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Ford Motor Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 11:03 PM ET December 02 2008


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And on financing, one of the reasons that we’re keeping our production very much in line with demand is we’re trying to control dealer stocks to help their financing burden.

Operator

Your next question comes from the line of Patrick Archambault representing Goldman Sachs. Please proceed.

Patrick Archambault - Goldman Sachs

Hi good morning.

Lewis Booth

Hi Patrick.

Patrick Archambault - Goldman Sachs

I wanted to follow up on the DOE loan program issue. I guess yesterday there was a summary sheet that came out and I mean one of the things that was kind of new in there was they provided a base year for fuel economy improvements, right? It was previously unspecified and they said 2005. I guess the reaction that people seemed to have to that was just would this really kind of constrain the number of programs that might qualify for this because I guess most of us thought they would make it as broad as possible just to help maximize the impact from a liquidity perspective. I just wanted to get your thoughts because that seems like kind of a high hurdle for 25% improvement.

Alan Mulally

Well, we were very pleased with that development because we could have chosen a later year, too and so going back to 2005 we think is a positive thing to accelerate the maximum amount of technology. I think the other part that we just don’t know yet is how broad the interpretation will be of the guidelines and the breadth of the enabling technology and the plant conversions that we will be able to apply and we just don’t know that yet until we get into the process.

Patrick Archambault - Goldman Sachs

Okay. I mean do you have a general sense if, on that definition, how much of your sort of U.S. launches that you have coming in the foreseeable future might just immediately qualify and meet that 25% increase?

Alan Mulally

We do not but we are absolutely studying that now. Now that we have the guidelines, we just got them yesterday.

Patrick Archambault - Goldman Sachs

Okay.

Alan Mulally

We will let you know sooner rather than later because another neat thing about the plan is that they, from our understanding, they want to move decisively and we think there’s a chance of even being able to come to some conclusions as early as the fourth quarter. So we are going to move very aggressively to comply.

Patrick Archambault - Goldman Sachs


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