Ford Motor Credit Reports Q2 2008 Preliminary Results

DEARBORN, Mich., July 24 /PRNewswire-FirstCall/ -- Ford Motor Credit Company reported a net loss of $1,427 million in the second quarter of 2008, down $1,489 million from net income of $62 million a year earlier. On a pre-tax basis, Ford Motor Credit reported a loss of $2,380 million, compared with earnings of $112 million in the previous year. Excluding a $2.1 billion impairment charge for operating leases, Ford Motor Credit incurred a pre-tax loss of $294 million in the second quarter of 2008.

The decrease in pre-tax earnings primarily reflected the impairment charge for operating leases, higher depreciation expense for leased vehicles, and higher provision for credit losses. These were offset partially by the non-recurrence of net losses related to market valuation adjustments from derivatives, higher financing margin, a gain related to the sale of approximately half of our ownership interest in our Nordic operations, and lower operating costs.

During the second quarter of 2008, higher fuel prices and the weak economic climate in North America resulted in a pronounced shift in consumer preferences from full-size trucks and traditional sport utility vehicles to smaller, more fuel-efficient vehicles. This shift in consumer preferences combined with a weak economic climate caused a significant reduction in auction values for used full-size trucks and traditional sport utility vehicles. In addition, Ford Motor Credit completed its quarterly North America operating lease review and projected that lease-end residual values would be significantly lower than previously expected for full-size trucks and traditional sport utility vehicles. As a result of these market factors and Ford Motor Credit's portfolio review, Ford Motor Credit determined a pre-tax impairment charge of $2.1 billion was required.

"Dramatic, rapid marketplace changes are driving increased weakness in the vehicle auction markets, in turn affecting the entire industry, including Ford Motor Credit," said Mike Bannister, chairman and CEO of Ford Motor Credit. "We regularly review and adjust lease residual values to align with market conditions. In addition, the core of our business remains strong, because it is built upon lending practices, risk management and collections activities that are consistent and prudent."

On June 30, 2008, Ford Motor Credit's on-balance sheet net receivables totaled $136 billion, compared with $141 billion at year-end 2007. Managed receivables were $140 billion on June 30, 2008, down from $147 billion on December 31, 2007. The lower receivables were more than explained by lower North America receivables, the impact of divestitures, and the impairment charge for operating leases, offset partially by changes in currency exchange rates.

    On June 30, 2008, managed leverage was 10 to 1.

    Ford Motor Credit Company LLC is one of the world's largest automotive
    finance companies and has supported the sale of Ford Motor Company
    products since 1959.  Ford Motor Credit is an indirect, wholly owned
    subsidiary of Ford.  It provides automotive financing for Ford, Lincoln,
    Mercury, Jaguar, Land Rover, Mazda and Volvo dealers and customers.  More
    information can be found at 
www.fordcredit.com and at Ford Motor
    Credit's investor center, 
www.fordcredit.com/investorcenter/ 
    - - - - -
    *  The financial results discussed herein are presented on a preliminary
       basis; final data will be included in our Quarterly Report on Form 10-Q
       for the quarter ended June 30, 2008.



                FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
                                 PRELIMINARY
                       CONSOLIDATED STATEMENT OF INCOME
                 For the Periods Ended June 30, 2008 and 2007
                                (in millions)



                                           Second Quarter    First Half
                                          --------------- ---------------
                                            2008    2007    2008   2007
                                          ------- ------- ------- -------
                                             (Unaudited)    (Unaudited)
    Financing revenue
      Operating leases                    $ 1,695 $ 1,554 $ 3,402 $ 3,049
      Retail                                  779     837   1,638   1,696
      Interest supplements and other
       support costs earned from
       affiliated companies                 1,247   1,125   2,493   2,192
      Wholesale                               438     552     915   1,092
      Other                                    36      43      71      90
                                          ------- ------- ------- -------
         Total financing revenue            4,195   4,111   8,519   8,119
    Depreciation on vehicles subject to
     operating leases                      (4,090) (1,450) (5,904) (2,925)
    Interest expense                       (1,901) (2,166) (3,893) (4,315)
                                          ------- ------- ------- -------
      Net financing margin                 (1,796)    495  (1,278)    879
     Other  revenue
            Investment  and  other  income
              related  to  sales  of  receivables                  48          102          117          211
            Insurance  premiums  earned,  net                      42            43            82            87
            Other  income,  net                                              303            42          421          418
                                                                                    -------  -------  -------  -------
                    Total  financing  margin  and
                      other  revenue                                      (1,403)        682        (658)    1,595
        Expenses
            Operating  expenses                                            379          450          746      1,006
            Provision  for  credit  losses                          545            82          872          128
            Insurance  expenses                                              53            38            72            55
                                                                                    -------  -------  -------  -------
                    Total  expenses                                            977          570      1,690      1,189
                                                                                    -------  -------  -------  -------
        Income/(Loss)  before  income  taxes            (2,380)        112    (2,348)        406
        Provision  for/(Benefit  from)  income
          taxes                                                                      (945)          50        (936)        151
                                                                                    -------  -------  -------  -------
            Income/(Loss)  before  minority
              interests                                                      (1,435)          62    (1,412)        255
        Minority  interests  in  net  income  of
          subsidiaries                                                              0              0              0              0
                                                                                    -------  -------  -------  -------
            Income/(Loss)  from  continuing
              operations                                                    (1,435)          62    (1,412)        255
        Gain  on  disposal  of  discontinued
          operations                                                                  8              -              9              -
                                                                                    -------  -------  -------  -------
            Net  income/(loss)                                      $(1,427)$        62  $(1,403)$      255
                                                                                    =======  =======  =======  =======



