Ford Credit Plans to Exit Leasing in New York

DEARBORN, Mich., April 4 -- Ford Credit today announced that it plans to exit automobile leasing in New York in early July 2003 in response to an outdated law that holds leasing companies responsible for accidents involving their leasing customers. New York's vicarious liability law has resulted in large payouts by leasing companies to resolve litigation.

"We are encouraged that the New York Senate has responded to this issue by passing, with bi-partisan support, legislation that would reform vicarious liability law. We fully and actively support the legislative reform effort; however, we need to limit our exposure as it continues under the present law," said A.J. Wagner, Ford Credit's Executive Vice President of North America.

Finance companies, banks and independent auto leasing companies face several billion dollars in potential payouts involving hundreds of open vicarious liability lawsuits. These payouts continue to add to the costs of purchasing, leasing and insuring vehicles.

Consumers pay more for leasing and insurance because of vicarious liability laws. With companies such as Ford Credit and others canceling leasing programs, consumers will be faced with fewer and more expensive financing options. Consumers will not be able to lease Ford or Lincoln Mercury vehicles from Ford Credit in New York after the pullout; consumers who have already purchased a Red Carpet Lease will not be impacted.

A growing list of supporters of vicarious liability reform now includes the United Auto Workers (UAW), the Automobile Association of America (AAA), Ford dealers, the Alliance of Automobile Manufacturers, the Business Council of New York State, the National Vehicle Leasing Association, the New York State Auto Dealers Association and all metropolitan auto dealer associations in New York, the Truck Rental and Leasing Association, the American Automotive Leasing Association and the American Financial Services Association.

Ford Credit is a wholly owned subsidiary of Ford Motor Company and is the world's largest automotive finance company. Now in its 44th year, Ford Credit provides vehicle financing in 36 countries to more than 11 million customers and more than 12,500 automotive dealers. More information can be found at www.fordcredit.com and at Ford Credit's investor Web site, www.fordcredit.com/investorcenter/ .