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June 2008

Ford Flex, Lincoln MKS hit the streets

WORKING TOGETHER Powertrain and product teams use ONE Ford behaviors for success FRIEND TO FRIEND TV ad subject enjoys her test drive so much, she buys a inside this issue news briefs

New Focus debuts on A sporty coupe version of the 2009 debuted on the top-rated American Idol show on May 14. The new coupe features new front and rear fascias, including a lower front fascia with a larger opening that echoes the treatment on the coming subcompact Fiesta. Also standard are new fog lights, a dark 2009 Ford Focus 9 Flex, MKS debut chrome and dark chrome accents, 17-inch and a sport-tuned exhaust. Ford releases two summer blockbusters – the and the Lincoln MKS. Ford completes sale of Jaguar to Tata Motors has completed the sale of Jaguar Land Rover to Tata 3 Sales report Motors. The sale, for U.S. $2.3 billion, is the culmination of Ford’s decision to explore strategic options for Jaguar Land Rover as it accelerates its The monthly sales figures show Ford’s strengths, weaknesses in the market. focus on its core Ford brand and its “One Ford” global transformation. It also allows Jaguar Land Rover to focus 4 Ford responds on delivering what is best for their business. As part of Company reacts quickly to changing the deal, Ford continue to supply Jaguar Land Rover market, will adjust production and staffing. with , stamping and . 5 ONE employees Kelley Blue Book names Flex a “Best Road Trip Vehicle” Teams demonstrate ONE Team behavior The editors at Kelley Blue Book’s kbb.com have named the 2009 Ford to help achieve the goals of the plan. Flex as one of their “Top Ten Best New Road Trip Vehicles.” Editors said 6 Happy convert “the functionality, cargo capacity and interior space of the Ford Flex, Customer appearing coupled with its high feature set, make it a pretty ideal cross-country in new Ford commer- commuting vehicle.... It’s the kind of vehicle that you could put lots and cials is so impressed, lots of miles on in a day and then not feel fatigued in at the end.” Turn she buys one. to page 9 for more on the Flex, which goes on sale this summer. Ford Flex 7 Drive smart Consumer experts rank Ford equal to best in total quality Ford engineers visit conventions, stores to get ideas for new product features. Ford is neck-and-neck with in total quality, says a new report by San Diego-based Strategic Vision. The independent research firm 15 Drive green found the two automakers tied for topping the most segments in New cuts emissions, its Total Quality Index (TQI). Top Ford vehicles are the , improves fuel economy and acceleration. the , the Ford F-250/350 and the 17 Carl Edwards Sable. The Volvo C30 also topped its segment and the Land Rover NASCAR star for LR2 tied with the Lexis RX 350 in its class. “Ford is back, establishing Ford answers its vehicle quality in the hearts and minds of its customers,” said Ford F-250 questions about Alexander Edward, whose firm’s index measured new vehicle satisfaction among 20,600 buyers. his racing, hobbies and team spirit. Six Ford vehicles top the list in another quality survey 18 Global notes The Ford Edge, , , , and Lincoln Mark LT topped or tied for first in six award segments in the 2008 Vehicle Satisfaction Awards (VSA) as Focus boosts Euro sales, Ford rushes in aid, new Kuga set for splash. measured by the research firm AutoPacific Inc. The firm’s VSA is an industry benchmark for You can also get 20 Back page objectively measuring how satisfied owners are Ford World online New feature quotes reviewers, corrals with their new or light trucks in 46 areas Internally, visit: nine-millionth Mustang, gets clipped. related to operation, comfort, safety and overall www.fcn.ford.com experience. The data was collected from buy- Due to summer shutdowns, there will be no Externally, U.S. employees July issue of FORD World. The next issue will ers and lessees of 2008 vehicles acquired from and retirees can visit: be the August edition. September through December 2007. www.employees.ford.com

Publisher: Karen Hampton Graphic Designers: Mike Mullen, Julie Yeiter Fax: (313) 845-0179 Associate Publisher: Sara Tatchio Image Coordinator: Brian Wybenga Copy Editor: Floyd Opperman Editorial: (313) 206-4679 Managing Editor: Robert Musial Writers: John Fossen, Chris Rahi Kassab, Rebecca Kavanagh, Contributing Editor: Jenn Corney Robert Musial, Todd Nissen, Kristopher Spencer, Jessica Thiringer, Advertising: (313) 594-1840 Advertising Coordinator: John Ribbing Dan Zacharias Address Changes: (313) 322-2955 orld Distribution: Tamara Neal, Neeley Edelman Photographers: Keith Tolman, Sam VarnHagen No portion of this magazine may be reproduced without prior written consent of FORD World. Many items advertised in FORD World are available through retail organizations and establishments not connected with Ford Motor Company. Availability, price, safety, quality and durability of these items rest solely with the respective manufacturers and their sales organizations. Ford assumes no responsibility for their use. FORD World is available online at Employee Network, www.employees.ford.com. The magazine is available monthly in racks at all Ford facilities in the U.S. and Canada,

Ford w and mailed monthly to retirees. To save postage costs, retirees may opt out of mail delivery at [email protected]. FORD World June 2008 1 Technical perfection, automotive passion.

