• Mixing Center launch issues have been resolved and the centers are operating efficiently with minimal rail car backlog.
• 100% of all bi-level rail cars produced thus far in 1998 have been added to the Ford-dedicated fleet (Ford expects to have a sufficient number of bi-level rail cars by Sept'98 if rail service improves).
• Retail, fleet, newly-introduced, and short-supply vehicle lines such as Crown Victoria/Grand Marquis, Town Car, Cougar, F-Series Super Duty, and Expedition/Navigator are given highest priority.

Surprisingly, the luxury group, who usually correlates high with quality, remained stagnant. This enabled the other car segments to rise to the top. Among the most dramatic increases were the sport-utility car segment, which was up 32 percent in quality since 1996, and the mid-size car segment, which increased 25 percent. The highest increases in the sport-utility segment was the Toyota Land Cruiser, second only to the Lexus LX 450. Mid-size winners were the Honda Accord, which rose from last year's standings, the Toyota Camry, as well as the Chevrolet Lumina.

Another reason for the decline in problems overall is because of the truck segment. In the past, there has been a large difference in quality between trucks and cars. The quality has vastly improved in trucks this year. The Toyota Tacoma and the Ford F-Series were among those who took top honors. This year, the gap in quality between cars and trucks has narrowed more than ever.

Why the improvement in quality? The acquiring of new knowledge from automobile manufacturers is a big factor. Each year, they can correct problems from the past and transfer them to their new line of cars. They have also put in a lot of time and effort to increase quality. In the future we can predict a continuing trend in quality in the automotive industry.

4. BIG THREE AUTOMAKERS STRUGGLE TO AVOID MILEAGE FINES
Recently, automobile manufacturers have been struggling to keep up federal fuel-economy standards. Regulations imposed two decades ago to reduce reliance on imported oil require an average of 20.7 miles per gallon this year for each automaker's fleet of sport utility vehicles, mini-vans and pick-up trucks, all known as light trucks. Manufacturers can be subject to fines if their mileage average over seven years is below the government standard. Among the automakers that are having the most problems with this are the Big Three Automakers.

General Motors has had the most fuel economy problems recently. However, the company has come up with certain measures to reduce their risk of paying fines. GM can improve its average without actually raising the fuel efficiency of its vehicles. For instance, they have cut short their 1998 model year for its biggest sport utility vehicles which are the Chevrolet Tahoe, the GMC Yukon and GMC Suburban. GM also informed dealers that they plan to extend the 1998 model year for mini-vans and small pick-up trucks, which can increase the fuel-economy average.

Also, all three automakers are searching for ways to install more diesel engines, which improve fuel economy by one-third. These engines are also quieter and emit fewer pollutants than the diesel engines of a decade ago. In addition, Chrysler is selling light trucks that can run on both gasoline and ethanol, which qualifies for government credits.

Although U.S. auto manufacturers have never been fined for violating fuel requirements, they are concerned that being fined may result in a weakening of their image. They are also concerned of lawsuits by American Shareholders if they knowingly violate a federal law.

5. FORD AND MOBILE FORM STRATEGIC ALLIANCE
Ford Motor Company and Mobil Corporation have entered into a broad-based strategic alliance to speed the development and integration of breakthrough fuel and vehicle technologies. These developments would have the potential to produce big gains in vehicle fuel efficiency and significant reductions in emissions.

Mobil and Ford have worked with each other for many years both directly and through larger auto-oil industry meetings and information exchanges. In recent months, technical teams from the two companies have been meeting on all subjects involved in the alliance. Their efforts are the substance of the announcement. The longer-term project focuses on the technology needed to develop a commercially viable compact fuel processor for fuel-cell-powered vehicles. The processor would extract hydrogen from hydrocarbon fuels such as gasoline and diesel. The hydrogen would be converted by the fuel cell to generate electric power to drive the vehicle. Such a system could yield major fuel efficiency and emissions benefits, as well as the important advantages of utilizing an existing fuel-distribution infrastructure.

Ford indicated that the project will support its already announced fuel-cell alliance with Daimler-Benz and Ballard Power Systems and that both of these partners would be involved. Mobil officials confirmed that they too had been involved in discussions with Daimler. The Mobil-Ford alliance's focus for the intermediate term is on the development of a fully integrated direct-injection diesel system, encompassing fuel, engine and catalytic after-treatment processes. The two companies have been working on various aspects of this system independently for their own products.

