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Ford Motor Company and Strengthen Strategic Partnership; Unveils Acceleration Plan with Speed, China Design and Intelligent Manufacturing in Chinese Market

• Expand cooperation and leverage parent companies’ strengths: Changan Ford to enhance its R&D capabilities and launch more new products and technologies. Through its transformation, company will become a comprehensive automobile enterprise integrating R&D, production, supply and marketing to better serve its customers and meet the needs of the China market.

• Accelerate portfolio update: Changan Ford has launched four models in 2019, and will launch at least 14 all-new and refreshed products from now through the end of 2021 to further improve its product lineup, including the first localized Lincoln SUV later this year and the new localized in 2020.

• Strengthen local research and development capability: The Changan Ford Research & Development Center will enhance capability in product planning, design and structure, and vehicle program management to cater to Chinese customers’ tastes and preferences.

• Improve upgrades to Intelligent Manufacturing: Changan Ford will accelerate the localization of new Ford and Lincoln models, prepare for the localization of new energy vehicles and further upgrade its Intelligent Manufacturing system.

• Improve sales and marketing capability: Changan Ford and the National Distribution Services Division (NDSD) will remain focused on consumer-centered, innovative and pioneering spirit to enhance brand image, improve customer experience, optimize dealer network, and increase profitability.

CHONGQING, China, September 26, 2019 – Changan Automobile and today announced their commitment to strengthen their strategic cooperation through enhanced R&D, production, supply chain management, marketing and innovation. Changan Ford also announced its latest plan to accelerate the development of more new products and technologies that better meet the needs of the China market.

The announcements were made at a press event in with Xu Ping, chairman of China South Industries Group Corporation (CSGC); Joe Hinrichs, president of Automotive, Ford Motor Company; Zhang Baolin, deputy general manager of CSGC and chairman of Changan Automobile Group; Chen Anning, group vice president of Ford Motor Company, president and CEO of Ford Greater China; and Zhu Huarong, president of Changan Automobile.

Before the press conference, there was a signing ceremony in which Changan Automobile and Ford Motor Company agreed to deepen their strategic partnership, and Changan Ford

For news releases, related materials and high-resolution photos and video, visit www.media.ford.com. announced its Acceleration Plan. Chen Anning, group vice president of Ford Motor Company, president and CEO of Ford Greater China, and Zhu Huarong, president of Changan Automobile, signed the agreement. Tang Liangzhi, mayor of Chongqing, attended the signing ceremony to witness this important moment.

The partners will continue to expand their cooperation, transform the business model and increase efficiency by tapping into their respective strengths and capabilities.

Leveraging the Changan Ford and the National Distribution Services Division (NDSD) platforms, the partners will further empower the and bring together their respective strengths in development, production, supply chain, marketing and innovation to improve the development and Intelligent Manufacturing capabilities of Changan Ford. These actions will enable Changan Ford to launch more products and technologies that cater to the unique preferences of Chinese customers and demands of the China market. Changan Ford’s transformation from a traditional automaker to a comprehensive new automobile enterprise that integrates electrification, connectivity, Intelligent Manufacturing and smart mobility, will also be accelerated.

“At Ford, our vision is to become the most trusted global brand in China,” said Joe Hinrichs, president of Automotive, Ford Motor Company. “We will achieve this goal by working closely with our partner Changan Automobile to transform our business, innovate for the future and ultimately provide more products and services made especially for Chinese customers.”

"The comprehensive deepening of the strategic cooperation between Changan Automobile and Ford Motor Company will lay a solid foundation for the Changan Ford Acceleration Plan," said Zhang Baolin, vice general manager, China South Industries Group Corporation, chairman, Changan Automobile. "In the next three years, with the strong support from the parent companies, Changan Ford will serve the China market with products and services that meet Chinese customer preferences with China speed and China design from China’s Intelligent Manufacturing."

Accelerate product refreshing at China Speed Accelerating updates to the product lineup is key to the success of Changan Ford’s Acceleration Plan. Changan Ford will refresh products more rapidly, improve marketing capabilities and enhance the customer experience in a comprehensive way.

As an integral part of the "China 330 Product Plan," Changan Ford has launched four models in 2019, and will launch at least 14 all-new and refreshed products from now through the end of 2021 to further improve its product lineup. By the end of 2021, five new energy models will also be launched.

Changan Ford is also committed to developing more smart technologies that cater to Chinese customers’ preferences and further accelerate the application of these technologies to more production models, to enable more customers to benefit from cutting-edge advancements. By year-end, all new Changan Ford models will be connected and equipped with the SYNC+ infotainment system customized for Chinese consumers, leveraging Baidu’s AI technologies. Most new Changan Ford models will also be equipped with the Ford Co-Pilot360TM suite of advanced driver-assist technologies. Some of these features are defined as SAE Level 2 2

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automated driving. C-V2X equipped will also be produced in 2021, making China the first Ford market across the world to produce C-V2X-enabled vehicles.

