Ford Extends Tax Benefit Preservation Plan

Ford Motor Company

today announced that its Board of Directors approved a three-year extension of its current tax benefit preservation plan, which is designed to preserve Ford's substantial tax assets. The current plan, adopted in September 2009, had been scheduled to expire yesterday. The extension approved by the Board of Directors extends the final expiration date of the plan to Sept. 30, 2015. The purpose of the plan is to protect shareholder value by safeguarding significant tax assets. It is similar to tax benefit preservation plans adopted by many other public companies with significant tax attributes. At year-end 2011, Ford had tax attributes, including net operating losses, capital losses and tax credit carry forwards, that would offset approximately $16 billion of taxable income. Ford can utilize these tax attributes in certain circumstances to offset taxable income and reduce its federal income tax liability. Ford's ability to use the tax attributes would be substantially limited if there were an "ownership change" as defined under Section 382 of the Internal Revenue Code and Internal Revenue Service rules. As part of the plan, in 2009 the Board of Directors declared a dividend of one preferred share purchase