ has helped to introduce the Bus RapidTransit (BRT) concept to Istanbul city leaders. In 2007,Istanbul’s first BRT corridor began operations, and the city hasannounced plans to open six more corridors. Another part ofthe EMBARQ Istanbul effort is the Clean Fuels Clean Vehiclesproject, which seeks to develop an inventory of existingtransport-based emissions, identify the key pollutants and runpilot projects to test various powertrain and fuel combinationsto help reduce those pollutants.Sustainable Mobility Project of the World Business Councilfor Sustainable DevelopmentIn 2000, Ford joined with auto companies DaimlerChrysler,General Motors, Honda, Nissan, Renault, Toyota andVolkswagen; tire maker Michelin; and energy companies BP,Norsk Hydro and Shell to form the Sustainable Mobility Projectof the World Business Council for Sustainable Development(WBCSD). In 2004, the WBCSD released a report entitledMobility 2030: Meeting the Challenges of Sustainability. Thisgroundbreaking report examines future trends in mobilityglobally and identifies strategies that might make transportmore sustainable.Since the release of the report, Ford has continued to workwith the WBCSD to raise awareness of the importance ofmobility as a drive for economic development, the need toclose the “mobility divide” and the need for mobility solutionsfor rapidly growing cities in the developing world. The findingsof this project, and the comments about its strengths andweaknesses (as analyzed by Professor Tom Gladwin of theUniversity of Michigan), were important catalysts of Ford’smega-city mobility project.The Global Road Safety InitiativeSeveral companies that participated in the WBCSD project –including Ford, GM, Honda, Michelin, Renault, Shell andToyota – launched the Global Road Safety Initiative in 2004.The purpose of the initiative is to transfer best practices, withthe objective of reducing accidents and building capacity indeveloping countries to manage road safety. Projects includeeducational outreach to increase rates of seat belt and helmetusage, and training aimed at improving roadway design. Thefirst focus of the initiative is China.David BerdishClearly, the answer to mobilityproblems is not selling 1.8 carsand trucks to every householdin the world. Together withour stakeholders, we mustdevelop new transportationsolutions. We must integratetrains, buses and taxis withcar shares, rickshaws andbicycles, in ways that aresafe, easy to use and easy toaccess. We want Ford to beat the forefront of these newmodes of transportation.David BerdishManager of Sustainable Business DevelopmentFord Motor CompanyInformation Top 10factsLanguageglossary900 millionQuestion Answer Do Don’t ExclamationXvehicles currently on the road globallyDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

528HUMAN RIGHTSHUMAN RIGHTSsince our last reportJoined the United Nations Global CompactRevised our Code of Basic Working Conditions and adopted itas a Policy LetterContinued to work with suppliers to promote sound working conditionsLed an industry-wide effort to address working conditions acrossthe global supply chainInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsHumanrightsIn this sectionHuman rights challenges and opportunitiesWorking conditions at Ford plantsWorking conditions in our supply chainTaking action as an industryInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewFord has been a leader in addressing humanrights and working conditions in the auto industry.Since we committed to address human rights asa strategic business issue in 2000, our approachhas evolved.While our initial focus was on potential risks in our ownoperations and those of our suppliers, we are now leading aneffort to bring automakers together to apply a commonapproach to the global supply chain. We have also movedbeyond assessing individual suppliers’ compliance to buildingcapability throughout the supply chain to manage workingconditions effectively. And we have expanded the scope of oureffort to make community engagement and environmentalprotection integral parts.Human Rights Challenges and OpportunitiesFord is committed to respecting human rights everywhere weoperate. The case for protecting human rights in our ownfacilities and throughout our value chain is compelling. Peopleare most likely to excel in an environment that aims forexcellence. A safe workplace in which people are treated withrespect promotes increased quality, productivity, employeeretention and morale. It can also decrease quality problems andhealth care costs. We have also found that a supplier company’sefforts to address working conditions, environmental challengesand other sustainability issues are good indicators of itsmanagement’s leadership capabilities.Like other automakers, we are expanding our presence inemerging markets, where most of the growth in automobilesales is expected to occur. We view respect for human rightsas not only a core operational issue, but also a key tomaintaining the trust and respect of local communities aroundour facilities. That trust is critical to our ability to operate and sellour products in an intensely competitive global marketplace.To serve global markets efficiently and affordably, we must buildlocal and regional supply bases. The result is an increasinglycomplex and dispersed supply chain. Many of our suppliersroutinely provide outstanding working conditions. And webelieve that, ultimately, this is the suppliers’ responsibility. Wewould also like governments to play the lead role in enforcingcompliance with laws. In reality, however, the legal structuresgoverning working conditions, and the level of enforcement, varywidely across the countries in which we operate. Thus in someplaces we need to help suppliers build capability and assesscompliance in order to have confidence that the suppliers meetour standards. As others in the industry begin to take similarsteps, we believe that automakers and suppliers alike will bebest served by a cooperative approach to working conditions inthe automotive supply chain.Our human rights efforts described opposite are designed tohelp us address these and other challenges.Human rights refers to basic standards of treatment towhich all people are entitled. It is a broad concept, witheconomic, social, cultural, political and civil dimensions.For Ford, this means ensuring that our products, no matterwhere they are made, are manufactured under conditionsthat demonstrate respect for the people who make them.It also means respecting the rights of people living in thecommunities around our facilities, and those of oursuppliers, who may be affected by these operations.For more information visit:www.ford.com/go/sustainability

HUMAN RIGHTS 29Working conditions refers to aspects of human rights inthe workplace, as governed by local laws and affected byinternational standards pertaining to workplace issues suchas child labor, harassment and discrimination, health andsafety, wages and benefits, freedom of association,working hours and forced labor.Human Rights at FordFord’s Code of Basic Working Conditions (CBWC) articulates ourcommitments on key human and labor rights issues. In effectsince 2003, it was formally adopted as a Policy Letter in 2007.In early 2008, Ford joined the United Nations Global Compact,a framework for businesses that are committed to aligning theiroperations and strategies with 10 universally accepted principlesin the areas of human rights, labor, the environment and anticorruption.This action reinforces our commitment tooutstanding performance and transparency in these areas.Since 2003, we have developed a range of processes to ensurethat our own operations and those of our business partners andsuppliers are adhering to the CBWC in practice. This sectiondescribes key actions we have taken to continue to integratehuman rights into our operations.The 10 principles of the UN Global CompactHuman RightsPrinciple 1: Businesses should support and respect theprotection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit inhuman rights abuses.Labor StandardsPrinciple 3: Businesses should uphold the freedom ofassociation and the effective recognition of the right tocollective bargaining;Principle 4: the elimination of all forms of forced andcompulsory labor;Principle 5: the effective abolition of child labor; andPrinciple 6: the elimination of discrimination in respectof employment and occupation.EnvironmentPrinciple 7: Businesses should support a precautionaryapproach to environmental challenges;Principle 8: undertake initiatives to promote greaterenvironmental responsibility; andPrinciple 9: encourage the development and diffusionof environmentally friendly technologies.Anti-CorruptionPrinciple 10: Businesses should work against corruptionin all its forms, including extortion and bribery.Adoption of Revised Code of Basic Working ConditionsIn 2006, we revised our CBWC to add provisions that we feltwere important to strengthen our efforts in this area, based onour experience implementing and assessing compliance with theCBWC. Reflecting our increasingly integrated approach tomanaging human rights and community issues, the revisionsarticulated our commitments on several key issues that extendbeyond the fenceline of our facilities and those of our suppliersto include our impacts on the communities in which we operate.Specifically, we added commitments on “communityengagement and indigenous populations,” “bribery andcorruption” and “environment and sustainability.” We also addedexplicit reference to – and our general endorsement of – severalhuman rights frameworks and charters. The revised CBWC wasapproved and formally rolled out to employees and suppliers asPolicy Letter #24 in 2007.Working Conditions in Ford PlantsSince 2004, we have conducted 11 formal assessments of Fordfacilities, four of which were joint-venture facilities.Ford Facility Assessments in 2007During 2007, we conducted assessments at our Camaçarifacility in Bahia, Brazil, at our two South African facilities (one a90-percent Ford-owned joint venture), and at our sole facility inRussia. These four sites were selected by Ford’s SustainableBusiness Strategies and Purchasing Strategy functions basedon the sites’ impact on our supply chain, emerging issues andthe views of thought leaders, NGOs and human rights activists.The findings of the assessments were generally consistent withthose of previous assessments. That is, they confirmed thatFord’s wholly and majority-owned facilities are operating incompliance with our CBWC. Reflecting the expanded scope ofthe CBWC, the assessments also discuss and documentFord Bridgend, UKINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

