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May 2009 Sales: Ford Motor Company

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Fusion within spitting distance of Accord (Accord reported 22K for May)

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May Sales PDF

STRONG NEW PRODUCTS DRIVE FORD SALES, SHARE IN MAY

*Ford Fusion, Ford Flex and hybrids sets sales records

*MKS and MKZ sedans help Lincoln brand post sales increase

*Ford, Lincoln and Mercury market share grows to highest level since 2006

*Ford sales totaled 155,954, up 20 percent versus April, and the highest sales for any month since July 2008

*Stronger sales reduce inventories, prompting Ford to announce production increases for second, third quarter

*Ford kicks off summer with "Drive the Ford Difference" promotion

DEARBORN, Mich., June 2, 2009 – New products helped Ford Motor Company achieve its highest market share in three years, even as Ford decreased incentive spending in May. Ford, Lincoln and Mercury sales totaled 155,954, up 20 percent versus April and the highest sales for any month since July 2008.

Sales of the Ford Fusion were 19,786, Ford Flex sales were 4,305 and sales of the company's hybrid vehicles totaled 3,906 – setting three new sales records. In addition, Lincoln's new sedans, the MKZ and MKS, helped the luxury brand post a 2 percent sales increase.

"Consideration for our new products is increasing," said Ken Czubay, Ford vice president, Sales and Marketing. "Even as the competitive environment intensifies, Ford's relentless pursuit of quality, fuel efficiency, smart technology and appealing designs is winning new customers."

The previous Fusion record was set last month with 18,321 cars when Fusion cracked the foreign stranglehold on the mid-size sedan market. It was the first time since July 2002 that a domestic car was one of the top three mid-size cars selling to retail customers. Recent independent studies rate Fusion and the Mercury Milan as having the best predicted reliability among all mid-size sedans. In addition, both models are rated the most fuel-efficient sedans in America.

Combined sales for the Fusion and Milan hybrids and the Ford Escape and Mercury Mariner hybrids totaled 3,906 – a new company record for hybrid sales in a single month. The previous record was set in April 2006, with 3,420 hybrids.

The previous Flex record also was set last month with 3,190 vehicles. Combined sales for all crossover utilities were 35,582, Ford's strongest crossover sales month since last May.

May marked the first full sales month of the 2010 Ford Mustang. Mustang sales totaled 8,812, the highest sales month since last July. This year marks the 45th anniversary of America's legendary pony car.

Lincoln was one of the few brands in the U.S. to achieve a sales increase in May. Lincoln sales totaled 8,566, up 2 percent versus a year ago. Lincoln's sedans, the all-new MKS, redesigned MKZ and venerable Town Car paced Lincoln's sales increase. A new Lincoln full-size crossover, the MKT, will debut later this year.

Inventories and Production

At the end of May, Ford vehicle inventories totaled 350,000 (equivalent to 56 days' supply). This level was 41,000 vehicles lower than at the end of April and 210,000 vehicles lower than a year ago.

Given tightly controlled inventories and the strength of its new products in the market, Ford is increasing second quarter North American production by 10,000 vehicles (to 445,000). Ford also announced it plans to build 460,000 vehicles in the third quarter, an increase of 42,000 vehicles compared with third quarter 2008.

"At Ford, the future is now," said Czubay. "New products account for 50 percent of our sales, and demand for these products is driving our market share gains. We encourage customers who are in the market for a new vehicle to 'Drive the Ford Difference.' "

To provide added incentive, Ford is announcing a new summer merchandising program, Drive the Ford Difference. From June 2 through June 30, Ford will cover up to three months' worth of payments up to $2,100, and Ford Credit will offer 0 percent financing on select Ford, Lincoln and Mercury vehicles.

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Go FORD! Hold down the fort! The calvary is coming!

Preach it mr. Oldsmoboi!

Chris

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Good to see.. the #s for my faves are doing well.

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You know there is a disturbance in the force when the ONLY brand out of all major brands to see a sales increase is Lincoln.

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I think that the new Fusion is going to be a hit. The hybrid is class leading and all the other power trains are now at least among best in class. 6 speeds all around, AWD option best handling car in class most reliable very fuel efficient, SYNC, Nav... This is a really great car!

After a year or two orf traction in the market and some improvment on the economy could this be like the Taurus in 1986?

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Also in the pony car wars, the new mustang posted 8812 sales this month. The Camaro 5463. The mustang was down less than 1000 from the same month last year. I know it's way to early to make any conclusions in terms of sales crown but so far it doesn't appear if the Camaro is making much of a dent in the new stang. It could be that most Camaro fans are just so different from most mustang fans that even though they are in the same segment there isn't much cross shopping...

Anyways, way to soon to tell as there are still some 09 stangs on the lots, neither the 2010 mustang or camaro are fully ramped up and the summer is when these cars sell.

It will be interesting to revisit this when we have all the sales data through the end of August.

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I think that the new Fusion is going to be a hit. The hybrid is class leading and all the other power trains are now at least among best in class. 6 speeds all around, AWD option best handling car in class most reliable very fuel efficient, SYNC, Nav... This is a really great car!

After a year or two orf traction in the market and some improvment on the economy could this be like the Taurus in 1986?

After all the hype in the past about the 2005 Five Hundred, 2006 Fusion, and 2008 Taurus being the "1986 Taurus" and never quite achieving the same success, it's good to see that Ford might have finally hit the mark and built something that can live up to its predecessor.

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let me tell you, i have driven an 010 fusion and indeed it is the real deal, imo better than the accord. (motor trend said as much in this months issue and then balked and gave the edge to accord based upon "lower cost of ownership" JERKS) the 09 was deeply discounted and the 010 is desirable, ford will move tons of fusions.

mks is a disappointment.

flex? wow i am shocked at the volume of that although 10k in discounts will do that.

escape and mustang holding tight

imagine when the new taurus is on board and then the fiesta.

new explorer in a year or two and transit connect will sell well i think.

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Ford will be a force to be reckoned with. As said above, lots of new models coming, plus the great Fusion. Go Ford! Maybe New GM and Ford can beat down the toy.

Lincoln is only up because of the Town Car. 103% sales increase! LOL! People must be stocking up before Ford kills it.

mks is a disappointment.

A little but still outsold it's Caddy competition (STS) by two to one. But then the STS (as much as I like it) is a disappointment too.

Edited by DBeaSSt
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Go Ford!

I would love to see the Fusion pass the Accord (and Camry) in sales, and I hope it does. That's what happens when you don't half ass the MCE.

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Go Ford!

I would love to see the Fusion pass the Accord (and Camry) in sales, and I hope it does. That's what happens when you don't half ass the MCE.

Unfortunately, until Ford commits to more capacity they won't be able beat the Camry or the Accord over any period of time. This months sales, although skewed by 2009 model closeouts, is right at capacity for Hermasillo. This is a prime opportunity for Ford to commit to a retail only sales channel on this car. It has historically been running at a 12% rental fleet rate (low by domestic standards) and the overall improvement of the 2010 model certainly implies that they can do it. I too have driven a 2010 only a week after having a new Accord as a rental for a couple of days. There is no gap between the two. The Fusion feels more nimble out of the two and is quieter as well. Other than that the level of refinement is an equal match. However, perception is a strong thing especially amongst the Honda crowd that seems to not even be aware other brands of vehicles do exist.

When and if the economy heats up this car will go a long way towards Ford having a surprise profitable quarter this year if there is a rebound in the construction industry that will allow more F-series to be sold as well.

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