Banking Relationships:

1

• Banking Relationships
• A Corporate Perspective
• BAFT Conference, Washington D.C.
• February 8, 2001

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Mary A. Lehmann

• Director of Global Banking Short Term Funding
• Ford Motor Company
• 16 years at Ford Motor Company
• Responsible for Fords/Ford Credits banking
  relations with 100 global banks, Ford Credits
  commercial paper program, and Ford/Ford Credits
  fixed income investor relations program
• Treasury experience includes FX Managing
  Corporate Cash Investments, Global Treasury
  Operations, LT Funding, International Affiliate
  Financing

3
Banking RelationshipsA Corporate Perspective

• Fords Bank Credit Lines
• Bank Group Composition
• Relationship Management
• Challenges
• Actions to Address Challenges
• QA

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Fords Bank Credit Lines

• 32.2 billion of committed credit through Global
  Credit Lines global lines are available to
  Ford, Ford Credit, or any majority-owned
  affiliates
• Bi-lateral
• 97 active institutions in group (global and
  diverse)
• All providers have high credit quality

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Fords Bank Credit Lines (contd)

• 70 Five-Year Evergreen
• Gives Ford protection against cyclical nature of
  industry
• Remainder are 364-day with Four Year Term-Out
  Option
• More attractive to banks given capital treatment
• Fords agreements have no MAC clauses

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Fords Global Credit Lines
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Banks by Region
Austria Belgium Denmark Finland France Germany Ire
land Italy Netherlands Norway Portugal Spain Swede
n Switzerland United Kingdom
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Global Facilities by Region
Total Global Facilities 32.2 million (excl.
FCAR)
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Relationship Management

• Credit lines to investment-grade companies
  provide sub-target returns on equity for banks
• Ancillary business opportunities are imperative
  to retaining credit lines
• At Ford, Global Banking Department is focal point
  for this effort
• Staffed to achieve this goal in addition to
  Director, 2 full time Relationship Managers

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Challenges

• Banking industry consolidation
• 1 1 ? 2
• Commercial banks and I-banks lines are blurring
  in terms of focus and capability
• Stricter capital adequacy guidelines
• Economic use of Balance Sheet is becoming a
  greater focus for banks

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Challenges (contd)

• Globalization of business processes
• Makes it more difficult for smaller banks to
  compete for ancillary business
• Tightening credit markets
• Rewarding credit line commitments vs. rewarding
  creativity

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Actions to Address Challenges

• Continue to identify banks core competencies
• Improve tracking of bank profitability on Ford
  relationship, enabling more proactive stance
• Develop alternative sources and investors
• Compensate with price for unique facility
  structure

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Banking RelationshipsA Corporate Perspective

• Q A