2010 Highlights...

Identified water as a top sustainability concern

Refined our corporate water strategy

Reduced water use per vehicle by 8.5 percent in 2010

Assessing our water footprint throughout the vehicle lifecycle

Water availability, quality and access have rapidly become critical global issues extending well beyond environmental concerns. Water is essential to every element of human existence on our planet. It is vital for health, indispensable for agriculture and biodiversity, necessary for industry and critical for community development. The need for clean water cuts across all social, economic, environmental and political boundaries.

At Ford, water conservation is an integral part of our sustainability strategy, alongside greenhouse gas reduction. Many key vehicle manufacturing processes require the use of water, and water is used at every point in our supply chain. Our water-related risks come not only from being a direct water consumer, but from being a large purchaser of water-intensive materials, parts and components.

In preparation for this 2010 Sustainability Report, Ford conducted a new materiality analysis to determine the issues of highest priority for our Company and our stakeholders. For the first time, water emerged among the top concerns, and we now include it among the top material issues for our Company. Indeed, we recognize that our long-term success is dependent upon thriving communities and ecosystems, both of which require water.

Although we have been working on water-related issues for some time, at the end of 2010, we refined our Ford Motor Company water strategy, and our Board of Directors reviewed our water-related progress in early 2011. The water strategy is described in this section of the report along with details of our progress, targets and water-related impacts, among other topics.

To understand our water impacts, we have undertaken an assessment of our water footprint throughout the lifecycle of our vehicles.

Ford recognizes water as a human rights issue – a “right to water.” Companies that underperform on water issues will face scrutiny over human rights violations – especially those companies operating in water-stressed areas.

We see water as a local issue directly influenced by availability, quality and economics. We target facility water reductions based on local needs, while using a holistic, company-wide approach.