Faurecia Tech Day featuring JUNE 11 & 12, 2008 Ford PDC Showroom PREMIUM ATTITUDE + MORE THAN 100 INNOVATIONS IN: CONCEPT perceived quality comfort safety sustainability component platforms modularity cost-effective solutions

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2 FORD World June 2008 monthly sales

Focus, Fusion sell strong Vehicle Sales 2008 May Year-to-Date in May, F-Series down U.S. Top-Selling Cars and Trucks By Robert Musial Rank/Nameplate Units Sold FORD World 1 Ford F-Series 235,924 2 198,309 U.S. sales of the Ford Focus soared to a record 32,579 units in May, up 53 percent over a year ago, as customers turned to smaller, more fuel-efficient vehicles. 3 Silverado 197,030 The rise marked only the second time in the car’s nine-year history that more than 30,000 4 Accord 166,158 units were sold in one month. The first time was in October 2001, in response to zero percent 5 164,994 financing. 6 Toyota Corolla/Matrix 152,308 “This is a strong statement about demand for Ford’s newest small car,” said Jim Farley, 7 Altima 133,465 Ford group vice president, Marketing and Communications. “Our dealers are selling the Focus at unprecedented rates, which puts it in the same league as the industry’s best-selling 8 122,281 small cars.” 9 RAM 112,795 sales were also the highest for any month ever, up 27 percent from a year ago. 10 Ford Focus 105,499 Its stablemate, the Mercury Milan, also posted higher retail sales as did the . 11 Chevrolet Cobalt 93,362 “Our small and midsized cars are outperforming the industry, and we’re only just 12 Honda CR-V 89,017 beginning,” Farley said. Late this year, the redesigned Fusion, Milan and Lincoln MKZ go into production and the 13 79,675 Fusion and Milan will also offer new hybrid versions. In addition, Ford’s global B-sized car, the 14 76,966 Ford Fiesta, will be produced in North America starting in early 2010. Two models, a 15 74,925 and a , will be offered here to meet the growing demand for small cars. 16 Ford Fusion 73,197 Ford, Lincoln and Mercury car sales to retail customers were up 20 percent in May. Total 17 Toyota Tacoma 72,704 car sales, including those to fleet customers, were up 4 percent. Sales of crossovers were lower last month but remained strong as the Ford Escape and 18 G6 71,062 Ford Edge, and Lincoln MKX helped the company’s crossovers continue 19 GMC Sierra 70,765 to outpace the industry. Once again, the Edge was the top-selling midsized in the 20 Toyota Tundra 66,278 market. 21 Ford Econoline 63,869 The sales gains in small and midsize cars helped moderate the sharp declines in traditional 22 Toyota RAV4 61,919 SUVs (down 44 percent), trucks and vans (down 29 percent) and in sales to daily rental companies (down 30 percent). 23 Dodge Caravan 61,591 As an indication of the rapid and seismic shift in consumer preferences to smaller vehicles, 24 Honda Odyssey 59,987 four cars outsold the Ford F-Series in May, though it remains the industry’s best-selling truck. 25 Ford Edge 58,734 The F-Series sold 42,973 units to remain the best-selling vehicle year-to-date, though it was 33 49,129 eclipsed by the Honda Civic (53,299 units), the Toyota Corolla (52,826), the Toyota Camry 38 Ford Mustang 44,160 (51,291) and the (43,728) in May. In total, Ford, Lincoln and Mercury sales were down 16 percent. recorded 39 Ford Explorer 43,116 a 28 percent drop in sales in May while Toyota declined 4 percent. Source: Manufacturers’ Reports

U.S. Market Share – 2008 Year-to-Date

OTHER

0.5 1.8 1.6 0.9 1.3 0.7 1.0 25%

20

15

10

5 MARKET SHARE PERCENTAGE 0 15.8% 21.1% 11.8% 16.5% 10.3% 7.1% 17.4%

Source: Manufacturers’ Reports FORD World June 2008 3 Ford responds to fast-changing market By Robert Musial FORD World Last month, Ford Motor Company became the first domestic automaker to respond comprehensively to a weakened U.S. economy, an accelerating shift to smaller cars and crossovers driven by soaring fuel prices and a rapid increase in the price of steel and other commodities. To deal with what company leaders see as permanent changes in the business, Ford is increasing production of its hot-selling Ford Focus, Fusion, Edge and Escape models and their variants, cutting President and CEO production of large trucks and SUVs and will make reductions in U.S. personnel and other salary-related costs. Mulally noted that, due to worldwide demand, it was the first President and CEO Alan Mulally believes the tipping point for time in history that commodity prices rose as the U.S. economy the business came when the price of gasoline edged above U.S. slowed down. “It’s our assessment that we are facing a structural $3.60 a gallon – and kept going up – causing a market shift to change, not a cyclical one,” he said. smaller vehicles in a few short weeks. By sticking to the ONE Ford plan and leveraging its global assets, Along with rising fuel costs as oil rose from an average of Ford will come through this and emerge stronger, he said. $72 a barrel in 2007 to more than $133 a barrel in mid-May, Detailed plans on staffing and production will be announced in manufacturers are facing skyrocketing costs for commodities, the July, with most reductions being completed by August. raw materials used in production. Among the most striking of these The combined economic situation also forced Ford to back off its are the spot prices for steel, which doubled in less than six months, earlier promise to achieve profitability in 2009. It now appears that from $531 a ton to $1,060 a ton in mid-May. the company may break even next year.

stamped, a process known as material Looking for new ways to utilization development – or MUD. In addition, purchasing teams are buy steel, commodities working to simplify Ford’s commodity approach by establishing global steel By Todd Nissen specifications. FORD World Meantime, work continues on As steel prices surge to record levels, global Ford teams are finding new ways to buy steel. Steel looking for new ways to reduce consumption, as well as buy prices are typically quoted on a material more cost effectively. floating “spot” basis, meaning the Tony Brown “With the rapid increases in steel prices across the industry, price for shorter term contracts. Large we are exploring how to reduce users like Ford typically buy steel the amount of steel we use,” in big quantities at fixed prices. said Tony Brown, group vice Ford is actively working with president, Global Purchasing. international exchanges, such as In some cases, that means the London Metal Exchange, to finding substitutes for steel. further develop markets for steel Work is underway to expand buyers and sellers. This would the use of instead of steel allow Ford to use risk management in items such as fuel tanks and tools like derivatives to lock in oil pans. Savings: 10 pounds future steel contracts and reduce and about U.S. $10 per vehicle price volatility. for tanks, and four pounds or And, with steel accounting for $2 per vehicle for pans. more than half of a typical North There are also accelerated American vehicle’s weight, Ford’s global efforts in manufacturing move to smaller cars will also help. and product development to “The faster we can make that reduce the amount of scrap transition vs. the competition – the metal left each time a part is The spot price of steel has doubled since 2007. better,” said Brown.