30HUMAN RIGHTSHUMAN RIGHTScommunity engagement efforts, effects on indigenouspopulations and environmental initiatives. The full reports areavailable on our Web site.Supply Chain ProfileWe have received considerable and consistent positive feedbackfrom external stakeholders about the policies and systems inplace at Ford facilities. While we and our stakeholders haveconfidence in our systems, we nonetheless believe it isimportant to continue conducting the assessments given thatconditions can change and new issues emerge.Next Steps – Ford FacilitiesIn 2008, we plan to conduct assessments in select Fordfacilities in Chicago (USA), Hai Duong (Vietnam) and SantaRosa (Philippines).Working Conditions in Our Supply ChainBeyond our own facilities, we aim to ensure that everything usedto make our vehicles is produced consistent with local law and ourCBWC. This is a major undertaking, as Ford has several thousandsupplier facilities globally. (See supply chain profile.) It is also acritical undertaking, as we have less control in suppliers’ facilitiesthan in our own, particularly at the sub-tier level.Our long-term vision is for our industry as a whole to convergeon a set of common expectations for the global automotivesupply chain and then work together with suppliers to ensurethat these expectations are met. We have taken a series ofsteps in that direction, beginning with defining our ownexpectations for suppliers.Production (Anything that is part of the vehicle)60+Countries in which suppliers are located38Emerging markets in which suppliers are located17Emerging markets considered to have risks ofsubstandard working conditionsThese countries were identified as higher risk basedon consultation with NGOs, other companies withhuman rights experience, local Ford operations andvarious media and government reports.105 7Ford manufacturing sites2,000+Supplier companies5,500+Supplier manufacturing sites130,000Parts currently being manufactured250+Production commodities to manageFord, St. Petersburg, RussiaNonproduction (Anything that is not in the vehiclesuch as services, marketing, construction, computers,industrial materials, health care, machinery, trains)9,000+Supplier companies600+Nonproduction commoditiesTOTAL GLOBAL BUY$90+ billion7As of year end 2007.For more information visit:www.ford.com/go/sustainability

HUMAN RIGHTS 31Setting Expectations for Our SuppliersFord’s Global Terms and Conditions – our core contract coveringall suppliers – reflect our prohibition of the use of forced labor,child labor and physical disciplinary abuse. These requirementswere added in January 2004 for production suppliers and inSeptember 2005 for all others. We have provided a standard forthese areas – the same as we use in our own facilities – thatsupersedes local law if our standard is more stringent. TheGlobal Terms and Conditions also prohibit any practice inviolation of local laws.Building Supplier CapabilityThe primary focus of our work on human rights in our supplychain is building capability among our suppliers to responsiblymanage working conditions. This includes meeting legalrequirements and Ford’s expectations and promoting soundworking conditions in their own supply chains. We havedeveloped and delivered tailored training programs for Fordsuppliers in select countries in cooperation with the AutomotiveIndustry Action Group, a North American member-based,nonprofit industry group specializing in supply chain issues.The training workshops emphasize the interpretation andapplication of legal standards and international best practice. Byinteracting with managers from the Human Resources, Healthand Safety, Labor Affairs and Legal departments of participatingcompanies, the workshops provide for a two-way learningexperience touching on the areas of interest for each company.While Ford’s supplier training sessions are customized to alignwith the unique laws, customs, cultures and needs of eachlocation, in general they consist of:A daylong interactive workshop with specialized Ford trainersand other automotive suppliers in which participants developand confirm an understanding of Ford expectations, locallabor law, best practices and management systems, andA confirmed communication cascade, including informationobtained during the classroom training, to all supplierpersonnel and direct sub-tier suppliers.During 2007, we held training workshops in Brazil, China,Colombia, Mexico, South Africa, Thailand, Turkey and Venezuela.Some 1,528 managers from 1,225 different supplier companieshave completed a full day of training since the inception of theprogram in 2004. These suppliers have now moved on to theprocess of self-assessing their facilities for compliance with locallaw and Ford expectations, and completing the final stage of theprogram, which is communication to both personnel and theirown suppliers on the topic of working conditions expectations.We continue to focus on the 17 countries we had previouslyidentified as having higher risks of substandard workingconditions. (See Figure 1, page 32.) Among those countries,locations are prioritized based on production and sourcingtrends, sales trends, and relative perceived risk based on theinput of human rights groups, other companies’ experience andother geopolitical analysis.Assessing SuppliersSince 2003, we have conducted more than 400 assessmentsof existing and prospective suppliers in 16 countries. Theassessments provide feedback to Ford and suppliers abouthow well they are meeting legal requirements and Ford’sexpectations. They also provide insight into the effectivenessof our training programs. Assessments consist of a detailedquestionnaire, a document review, factory visits, andmanagement and employee interviews, and are conducted withthe assistance of external auditors.In 2007, we conducted assessments in Brazil, China, Colombia,India, Malaysia, Mexico, Romania, Russia, South Africa, Taiwan,Thailand, Turkey and Venezuela. The findings from theassessments in 2007 were generally consistent with those wehad previously conducted. Namely, they identified a wide rangeof general health and safety issues, several wages and benefitsissues and a limited number of other types of noncompliance.The findings from Ford’s 2007 supplier assessments included:No evidence of forced labor or physical disciplinary abuseA range of general health and safety issues, includinginadequate emergency systemsIn some cases, a lack of appropriate timekeeping systems,and thus a failure to pay correct overtime wagesIn some cases, a failure to pay the correct local minimumwage or overtime or to provide the correct social insuranceA general need to clearly define policy on harassment anddiscriminationLimited cases of restricted workers doing hazardous workIn some cases, limited or restricted access to appropriatedocumentation regarding subcontracted labor and privacypoliciesIn some cases, nonpayment of company contributions togovernment-mandated social programsIn addition, freedom of association has been difficult to verify.While all assessed suppliers have either union representatives ora grievance process, there may be issues we have not beenable to identify through our assessment process.We continue to engage with our suppliers to develop andimplement appropriate corrective action plans. In this manner,we also have an opportunity to encourage change throughoutthe tiers of suppliers and affect positive change more broadly.Measuring PerformanceWe recognize the need to communicate performance resultsand strive to do so in a meaningful way. We have taken steps tobetter align the data we provide with that used elsewhere in thecompany, to ensure it is useful and accessible to people withinour business and within our suppliers’ businesses. While wehave made progress developing – and remain committed to – adata tracking and reporting system, we are also looking for waysto streamline the data-collection process, targeting thoseindicators that are of highest value to us and our stakeholders.(See Table 1, page 32.)INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

i5532HUMAN RIGHTSHUMAN RIGHTS2,000+1,40090EXPANDING OUR APPROACHMEXICOChina exportINDIAChina DOMESTICROMANIARUSSIATURKEYARGENTINASOUTH KOREAPHILIPPINESSOUTH AFRICATAIWAN, VIETNAMBRAZILCOLOMBIAMALAYSIATHAILANDVENEZUELAFigure 12003–04 2005 2006 2007 2008 2009+Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsNext Steps – Assessment and Capability BuildingIn 2008, we plan to launch supplier assessmentsand training programs in Argentina, South Korea,the Philippines, South Africa, Taiwan and Vietnam. Inaddition, as part of the working conditions efforts underthe Aligned Business Framework, we are assisting ourGlobal Strategic Suppliers in developing their owncodes and/or expanding their programs or processes,where needed, to ensure they meet Ford’s workingconditions expectations.81,9635 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsindividuals in Ford’s supply chain receivedworking conditions trainingWORKING CONDITIONS training and ASSESSMENT STATUS FOR SUPPLY CHAINPROGRAM EVOLUTIONInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationWorking Conditions Assessments (as of 12/31/07) AMERICAS ASIA AND AFRICA EUROPE GLOBAL TOTALAverage violations per assessment 11.4 11.1 13.5 11.4Assessments completed to date 97 284 37 418Follow-up assessments completed to date(third party and/or internal) 36 130 1 167Working Conditions Training (as of 12/31/07) AMERICAS ASIA AND AFRICA EUROPE GLOBAL TOTALTraining sessions completed to date 20 15 7 42Total number of attending companies 583 471 171 1,225Total number of trained managers 758 548 222 1,528iXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsTable 1Scope of impact: supplier-submitted dataGLOBAL TOTALTraining cascade to management, individuals trained 6,239Training cascade to workforce, individuals trained 81,963Communication to suppliers, number of sub-tier companies 10,079Americas: Brazil, Colombia, Mexico, Venezuela and Central America (Dominican Republic, Honduras, Nicaragua)Asia and Africa: China, India, Malaysia, South Africa, Taiwan, ThailandEurope: Romania, Russia, TurkeyFor more information visit:www.ford.com/go/sustainability