                                FORD  MOTOR  CREDIT  COMPANY  LLC  AND  SUBSIDIARIES
                                                                  PRELIMINARY
                                                    CONSOLIDATED  BALANCE  SHEET
                                                                (in  millions)

                                                                                                          June  30,          December  31,
                                                                                                              2008                      2007
                                                                                                      ------------    -------------
                                                                                                        (Unaudited)
        ASSETS
          Cash  and  cash  equivalents                                              $  12,673              $  14,137
          Marketable  securities                                                            7,425                    3,155
          Finance  receivables,  net                                                  109,088                111,468
          Net  investment  in  operating  leases                                26,553                  29,663
          Retained  interest  in  securitized  assets                            380                        653
          Notes  and  accounts  receivable  from  affiliated
            companies                                                                                      875                        906
          Derivative  financial  instruments                                      2,148                    2,811
          Other  assets                                                                              5,259                    6,230
                                                                                                          --------              --------
                    Total  assets                                                              $164,401              $169,023
                                                                                                          ========              ========

        LIABILITIES  AND  SHAREHOLDER'S  INTEREST
        Liabilities
            Accounts  payable
                Customer  deposits,  dealer  reserves  and  other  $    1,866              $    1,837
                Affiliated  companies                                                        1,919                    2,308
                                                                                                          --------              --------
                    Total  accounts  payable                                                3,785                    4,145
            Debt                                                                                        137,519                139,411
            Deferred  income  taxes                                                          3,685                    5,380
            Derivative  financial  instruments                                    1,297                    1,376
            Other  liabilities  and  deferred  income                          5,810                    5,314
                                                                                                          --------              --------
                    Total  liabilities                                                      152,096                155,626

        Minority  interests  in  net  assets  of  subsidiaries                0                            3

        Shareholder's  interest
            Shareholder's  interest                                                        5,149                    5,149
            Accumulated  other  comprehensive  income                        2,038                    1,730
            Retained  earnings                                                                  5,118                    6,515
                                                                                                          --------              --------
                    Total  shareholder's  interest                                  12,305                  13,394
                                                                                                          --------              --------
                    Total  liabilities  and  shareholder's
                      interest                                                                    $164,401              $169,023
                                                                                                          ========              ========



                                FORD  MOTOR  CREDIT  COMPANY  LLC  AND  SUBSIDIARIES
                                                          OPERATING  HIGHLIGHTS


                                                                                  Second  Quarter                First  Half
                                                                                ----------------        ----------------
                                                                                  2008            2007            2008            2007
                                                                                ------        ------        ------        ------
        Financing  Shares
        United  States
              Financing  share  -  Ford,  Lincoln
                and  Mercury
                    Retail  installment  and  lease          39%              38%              38%              37%
                    Wholesale                                                77                78                77                78

        Europe
              Financing  share  -  Ford
                    Retail  installment  and  lease          28%              27%              27%              26%
                    Wholesale                                                98                97                97                97

        Contract  Volume  -  New  and  used
          retail/lease  (in  thousands)
        North  America  segment
              United  States                                            312              354              587              659
              Canada                                                            48                59                79                94
                                                                                -----          -----          -----          -----
                    Total  North  America  segment          360              413              666              753

        International  segment
              Europe                                                          177              186              355              371
              Other  international                                  29                47                78              106
                                                                                -----          -----          -----          -----
                    Total  International  segment          206              233              433              477
                                                                                -----          -----          -----          -----
                          Total  contract  volume                566              646          1,099          1,230
                                                                                =====          =====          =====          =====

        Borrowing  Cost  Rate*                                    5.4%            6.1%            5.5%            6.0%

        Charge-offs  (in  millions)
            On-Balance  Sheet  Receivables
                Retail  installment  and  lease          $232            $116            $458            $218
                Wholesale                                                    12                  8                13                12
                Other                                                              2                  1                  4                  2
                                                                                -----          -----          -----          -----
                    Total  charge-offs  -
                      on-balance  sheet  receivables    $246            $125            $475            $232
                                                                                =====          =====          =====          =====

            Total  loss-to-receivables  ratio        0.70%          0.36%          0.67%          0.34%

            Managed  Receivables**
                Retail  installment  and  lease          $240            $130            $480            $250
                Wholesale                                                    12                  8                13                12
                Other                                                              2                  1                  4                  2
                                                                                -----          -----          -----          -----
                    Total  charge-offs  -
                      managed  receivables                      $254            $139            $497            $264
                                                                                =====          =====          =====          =====

            Total  loss-to-receivables  ratio        0.70%          0.38%          0.68%          0.36%

        -  -  -  -  -
        *    On-balance  sheet  debt  includes  the  effects  of  derivatives  and  facility
              fees.
        **  See  appendix  for  additional  information.



                                FORD  MOTOR  CREDIT  COMPANY  LLC  AND  SUBSIDIARIES
                                                                      APPENDIX
 


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