SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report May 23, 1996
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(Date of earliest event reported)
FORD MOTOR COMPANY
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-3950 38-0549190
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(Commission File Number) (IRS Employer Identification No.)
The American Road, Dearborn, Michigan 48121
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
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Item 5. Other Events.
News release dated May 23, 1996, filed as Exhibit 20 to this
Current Report on Form 8-K, is incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
EXHIBITS
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Designation Description Method of Filing
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Exhibit 20 News release dated Filed with this Report.
May 23, 1996
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized on the
date indicated.
FORD MOTOR COMPANY
(Registrant)
Date: May 23, 1996 By:/s/Peter Sherry, Jr.
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Peter Sherry, Jr.
Assistant Secretary
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EXHIBIT INDEX
DESIGNATION DESCRIPTION PAGE
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Exhibit 20 News release dated
May 23, 1996
FORD Financial Services Group
NEWS
Contact: Mary Joseph, Ford Financial Services
313-322-4466
Bill Selover, USL Capital
415-627-9578
FORD SELLS USL CAPITAL'S RAIL SERVICES UNIT
DEARBORN, Mich., May 23 -- Ford Motor Company today
announced an agreement to sell all the assets of USL
Capital's Rail Services business to Chicago-based First
Union Rail Corp., the freight car leasing subsidiary of
First Union Corp. The sale price is approximately $900
million, subject to adjustments at closing.
Ford also said it is pursuing the sale of other USL
Capital businesses. USL Capital, a diversified
commercial financing and leasing company headquartered
in San Francisco, is part of Ford's Financial Services
Group.
Ford began a strategic review of its nonautomotive
financing businesses last fall and announced that the
study could result in a partial or complete sale of USL
Capital.
"The company concluded that the highest value for
these assets could be realized by selling the various
pieces separately," said Ken Whipple, president of the
Financial Services Group.
The Rail Services unit, which includes over 26,000
rail cars, represents 7 percent of USL Capital's
business. It has 30 employees located in San Francisco,
Chicago and Houston.
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Proceeds from the sale of the Rail Services
unit will be used to pay down Financial Services Group
debt, further strengthening its capitalization, including
the pay down of a portion of USL Capital's short-term debt.
Ford purchased USL Capital, then known as U.S. Leasing, in
1987 for $512 million. USL Capital manages assets of
$9.7 billion, has 640 employees and 70 branches in the
U.S. Pre-tax earnings were $300 million in 1995.
The sale of the Rail Services unit is expected to
close by the end of July and is subject to obtaining various
regulatory approvals. USL Capital's five other
businesses are: Business Equipment Financing, Fleet
Services, Transportation and Industrial Financing,
Municipal and Corporate Financing, and Real Estate
Financing. Discussions continue with potential buyers,
and the company expects to announce a series of sales on
an ongoing basis and complete the sale of the majority
of USL Capital's assets by the end of summer.
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5-23-96