i55i5onsow the icons are usedraphs and chartshe artworksupporting informationontact detailsypefacesolour Palettehe logooolkit overviewentsHUMAN RIGHTS 33Since 2005, we have made some significant changes in howwe manage relationships with our suppliers and in the profileof the supply chain itself. While Ford’s supply chain remainsone of the largest and most complex in the world, we aretaking steps to rationalize and streamline our supply base.This strategic supplier strategy, which we call the AlignedBusiness Framework (ABF), is designed to create asustainable business model to increase mutual profitability,improve quality and drive innovation. What it means inpractice is that we are working more closely andcollaboratively with a smaller number of global strategicsuppliers. Ford has approved a total of 64 ABF suppliers,10 of which are owned by minorities or women.Ford’s Code of Basic Working Conditions is an integral partof the new ABF, on par with other fundamental productionrequirements such as managing financial data and productquality. As previously, Ford’s Global Strategic Suppliers arealso required to adhere to our Global Terms and Conditions.In addition, we expect ABF suppliers to develop:Their own working conditions code (if they do not have onealready), aligned with Ford’s Code of Basic Working ConditionsInternal training and compliance processes supporting theircode, andTraining and compliance processes for their sub-tier suppliersWhile the majority of ABF suppliers may have multiplepolicies or programs in place to manage some or allelements contained in Ford’s Code of Basic WorkingConditions, only a few have a concise, stand-alone codeMuch of the world’s attentionthese days is focused on theissue of climate change. Butthat does not mean humanrights can be forgotten.Unfortunately, human rightsabuses continue to occur withregularity worldwide, and wewant to make sure that thetopic remains in the public eye,particularly as we mark the60th anniversary of the UN’sUniversal Declaration of HumanRights in December.Ursula WynhovenHead, Policy & Legal and Special Assistant to the Executive DirectorUnited Nations Global Compact OfficeiAligning our approach with our strategic suppliersUrsula WynhovenInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.with consolidated supporting processes to efficientlycommunicate and manage working conditions, eitherwithin their own operations or those of their supply chain.Contact fax ContactemailFord has committed to providing suppliers with a range ofsupport and assistance based on our experience in thisarea. We have developed an in-depth resource guide togive suppliers information and background on human rights,generally, and on the development of their own codes,specifically. We have also offered to share the trainingmaterials we have developed, as well as information on ourcompliance and training processes. Finally, we havecommitted to working with suppliers to help resolve issuesor concerns.ContactaddressInternalactivitiesDuring the fourth quarter of 2007, we held three workingconditions summit meetings – in Dearborn, Amsterdam,and Hong Kong – that were attended by seniormanagement from Ford and our ABF suppliers. Thesemeetings further outlined our ABF strategy and the ways inwhich Ford will support and work collaboratively with ourstrategic suppliers on these commitments going forward.We are particularly excited about this new phase, whichfurthers our efforts in managing human rights issues in oursupply chain in a more collaborative, in-depth manner. Inour view, it will help embed ownership for workingconditions issues throughout our value chain, and lead tothe development of more robust, sustainable managementsystems to support responsible working conditions acrossthe automotive supply chain.MANFRED MUELLERWe are extremely proud thatwe were named among thefirst suppliers in Ford’s AlignedBusiness Framework. Thecontinued collaborations withinthis ABF network should helpFord and the industry as awhole advance human rights,promote better workingconditions and align industrystandards and practicesacross the supply base.Manfred MuellerExecutive Vice President, Original Equipment SalesRobert Bosch LLCInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The icon libraryContentsINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

34HUMAN RIGHTSHUMAN RIGHTSTaking Action as an IndustryThe long-term sustainability of efforts to protect human rights inthe automotive supply chain depends on the active participationof all parties – from the original equipment manufacturers(OEMs) such as Ford, to the suppliers themselves, to thegovernment agencies that set and enforce the regulationsgoverning operations. Such collective action will not onlyminimize costs and increase efficiency for OEMs and suppliersalike, but will lead to better results than if individual companiestake steps in isolation.Automotive Industry Action Group (AIAG) InitiativeSince 2004, Ford has worked with the AIAG to implement itscapability-building program with our suppliers, always with aneye toward leveraging that work with other automakers. Fordhas approached the industry work – from the beginning – withan “open book” position. Materials developed within Ford topromote responsible working conditions have been offered tothe group as a platform for use and development. In 2005,General Motors and then-DaimlerChrysler joined Ford and theAIAG in exploring a cooperative industry approach to promotingdecent working conditions in the supply chain.With support from a $185,000 grant from the U.S. StateDepartment to Business for Social Responsibility, a nonprofitgroup that works with companies to advance responsiblebusiness practices, the AIAG launched a collaborative, industrywideproject in 2006. Ford has contributed an “executive onloan” – the global manager of our supply chain sustainabilitygroup – to the AIAG to support the project and facilitate sharingwhat we have learned based on our experience working onthese issues within our own operations. Honda North Americaand Toyota North America have since joined the effort.Project participants have established a set of guiding statementsto create a shared industry voice on key working conditionsissues. The statements cover the core elements of individualcompanies’ codes and policies, joint codes created by otherindustries and key international standards. These elementsinclude child labor, forced labor, freedom of association,harassment and discrimination, health and safety, wages andbenefits, and working hours.250 suppliers, including 178 suppliers to Ford’s joint ventures inChina. In November and December 2007, four training sessionswere held in Mexico, with a total of 183 suppliers participating,including 20 suppliers to Ford. Additional sessions will be held in2008 in China and Mexico.Next Steps – Industry CooperationThe cooperative project continues to work on several fronts:Actively reaching out to others in the automotive supplychain, including European, Japanese and Koreanautomakers; industry associations in Europe and Japan;and major automotive suppliers. Broader participationwill be needed to achieve the vision of an industry-wideapproach to promoting decent working conditions inthe supply chain.Expanding the training program to other countries andadditional audiences, including the executive leadershipof supplier organizations.Development of additional resources and networks thatwill ensure the successful communication of workingconditions expectations throughout the automotivesupply chain.Continued EvolutionOur approach to working conditions in the supply chain willcontinue to evolve. As the work at the AIAG continues todevelop and mature, Ford will maintain a leadership positionin our work with the supply chain. We will continue to conductour own training and assessment programs in countries notcovered by AIAG programs. In addition, we constantly monitorapproaches developed by other organizations and industries inorder to incorporate what they have learned into our approach.We will continue to pursue partnerships with direct suppliers thatcreate ownership of working conditions within those supplierorganizations. Clear, consistent communication and furtherbusiness integration of processes that support responsibleworking conditions throughout the supply chain will be a keycomponent of our continued work. (See Figure 2, opposite.)First WorkshopsIn July 2007, the project launched the first joint workshop, heldin Shanghai, China, for suppliers to Ford, GM and Chrysler,followed by eight additional sessions in China throughout theyear. All training materials were based on Ford-developedtraining. With the support of the AIAG and the China Associationof Automobile Manufacturers, the mandatory training reached250suppliers in China received working conditionstraining in 2007 through the AIAGFor more information visit:www.ford.com/go/sustainability

i5iii55i55iiii5555FORDInternalpoliciesEXPANDING IMPACT ON WORKING CONDITIONS1903... 20032004TIER 1 SUPPLIERS2005Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Ford introduces Code of Basic Working ConditionsAssessments of Ford-owned facilitiesProduction contract termsInformation Top 10factsLanguageglossaryInformation Information Top 10 Language Top 10facts glossary factsQuestion Language Answer Question Answer Do Don’t Exclamation Don’t ExclamationglossaryXX2006DirectionalsignpostCommunity Directionalsignpost affairsCommunityaffairsQuote ContacttelephoneQuote ContacttelephoneContact fax Contact fax Contactemail address emailInternal Contactactivities addressContents2007automotive industryTIER 2 SUPPLIERSCommon guidance statements6 Graphs and charts7 The artworks8 Supporting information9 Contact details5.1 How the icons are used1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find Where these can icons? I find these icons?If you would like If you any would of these like icons any of or these for a new icons or for a newicon to be created icon please to be created contact please the Brand contact team, the Brand team,$CMIG brand enquiry. $CMIG brand enquiry.Training and assessment in target countries (site level)Question Answer Do Don’t ExclamationXInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesi5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsXInternalactivitiesDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax Contactemail1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 IconsContactaddressInternalactivities Where can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Nonproduction contract termsContents5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsContentsContentsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationX4 TypefacesDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logoTIER 3 SUPPLIERS1 Toolkit overview1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsIf you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Where can I find these icons?Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationContentsX2008DirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailHUMAN RIGHTS 352009+Ford work continuesInformation Top 10factsLanguageglossaryContactaddressInternalactivitiesQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.TIER N SUPPLIERS1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsABF suppliers – code development with supporting managementprograms; including extension to sub-tier suppliers (corporate level)ContentsContents$CMIG brand enquiry.Where can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,Corporate-level engagementContentsFigure 2Impact extends to sub-tier suppliers through Ford initiatives andFord-led industry (AIAG) initiatives (both site and corporate level)Information Top 10factsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Industry (AIAG) training and capability building(based on Ford training) in select countries (site level)Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsLanguageglossaryQuestion Answer Do Don’t ExclamationContentsXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSION4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsIf you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.For more information visit:www.ford.com/go/sustainability

