“Finance our plan and improve our balance sheet”

An Excerpt from
FORD MOTOR COMPANY BUSINESS PLAN

SUBMITTED TO THE
SENATE BANKING COMMITTEE

December 2, 2008

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

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

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