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IMMEDIATE RELEASE
FORD TO COMPLETE $10 BILLION DISTRIBUTION
TO SHAREHOLDERS THROUGH REPURCHASE PLAN
DEARBORN, Mich., Sept. 14, 2000 -- The Ford Motor Company Board of Directors
today approved a repurchase plan of up to $5 billion of common and Class B
stock. Today's action adds to the original plan to distribute up to $10 billion
in cash to shareholders. The shares would be repurchased periodically in the
open market with the plan expected to be concluded substantially by the close of
2001.
"Today's action goes beyond what we announced in April," said Henry Wallace,
group vice president and chief financial officer. "At that time, we said we were
committed to distributing $10 billion in cash to our shareholders. The Value
Enhancement Plan has been completed successfully, and shareholders elected to
receive a total of $5.7 billion. Now, based on our confidence and our financial
strength, we have increased the total planned cash distribution by $700
million," Wallace said.
* * *
Wallace also noted that the annual dividend rate prior to the Value Enhancement
Plan was $2 per common and Class B share. Ford has calculated that an annual
dividend of $1.14 would preserve the total cash payout to shareholders who
elected the all-stock option under the Value Enhancement Plan. Under that
option, shareholders received 1.748 shares for each share of common and Class B
stock they owned. Ford common and Class B shares now outstanding total 1.89
billion. Actual fourth-quarter dividends will be declared by the board of
directors in October for payment in December.
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The stock repurchase plan is in addition to the ongoing anti-dilutive share
repurchase program. That program began in 1998 and is designed primarily to
offset the exercise effect of stock options.
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9-14-00