536Vehicle safetyVEHICLE SAFETYsince our last reportOnce again, earned high marks for vehicle safety test performanceLaunched Ford SYNC, which allows for hands-free use ofmultimedia devicesIntroduced a suite of accident avoidance features that useforward-looking radar and vision sensorsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsIn this sectionVehicle safetyVehicle safety challenges and opportunitiesFord’s efforts to promote safer driving, build ever-safervehicles and ensure safer roadwaysCollaborative endeavors to improve safetyInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewWe are continuously enhancing the safety of ourvehicles and sharing research and technologiesacross all of our brands. Others have recognizedthe results of our efforts.In 2007, we again earned high marks for safety testperformance from the U.S. National Highway Traffic SafetyAdministration (NHTSA), the Insurance Institute for HighwaySafety (IIHS) and the European New Car AssessmentProgramme (EuroNCAP):Ford holds the most IIHS Top Safety Picks of any automobilemanufacturer. Eight Ford vehicles earned this honor in 2007,including the 2008 Ford Taurus, Ford Taurus X, Ford Edge,Mercury Sable, Lincoln MKX and Volvo S80, C70 and XC90.Fifteen Ford vehicles received five-star ratings for frontal impactand side impact from NHTSA in its 2007 U.S. New CarAssessment Program (NCAP) ratings.The Ford Taurus is rated the safest vehicle in America, withfive-star NCAP crash ratings for frontal and side impact and“good” IIHS ratings in offset frontal impact, side impact andrear impact evaluations.The IIHS awarded 21 Ford vehicles with “good” ratings forfrontal offset performance.Recent EuroNCAP assessments of the Ford S-MAX, Galaxyand Mondeo resulted in best-in-class ratings for adult andchild occupant protection. The Galaxy achieved the highestscore for a right-hand-drive vehicle.In 2007, the Land Rover Freelander 2 received the EuroNCAPbest-in-class rating for a small off-road vehicle for adultoccupant protection.The Mustang Convertible earned five-star ratings in allcategories of NHTSA NCAP.Ford Taurus XFord EdgeMercury SableVolvo S80For more information visit:www.ford.com/go/sustainability

5Vehicle safety 37VEHICLE SAFETY CHALLENGES AND OPPORTUNITIESTraffic safety is a growing public health challenge, particularly indeveloping countries. Worldwide, approximately 1.2 millionpeople die each year in traffic accidents. The vast majority ofthose fatalities – more than 1 million – occur in countries withlow- and middle-income economies. Many of the traffic deathsin developing nations involve pedestrians and/or motorcycles.As mobility increases in developing markets, people initially usetwo-wheeled motor vehicles, and the incidence of trafficaccidents rises. As people migrate to automobiles, trafficaccidents and injury levels generally then decrease.During this transition, holistic solutions are required, includinginfrastructure improvements, the modification of road userbehavior and the enforcement of traffic laws. One critical task isto educate drivers regarding the most important primary safetyfeature – safety belts. Continued improvements in vehicle safetyare also important, and we at Ford continue to take seriously ourresponsibility to build safe vehicles. Increasingly, we have alsobecome more involved in encouraging new and innovative waysto modify road user behavior (for example, through newtechnologies and driver education efforts) and encouraginginfrastructure and enforcement improvements in thecommunities in which we operate. This vehicle safety sectiondetails our latest efforts and achievements in all of these areas.HADDON SAFETY MATRIXPRE-CRASH(ACCIDENT AVOIDANCE)CRASH(OCCUPANT PROTECTION)POST-CRASH(INJURY MITIGATION)EXAMPLES OFFORD ACTIONS(DETAILED IN THIS SECTION)ResearchEducationAdvocacyTechnology andproper useGUIDELINES AND STANDARDSHere at Ford, our objective is to design and manufacturevehicles that achieve high levels of vehicle safety for a widerange of people over the broad spectrum of real-worldconditions. Real-world safety data, research, regulatoryrequirements and voluntary agreements provide much of theinput into our safety processes, including our Safety DesignGuidelines, which are Ford’s stringent internal engineeringdesign targets that exceed regulatory requirements.Ford utilizes engineering analysis, extensive computer modeling,and crash and sled testing to evaluate the performance ofvehicles and individual components. These rigorous evaluationshelp to confirm that our vehicles meet or exceed regulatoryrequirements and our even more stringent internal guidelines.PERFORMANCEVehicle safety is the product of complex interactions betweenthe driver, the vehicle and the driving environment. We use theHaddon Safety Matrix (developed by William Haddon, a formerNHTSA administrator and IIHS president) to take a holistic viewof the factors that affect automotive safety. The Haddon Matrixlooks at injuries in terms of causal and contributing factors,including human behavior, vehicle safety and the drivingenvironment. Each factor is then considered in the pre-crash,crash and post-crash phases.HUMAN BEHAVIOR VEHICLE SAFETY ENVIRONMENTCrashworthinessRoad design forinjury mitigationResearchTelematics Post-crash notification Emergency medicalservicesSYNC technologyDriving Skills for LifeSee Me SafeInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesCrash avoidanceSecurity5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsRoll Stability ControlPersonal Safety SystemAccident avoidance featuresPost-crash notification4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsRoad design foraccident avoidanceTraffic controlGlobal Road SafetyInitiativeAccident researchINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

38Vehicle safetyVEHICLE SAFETY4 millionFord Motor Company vehicles built globallywith electronic stability control systemsDriving Skills for Life programSafer DrivingThe U.S. Department of Transportation reports that humanfactors cause or contribute to more than 90 percent of seriouscrashes. Ford Motor Company provides information, educationalprograms and advanced technologies to assist in promotingsafe driving practices.In another effort to promote safe practices, Ford has created –in partnership with Meharry Medical College – See Me Safe, achild passenger safety seat initiative aimed at reducing childinjury, disability and death due to traffic accidents. See Me Safeis working to establish a supportive network of physicians,nurses, medical interns and pediatric trauma response teams,through which parents can learn about the proper use of safetyrestraints for their children.In Brazil, Ford sponsored a Children’s Day in October 2007 atFord dealerships across the country. As part of this event, thedealerships distributed 63,000 copies of our new vehicle andtraffic education DVD for children. The DVD features informationon driver licensing, the use of safety belts, the benefits of speedlimits, and so forth.For example, numerous studies show that hands-freemultimedia devices offer safety benefits compared to hand-helddevices. The benefits are seen in driving performance as wellas object and event detection. Ford’s new SYNC system,powered by Microsoft, provides a way for drivers to use cellphones and MP3 players more safely, because they can doso while keeping their eyes on the road and their hands on thewheel. Also, SYNC will be offered with all-new occupant safetyand vehicle diagnostic communications capabilities when itappears on MY2009 products in late 2008. SYNC is describedin depth in a case study in our Web report.Driving Skills for Life, Ford’s U.S.-based national educationprogram for teens, demonstrates our continued commitmentto educating young drivers about safer driving. This programearned Ford the 2007 Traffic Safety Achievement Award forCommunity Service from the World Traffic Safety Symposium atthe 2007 New York Auto Show. Driving Skills for Life providesoutstanding learning tools, including a DVD, printed materialsand a Web site (www.drivingskillsforlife.com), to help youngdrivers improve their ability behind the wheel.Most recently, Ford partnered with the state of Illinois to launcha statewide effort – modeled on Driving Skills for Life – designedto reduce teen crashes and fatalities. Called Operation TeenSafe Driving, this campaign is the first of its kind and gets highschool students directly involved by engaging them in acompetition to design community-based driving safety programstargeted at their peers. More than 200 high schools in Illinoishave signed up to participate in the program.See Me Safe – new child safety seat initiative63,000copies of Ford’s traffic education DVD for kidsdistributed in BrazilFor more information visit:www.ford.com/go/sustainability