4 FORD World June 2008 Teams using ONE Ford save money, deliver results By Jessica Thiringer FORD World As ONE Ford becomes a part of our corporate culture, employees are using its principles and behaviors to deliver business results. Among those integrating ONE Ford into their workgroups are Powertrain Controls and the Lincoln MKS Team. Located in both Dearborn and at the Dunton Technical Center MKS team members: (front row) Michael Sprague, group in England, the engineers and technicians in Powertrain Controls marketing manager; Pei-Wen Hsu, marketing manager; (back recently decided they were doing repetitive work designing separate row) Gary Knoerl, pricing analyst; Kristen Smolen, retail training software interfaces for control, transmission and vehicle manager and a Sangria Red MKS. system controls. They were also relying heavily on suppliers to create custom In Marketing, Sales and Service, the Lincoln MKS Team in software to make the subtle changes that make the performance of Dearborn took a fresh approach to accepting customer orders for Ford vehicles unique. the new MKS model. Now, by coding more Working together with Production Planning, software in-house for global use they opened the order bank for the MKS the with existing supplier software, moment the car was revealed at the Los Angeles they’ve achieved significant cost Auto Show last November, allowing vehicles to be savings. Suppliers will continue to ordered a full seven months before Job #1, instead provide the hardware and provide of just two or three months prior. common software, thus leveraging Introduced in January, ONE Ford balances Through careful coordination, the team was Ford’s economy of scale to their “One Team, One Plan, One Goal” and the Ford able to increase production of all the key features advantage, a win-win solution for Expected Behaviors necessary to achieve the and options that dealers and customers wanted, both the company and suppliers. company’s plan. For more information, please said Michael Sprague, group marketing manager, “We used to have multiple visit Ford’s internal site, www.one.ford.com. Lincoln Mercury Marketing. strategies, but where we’re headed “From the start, we are building the right in the future means we need These stories represent two of the many vehicles,” said Sprague, adding that the team one global plan that is easily examples of employees using ONE Ford to exceeded its goal of 5,000 orders sold before the maintained across the company deliver the business plan. To share a story, Job #1 date. and one that allows for updates as please e-mail: [email protected]. In addition to building vehicles exactly as increases,” says Brian ordered, the process provided early data on what Wolfe, director, Powertrain Engineering. “For the first time in my options and features were most popular. That meant the team was 26-year career, we truly are working through strategies together as able to secure the correct number of parts from suppliers – and one team on a global scale.” closely plan production and capacity. Powertrain Operations plans to include similar work in “ONE Ford strengthened the thought that our team could work and Asia Pacific and Africa. together,” said Pei-Wen Hsu, manager, Lincoln Car Marketing.

Huw Thomas (L), Alasdair Gillespie and Steve Rougier (R), Jahnavi Mehta (L) and Mike Murphy, product development product development engineers, Powertrain Engineering, at engineers, Powertrain Engineering, collaborating on a Dunton Technical Center. powertrain control module.

FORD World June 2008 5 CR-V, a Nissan Murano, a CX-7 and a Tribeca before Advertising campaign deciding the Ford was their favorite. In late April, Wall, who, with the exception of one GM vehicle, participant trades had always owned imports, traded in her 2006 Honda Civic on a brand-new Edge. Honda for Ford Edge “I think I would have been perfectly happy to keep driving my 2006 Honda had I never tried the Edge…but it was just such a By Rebecca Kavanagh change in the driving experience for me,” says Wall. FORD World “Ford has truly helped me enjoy my time on the road,” she said. Before she was approached to participate in Ford’s new “Town- to-Town, Friend-to-Friend” ad campaign, Christine Wall thought the only thing the company made was trucks. She had never even heard of the Ford Edge. ‘Drive one’ details “When they showed me the car I’d be On April 8, Ford debuted “Drive one,” a national marketing test-driving, I was shocked,” says Wall. “I campaign that highlights the work of 400-plus Ford employees, said, ‘That’s a Ford?’” thousands of hours of research and production, as well as But Wall, a Windsor, Calif., financial dealer insights, to underscore to consumers its leadership in planner, was pleasantly surprised quality, safety, green and smart technologies. throughout her weeklong experience and Along with “Drive one,” Ford dealers around the country loved everything about the Edge. When the are using a complementary series of television, print and week was up, she was sorry to see it go – and told her husband Mike digital ads built around the theme “Town-to-Town, Friend- she thought they should get one. to-Friend.” Those stem from earlier this year when Ford They test-drove other vehicles in its class, including a Honda approached owners of competitive vehicles in Marietta, Ga., and Windsor, Calif., asking them to drive a Ford for a week and then pass it on to a friend to try. Visit www.forddriveone.com for more information.

