Ford Motor Credit Reports Q2 2008 Preliminary Results

In evaluating Ford Motor Credit's financial performance, Ford Motor Credit management uses financial statements and other financial measures in accordance with Generally Accepted Accounting Principles ("GAAP"). Included below are brief definitions of key terms, information about the impact of on-balance sheet securitization and a reconciliation of non-GAAP measures to GAAP:

    -- Managed receivables:  receivables reported on Ford Motor Credit's
       balance sheet, excluding unearned interest supplements related to
       finance receivables, and receivables Ford Motor Credit sold in
       off-balance sheet securitizations and continues to service

    -- Charge-offs on managed receivables:  charge-offs associated with
       receivables reported on Ford Motor Credit's balance sheet and
       charge-offs associated with receivables that Ford Motor Credit sold in
       off-balance sheet securitizations and continues to service

    -- Equity:  shareholder's interest reported on Ford Motor Credit's balance
       sheet


    IMPACT OF ON-BALANCE SHEET SECURITIZATION:  Finance receivables (retail
      and wholesale) and net investment in operating leases reported on Ford
      Motor Credit's balance sheet include assets included in securitizations
      that do not qualify for accounting sale treatment.  These assets are
      available only for repayment of the debt or other obligations issued or
      arising in the securitization transactions; they are not available to
      pay the other obligations of Ford Motor Credit or the claims of Ford
      Motor Credit's other creditors.  Debt reported on Ford Motor Credit's
      balance sheet includes obligations issued or arising in securitizations
      that are payable only out of collections on the underlying securitized
      assets and related enhancements.



    RECONCILIATION OF NON-GAAP MEASURES TO GAAP:


    Managed Leverage Calculation               June 30,       December 31,
                                                 2008             2007
                                              ----------      ------------
                                                     (in billions)
    Total debt                                  $137.5           $139.4
    Securitized off-balance sheet receivables
     outstanding                                   3.0              6.0
    Retained interest in securitized
     off-balance sheet receivables                (0.4)            (0.7)
    Adjustments for cash, cash equivalents
     and marketable securities*                  (19.6)           (16.7)
    Adjustments for hedge accounting**            (0.1)             0.0
                                                ------           ------
       Total adjusted debt                      $120.4           $128.0
                                                ======           ======

    Total equity (including minority interest)  $ 12.3           $ 13.4
    Adjustments for hedge accounting**            (0.2)            (0.3)
                                                ------           ------
       Total adjusted equity                    $ 12.1           $ 13.1
                                                ======           ======

    Managed leverage (to 1) = Total adjusted
     debt / Total adjusted equity                 10.0              9.8
    Memo: Financial statement leverage (to 1)
     = Total debt / Total equity                  11.2             10.4


    Net Finance Receivables and Operating
     Leases                                    June 30,       December 31,
                                                 2008             2007
                                              ----------      ------------
    On-Balance Sheet Receivables                     (in billions)
    Retail installment                          $ 70.9                      $  73.3
        Wholesale                                                                          35.9                          34.7
        Other  finance  receivables                                            3.3                            3.4
        Unearned  interest  supplements                                  (1.0)                              -
                                                                                                ------                      ------
              Finance  receivables,  net                                    109.1                        111.4
        Net  investment  in  operating  leases                        26.6                          29.7
                                                                                                ------                      ------
              Total  net  finance  receivables  and
                operating  leases                                                $135.7                      $141.1
                                                                                                ======                      ======

        Off-Balance  Sheet  Receivables  -  Retail            $    3.0                      $    6.0

        Managed  Receivables
        Retail  installment                                                    $  73.9                      $  79.3
        Wholesale                                                                          35.9                          34.7
        Other  finance  receivables                                            3.3                            3.4
        Unearned  interest  supplements                                        -                                -
                                                                                                ------                      ------
              Finance  receivables,  net                                    113.1                        117.4
        Net  investment  in  operating  leases                        26.6                          29.7
                                                                                                ------                      ------
              Total  net  finance  receivables  and
                operating  leases                                                $139.7                      $147.1
                                                                                                ======                      ======

        -  -  -  -  -
        *    Excludes  marketable  securities  related  to  insurance  activities.
        **  Primarily  related  to  market  valuation  adjustments  from  derivatives  due
              to  movements  in  interest  rates.

 





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