Electrification: A Closer Look

During 2009, most major global automakers, including Ford, announced plans to make all-electric vehicles. Utilities are also working to understand how to provide power to plug-in electric vehicles in a way that is effective in meeting consumer needs, efficient for electricity providers and environmentally sound.

Why the rise in interest and activity? The electrification of vehicles could cut greenhouse gas (GHG) emissions from vehicles, increase the use of domestic energy sources, decrease pressure on petroleum stocks and reduce urban air pollution. With the benefit of information technologies and "smart grids," electrified automobiles could also improve the efficiency of the power grid – thereby lowering electricity costs – and facilitate the use of renewable energy sources, such as wind and solar.

But many challenges remain. For example, to fulfil their potential to cut lifecycle GHG emissions from automobiles, low-carbon electric generation must make up a greater part of the total supply, and electric vehicles must become functioning parts of "smart grids." Battery technologies are still evolving, and the cost of new-generation batteries remains high. Securing adequate supplies of lithium, rare earth metals and other materials may also pose social and environmental challenges.

This section provides an overview of Ford's electrification strategy. It also explores electrification technologies and their environmental benefits, and discusses how Ford is addressing key challenges and opportunities related to vehicle electrification. For more details on our electric vehicle technologies and other fuel-efficiency, advanced powertrain and alternative fuels technologies, please see the Sustainable Technologies and Alternative Fuels Plan.

Ford's Electrification Strategy

Ford's electrification strategy foresees a future that includes different types of electrified vehicles, depending on customers' needs. There will not be a one-size-fits-all approach, but a more diverse, smart application of different types of electrified vehicle technologies. Our strategy includes the following.

Bring a Range of Electric Vehicles to Market

Ford already offers four hybrid electric vehicles (HEVs): The Ford Escape Hybrid, Mercury Mariner Hybrid, Ford Fusion Hybrid and Mercury Milan Hybrid. These HEVs are ideal for customers who drive a range of distances in varied driving conditions. Their most significant benefits come under urban stop-and-go driving conditions.

In 2009, we announced plans to introduce two battery electric vehicles (BEVs) in North America. We will introduce a BEV version of the Transit Connect utility van, targeted at commercial markets, in 2010. We are developing this vehicle in partnership with Azure Dynamics Vehicles, a leading electric adapter of commercial vehicles. In 2011, we will introduce a Focus BEV, called the Focus Electric, developed with our strategic supplier Magna International. Both of these BEVs will be ideal for customers who routinely travel relatively short distances (e.g., 80–100 miles) between charges.

Below is a detailed look at the components that will make up the new electrified vehicles.

In North America, we are also planning to introduce a Plug-in Hybrid Electric Vehicle (PHEV) commercially in 2012, along with our next-generation HEV technology. All of these will use lithium-ion batteries. We already have a test fleet of Ford Escape PHEVs on the road in partnership with a number of utility companies.

We recently announced plans to expand our electrified vehicle lineup to Europe. We will launch the Transit Connect Electric light commercial utility van in 2011 followed by the Ford Focus Electric in 2012. We also plan to introduce two next-generation gasoline HEVs and a PHEV in Europe in 2013. In preparation for the launch of these vehicles, Ford will participate in BEV test trials in the UK and Germany with Transit commercial vehicles equipped with a pure electric powertrain, as well as battery electric prototype passenger cars, to test the technology's suitability in real-world situations.

Use Global Platforms

Because the platforms on which these future Ford products will be based are our highest-volume global platforms, they offer tremendous opportunities for production economies of scale. The Focus Electric, for example, will be based on Ford's next-generation Focus model. It is one of up to 10 vehicles that will be developed from the Company's new global "C-car" platform, which is expected to deliver as many as 2 million vehicles annually. We will be producing the vehicles on flexible manufacturing lines capable of producing a BEV, HEV, PHEV or efficient gasoline- or diesel-powered vehicle. We also share many of the electrified components between the different vehicles. These strategies are key to making electrified vehicles affordable.

Collaborate

Gearing up for the development and diffusion of these new technologies will be a global challenge. Major advances have already been made on the electrical technology at the core of the next-generation electrified vehicles, and there's more to come. In Ford's vision, a coalition of automotive manufacturers and other stakeholders will work together to develop technologies, standards and cost efficiencies to commercialize electrified vehicles. It will take a collaborative approach of automakers, battery producers, suppliers, fuel producers, utilities, educators and researchers, as well as policy makers and opinion shapers, to help us make the transition and realize the full benefits of electrification.

Traditional automotive suppliers transforming themselves for electrification are being joined by new suppliers adapting electronics to the automotive environment. Significant possibilities exist for innovation in battery technology, power electronics and the development of motors, generators, high-voltage systems and other components.

Ford's plan calls for strategic partnering with key suppliers who bring technical expertise, financial solidity and collaborative spirit. We believe that working with a range of partners will allow us to gain greater understanding of the connectivity of vehicles to the electric grid, promote the necessary infrastructure and bring down the costs of the technology to make it more accessible for consumers.