Enhance local R&D capability and deliver Chinese designs One of the top priorities of the Changan Ford Acceleration Plan is to accelerate local product development and validation. Jointly with Ford, Changan Ford will establish the Changan Ford Research and Development Center to better serve the China market with products catering to Chinese customers’ unique tastes.

The newly established Changan Ford Research and Development Center will continue to make full use of the resources and advantages of Ford's global R&D system. Based on the design aesthetic and user preferences of Chinese consumers, the center will deeply integrate Ford product design DNA and Chinese design aesthetics in the development of leading domestic and world-class products. The new center will enable local teams to realize an integrated product development system in terms of product planning, design and structure and vehicle program management.

Integrating resources and strengthening a win-win spirit of cooperation is also an important part of strengthening the design process in China. Leveraging its partners’ competitive edge in automobile research and development, Changan Ford will deepen its cooperation with both shareholders to share resources and jointly provide technical guarantees for Chinese designs to accelerate the improvement of product testing capabilities. In the future, the Changan Ford Research and Development Center will be able to conduct tests for prototype manufacturing, emissions and environmental impact, electrical devices, durability of vehicles and parts, new energy vehicles, NVH, dynamics and performance and China 6 emission tests.

Accelerate the consolidation of Chinese Intelligent Manufacturing Creating a more efficient and Intelligent Manufacturing system is key to the success of the Changan Ford Acceleration Plan. Changan Ford will accelerate the localization of new models for Ford and Lincoln, and further upgrade its intelligent manufacturing systems to consolidate the image of high-quality Chinese smart manufacturing for Changan Ford.

The first Lincoln SUV model will be put into production by Changan Ford before the end of the year. In 2020, Ford Explorer will also be made in China. In the future, more Ford and Lincoln models will be produced locally by Changan Ford.

Based on Ford's manufacturing standards, Changan Ford has continuously upgraded its Intelligent Manufacturing system, accelerated the information management and intelligence of its manufacturing system, and built a smart factory to transform it for the industry 4.0 era. Today, Changan Ford's stamping, painting, welding, spraying and gluing procedures have reached industry-leading levels. At the same time, its production line will continue to be upgraded to meet future production needs of new products and new energy vehicles. In addition, Changan Ford will build a digital platform, introducing advanced manufacturing equipment such as smart devices and sensing devices to realize digitalized management of the entire manufacturing process. Changan Ford will also cooperate with upstream and downstream partners to achieve Intelligent Manufacturing and intelligent logistics through data sharing and real-time information sharing through a collaborative platform. 3

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Enhance brand image, improve customer experience and optimize dealer network In terms of marketing, in the next three-to-five years, Changan Ford and NDSD will adhere to three strategic principles: comprehensively enhance brand image, improve the customer experience, and continue to focus on optimizing the dealer network and increasing profitability. Changan Ford will continue to fully implement the customer-oriented global Customer Experience program to become the most trusted brand in China by bringing attractive and convenient experiences to Chinese consumers. By embodying the brand spirit of Innovative and Pioneering, Changan Ford will provide consumers with a full range of customer-centered products and brand experiences, to fully demonstrate the core values and advantages of our products. In terms of our dealers, Changan Ford and NDSD will continue to optimize the dealer network, and help its dealers improve profitability, effectively solve problems, and ensure the sustainability of the dealer network.

Innovate cooperation model and redefine the company’s development Ford and Changan Automobile will seek opportunities for cooperation and resource-sharing in the areas of connectivity, smart mobility and smart vehicle technologies, including building a shared intelligent connectivity test site and demonstration zone to make preparations for sharing our procurement resources. In addition, Changan Automobile and Ford Motor Company are exploring opportunities to cooperate in the fields of big data and aftermarket services. The two partners will share resources and seek new ways of cooperation in the field of new energy vehicles.

As the cooperation between Changan Automobile and Ford Motor Company deepens and makes continued progress, it will lay a solid foundation for the Changan Ford Acceleration Plan. Changan Ford will continue to accelerate its transformation with a forward-looking perspective, at faster speed and with higher standards to deliver trusted products that satisfy Chinese customers’ demands.

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About Ford Motor Company Ford Motor Company is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions. Ford employs approximately 194,000 people worldwide. For more information regarding Ford, its products and Ford Motor Credit Company, please visit www.corporate.ford.com.

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