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6 FORD World June 2008 Ford goes to stores, conventions for ideas By CHRIS RAHI KASSAB FORD World Ford is leaving nothing to chance to discover what vehicle technologies will satisfy customers today but, more importantly, what will surprise and delight them tomorrow. Many of Ford’s newest vehicle features – like ™ and soon-to-be-released SIRIUS® Travel Link™ – reflect the growing influence of the burgeoning consumer electronics industry. Inspiration for new ideas comes from a number of sources, Along with traffic, weather and more, the SIRIUS Travel Link in said Jim Buczkowski, director, Electrical and Electronics Systems this 2009 Ford F-150 can find the cheapest gas. Engineering. One is the Consumer Electronics Show (CES), held annually in – such as navigation systems, satellite radio, HD radio and DVD Las Vegas. players – are expected to grow at a rate of 13 percent this year, to “When we go to trade shows like CES, more than U.S. $12 billion. we can see the trends,” he said. “Then we U.S. automakers are wise to take notice, according to David ask ourselves, ‘How can we project those Cole, chairman, Center for Automotive Research. trends into what people are going to want “The idea is that you have to stay at the lead of technology, in their cars?’ whatever it is. One of the obligations of an auto manufacturer is to “We get a lot of ideas for new vehicle foresee where people are going to want to go even before they really technologies from simply observing what people are shopping for at know they want to go there,” said Cole, who gives Ford kudos for Best Buy or Circuit City,” said Buczkowski. being first to market with SYNC. And customers are spending a lot of time and money on “SYNC bridges the gap between the car and bringing in the electronics. A recent study by the Consumer Electronics Association Internet and other forms of communication,” said Cole. “I think (CEA) found that sales of in-vehicle consumer electronics alone that’s a real step forward.”

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By Kristopher Spencer flagship. Both vehicles are leading the And, our FORD World way for upcoming launches of the new team is very lockbuster season is Ford F-150 and powertrain upgrades for excited about building the Lincoln MKS, the Ford Escape and Mercury Mariner, which will be a great product for Lincoln upon us, and Ford plus launches of the Ford Fusion, Mercury showrooms and customers.” Motor Company has Milan and Lincoln MKZ later this year. Both products already have earned great two potential hits This torrent of new products is further advance reviews from dealers and members B proof of Ford’s ongoing effort to accelerate of the press alike. being released this summer. product development with the aim of One’s the automotive equivalent of a hip A Motor Trend blogger hailed the Flex as having 70 percent all-new or significantly “a serious market contender” with “strong, family film that takes audiences by surprise freshened vehicles by the end of 2008 and and generates great word-of-mouth while flexible packaging” and “appealing style and 100 percent new vehicles by 2010. utility.” And, The Windsor Star affirmed the other is like one of those rare prestige “Having this much great product in the that “the daringly designed Flex deserves pictures that combines sophisticated pipeline is without precedent,” said Davis. to bring Ford increased respect, not to elegance with high-tech wizardry. “Despite the intensity of the workload, mention greater sales punch.” Together, the 2009 Ford Flex and 2009 the launch teams and the workforce are Seeing the Lincoln Lincoln MKS are expected to do “boffo” really excited about delivering MKS for the first time, business when they premiere in dealerships these great products for our Dan Marks, owner of this summer. customers.” “This is a very exciting time for product Bill Russo, Ford director Libertyville Lincoln development at Ford,” said Frank Davis, of Manufacturing, added Mercury, described it executive director of Product Programs for that loads of planning, train- as “an exciting new North America. “So far, the launches are ing and refinement of the product that customers going great. Between Product Development, Quality Operating System were will really want and love.” Manufacturing, Purchasing and Supplier done up front to ensure smooth launches. And an early notice in ForbesAuto.com Technical Assistance (STA), the focus on “It’s great to see a ONE Ford spirit and drew attention to the Lincoln MKS’s bold team work, execution and high quality is attitude result in such fine teamwork,” design, heralding it as “not your grandpa’s simply outstanding.” said Russo. “In Oakville, our recent CAW Lincoln.” Davis described the Flex as Ford’s next negotiations have helped us add capacity “The Flex and MKS will retain great big leap in style and quality, and the for the Flex, so we’re well prepared to meet pride for our Oakville and Lincoln MKS as the next great Lincoln increasing market demand for crossovers. plants,” said Russo.

FORD World June 2008 9 distinctive style

“The Flex is like nothing else on the road, and it defies being categorized. I have a feeling that Flex is going to appeal to a group of customers who feel absolutely the same way about themselves.” – Jim Farley, Ford group vice president, Marketing and Communications

Available five-quart refrigerator in second-row console

Four-window Vista Roof

Recessed rocker panels for ease of Ambient Lighting in console, Second row seats with first-class entry and exit footwells, cupholders legroom and footrests

10 FORD World June 2008 some of the cool things about the 2009 Ford Flex:

Quieter interior than an MDX, Toyota Highlander or GMC Acadia* distinctive style • According to Ford tests Standard Safety Canopy™ side curtain air bags with roll-fold technology

Next generation keyless entry keypad “hidden” on driver’s side B-pillar

Easy Fuel™ capless fuel filler system

Standard Advance Trac® with RSC® (Roll Stability Control)

Sony 5.1 Surround Sound Audio System

Ford SYNC™ with 911 Assist and Vehicle Health Report

Voice-Activated Navigation with SIRIUS® Travel Link™ supplies real-time traffic, weather, fuel prices and locations, movie listings and sports scores