i5Vehicle safety 39Safer VehiclesAccident Avoidance TechnologiesA variety of technologies, in addition to a vehicle’s basic handlingand braking capabilities, can help drivers avoid accidents. Thesetechnologies are generally not necessary for attentive drivers inmost road conditions, but may provide added benefits for driverswho become distracted or experience challenging road conditions.Our industry-leading innovation known as Roll Stability Control(RSC) continues to give drivers more confidence in emergencysituations. Ford and its global brands have built more than 4million vehicles globally with electronic stability control systems.To date, more than 1 million of those vehicles featureAdvanceTrac ® with Roll Stability Control, which activelymeasures and helps control both yaw and roll movements.RSC was first introduced on the 2003 Volvo XC90 and is nowstandard equipment on the Ford Explorer, SportTrac, Expedition,Edge and new 2008 Escape, as well as E-series Wagons withthe 5.4L engine. It is also standard on the Mercury Mountaineer,the new 2008 Mariner, Lincoln Navigator and Lincoln MKX. Fordis developing a next-generation regenerative braking system forthe 2009 Escape Hybrid and Mariner Hybrid to be compatiblewith RSC.Another Ford safety innovation is the next generation of adaptiveheadlamps. With a unique two-part optics package, the AdaptiveFront Lighting System (AFLS) is an industry breakthrough thatallows drivers to see better at night around curves in the road.Most cornering, or swivel, lighting systems are one-piecemodules that turn as a single unit with the vehicle as itapproaches a curve. In contrast, the AFLS incorporates twoindependent light sources: a high-output halogen projector forthe main beam and a secondary row of light-emitting diodes thatilluminates almost instantaneously, distributes the light beamevenly and consumes less power than conventional lights.Flaura Koplin-WinstonDennis DurbinChildren are not small adults.We can’t take what we learnfrom adult injury preventionand transfer it to childrenand teens without makingadaptations that suit theirneeds. Because children arethe primary occupants ofthe second and third rows invehicles, automakers need tooptimize restraints for them.Auto companies should alsofind ways to promote safe andresponsible teen driving.X1 Toolkit overview2 The logo3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Flaura Koplin-Winston Co-Scientific Director and Founder.Dennis Durbin Co-Scientific Director. Both of Center for Injury Researchand Prevention, The Children’s Hospital of PhiladelphiaInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesThe icon libraryContentsFord is also developing a suite of accident avoidance featuresthat use forward-looking radar and vision sensors. AdaptiveCruise Control (ACC), for example, helps drivers maintain a safedistance from the vehicle in front of them. It is one of theinnovations available on the Volvo S80, XC70 and V70, as wellas the Ford Mondeo, S-MAX and Galaxy. While primarily acomfort and convenience feature, ACC also contributes to morecontrolled driving when traffic flow is uneven. The ACC moduleis mounted at the front of the vehicle and uses radar to measurethe gap and closing speed to the vehicle ahead. The systemautomatically adjusts the speed of the car to help maintain apre-set distance from the vehicle in front.Forward Collision Warning (FCW) with Auto Brake comes as partof the ACC package and uses radar technology to help avoid ormitigate the effects of rear-end collisions. If the FCW-equippedvehicle approaches another moving vehicle from behind and thedriver does not react, a bank of red LED warning indicatorsflashes on the windscreen and an audible warning signal isactivated. Forward Collision Warning is designed to providesufficient time for the driver to react and avoid the hazard. If therisk of collision increases despite the warning, Auto Brake isactivated. The Auto Brake system supports driver-initiatedbraking by pre-charging the brakes and preparing for panicbrake application.Driver Alert Control and Lane Departure Warning are two otherfeatures recently launched on the Volvo S80, V70 and XC70.These systems, which are designed to combat driver fatigue,use a forward-looking camera to continuously monitor the roadand keep track of where the car is in relation to the lanemarkings. If the driver loses concentration or the vehicle’swheels move outside the lane markings, a warning chime alertsthe driver.Occupant Protection TechnologiesThe Ford Personal Safety System helps reduce the risk of injuryto the driver and front passenger in the event of a moderate tosevere frontal collision. The system is designed to adjust thedeployment of the front air bags to enhance protection for frontseatoccupants. It accomplishes this with the help of crashseverity sensors, safety belt usage sensors, dual-stage driver andfront-passenger air bags, a driver’s seat position sensor and frontoutboard safety belt pretensioners. The Personal Safety Systemis standard on Ford vehicles in the U.S.The Ford Explorer and Mercury Mountaineer are equipped withadditional features to enhance occupant protection during aside-impact event. Side-impact air bags mounted in theoutboard side of each front seat enhance chest-area protection,and roof-mounted side curtains enhance head protection. Bothare standard on many Ford vehicles. Door armrests and doortrim also provide abdomen and lower torso cushions, and afour-inch-thick foam block inside each door helps to manageside-impact forces on occupants’ hips.INTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainability

40Vehicle safetyVEHICLE SAFETYFord was the first in the industry to offer rollover-activated sidecurtainair bags, known as the Safety Canopy, beginning withthe Ford Explorer and Mercury Mountaineer in 2002. Today, theSafety Canopy with rollover sensors is available on nearly all FordSUVs, as well as on certain vans and cars. By MY2010, all Ford,Lincoln and Mercury retail SUVs, crossovers, vans and trucks areexpected to have the Safety Canopy as standard equipment.Safety belts remain the most important vehicle safety technologyavailable, and Ford is researching advanced, next-generationsafety belt technologies. One new design, envisioned forpossible use in rear seats, incorporates an air bag into the safetybelt itself. In this design, a tube of air bag material is hidden inthe safety belt webbing, and the tube inflates into a cylindricalshape when the frontal air bags deploy. Early research hasshown that the inflatable belt may enhance the protection ofoccupants in the rear seat. A number of technical challengesremain and need to be overcome before these belts can beconsidered for use on production vehicles.Injury Reduction TechnologiesOne method of assisting emergency responders to reach thescene of a vehicle crash quickly is through in-vehicle emergencycall systems, also called post-crash notification. These systemsenable a driver to summon assistance in an urgent situationeither automatically (if, for example, an air bag deploys) or at thetouch of a button.Ford’s On Call system – a GSM- and GPS-based emergencyand assistance system – is currently available on Volvo vehiclesand is sold in seven European countries. In the U.S., FordSYNC TM is a new, award-winning in-car connectivity system thatwas introduced on selected MY2007 vehicles. Starting with thenew Ford Flex and Lincoln MKS, SYNC-equipped MY2009vehicles will come with an all-new occupant communicationscapability called 911 Assist. In the event of a crash, the ability todirectly contact the local 911 emergency operator could becritical, for both vehicle occupants and the first responders. Whileany cell phone alone could be used in an emergency situation,SYNC will be ready to assist in placing a call to a local 911emergency operator – when a phone is properly paired, turnedon and connected to SYNC and where the system and cellphone remain powered and undamaged – should a crash withan air bag deployment or fuel shutoff switch activation occur.Safer RoadwaysSafety challenges related to the driving environment (e.g.,roads, signs, traffic lights) vary between countries and betweendeveloped and developing economies. Around the world, wework with government agencies and private-sector partners topromote road safety.In Europe, Ford has been taking a leadership role in two majoraccident research activities, in cooperation with public bodies.These activities include the German In-Depth Accident Studyand the United Kingdom’s Car Crash Injury Study. Ford seesthese two different but complementary studies as keycomponents of its policy of data-driven decision making.Shanghai, ChinaIn Thailand, Volvo partnered with the Thailand Department ofHighways and the Global Road Safety Partnership to establishthe Thailand Accident Research Center (TARC) in 2003. TARChas two main objectives: first, to build a database of knowledgegleaned from local accident experience, and second, to providepolicy makers with information to help them prioritize trafficsafety solutions and ultimately reduce the number of accidents.The project has trained a team of investigators who have beenconducting research at accident scenes in several provincesin Thailand.In late 2004, working in partnership with General Motors,Honda, Michelin, Renault, Shell and Toyota, Ford helped tofound the Global Road Safety Initiative. The purpose of theInitiative is to transfer best practices, with the objective ofreducing accidents and building capacity in developing countriesto manage road safety. Projects include educational outreachto increase safety belt and helmet usage rates, and trainingaimed at improving roadway design.The first focus of the Initiative is China, where both the numberand rate of traffic accidents are high and growing. Ford and otherparticipating companies have pledged $1 million each over fiveyears to fund important road safety projects in China, Brazil andcountries in the Association of Southeast Asian Nations. Theprojects are being implemented through the Global Road SafetyPartnership, an existing organization founded by the World Bankand national governmental aid organizations. Ford is taking aleadership role in the Partnership through chairing the ExecutiveCommittee as well as being actively involved in project execution.The projects will rely on delivery through local organizations, sothose organizations can build capacity and continue their worklong after the projects are completed.For more information visit:www.ford.com/go/sustainability