6. CHRYSLER/C.A.W. ANNOUNCE ADDITION OF THIRD SHIFT AT BRAMALEA (ONTARIO) ASSEMBLY PLANT
Beginning July, 1998, a third production shift will be added at the Bramalea Assembly Plant in Brampton, Ontario for Chrysler Canada Ltd. and the Canadian Auto Workers (C.A.W.). Bramalea Assembly produces the 1998 Chrysler Concorde and Dodge Intrepid. In addition, the all-new 1999 Chrysler LHS sedan will begin April 6 and the all-new 1999 Chrysler 300M starts on April 20.

The plant will add 1,000 workers to the third shift, which is wonderful news for the union. Introduction of a third shift will also increase capacity at the plant by 70,000 units Bramalea is currently building approximately 1,088 Concordes and Intrepids daily with plant employment at approximately 3,800. Availability of these cars will increase significantly so customers can get their hands on them much quicker.

7. CHRYSLER'S PLANT SCHEDULE
Chrysler Corporation reports all nine U.S. assembly plants and all three Canadian assembly plants will operate the week of April 6, 1998. All plants will be closed Friday, April 10 in observance of the Easter Holiday.

Jefferson-North (Detroit, Mich.) will operate three seven-and-a-half hour shifts during the week and two ten-hour shifts on Saturday, April 4. Belvidere (Ill.), Dodge City Complex-Warren Truck (Mich.), St.Louis-South (Fenton, Mo.), and Toledo (Ohio) will operate two eight-hour shifts. Conner Ave. (Mich.) will operate one eight-hour shift. Sterling Heights (Mich.) will operate two eight-hour shifts during the week and two eight-hour shifts on Saturday, April 4th. Newark (Del.) and St.Louis-North (Fenton, Mo.) will operate two nine-hour shifts during the week and two eight-hour shifts on Saturday, April 4. In Ontario, Canada, the Windsor Assembly Plant will operate three seven-and-a-half hour shifts during the week and three seven-and-a-half hour shifts on Saturday, April 4th. Pillette will operate two eight-hour shifts. Bramalea will operate two eight-hour shifts during the week and two eight-hour shifts on Saturday, April 4th.

8. HONDA ACCORD AND CIVIC FIRST TO RECEIVE GAS-FUELED 50 STATE LEV CERTIFICATION
Honda Accord and Civic 1998 models are the first gasoline-fueled vehicles to earn 50-state Low Emission Vehicle (LEV) certification under the U.S. Environmental Protection Agency's Clean Fuel Fleet Vehicle (CFFV) provisions, American Honda Motor Co., Inc., announced today. The Accord and Civic models join the new natural gas-fueled 1998 Civic GX as Honda cars certified as CFFVs. This certification proves that consumers can have an immediate impact on environmental protection with a variety of fuels.

9. ELECTRIC VEHICLES MADE AFFORDABLE IN CALIFORNIA
Ford Motor Company recently announced a national purchase incentive of $5,000 toward the price of its Ranger Electric Vehicle (EV) or, alternately, a national lease rate of $633 per month. Ranger EV is available to both fleet and retail customers throughout the nation.

The Southern California Air Quality Management District (SCAQMD) is offering $5,000 toward the lease or purchase of any electric vehicle by residents or businesses within the SCAQMD region. The SCAQMD funds bring the lease price of a Ranger EV to the $499 rate for a 36-month program.

For customers who wish to buy the Ranger EV, the Ford and SCAQMD incentives total $10,000 off the purchase price of $32,795. The lease program includes battery maintenance and replacement, if necessary, at no cost to the customer throughout the 36-month lease. The purchase program includes a 2-year battery warranty, with the second year pro- rated.

Forty-four dealers in twelve states from New York to California will sell, service and repair the Ranger EV. EV dealers are being added as more customers express interest in the vehicle. The 1998 Ranger EV includes "Best-in-class" safety and convenience features such as an on-board conductive charger, regenerative braking, anti- lock braking system and emergency power-off. Among the advantages of electric vehicles are zero tailpipe emissions, reduced maintenance and improved energy efficiency over the gasoline engine.

Ford is the leader in alternative fuel vehicle technology with the broadest variety of AFVs of any automaker. In 1998, Ford offers a total of 12 vehicle models that run on ethanol, methanol, propane, natural gas or electricity. In the 1997 model year, 91 percent of all alternative fuel vehicles sold in the United States were built by Ford.