Rear View Camera System

Advanced, fuel-saving 6-speed transmission

Award-winning 3.5-liter, 262-horsepower V-6

2009 ford flex : 117.9 inches Overall Length: 201.8 inches Built: (Ontario, Canada) Overall Width: 88.8 inches Engine: 3.5-liter V-6 Seating capacity: 6 or 7 passenger Horsepower: 262 @ 6,250 RPM Towing capacity: 4,500 lbs. Class III Fuel capacity: 18.6 gallons Base weight: 4,498 lbs (FWD); : Front-Wheel or All-Wheel Drive 4,661 lbs (AWD) Transmission: 6-speed automatic overdrive Fuel economy: 17 city, 24 highway Brakes: 4-wheel ABS; AdvanceTrac® with (FWD); 16 city, 22 highway (AWD) ® RSC (Roll Stability Control) Price: Starting at U.S. $29,995 Wheels: 18-inch or 19-inch inc. destination and delivery

FORD World June 2008 11 REFINED LUXURY “The Lincoln MKS ensures a high level of comfort for all passengers … coupled with a comprehensive suite of features and technologies … the luxury experience that Lincoln customers want and deserve.” – Brett Wheatley, Lincoln Mercury general manager

Bridge of Weir leather seats, heated and cooled (front), heated (rear)

Easy Fuel™ capless fuel filler system

Intelligent Access with Push Button Distinctive double-wing grille and Next generation keyless entry keypad Start signature Lincoln design cues “hidden” on driver’s side B-pillar

12 FORD World June 2008 some of the stand-out features on Lincoln’s new flagship, the MKS: Dual-panel moonroof Standard Safety Canopy™ side curtain air bags with roll-fold technology REFINED LUXURY Largest rear cabin in its class Rain-sensing wipers Voice-Activated Navigation with SIRIUS® Travel Link™ supplies real-time traffic, weather, fuel prices and locations, movie listings and sports scores Forward Sensing System to aid parking Rear View Camera System Radar-based Adaptive (HID) with Auto High Beams THX® Certified Audio System with 5.1 Surround Sound Fuel-efficient 6-speed automatic with SelectShift Exclusive fuel-efficient 3.7-liter V-6 with 273-horsepower (non-premium fuel) Recessed rocker panels for ease of entry and exit Available All-Wheel Drive (AWD) Class-exclusive available 20-inch polished cast wheels

Wheels: 18-inch, 19-inch or 20-inch 2009 mks Wheelbase: 112.9 inches Built: Chicago Assembly Overall Length: 204.1 inches Engine: 3.7-liter V-6 Overall Width: 85.5 inches Horsepower: 273 @ 6,250 RPM Seating capacity: 5 passenger Fuel capacity: 20 gallons (FWD); Towing capacity: 1,000 lbs 19 gallons (AWD) Base weight: 4,127 lbs (FWD); Drivetrain: Front-Wheel or All-Wheel Drive 4,276 lbs (AWD) Transmission: 6-speed automatic with Fuel economy: 17 city, 24 highway SelectShift (FWD); 16 city, 23 highway (AWD) Brakes: 4-wheel ABS; AdvanceTrac® Price: Starting at just over U.S. electronic stability control $38,000 inc. destination and delivery

FORD World June 2008 13 Devices you Get $300 off the T-Mobile Shadow when really want, you sign up today.* As a Ford Motor Company employee, you can take advantage of these for less special discounts with any qualifying new activation: • FREE W490, regularly priced at $159.99 • BlackBerry Pearl for only $49.99, regularly priced at $299.99, plus FREE Bluetooth® headset† • T-Mobile Shadow for only $49.99, regularly priced at $349.99 • Pay NO activation fee You also qualify for this exclusive benefit available to new and existing T-Mobile customers: • New customer? You may be eligible to receive up to an 8% discount on qualifying monthly recurring charges. • Existing Customer? Go to www.t-mobile.com/corpdiscount and log in to My T-Mobile to learn more about qualifications for a corporate discount.

T-Mobile Shadow features: Act now—this offer expires August 31, 2008 and is • 2.0 megapixel camera only available by calling T-Mobile at 1-866-464-8662. • E-mail • High Speed Internet Use promotional code: 490TMOFAV New activation and two-year agreement required for handset offers. Domestic/international text/instant messaging and most downloads incur separate charges.

* Requires new activation on a qualifying rate plan with a two-year service agreement. Limited time offer subject to change without notice. Additional restrictions apply. † Free Bluetooth headset not available on extranet. Subject to credit approval; per-line activation fee, and other upfront and monthly charges and fees may apply—see representative for details. $200/line early cancellation fee & Regulatory Programs Fee (not a tax or government- mandated charge) of 86¢ per line/month apply. Taxes approx. 6–28% of your monthly bill. See Pricing, Services and Device brochures, and T-Mobile’s Terms and Conditions (including mandatory arbitration) at t-mobile.com, for rate plan information, charges for features and services, and restrictions and details. Service not available everywhere; for details see Coverage Maps at t-mobile.com or visit a T-Mobile store. Rebate/Discounted Phone Offer: Discounted phone limited to specific model shown. Supplies may be limited and offer may not be available at all dealer locations. T-Mobile reserves right to substitute different phone models of equal or greater value. Customer must remain on qualifying rate plan at time mail-in rebate is processed. Rebate takes up to 8 weeks. Visit store, see rebate form or contact T-Mobile Customer Care at 1-800-937-8997 with questions. T-Mobile and the magenta color are federally registered trademarks of Deutsche Telekom AG. stick together is a federally registered trademark of T-Mobile USA, Inc. © 2008 T-Mobile USA, Inc.

