Performance Stock Rights (PSRs) Description for 2006 - 2008 Performance Period Executive Compensation & Benefits

Issued: March ___, 2006

What are PSRs?

PSRs give you the opportunity to earn a specified number of shares of Ford common stock to be issued following the end of the performance period, pending the Company's performance on the metrics applicable to the grant. It is different from a stock option grant that gives you the right to purchase shares of Ford stock at a specified price during a certain time period.

Who is eligible to receive PSRs and when are they awarded?

LL2 and above employees are eligible to receive PSR grants in March of each year. The three-year performance period begins in January of the year of grant and ends in December three years later. For example, the performance period for the March 2006 grant is from January 2006 through December 2008.

Final awards are paid following the end of the performance period in shares of Ford Common Stock, after withholding shares to cover taxes.

Initial PSR grants and final awards are subject to approval of the Compensation Committee.

Will I receive dividends on my PSR grant?

During the performance period, you will receive cash dividend equivalent payments that match the dividends paid to Ford shareholders based on 100% of the payout