SCHEDULE 13D

                                 (Rule 13d-101)

  Information to be Included in Statements Filed Pursuant to Rule 13d-1(a) and
              Amendments Thereto Filed Pursuant to Rule 13(d)-2(a)

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 3 )*
                                             ---

                                 Ceradyne, Inc.
          -----------------------------------------------------------
                                (Name of Issuer)


                          Common Stock, $.01 par value
          -----------------------------------------------------------
                         (Title of Class of Securities)


                                   156710 10 5
          -----------------------------------------------------------
                                 (CUSIP Number)

                               Douglas J. Cropsey
                               Ford Motor Company
              One American Road, Rm. 1038, Dearborn, Michigan 48126
                               Tel: (313) 337-3220

          -----------------------------------------------------------
                     (Name, Address and Telephone Number of
                      Person Authorized to Receive Notices
                               and Communications)

                                January 16, 2003
          -----------------------------------------------------------
                     (Date of Event which Requires Filing of
                                 This Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
/ /.

     Note.  Schedules  filed in paper format shall include a signed original and
five copies of the schedule,  including  all exhibits.  See Rule 13d-7 for other
parties to whom copies are to be sent.


     *The  remainder  of this cover  page  shall be filled  out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities and for any subsequent  amendment  containing the  information  which
would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provision of the Act (however, see the Notes).



CUSIP No.156710 10 5                   13D                           Page 2 of 5




     
------- -----------------------------------------------------------------------------------------------------
1       Name of Reporting Persons/I.R.S. Identification No. of above persons (Entities Only)
        Ford Motor Company
        I.R.S. Identification Number: 38-0549190
------- -----------------------------------------------------------------------------------------------------
2       Check the Appropriate Box if a Member of a Group                                              (a) / /
                                                                                                      (b) / /
------- -----------------------------------------------------------------------------------------------------
3       SEC Use Only
------- -----------------------------------------------------------------------------------------------------
4       Source of Funds (See Instructions)
        Not Applicable
------- -----------------------------------------------------------------------------------------------------
5       Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or  2(e)              / /
------- -----------------------------------------------------------------------------------------------------
6       Citizenship or Place of Organization
        Delaware
------------------------------ ---- -------------------------------------------------------------------------
          NUMBER OF            7    Sole Voting Power
           SHARES                   0
     BENEFICIALLY OWNED        ---- -------------------------------------------------------------------------
      BY EACH REPORTING        8    Shared Voting Power
           PERSON                   0
            WITH               ---- -------------------------------------------------------------------------
                               9    Sole Dispositive Power
                                    0
                               ---- -------------------------------------------------------------------------
                               10   Shared Dispositive Power
                                    0
------- -----------------------------------------------------------------------------------------------------
11      Aggregate Amount Beneficially Owned by Each Reporting Person
        0
------- -----------------------------------------------------------------------------------------------------
12      Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)             / /
------- -----------------------------------------------------------------------------------------------------
13      Percent of Class Represented by Amount in Row (11)
        0%
------- -----------------------------------------------------------------------------------------------------
14      Type of Reporting Person (See Instructions)
        CO
------- -----------------------------------------------------------------------------------------------------



CUSIP No.156710 10 5                   13D                           Page 3 of 5



     The Schedule 13D filed by Ford Motor Company ("Ford") on March 21, 1986, as
amended by Amendment  Number 1 to Schedule 13D filed by Ford dated  February 12,
1988 and  Amendment  Number 2 to Schedule  13D filed by Ford dated  February 28,
2002, in connection  with Ford's  acquisition of Common Stock of Ceradyne,  Inc.
(the "Issuer"), is amended as hereinafter provided.

Item 5. Interest in Securities of the Issuer.

     (a)  As of the date hereof, Ford no longer owns, beneficially or otherwise,
          any shares of Common Stock of the Issuer.  On December 31, 2002,  Ford
          entered  into  a  Restricted  Stock  Purchase  Agreement  (the  "Stock
          Purchase  Agreement"),  attached hereto as Exhibit A, between Ford and
          each of the private  investment  vehicles  set forth on Exhibit A-1 of
          the Stock Purchase  Agreement and each of the  publicly-held  entities
          registered as Investment Companies under the Investment Company Act of
          1940  set  forth  on  Exhibit  A-2 of the  Stock  Purchase  Agreement,
          pursuant  to which  Ford  agreed  to sell all of its  shares of Common
          Stock of the Issuer in a private placement transaction.

     (b)  Ford has no  power to vote or  direct  the vote of any  shares  of the
          Issuer's Common Stock.

     (c)  Ford has not had any  transactions  in the Common  Stock of the Issuer
          other than the  acquisition  of 526,316  shares on March 11, 1986, the
          acquisition of 680,983 shares on February 12, 1988, the sale of 80,000
          shares  between  June 14, 2001 and June 27,  2001,  the sale of 99,999
          shares  between  February 28, 2002 and March 5, 2002,  and the sale of
          99,999 shares between November 1, 2002 and December 16, 2002.


     (d)  Not Applicable.

     (e)  On January 16, 2003,  Ford ceased to be the  beneficial  owner of more
          than five percent of the Common Stock of the Issuer.

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
        Securities of the Issuer.

     (a)  Ford and the Issuer have entered into a Letter  Agreement  pursuant to
          which all of Ford's rights under the Stock Sale Agreement  dated March
          11, 1986, a copy of which was filed as Exhibit A to the original paper
          format Schedule 13D amended hereby (file number  reference  00537271),
          pursuant  to which Ford  acquired  its  shares of Common  Stock of the
          Issuer,  including  the  right to  acquire  additional  shares  of the
          Issuer's Common Stock pursuant to Articles VI and X thereof, have been
          extinguished upon the completion of Ford's sale of all of the Issuer's
          Common Stock as reported in this schedule.

     (b)  As a result of the sale by Ford of all of its  shares of Common  Stock
          of the Issuer,  the  Agreement  dated  March 11, 1986  relating to the
          voting of shares of Common  Stock of the  Issuer,  a copy of which was
          filed as Exhibit B to the original  paper format  Schedule 13D amended
          hereby (file number reference 00537271), is no longer applicable.



CUSIP No.156710 10 5                   13D                           Page 4 of 5

Item 7. Material to be Filed as Exhibits.

The following documents are appended hereto as Exhibits:

Designation     Description                             Method of Filing
-----------     -----------                             ----------------
Exhibit A       Restricted Share Purchase Agreement     Filed with this Schedule
                dated December 31, 2002





                                   SIGNATURE


After reasonable inquiry and to my best knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.




Dated as of January 16, 2003.



FORD MOTOR COMPANY

By:/s/ Peter Sherry, Jr.
   ---------------------
Name: Peter Sherry Jr.

Title: Assistant Secretary



CUSIP No.156710 10 5                   13D                           Page 5 of 5


                               INDEX TO EXHIBITS


Designation     Description                             Method of Filing
-----------     -----------                             ----------------
Exhibit A       Restricted Share Purchase Agreement     Filed with this Schedule
                dated December 31, 2002