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14 FORD World June 2008 6-speed transmission improves fuel economy By John Fossen FORD World

To help reduce greenhouse gas emissions and improve fuel economy for customers, Ford Motor Company is fitting 2009 Ford Escapes and Mercury Mariners with the automaker’s newest, advanced 6-speed . The new 6F35 front-wheel-drive trans- mission offers a 4 to 6 percent improve- ment in fuel economy versus conventional four- and 5-speed automatics – and it Ford’s new 6F35 transmission is manufactured with the help of improves acceleration. Romel Attenberry at the Van Dyke Transmission Plant in Sterling “With a greater gear span, the 6F35 Heights, Mich. allows the engine to operate at more optimum combinations of speed and load to meet certain 2009 also will feature the 6F35, as will two other driving conditions,” said Craig Renneker, chief engineer for new vehicles early next year. automatic transmissions, Ford Powertrain Operations. “The new The new 6-speed offers numerous technologies and design transmission also enables the engine to run at lower speeds on the features that increase durability, performance and quietness plus highway, which aids fuel economy.” smoother, quieter, more precise shifts. The 6F35 will be mated to a new 2.5L I-4 engine and a The new 6F35 6-speed automatic transmission is assembled power-improved 3.0L V-6 in the 2009 Escape and Mariner. The at Ford’s Van Dyke Transmission Plant, which also produces the engines offer power increases of 17 horsepower for the I-4 engine 6F50 6-speed automatic in 2008 models of the Ford Taurus, and 40 horsepower for the V-6, but also boost fuel economy Taurus X, Edge, Mercury Sable, Lincoln MKX and 2009 Ford Flex by one mpg when mated to the new 6-speed transmission. The and Lincoln MKS.

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16 FORD World June 2008 FORD WORLD | 7.5 X 4.75 Q&A: carl edwards Ten questions with Ford NASCAR star Carl Edwards By Dan Zacharias FORD World ord NASCAR star Carl Edwards is one of the most popular drivers on the circuit. The driver from Columbia, Mo., is expected to be one of the contenders for the NASCAR FSprint Cup title. Q: You recently signed a multiyear contract with . Was your loyalty to Ford one of the reasons? A: I like everyone at Ford, and Q: Besides racing and commercials, you also have your own record right now, Ford is in a position to “I like label. How’d that come about and what does it mean to you? do some great things, and I just A: We started Back40 Records with the idea to help local artists (in want to be a part of that. I want everyone at ). We created this small studio and let the artists come in to be there when we plant our flag Ford, and back where it should be. and do what they want. We’ve made one album so far and we got it on iTunes and the second album will be out within the next month Q: What do you drive as your right now, or two. Even on that small scale, it gives me a (business) perspective personal vehicle? Ford is in that’s very valuable. A: Usually, it’s an F-150. I bought a position Q: You say you’re not musical but you do play the guitar? my mom a Mustang a couple of years ago and Jack Roush put the to do some A: I play the guitar, just barely. I’m really not very good at it, but Stage 3 kit on it, so sometimes I’ll great things, I’ve had fun with it. snag that from mom. Q: Outside of racing, you do mountain biking and weight- Q: You recently spent some time and I just lifting. How do you manage to fit it all in? with the legendary driver David want to be a A: The number one thing that helps me with my time is my Pearson at Darlington. What aircraft. Being able to fly where I need to be saves a lot of time, was that like? part of that.” but the number one priority is my health and fitness. That directly A: He’s a wild man. He’s hilarious. – Carl Edwards relates to how well we run on the race track. So my priorities are He’s still extremely competitive to be in the best shape I can be to drive these race cars mentally and even though there’s a generation gap, it’s wild to see the and physically. similarities and his outlook on things. Q: What’s the one exercise that you just hate doing in your Q: So even if the generations and cars are different, the idea is workouts? the still the same, to go faster than everybody else? A: The worst things are the lunges. That’s the exercise that I hate the A: Oh yeah, competition is competition. All he talked about was most. It’s terrible. I do not like it. wanting some better so that he made sure he could be as fast as I was for the media event. Q: Final question: What’s your favorite movie? Q: You’re one of the most recognizable drivers in the sport, in part A: While I was growing up, I think I knew all the words to Smokey because of commercials for such sponsors as AFLAC, Claritin and the Bandit. I thought, ‘Here’s a guy who drives around at high and Ford. Did you ever think you’d be doing stuff like this? speeds with a good-looking woman in the passenger seat.’ That’s A: No way! Ten years ago, I hadn’t even raced a pavement race. a pretty cool movie when you’re growing up. One of the neatest Before that, I raced with my dad and my buddies and we ran films I’ve seen in a while is Good Night And Good Luck, the George 15-lap features on dirt. This was just a dream, so it’s very cool to Clooney film about a paradigm shift in media and the way they be doing it. report things. I thought that was a cool movie.