5COLLABORATIVE EFFORTSFord Motor Company is involved witha number of partners to develop futuretechnologies and enhance the safety of thedriving experience. Three examples arehighlighted below.PReVENTFord has been actively involved in a European partnershipcalled PReVENT – short for Preventative and Active SafetyApplications. This four-year initiative concluded in January2008. With a budget of more than €55 million, the projecthas been aimed at developing new preventative and activesafety applications and sophisticated driver informationsystems based on advanced intelligent technologies. Itwas co-funded by the European Commission.Within the framework of PReVENT, Ford showed howdigital data from navigation systems can be used tosupport future active safety systems in cars. For example,such data may allow vehicles to “recognize” potentialhazard areas and react accordingly. Lane-keeping systems,in particular, will benefit from information provided by digitalmap data. These systems typically rely on camerasrecording lane markings, but if the markings are deficient,the cameras cannot function properly. In such situations,digital data could provide the necessary information.CAMPIn 1995, Ford and General Motors launched the CrashAvoidance Metrics Partnership (CAMP). Within CAMP, theVehicle Safety Communications Two (VSC-2) Consortium,which includes Ford, GM, Toyota, DaimlerChrysler andHonda, is working with the U.S. Department ofTransportation on two major projects to develop safetyapplications that utilize vehicle communications. Theirefforts are focused on developing a communicationsystem whereby vehicles can “talk” to each other and tothe roadway. This would be analogous to wireless internetor cellular telephone for cars. CAMP VSC-2 successfullycompleted a project that demonstrated the basic feasibilityof this technology, and they will be evaluating the followingapplications in a follow-on project:Cooperative Intersection Collision Avoidance System:Violation WarningAs a vehicle approaches a traffic light, it would receive amessage from the traffic light with the signal phase (red,yellow or green) and the amount of time until the signalchanges. The vehicle would use this information, togetherInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote Contacttelephonewith the vehicle position and speed, to decide if a warningor some other countermeasure (such as brake assist)is appropriate.Contact fax ContactemailVehicle safety 41Vehicle-to-Vehicle Communications for SafetyApplications, such as Electronic Emergency BrakeLights (EEBL)The vehicle manufacturers in the VSC-2 are workingtogether and with NHTSA to investigate the messagesneeded for a host of vehicle-to-vehicle safety applications,including EEBL. For example, when a driver applies thebrakes, the brake lights are illuminated, but there iscurrently no way to distinguish hard braking from light ormoderate braking. Further, often only the vehicle directlybehind the braking vehicle is able to see the brake lights. Ifa vehicle performing hard braking could send a message toother vehicles, then those vehicles could warn their drivers,activate brake assist or even start automatic braking.ContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo1 Toolkit overviewContentsVII InitiativeFord is participating in the Vehicle Infrastructure Integration(VII) initiative to assess the technical, economic andsocial/political feasibility of deploying wireless technologiesto support the above vehicle communications applicationsas well as mobility and commercial applications (e.g.,e-payment for parking, tolling and gasoline purchases).Under a $56 million cooperative agreement, the U.S.Department of Transportation, state departments oftransportation and nine OEMs are evaluating theframework for a national strategy to implement vehicle-toroadwayand vehicle-to-vehicle communications tosupport safety, commercial and consumer services.In this partnership, the government would fund theroadside infrastructure and the OEMs would provide thewireless on-board equipment. Thus far, a special DedicatedShort Range Communications radio has been developedfor this purpose, and the Federal CommunicationsCommission has allocated bandwidth for its operation.In addition, the VII partners have developed appropriateon-board equipment, prototype applications and vehicleintegration. The VII vehicle-based radio equipment wasinitially installed in a Ford Mustang. As a result of thelessons learned, the VII Consortium purchased four 2007Ford Edge vehicles to begin building the proof-of-conceptfleet. Proof-of-concept activities are scheduled to becompleted by May 2008.To read about additional collaborative effortsin the area of vehicle safety see our Web report.www.ford.com/go/sustainabilityInformation Top 10factsLanguageglossaryiXINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONFor more information visit:www.ford.com/go/sustainabilityQuestion Answer Do Don’t ExclamationDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities

542SUSTAINING FORDSUSTAINING FORDSustainingFord5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewContents5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour Palette2 The logo1 Toolkit overviewsince our last reportImproved our competitiveness by:Restructuring our North American operations to reduce ourworkforce and number of manufacturing facilitiesReaching agreement with the United Auto WorkersiAgreeing on a new approach for providing post-retirementhealth care to employees and retireesInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.In this sectionThe importance of sustainability to our futureRestructuring our North American operationsA new approach to health care costsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.The year 2007 was challenging for Ford and itsstakeholders. We cut our workforce substantially,closed plants, and saw our sales and marketshare in North America continue to slide.These changes directly affected our shareholders, employees,suppliers, dealers and the communities in which we operate.But the year also included developments that could help providethe foundation for recovery and growth. These developmentsincluded a rise in sales in Europe and several rapidly growingglobal markets (see Table 1, opposite), successful productintroductions, the mapping of a path toward improved fueleconomy globally and a major improvement in our financial results.Another important accomplishment was the ratification of a newagreement between Ford and the United Auto Workers (UAW).The agreement enables us to make the necessary investment inglobal product development and flexible manufacturing, so wecan bring to market the products and services that will make adifference for our customers and our company.This past year, it also became clearer that Ford’s future successwill be determined in no small part by how effectively it respondsto sustainability challenges. Oil prices that topped $100 perbarrel in early 2008 have fed consumer interest in automobilesthat are thrifty in their use of fuel, causing a continued shifttoward more fuel-efficient vehicles in most of our major markets.In rapidly growing economies, the interrelated issuesof congestion, pollution and inadequate infrastructure threatento slow the potential growth of the automotive market.Thus,offering vehicles with smaller environmental footprints, tacklingthe mobility challenges of rapidly growing urban centers andtailoring our products and services to increasingly diverse globalmarkets are not peripheral to Ford’s future success – they are aprerequisite to it. The balance of this section discusses some ofthe actions taken in 2007 to restore Ford’s profitability – anotherprerequisite to future success.NORTH AMERICAN RESTRUCTURINGDuring 2006 and 2007, we reduced by about 46,300 theemployment levels in our Ford North America business unit. Mostof these reductions were the result of offers of early retirement orseparation packages to U.S. employees, including Fordemployees at our Automotive Component Holding (ACH) plants.Although we have achieved our previously announced goal tooperate with 55,000 to 60,000 hourly non-ACH employees inNorth America by the end of 2008, we have embarked onadditional personnel reduction actions, as announced onJanuary 24, 2008, to achieve even lower hourly employmentlevels in North America. We also have reduced and realigned ourvehicle assembly capacity to bring it more in line with demandand shifting customer preferences. As part of this reduction, wehave closed or announced plans to close nine North Americanmanufacturing facilities.We believe we handled the separations of our workforce andmanufacturing base with respect for the people and communitiesaffected. For example, we offered UAW-represented employeesa selection of eight different voluntary separation packages,including four traditional offers (such as early retirement) and fourinnovative programs designed to help employees’ transition tonew jobs requiring new skills. About half the employees who leftthe company in 2006 and 2007 chose a nontraditional package.Other actions we took to handle the downsizing responsibly aredetailed in our full Web report.For more information visit:www.ford.com/go/sustainability

5i5Business Unit 2007 Wholesales Percent Change Highlights 1(in thousands) from 2006A NEW APPROACH TO HEALTH CARE COSTSWe provide health care coverage to about 535,000 employeesor retirees and their dependents in the United States alone. Therising cost of health care coverage and our high proportion ofretirees compared to more recent entrants to U.S. markets putus at a competitive disadvantage. Ford’s health care costs havebeen estimated to add about $1,000 to the cost of each vehiclebuilt in the United States.In April 2008, Ford, the UAW and the class representatives offormer UAW-represented Ford employees filed with the UnitedStates District Court for the Eastern District of Michigan aSettlement Agreement dated March 28, 2008. The SettlementAgreement provides that on the later of 1) December 31, 2009,2) final court approval of the Settlement Agreement, and 3) Ford’scompletion of discussions with the Securities and ExchangeCommission regarding satisfactory accounting treatment, a newretiree health care plan (the “New Plan”), to be funded by a newVoluntary Employee Beneficiary Association trust (the “New VEBA”),will be permanently responsible for providing retiree health carebenefits to covered UAW employees. This obligation was measuredat $20.2 billion on Ford’s December 31, 2007, balance sheet.Ford will fund the New VEBA through a number of sources,including funds that are currently in existing voluntary employeebeneficiary association trusts, Ford-issued convertible and termnotes, and cash on hand. The parties to the SettlementAgreement have acknowledged that Ford’s obligations to payinto the New VEBA are fixed and capped as provided in theSettlement Agreement and that Ford is not responsible for, anddoes not provide a guarantee of: 1) the payment for futurebenefits to plan participants, 2) the asset returns of the funds inthe New VEBA, or 3) the sufficiency of assets in the New VEBAto fully pay the obligations of the New VEBA or the New Plan.The Settlement Agreement will reduce Ford’s ongoing healthSUSTAINING FORD 43Ford North America 2,836 -7% Sales of crossovers – the Ford Edge, Lincoln MKX, Ford Taurus X, Ford Escape, Ford EscapeHybrid, Mercury Mariner and Mercury Mariner Hybrid – increased by 62% for the year.Lincoln brand overall sales were up 9% and retail sales were up 15%, the largest gain ofany luxury brand in the U.S. market.The Ford Escape Hybrid and Mercury Mariner Hybrid both set sales records.Ford Europe 1,918 +4% Nearly 500,000 units of the Ford Focus were sold.Ford introduced the new Mondeo, C-MAX Multi-Activity Vehicle Transit Sport Van and,at the end of the year, Focus.Premier AutomotiveGroup774 +6% Volvo launched the V70 and XC70 and began selling the S80 luxury sedan and XC90 SUVin India. Volvo’s XC90 SUV, C70 Convertible and S80 Sedan all earned “Best Pick”designations from the Insurance Institute for Highway Safety.Ford South America 436 +14% The EcoSport, a compact SUV designed for the South American market, sold 78,000 units.Ford plans to invest $1 billion in its Brazil operations in the next four years, and another$160 million in Argentina operations.Ford Asia Pacificand Africa2007 Sales and HighlightsInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities535 +3% Ford opened a second assembly plant and a new engine plant in Nanjing, China,for total passenger car production capacity of 410,000.In early 2008, Ford announced plans to invest an additional $500 million in vehicle productionin India and to develop a new low-cost car for that market.Where can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.EllenHughes-CromwickAn estimated 30 percentof the world’s GDP is nowcomprised of emerging markets.Over the next decade, many ofthese countries’ economies will“emerge” and mature, as theylook for ways to reduce theamount of energy and otherresources needed to improve thestandard of living. As we all seekthese solutions, we will discovernew and more sustainable waysof providing the new and moresustainable products thatpeople will choose.Ellen Hughes-CromwickChief EconomistFord Motor CompanyInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesTable 1care costs and strengthen its balance sheet, while allowing forthe continuation of health care benefits to current and formerUAW-represented Ford employees.We have also taken other steps to reduce health care costs andpromote the health of employees. For example, we haveimplemented health and wellness programs for our employeesand their families, and worked with organizations in the healthcare sector to improve the efficiency and effectiveness of theU.S. health care system.More information on Ford’s financialhealth is available in our Web report.www.ford.com/go/sustainabilityLanguage 1 Toolkit overview2 The logoglossary3 Colour Palette4 Typefaces5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact detailsWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.Information Top 10factsQuestion Answer Do Don’t ExclamationThe icon libraryContentsiXINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORD CONCLUSIONDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesFor more information visit:www.ford.com/go/sustainability

