Our current fuel economy performance is discussed in this section. We are also aggressively pursuing the development of new technologies, including additional hybrids, advanced diesel engines, hydrogen-fueled internal-combustion engines, fuel cell vehicles and biofueled vehicles, as discussed in the Sustainable Mobility Technologies section. Our climate change strategy and participation in public policy processes related to climate change and fuel economy are discussed in the Climate Change section.
Fuel Economy Performance – U.S.
Our 2007 vehicle lineup includes the Ford Escape Hybrid, the Ford Ranger and the Ford Five Hundred, which are respectively the most fuel-efficient SUV, pickup truck and all-wheel-drive large car on the market.
The fuel economy of all of our vehicles sold in the United States, compared to the competition, is summarized in the Fuel Economy of U.S. Ford Vehicles by EPA Segment graphic. Our vehicle fuel economy is competitive, scoring above average in six categories, average in one and below average in four.
We currently have 12 vehicles that get 30 miles per gallon or better, including the Ford Focus, Ford Fusion, Mercury Milan, Mazda3, Mazda MX-5, Mazda6, Volvo S40 and Volvo S60 sedans, as well as the 2008 Ford Escape Hybrid, Mercury Mariner Hybrid, Mazda Tribute Hybrid and Land Rover LR2 SUVs.
We continue to add features that boost the fuel economy of our vehicles. See the Sustainable Mobility Technologies section for more information.
These vehicles also illustrate our shift toward "crossovers" – vehicles that combine the features of cars and SUVs while generally achieving better fuel economy than traditional SUVs.
For 2006 model year, the Corporate Average Fuel Economy (CAFE) of our cars and trucks declined 1.0 percent, as expected. The 2006 model year CAFE remained approximately the same for cars and declined by 2.3 percent for trucks, compared to 2005, due largely to model year length variations. A model year typically spans from July to May. One of our trucks with higher fuel economy, the Ford Escape, had an unusually long 2005 model year, while one of our trucks with lower fuel economy has a long 2006 model year.
Preliminary data for 2007 model year shows a 5.4 percent improvement in CAFE compared to 2006, with a 1.7 percent improvement for cars and a 5.2 percent improvement for trucks.
Fuel Economy Performance – Europe
In Europe, we have reduced the average CO2 emissions of the vehicles we sell by 11 to 34 percent depending on the brand, compared with a 1995 base. We have achieved these reductions by introducing a variety of innovations, from the advanced common-rail diesel engines available on many of our vehicles to the lightweight materials in the all-aluminum body of the Jaguar XJ.
These reductions reflect progress toward the goal of a voluntary agreement between the European automotive industry (represented by its association, ACEA) and the EU Commission. The agreement committed ACEA members to voluntarily reduce the average fleet CO2 emissions of its new cars sold in the EU. The target is 140 grams of CO2 per kilometer by 2008, down from 186 grams per kilometer in 1995, which translates to an average CO2 reduction of 25 percent.
The auto industry to date has made a very significant contribution to the EU's overall efforts to address climate change. The industry has always said that the agreement represents one of the most challenging CO2 reduction actions within the EU and that it is extremely ambitious, both technically and economically. Despite an increasingly adverse environment, Ford and the industry continue to work hard to move toward the 2008 target.