FORD World June 2008 17 global notes

Ford of Europe notches another strong sales month New Kuga model set to strengthen retail sales continued its momentum with The launch of Ford’s another strong new crossover, the sales month in Kuga, will strengthen April. Sales volume the appeal in Europe of grew in 14 of the Blue Oval, which The new 19 Euro markets has seen popularity and market share rise by more than 6 percent this year among private car buyers. increased in 16 The Ford Focus in Europe The Kuga goes on sale this month in the expanding compact 4x4 of those 19, said segment. With the lowest CO2 emissions in its segment, the Kuga is Ingvar Sviggum, vice president, Marketing, Sales and Service. Sales expected to be another winner with retail customers. The new Kuga in France and Germany were up 27 and 25 percent, respectively, and brings added strength to Ford of Europe’s lineup, led by the Ford Ford leads the market in Spain through April, another first. The new Focus and . The retail demand by private customers Focus was Ford of Europe’s top-seller in April, followed by the Fiesta reflects a trend from the corporate fleet sector, with retail accounting and Mondeo. In all, sales in the 19 Euro countries were up by 6.4 percent, giving Ford a market share of 8.1 percent for 80 percent more Mondeo sales than a year ago. . Company aids relief efforts in China, Myanmar Fleet World bestows triple honors on Ford, models In response to the May The 2008 Fleet 12 earthquake in China, World awards have Ford Motor Company has honored Ford Motor donated relief funds plus Company as Fleet seven vehicles- Manufacturer of the turned-ambulances to the Year. The leading fleet industry publication China Red Cross teams Ford S-MAX working in the stricken in the United Wenchuan (Szechuan) Kingdom covering every organization in the U.K. with 15 vehicles province. Along with its or more, also gave awards to the new Ford Kuga (Best 4x4) and to joint venture partners, the the Ford S-MAX (Best Large Multi-Purpose Vehicle). The awards company’s donation was are presented annually to the manufacturer achieving the highest Chinese rescue workers more than U.S. $770,000 possible level of excellence in this sector. – and food and clothing drives continue at Ford operations in China. Ford Fund matched employee donations up to $72,000, which was reached within five days. Ford Fund also donated $50,000 for the Volvo’s Powershift increases fuel economy and relief of the May 2 cyclone in Myanmar (Burma), although does not have operations in the country. Ford employees can donate The new Powershift to relief efforts in both countries at www.globalgiving.com where six-speed transmis- funds can be earmarked for either or both efforts. sion being offered on the two-liter turbo- diesel Volvo C30, S40 and V50 significantly increases fuel economy compared to a con- Volvo C30 ventional automatic. “Powershift contributes to a fuel consumption saving of about 8 percent,” said Magnus Jonsson, Volvo’s senior vice president, Research and Development. Developed with transmission partner Getrag, the new Powershift also increases driver comfort and brings higher performance, said Jonsson. Ford Transit ambulances head to Wenchuan. 18 FORD World June 2008 calendar

June July June 10 and 17: July 12: Ford Amateur Astronomy Club Spring Ford Amateur Astronomy Club Sky Show (Dearborn) Beginner’s Night (Brighton, Mich. and Ford Amateur Astronomy Club’s Dennis Salliotte, Brownstown Township, Mich.) Bob Clubb and Ken Anderson present the Weather permitting, Beginner’s “Spring Sky” show in the Community Night takes place at Island College Planetarium. Shows are free and first Lake State Recreation Area come, first serve. Doors open at 7:15 p.m. and and Lake Erie Metropark, close at 7:30 p.m. There will also be post-show on July 12 (also Aug. 9 binocular highlights outside in the Science and Oct. 4), from 7 p.m. to Building parking lot and an on-campus “Tour midnight. Learn to use that new of the Solar System.” Henry Ford Community telescope or see what the night sky has to offer. College is at 5101 Evergreen, Dearborn, Mich. Equipment and assistance will be provided to Contact Ken Anderson at [email protected] new astronomers. The sites are the Spring Mill or call (313) 805-4600. Pond parking lot and picnic area, at the Island June 10 - 11 Lake State Recreation Area, on Kensington Road, south of I-96 between South Lyon and Model T events: Bone Marrow Drives (Dearborn) Brighton and the south end of the Cove Point As Ford Motor Company prepares to Ford Motor Company is holding bone marrow picnic area, at the Lake Erie Metropark, on West celebrate the 100th anniversary of the drives to give the gift of life. Donors do not Jefferson Road, north of Huron River Drive, east have to be related and joining the registry is as of I-75 in Brownstown Township. Annual or daily Model T, many events across the country simple as a swab from the inside of your cheek. Metropark Park pass required for entry into this are showcasing the “car that put America Later, if there’s a match, the donation can be park. Contact Ken Anderson at KANDERS2@ford. on wheels.” To help you plan, here’s a list: made through a simple blood draw. Participants com, call 313-805-4600 or visit the Web site at June 13 - 14: should be between 18-60 and in general good www.boonhill.net. Petite Jean Swap Meet, Morrilton, Arkansas health. The Dearborn, Mich., drives are June Contact: David Ragsdale, Arkansas Tin Lizzie July 13 - 15 10, 11 in the Building 3 cafeteria, Ford Product Model T Club (479) 970-3461 Development and July 30, 31 in the North First Annual ‘Gathering of Ford www.arkansastinlizzies.com Atrium, Ford Research and Innovation. Contact Retirees’ (Canadian Lakes, Mich.) June 20 - 22: Eric Trosko at (800) 471-3020, ext. 101. Join the Canadian Lakes Ford Club for all Model T Tour, Macon, Missouri June 12 - 15: or part of a three-day, two-night event of Contact: Illiamo Model T Club golfing, swimming, tennis, horseback riding, (660) 866-2211 or (660) 766-2404 Bavarian Festival Soaring Casino play or just relaxing in July 11 - 13: (Frankenmuth, the residential and recreational community of Model T & Show, Ceresco, Nebraska Mich.) Canadian Lakes, Mich. Ford retirees can mix and Contact: Doug Swanson, Swanson FERA and the mingle in a wonderful summer activity setting and Classic Car Show (888) 870-0957 just three hours from and 1-1/2 hours Frankenmuth Civic Events Council invite you to July 17 - 19: the 2008 50th Anniversary Bavarian Festival. from Traverse City. This event coincides with the end of the Traverse City Cherry Festival. Activity World of the Model T Conference, Dearborn Print the certificate from the main page of the Contact: Henry Ford Museum (800) 982-6125 FERA Web site (www.FERA.org) and present it and accommodation details are available by at the festival ticket booth in Heritage Park for contacting St. Ives Resort at (231) 972-4837 ext. July 20 - 26: a three-day pavilion pass for $12 per person, 239, by visiting www.StIvesGolf.com and clicking Model T Centennial Party, Richmond, Indiana OR receive $1 per person off the regular on the Ford Blue Oval or calling Ken Reuther at Contact: Model T Ford Club of America (866) 825-9878 pavilion admission price Friday and/or Saturday. (231) 972-8819. Don’t delay – space is limited. July 28 - Aug. 1: Discounts do not apply to carnival rides. Lodging July 27: available in Frankenmuth or Birch Run. Call Doughty 500 Model T Tour, Chetek, 1-800-FUN-FEST (386-3378). All Ford Car Show (St. Contact: www.doughty500.com Louis, Mo.) June 14: July 30 - Aug. 3: Fords Unlimited is having Air Venture 2008, Oshkosh, Wisconsin Ford Runners’ Club Corporate Cup its 22nd All Ford Car Show Contact: (920) 426-4800 Relays (Southfield, Mich.) at J.S. McDennell Park. For Aug. 2: more information, contact Jim Biermann at The winning Ford Runners’ Club takes part in Model T Anniversary, Spencer, North Carolina the Corporate Cup Relays against teams from 314-608-3103 or click to www.FordsUnlimited. Contact: Bob Hopkins, North Carolina General Motors, and others in a 10k Transportation Museum run, 5k run, 5k walk, sprint and distance relays (704) 636 -2889, ext. 256 or www.nctrans.org on June 14 from 7:45 a.m. – 3 p.m. Runners Aug. 15 - 16: and walkers of all skill levels are welcome. Woodward Dream Cruise Model T Display, NOTE Open to all Ford hourly, salary, agency and Ferndale, supplemental employees and retirees. The site Contact: www.woodwarddreamcruise.com is Southfield High School, 10 Mile and Lahser Aug. 29 - 31: Roads. Event helps raise funds for the Michigan Please send information on your 20th Annual Ohio Model T Jamboree, Jackson, Ohio Humane Society and Southeast Michigan local upcoming Ford-related Special Olympics. Contact Jeff Roggenbuck at Contact: Richard Wells, Ohio River Valley T’s events to [email protected] (740) 820-8381 [email protected] or call 313-805-5757. EDITOR ' S

