For the first quarter, the Financial Services sector earned a pre-tax profit of $67 million, compared with a pre-tax profit of $293 million a year ago.

Ford Motor Credit Company: Ford Motor Credit Company reported net income of $24 million in the first quarter of 2008, down $169 million from earnings of $193 million a year earlier.  On a pre-tax basis, Ford Motor Credit earned $36 million in the first quarter, compared with $293 million a year ago. The decrease in earnings primarily reflected higher provision for credit losses, higher depreciation expense for leased vehicles, and higher net losses related to market valuation adjustments from derivatives.  These were offset partially by lower expenses primarily related to the non-recurrence of costs associated with Ford Motor Credit's North American business restructuring initiative and higher financing margin. 

2008 OUTLOOK

“The remainder of 2008 will be a challenge but we are cautiously optimistic despite the external challenges,” Mulally said.  “Our plan is working. Our initial quality is now among the best in the business, the restructuring in North America is taking hold and we will continue to take actions to stay on our plan.  Our product pipeline is full.  We look forward to launching the new Ford Flex, Ford F-150 and the Lincoln MKS in North America, and the new Ford Kuga and Ford Fiesta in Europe, with the Fiesta coming soon thereafter to China and other markets around the world.”

Ford’s 2008 planning assumptions regarding the industry, operating metrics and profit outlook are as follows:

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents.  With about 244,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda, and until completion of their sale, Jaguar Land Rover.  The company provides financial services through Ford Motor Credit Company.  For more information regarding Ford’s products, please visit www.ford.com.