Improving Fuel Economy

The centerpiece of our near-term fuel-economy improvement efforts is the EcoBoost engine, which uses turbocharging, direct injection and reduced displacement to deliver significant fuel-efficiency gains without sacrificing engine power or performance. EcoBoost engines improve vehicle fuel economy 10–20 percent and reduce CO₂ emissions up to 15 percent compared to larger-displacement engines.

EcoBoost is also more affordable than many other fuel-efficiency technologies. Due to its affordability relative to competing technologies, and its compatibility with most of the gas-powered vehicles we produce, we will be able to spread EcoBoost's fuel-economy benefits throughout our product lineup and to more of our customers more quickly. Our rapid deployment of EcoBoost in high volumes across a wide array of our vehicle nameplates will also help us make a dramatic step forward in CO₂ emission reductions.

EcoBoost was introduced first in North America as a 3.5-liter V6 engine on the 2010 Lincoln MKS, Lincoln MKT, Ford Taurus SHO and Ford Flex. This engine provides similar performance to a normally aspirated V8 engine, but with the fuel economy of a V6 engine. Thanks largely to EcoBoost technology, the V6, Taurus SHO and Lincoln MKT deliver unsurpassed fuel economy in their respective segments.

EcoBoost has already been a great success in North America. For example:

• EcoBoost is influencing many consumers to consider and buy Ford vehicles who were not previously Ford customers. EcoBoost is proving especially attractive to 35- to 55-year-old males, an important demographic segment that has been less likely to purchase Ford vehicles in past years.
• EcoBoost is also increasing Ford's "conquest rate" – i.e., the number of customers who are switching from other manufacturers to buy Ford vehicles. The Taurus SHO with EcoBoost has the second-highest conquest rate in its segment, and the Flex EcoBoost had a 75 percent conquest rate during its first year on sale.

In addition to these commercial successes, the EcoBoost engine has received multiple awards, including Popular Mechanics magazine's Breakthrough award and a "10 Best Engines" award from Ward's Automotive.

We are continuing to expand the application of EcoBoost technology to more engine types and vehicles. For example:

• We have announced plans to make the 3.5-liter V6 EcoBoost available on the Ford F-150. Later this year, Ford will introduce the new 2.0-liter I-4 EcoBoost in the new Edge and the all-new Explorer. In both vehicles, the 2.0-liter I-4 EcoBoost is expected to deliver best-in-class fuel economy, but with the performance feel of a traditional V6. The Explorer will feature fuel economy that is at least 25 percent better than the current model.

In 2010 we also began taking the EcoBoost engine global:

• In European markets, we have introduced a 2.0-liter I-4 EcoBoost engine on the Ford Galaxy, S-MAX and Mondeo and a 1.6-liter I-4 EcoBoost engine on the Ford C-MAX. We have also announced plans to use the 1.6-liter I-4 EcoBoost engine in the all-new Ford Focus, which will launch in Europe in 2010.
• In 2010, we will also launch the EcoBoost engine in China on the Ford Mondeo.
• In 2011, we will introduce a 2.0-liter I-4 EcoBoost engine to the Australian market on the Ford Falcon.
• Ultimately, we plan to launch an advanced 1.0-liter, three-cylinder EcoBoost engine for use in Europe and other global markets.

These EcoBoost engines illustrate Ford's plans to use smaller, power-boosted engines to deliver improved fuel economy and performance throughout our vehicle lineup.

By 2013, Ford plans to offer EcoBoost engines on 80 percent of our global nameplates, with an annual volume of vehicles with EcoBoost at 1.5 million globally.

To further improve the fuel economy of our vehicles, we are implementing a dual-clutch transmission system. This technology, called PowerShift, combines manual and automatic transmission technologies to deliver the fuel efficiency of a manual with the driving ease of an automatic. PowerShift uses six speeds instead of the four or five on most automatics, which further increases fuel efficiency. PowerShift technology increases fuel efficiency by up to 9 percent compared to traditional automatic transmissions, depending on the application.

• A "wet clutch" version of this technology has already been implemented in Europe on the Ford Focus, C-MAX, Kuga, S-MAX, Galaxy and Mondeo in combination with a 2.0-liter Duratorq TDCi diesel and is the standard transmission for the new 2.0-liter EcoBoost engine on the Ford Mondeo, S-MAX and Galaxy.
• A "dry clutch" version was introduced globally in April 2010 on the all-new Ford Fiesta; it will also be introduced globally on the new Ford Focus in November 2010. The dry clutch version gets even better gas mileage. Unlike wet clutch systems, the six-speed dry PowerShift transmission does not use an oil pump, making the system more efficient with the same weight as a traditional four-speed automatic transmission.