FORD World June 2008 19 Back Page They said it FARMER SURPRISED BY 9 MILLIONTH MUSTANG “Drum roll, please. Iowa soybean farmer Thomas Krumm had The number one no idea he’d end up owning a piece of history vehicle choice of taxi – he just wanted a new blue Ford Mustang GT buyers in the Big convertible. Krumm, who lives in Story City about 45 minutes Apple was the Ford outside Des Moines, didn’t know his was the 9 millionth Mustang until he Escape Hybrid, with learned of it in a phone call with his local dealer on May 5. “I’m glad (dealer) John Gookin called and told me about this or else I’d have worn my a whopping 845 units scrubby work boots,” Krumm said at the celebration the next day. “Normally, I drive a Ford out there pounding the F-150 truck because I’m a farmer, so this will be my weekend car.” pavement....” The Iowa man got interested in Mustangs through his daughter, Rachel, who saved enough money to buy her first Mustang at 17. A member of the Iowa National Guard, she – AutoblogGreen, April 28 leaves this month for a tour of duty in Iraq. Krumm’s special steed was built on the afternoon shift at the AutoAlliance International plant in Flat Rock, Mich., on April 16. He should feel right at home in his new Mustang – its seats are made from the auto industry’s first use of soybean-based flexible foam. Baywatch duty Ford Motor Company has presented the Los Angeles County Lifeguard Service “The 2008 Ford Edge lives with the first 10 of a fleet of 45 eco- friendly Escape Hybrids with Intelligent up to its name. Its eye- four-wheel drive, specially equipped for catching design gives it a rescue patrol along 72 miles of Southern Dennis Ross Gary Haggart distinct edge over other California beach. A clip job – in support five-passenger vehicles When engineer Gary Haggart went bald during chemotherapy, fellow workers in many ways … sharp at the Rawsonville, Mich. components plant styling … but the interior decided to show their “one team” spirit is where the Edge really in a visible way – by getting their heads shaved in solidarity. shines.” Ford Escape Hybrid on lifeguard duty – Tom Keane, More than a dozen hourly and salaried San Francisco Chronicle Ford added a roof rack, front seat employees took part in the clip job and, radio rack and a storage box for medical through pledges, raised U.S. $3,000 for the “The main selling points equipment to the bright yellow vehicles. American Cancer Society. The new Escape Hybrids also provide “He’d lost all his hair so we figured we (of the Taurus X) are its better mileage, headroom and visibility could do that, too,” said area manager high safety ratings and than the agency’s current Nissan Frontier Seldon Swain. Organizing the in-plant pickups. Like Mike, Mitch, C.J. and barber shop and lunch were Dennis Ross, roomy third-row seat … Caroline from the TV show Baywatch, Greg Hounshell and Lynn White, while the handling is up for they also look good in slow motion. Mike Boetcher captured the scene. whatever the driver is Fascinating Fact: emissions rules, Ford’s PZEVs likely to throw it into … include the Focus, the Taurus Grilling a backyard hamburger and Sable, the Taurus X, the definitely a more viable produces as much smog-forming Escape and Mariner Hybrids product....” emissions as driving a Partial Zero and the Fusion and Milan 2.3 liter with – Joe Wiesenfelder, Emissions Vehicle (PZEV) for three hours automatic transmissions – all of which Boston Globe and cars.com or 180 miles. Sold in states with California are actually cleaner than some hybrids. 20 FORD World June 2008 give to dad. s a v e 15 % .

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