44LETTER FROM SUE CISCHKECONCLUSIONThis year our focus was to develop a product CO2 plan acrossour business. We have made significant progress and arecommitting to a 30 percent reduction by 2020 for new vehiclesin the U.S. and European Union.COLLABORATIONEffective responses to sustainability challenges require action byall sectors of society – business, government and consumers.We have forged partnerships with a variety of organizations toleverage our own efforts.In 2007, for example, we joined the United States Climate ActionPartnership, a multi-stakeholder group that is committed toadvocating market-based mechanisms to achieve significantgreenhouse gas emissions reductions in the United States.My position – Group Vice President ofSustainability, Environment and SafetyEngineering – is unique in the auto industry.What does it mean? Symbolically, it shows that sustainability is akey part of our business strategy moving forward. As a practicalmatter, it means I participate in decision making at the highestlevels of the company and coordinate our global response tosustainability challenges.We define sustainability as a business model that creates valueconsistent with the long-term preservation and enhancement ofenvironmental, social, and financial capital. In other words, meetingthe needs of the present without compromising the future.My responsibility is to develop and implement Ford’ssustainability strategy, including defining goals and targetsto help us manage our key sustainability impacts andopportunities. During 2007, most of our strategy focus wason the CO2 emissions of our products.There are two key enablers of our sustainability work at Ford:integration and collaboration.INTEGRATIONIntegration means the process of building accountability forsustainability into our governance and management structures,policies and key business processes.At the management level, I report to our CEO, Alan Mulally,and have responsibility for several key functions, includingsustainable business strategies, vehicle environmentalengineering, manufacturing environmental quality and vehiclesafety. In addition, I work to ensure that sustainability issues aremanaged systematically throughout the company.In several cities around the world, we’re developing networksof organizations to explore and implement innovative mobilitysolutions to meet the needs of congested urban areas. Thesekinds of solutions can only succeed with the cooperation ofmany parties, including government agencies, entrepreneursand nongovernmental organizations.We have established an exciting partnership with SouthernCalifornia Edison that is providing both companies with insightinto how plug-in hybrids can work as part of an electric supplysystem, their possible benefits to consumers and technologicaland cost hurdles.We are working with BP to explore the respective roles ofvehicles and fuels in cutting greenhouse gas emissions and toevaluate how advanced lubricants can contribute to fueleconomy gains.In this report, you’ll find other examples of how alliances arehelping us move our sustainability agenda forward across ourfunctions – from vehicle safety to procurement, logistics andresearch and development.MAKING AND MEASURING PROGRESSIn 2008 and beyond, we will continue to develop our sustainabilitystrategy. We are pleased with the progress we have made, weknow we cannot do it alone, and it will be an exciting ride.Sue CischkeGroup Vice President, Sustainability,Environment and Safety EngineeringFor more information visit:www.ford.com/go/sustainability

545DATA OVERVIEWData OverviewThis table provides three-year performance data accordingto a set of key indicators. Additional data are available in ourfull Web report.In previous sustainability reports, we organized our data andindicators around Ford’s Business Principles. This year –although most of the indicators themselves are the same asin years past – they have been organized into the broadercategories of Economy, Environment and Society. This shiftmirrors the organization of our Web report and representsan internal evolution in our approach to sustainability. It alsoaligns the report more clearly with the Global ReportingInitiative’s guidelines.This report covers the year 2007 and early 2008. The dataare primarily for 2007 (for operations) and for the 2007NOTES TO THE DATA1. GQRS customer satisfaction/TGWGQRS (Global Quality Research System) is a Ford-sponsored competitive research survey.GQRS is an early indicator of J.D. Power quality results. First-quarter 2008 GQRS customersatisfaction and TGW are 77 and 1,284 respectively. See Economy section in our Web report fora discussion of our efforts to improve quality.2. Sales satisfaction with dealer/retailer, Ford brand, U.S.Note that the measure changed in 2005 from “Percent Completely Satisfied” to “Net PromoterScore.” The data has been recalculated to reflect Net Promoter Scores.3. Service satisfaction with dealer/retailer, Ford brand, U.S.Note that the measure changed in 2005 from “Percent Completely Satisfied” to “Net PromoterScore.” The data has been recalculated to reflect Net Promoter Scores.4. Shareholder returnTotal shareholder return is from Bloomberg Total Return Analysis assuming dividendsreinvested in Ford stock.5. U.S. fuel economySee the Climate Change and Environment (Web report) sections for a discussion of ourCorporate Average Fuel Economy (CAFE) performance. For the 2007 model year the CAFE ofour cars and trucks increased 5.9 percent. Preliminary data for the 2008 model year shows a 0.7percent improvement in CAFE compared to 2007, with a 1.3 percent improvement for cars anda 4.0 percent improvement for trucks. Improvement is reflected by increasing miles per gallon.The percentage improvement in CAFE for cars and trucks combined is lower than the respectivepercentages for both cars and trucks primarily because the ratio of trucks to cars manufacturedis projected to increase from 2007 to 2008. Also, the CAFE figure is calculated based on volumeof vehicles manufactured as well as the fuel economy of each individual vehicle.6. U.S. fleet CO2 emissionsSee the Climate Change section for a discussion of our CO2 emissions performance.Improvement is reflected by decreasing grams per mile.7. European CO2 performanceOfficial EU data. Jaguar performance did not improve compared to 2005 and 2006 due tomodel mix.8. Worldwide facility energy and CO2 emissionsData have been adjusted to account for facilities that were closed, sold or new. This data doesnot include Automotive Component Holdings (ACH). This data has been adjusted to removeJaguar and Land Rover (JLR) in consideration of the pending sale of these brands.9. Energy and CO2 per vehicleEnergy consumption and CO2 emissions per vehicle divides energy used or CO2 emitted by thenumber of vehicles produced. Averaging energy and CO2 emissions by the number of vehiclesproduced yields a somewhat imperfect indicator of production efficiency. When the number ofvehicles produced declines, as it has since 2000, per-vehicle energy use tends to rise because aportion of the resources used by a facility is required for base facility operations, regardless ofthe number of vehicles produced.We believe that stable-to-declining per-vehicle energy use and CO2 emissions indicate thatmore-efficient production since 2000 is offsetting the tendency of these indicators to rise duringInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t Exclamationiand 2008 model years (for vehicles). The data cover allof Ford Motor Company’s wholly and majority-ownedoperations globally, unless otherwise noted. Changes inXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax Contactemailthe basis for reporting or reclassifications of data previouslyreported are noted below and in the detailed data chartsof our Web report.ContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.This report is aligned with the Global Reporting Initiative’sG3 Sustainability Reporting Guidelines, released in October2006, at a self-declared application level of “A”. A completeindex of GRI indicators is available in our Web report.More information on the GRI and the applicationlevels can be found at www.globalreporting.orgperiods of declining production. This interpretation is reinforced by our Energy Efficiency Index,which focuses on production energy efficiency, and which has been steadily improving. OurEnergy Efficiency Index target also has the effect of driving reductions in CO2 emissions.This data does not include our Automotive Components Holdings (ACH) facilities. Also, the datahas been adjusted to remove Jaguar and Land Rover (JLR) in consideration of the pending saleof these brands.10. North American Energy Efficiency IndexThe Index is “normalized” based on an engineering calculation that adjusts for typicalvariances in weather and vehicle production. The Index was set at 100 for the year 2000 tosimplify tracking against our target of one percent improvement in energy efficiency. Thisdata has been adjusted to remove Jaguar and Land Rover (JLR) in consideration of thepending sale of these brands.11. Employee satisfactionIn 2006, the Pulse survey was changed to incorporate new dimensions. While there was nochange to the number or content of the existing 55 core questions asked on Pulse, they wererealigned into eight revised dimensions. These changes were made because the reviseddimensions are: better focused on current business priorities, provide a framework for morefocused feedback and action planning, and two revised dimensions (including the revisedEmployee Satisfaction Index) can be benchmarked externally.12. Overall dealer attitudeThe National Automobile Dealers Association (NADA) Dealer Attitude Survey measures overalldealer attitude. Scores are for the summer and winter respectively of the year noted.13. Ford Motor Company Fund and corporate contributionsSee the Community section in our Web report for a description of our charitable contributions.14. Volunteer corpsThe Volunteer corps was founded in 2005, and 2006 is the first year data are available.However, volunteerism and community service have long been a part of Ford’s culture.15. RecallsRecalls are by calendar year rather than model year. A single recall may affect several vehiclelines and/or several model years. The same vehicle may have multiple recalls. (Source: U.S.National Highway Traffic Safety Administration.) Two 2007 recalls, affecting over 4.8 millionvehicles, are related to older technology components introduced in vehicles more than adecade ago.16. Top Safety PicksTo earn a Top Safety Pick from the Insurance Institute for Highway Safety (IIHS), a vehicle mustreceive a rating of “good” in offset frontal impact, side impact and rear impact evaluations,and offer electronic stability control. Top Safety Picks compare vehicles within the same sizecategories. Ratings across vehicle size categories should not be compared. IIHS first issuedTop Safety Picks in the 2006 model year.As we attempt to balance frequently changing government and non-government testrequirements with real-world safety, we have continued to assess the appropriate metrics formeasuring our performance. We have chosen to present public domain safety ratings for all ofour models, rather than a percentage of models tested receiving a particular star rating, in ourfull Web report.Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivities

