The decrease in full year earnings primarily reflected the non-recurrence of credit loss reserve reductions, higher borrowing costs, higher depreciation expense for leased vehicles and higher costs due to our North American business transformation initiative. These were offset partially by lower net losses related to market valuation adjustments from derivatives and lower expenses primarily reflecting improved operating costs.

In the fourth quarter of 2007, Ford Motor Credit's net income was $186 million, down $93 million from a year earlier. On a pre-tax basis, Ford Motor Credit earned $263 million in the fourth quarter, compared with $406 million in the previous year. The decrease in fourth quarter earnings primarily reflected the non-recurrence of credit loss reserve reductions, higher borrowing costs and higher depreciation expense for leased vehicles, offset partially by lower expenses and the non-recurrence of losses related to market valuation adjustments from derivatives.

"We had a good year in 2007 with a business that performed consistently and predictably," said Mike Bannister, chairman and CEO. "With our sound business fundamentals, we have a strong foundation for the future."

Ford Motor Credit expects its earnings in 2008 to be about equal to its earnings in 2007.

On December 31, 2007, Ford Motor Credit's on-balance sheet net receivables totaled $141 billion, compared with $135billion at year-end 2006. Managed receivables were $147 billion, down from $148 billion a year ago.

On December 31, 2007, managed leverage was 9.8 to 1.-Ford