As shown on slide 38, despite the recent changes in the global market place, our plan to invest in new smaller, fuel-efficient vehicles in a more balanced global-product portfolio remains in place. In combination with the business improvements achieved recently we expect the ‘One Ford’ product development vision and process to enable us to deliver a range of highly acclaimed smaller vehicles in what we call the global segments, that is B, C, CD, and commercial van segments beginning in the middle of next year. By 2010 about 40% of our entries in North America in these segments will be shared with Ford of Europe. Platforms and top hats, with 100% of the lineup in these segments shared with Ford of Europe by 2013. This compares with nothing in common today. And every new product we introduce, not only those in the global segments but also those that will be regional offers only, will provide fuel economy that will be best, or among the best, against pressing competition.

Our new products will be assembled in plants featuring lean manufacturing techniques and in nearly all facilities flexible body shops will make them competitive with the best in the business and many of our power trains will be built in plants that can flex, among the I4, V6, V8, or diesel engines. Importantly, we expect to have our vehicle assembly capacity matched to demand. As we make these changes we intend to continue fixing the fundamentals of the business, including a significant reduction in structural costs next year. We also will continue ongoing consolidation of our dealer network.

As shown here on slide 39, to support new product investments and offset continued industry weakness, Ford has implemented a series of actions that are expected to improve automotive cash by a total of $14.0 billion to $17.0 billion through 2010. The actions include, reducing annual capital spending to between $5.0 billion and $5.5 billion, enabled to a large part by the efficiency in Ford’s global product development system, nearly all planned product programs remain on track and on time aside from a few select vehicles that will be deferred until industry volumes recover. In addition, we are reducing spending for large vehicles in declining segments, reducing North America’s salaried-personnel-related costs by an additional 10% by the end of January 2009, primarily through personnel reductions and attrition and additional actions impacting compensation are also being implemented. The reductions are in addition to personnel-related cost actions already taken in Ford North America and underway in Ford Europe, Ford Asia Pacific, and Africa and Volvo, further reduction of U.S. hourly employees by approximately 2,600 as a result of the most recent round of targeted buy outs, bringing Ford’s total U.S. hourly reduction through buy outs in 2008 to approximately 7,000, eliminating performance bonuses for global salaried employees for the 2008 performance year, eliminating mirror-pay increases for North America salaried employees in 2009, suspending matching funds for salaried employees in Ford’s savings and stock investment plan, reducing engineering manufacturing, information technology, and marketing costs through greater global efficiencies, in alignment with reduced volume assumptions, reducing inventories globally and achieving other working capital improvements.

While Ford Credit remains an important strategic asset integral to Ford, we are releasing some of Ford Credit’s capital to Ford Motor Company, consistent with Ford Credit’s smaller balance sheet and a focus on core-Ford brands; and continuing developing incremental sources of automotive funding, including divesting non-core operations and assets and implementing equity-for-debt swaps.

At this point I would like to add that we are working with a number of governments around the world to maximize the availability of funding to provide further protections against the uncertain economic environment that the entire automotive industry is facing. Incremental funding also would allow us to potentially accelerate selected actions in our plan.

Now on to slide 40, while business conditions to change quickly, our ‘One Ford’ plan is more right now than ever. As we have explained, we are more focused than ever on delivering our transformation plan and taking the swift and often difficult actions needed to respond to challenging and historic times with a global automotive industry. Businesses around the world are facing enormous challenges and Ford is no exception. However, Ford is focused on things we can control. The cash improvement actions we detailed earlier will maintain the strength of our balance sheet as we continue our product-led transformation. We have innovative new products that entered the market in the third quarter, including the Ford Fiesta and the Ford F-150. The new Ford Cougar is off to a great start in Europe and a new Ford Ka and Fiesta will enhance our lineups in Europe and in China. And importantly, we are launching our new vehicles with world-class quality.

Ford Credit remains an important strategic asset and is open for business as it funds dealers and offers loans to new car buyers. In spite of declining economic conditions, Ford Europe remained profitable in the third quarter. South America turned in another strong quarter and North America is on course to hit its cost reduction target as it focuses on transforming itself with more fuel-efficient, smaller cars, cross-over and utilities. In the next year our product offensive continues with a new Ford Mustang, a Lincoln MKZ, compression gas and new hybrid versions of both the Ford Fusion and the Mercury Milan, new Ford Focus with fuel-efficient eco-boost engines, as well as Lincoln MKS and Ford Flex with eco-boost engines.

In summary, these are challenging days, indeed, for the auto industry and I am more convinced than ever that Ford has the right plan. I continue to believe that Ford will be well positioned to take advantage of our scale and our product strengths worldwide.

Now we would be pleased to take your questions.

Lillian Etzkorn

Thank you, Alan. Ladies and gentlemen we are going to start the Q&A session now. We have about 45 minutes for the Q&A. We will begin with questions from the investment community and then take questions from the media, who are also on the call. In order to allow as many questions as possible within our time frame, I ask that you keep your questions brief so that we don’t have to move callers along after a couple of minutes. So, with that Katina may we have our first question?

Question-and-Answer Session

Operator

(Operator Instructions) Thank you. Ladies and gentlemen if you wish to ask a question please press “*1” on your touchtone telephone. If your question is answered or you wish to withdraw your question please press “*2”. Please press “*1” to begin and your first question comes from the line of John Murphy -representing Merrill Lynch. Please proceed.

John Murphy - Merrill Lynch

Good morning guys.

Alan Mulally

Good morning, John.

John Murphy - Merrill Lynch

I first wanted to ask about working capital. I think there are a lot of questions around this, but specifically on the $3.6 billion use in the quarter, that was much higher than we were expecting. It sounds like it was because of a payables issue. Wouldn’t that have been offset by your receivables being reduced so that there would have been a net impact that would have been smaller? And is this sort of an ongoing issue or is this really just a step-function down and we’re not going to see a big burn again from working capital in the fourth quarter, which is traditionally a little bit stronger? I was curious and just trying to understand what is going on there.