5FORD DATA 2007/8Economy 2005 2006 2007Initial quality study – J.D. Power and Associates (3 months in service), problems per hundred vehicles 129 131 125GQRS things gone wrong (TGW) (3 months in service), total things gone wrong per 1,000 vehicles 1 1,846 1,586 1,405GQRS customer satisfaction (3 months in service), percent satisfied 1 73 74 76Vehicle dependability – J.D. Power and Associates (4–5 years of ownership), Ford Motor Company, U.S.,problems/hundredInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t Exclamation231 225 221Sales satisfaction with dealer/retailer, Ford brand, U.S., percent completely satisfied 2 80 81 82Sales satisfaction with dealer/retailer, Ford brand, Europe, percent completely satisfied 80 81 80Service satisfaction with dealer/retailer, Ford brand, U.S., percent completely satisfied 3 66 70 72Service satisfaction with dealer/retailer, Ford brand, Europe, percent completely satisfied 66 67 68Shareholder return – Bloomberg Total Return Analysis, percent 4 -45 1 -10.4Net income/loss, $ billion 1.4 -12.6 -2.7Sales and revenue, $ billion 176.8 160.1 172.5Environment 2005 2006 2007Ford U.S. fleet fuel economy (higher mpg reflects improvement), combined car and truck, miles per gallon 5 24.1 23.8 25.3iXDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.DATA OVERVIEW 46Ford U.S. fleet CO 2 emissions (lower grams per mile reflects improvement), combined car and truck,grams per mile 6368 371 352European CO 2 performance (lower percentage reflects improvement), percent of 1995 base(1995 base = 100 percent) 7Ford 78 78 78Jaguar 62 66 67Land Rover 88 89 86Volvo 87 86 84Worldwide facility energy consumption, trillion BTUs 8 66.7 71.5 63.3Worldwide facility energy consumption per vehicle, million BTUs 9 10.7 11.8 10.7Worldwide facility CO2 emissions, million metric tonnes 8 8.0 6.8 5.8Worldwide facility CO2 emissions per vehicle, metric tonnes 9 1.26 1.13 0.97North American Energy Efficiency Index (lower percentage reflects improvement),percent (2000 base = 100 percent) 10 83.4 78.4 74.4Society 2005 2006 2007Employee satisfaction, Pulse survey, overall, percent satisfied 11 62 62 64Overall dealer attitude, Ford, relative ranking on a scale of 1-100 percent (summer/winter score) 12 70/72 70/64 41/59Overall dealer attitude, Lincoln Mercury, relative ranking on a scale of 1-100 percent (summer/winter score) 12 64/64 64/64 35/56Ford Motor Company Fund contributions, $ million 13 80 58 37Corporate contributions, $ million 13 28 25 17Volunteer corps, thousand volunteer hours 14 80 86Lost-time case rate (per 100 employees), Ford Motor Company 1.4 1.1 0.7Lost-time case rate by region (per 100 employees), Ford Motor CompanyAmericas 2.1 1.5 1.2Asia Pacific/Africa 0.2 0.1 0.1Europe 1.0 0.9 0.7Severity rate (per 100 employees), days lost per 200,000 hours worked 23.2 14.5 12.6U.S. safety recalls, number per calendar year 15 16 11 15U.S. units recalled, number of million units 6.0 1.7 5.5IIHS Top Safety Picks, number of vehicles 16 2 6 8

55AssuranceFor our 2005/6 and 2006/7 reports, and again for thiscurrent report, Ford has sought input from an externalstakeholder committee convened by Ceres (see below) asa way to ensure the report’s thoroughness, transparencyand utility. The committee reviewing this report met twice:once to review and comment on the report outline, andonce to review and comment on a nearly final draft of thereport. Both meetings were held via teleconference. Thisreport reflects our response to several suggestions of thestakeholder committee, notably the publication of our CO2reduction target and a detailed roadmap for achieving it.Some of the data in our reports have been subject tovarious forms of internal and third-party verification. We haveexplored but not yet pursued third-party verification of all ofthe data in the report. We are also exploring efficient ways toexpand the range of data that are subject to verification.Ford’s 2002 through 2005/6 reports were produced“in accordance” with the 2002 Sustainability ReportingGuidelines of the Global Reporting Initiative (GRI). In 2006,Ceres Stakeholder TeamCeres is a network of investors, environmentalists andother public interest groups that works with companiesand investors to address sustainability challenges.Ford Motor Company engaged with Ceres and a team ofexternal stakeholders to review this 2007/8 SustainabilityReport. Ford agreed to work with a stakeholder team thatwas selected for it by Ceres.The Ceres stakeholder team is an independent group ofindividuals drawn primarily from the Ceres coalition andrepresents a range of constituencies that have expertise inenvironmental, social and governance issues.Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t Exclamationithe GRI issued updated guidelines, called G3. Fordsupported and participated in the development of theprocess that produced the updated guidelines. Ford’sX2006/7 report was aligned with the G3 guidelines atan application level of A+, the “A” being the mostcomprehensive level of reporting and the “+” indicatingthat the report has received external assurance.Since the publication of the 2006/7 report, we have learnedmore about the rapidly evolving field of sustainability reportassurance and GRI’s expectations for assurance processesthat qualify for a “+”. We are not declaring the current reportito be third-party assured and, based on our improvedunderstanding, would not have done so for the 2006/7report. We are declaring this report to be at an “A” levelof reporting.In reviewing this report, the team considered whetherthe Company adequately reported on its sustainabilityperformance and key impacts, including goals, targets,XDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesSee www.globalreporting.org for moreinformation on GRI and the application levelsDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax Contactemailsystems, data and initiatives. Through this review process,the Ceres stakeholder team provided extensive feedback tothe Company, which was considered in the preparation ofthe final version of this report.ContactaddressInternalactivities5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details5 Icons5.1 How the icons are used6 Graphs and charts7 The artworks8 Supporting information9 Contact details4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.4 Typefaces3 Colour PaletteWhere can I find these icons?If you would like any of these icons or for a newicon to be created please contact the Brand team,$CMIG brand enquiry.2 The logo2 The logo1 Toolkit overview1 Toolkit overviewFor more information on Ceres, seewww.ceres.orgContentsContentsCONCLUSION 47Information Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationInformation Top 10factsLanguageglossaryQuestion Answer Do Don’t ExclamationiXiXINTRODUCTION GOVERNANCE CLIMATE CHANGE MOBILITY HUMAN RIGHTS VEHICLE SAFETY SUSTAINING FORDDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesDirectionalsignpostCommunityaffairsQuote ContacttelephoneContact fax ContactemailContactaddressInternalactivitiesCONCLUSIONFor more information visit:www.ford.com/go/sustainability

Corporate profileAutomotive core and affiliate brandsPremier Automotive GroupCustomer serviceFord Motor Credit CompanyFinancial serviceA200720072007200720072007200720072007200720072007200720072007 GRI REPORT200720072007SELF 200720072007 DECLAREDThis report is checked toApplication Level A+ + +The cover of this report is printed onUtopia 2:XG which is constituted of30 percent post-consumer waste.The text of this report is printed onModnadnock Astrolite PC100, which istotally chlorine-free and constituted of100 percent post-consumer waste.Credits:Flag for design and productionBuzzWord for copywritingYOUR FEEDBACK...Preparing this report is a valuableopportunity for us to assess and improveupon our economic, environmentaland social progress and performance.To continue to do so, we need yourfeedback. We welcome your opinion andperspective through several means:Write or call:Thomas A. NiemannFord Motor CompanyOne American Road,Dearborn, MI48126U.S.A.+1 (313) 206-2654Email us at:sustaina@ford.com