We are also introducing regular six-speed transmissions to replace less-efficient four- and five-speed transmissions in a range of vehicles. Six-speed transmissions improve fuel economy by 4 to 6 percent compared to typical four- and five-speed gearboxes; they also provide better acceleration, smoother shifting and a quieter driving experience. By the end of 2012, 98 percent of Ford's North American transmissions will be advanced six-speed gearboxes. And by 2013, we plan to offer advanced six-speed transmissions – both Powershift and regular six-speed technology – on 100 percent of our new, non-hybrid vehicles in Europe and North America and many new vehicles in other regions.

We are also working to improve fuel economy by decreasing the weight of our vehicles by using unibody vehicle designs, lighter-weight components and lighter-weight materials.

• We are increasing our use of unibody vehicle designs, which reduce weight by eliminating the need for the body-on-frame design used in truck-based products. Unibody-based crossover vehicles provide many of the benefits of truck-based SUVs, such as roominess, all-wheel drive and higher stance, with significantly reduced total vehicle weight. The new 2010 Ford Explorer will use a lightweight unibody design, as do the current Ford Edge and Lincoln MKX crossovers.
• We are increasing the use of lighter-weight components. For example, the EcoBoost engine technology allows us to use a smaller, lighter engine system while delivering more power and better fuel economy. Similarly, the dual-clutch PowerShift system weighs up to 30 pounds less than the four-speed automatic transmission it is replacing.
• We are using lighter-weight materials, such as advanced high-strength steel; aluminum; magnesium; natural fibers; and nano-based materials. These "lightweighting" efforts can reduce the weight of our vehicles by 250 to 750 pounds, without compromising vehicle size, safety, performance or customer-desired features. The 2010 Lincoln MKT crossover, for example, has an advanced lightweight magnesium and aluminum liftgate. Also, we use an aluminum hood on the Ford F-150 and high-strength, lighter-weight steels in more than 50 percent of the F-150 cab. We are also expanding our use of aluminum engine parts and all-aluminum engines. For example, the 2011 Mustang will have an aluminum engine. This lighter-weight engine, combined with other fuel-efficiency improvements, is expected to result in class-leading fuel economy at 19 mpg city/30 highway with six-speed automatic transmission, a 25 percent improvement over the 2010 model.

Please see the Environment section for further information on materials-based weight reductions.

We are improving vehicle aerodynamics to improve the fuel economy of our global product lineup. Using a systems engineering approach, we combine aerodynamic improvements and other fuel-economy technologies to ensure that we maximize the fuel efficiency of every vehicle we develop. Systems engineering uses interdisciplinary and collaborative design and development processes to ensure that engineers who are developing adjacent areas of the vehicle work together to maximize vehicle attributes like fuel economy. During the development process, we use advanced computer simulations and wind tunnel testing to deliver vehicle designs that deliver up to 5 percent better fuel economy. In addition, we are developing simulation systems that will allow us to replicate on-the-road driving conditions during the virtual design phase of vehicle development, to further improve the real-world benefits of aerodynamic improvements.

Using these approaches, we made significant improvements to the aerodynamics of our 2009 model year vehicles. For example:

• The 2009 Ford Flex is the most aerodynamic vehicle in its class.
• The 2009 Ford Escape has 6 percent lower aerodynamic drag than previous models.
• The 2009 F-150 has an average of 8 percent better fuel efficiency than previous models due in part to aerodynamic improvements.
• In Europe, we improved the fuel efficiency of the 2009 Ford Focus and Fiesta ECOnetic models through aerodynamic improvements such as lowering the vehicle, adding an aerodynamics kit and using low-rolling-resistance tires.

In 2010 we are continuing to build on these achievements in aerodynamics. In North America, we improved the fuel efficiency of Ford's midsize family sedans, including the 2010 Ford Fusion, Mercury Milan and Lincoln MKZ, by reducing aerodynamic drag by 5 percent. We accomplished this by further streamlining the exterior design and lowering the vehicles' ride height. These aerodynamic improvements were a key enabler for the Ford Fusion Hybrid's 41 mpg rating, which makes it the most fuel-efficient midsize sedan available in North America.1 We have also reduced the aerodynamic drag of the 2010 Mustang by 4 percent for the V6 model and 7 percent for the V8 model. These aerodynamic improvements resulted in a 0.5 mpg and 1 mpg improvement in fuel economy at 70 mph cruising speeds, for the V6 and V8 models respectively.

For 2011, we have plans to continue to improve vehicle aerodynamics. For example, we are developing an active grille shutter technology that reduces aerodynamic drag by up to 6 percent, thereby increasing fuel economy and reducing CO₂ emissions. This technology will be implemented first on our European vehicles and will be migrated to North American vehicles in future model years.

We are phasing in electric power-assisted steering (EPAS) technology, which typically will improve fuel economy by 0.09 to 0.17 gallons per 100 miles and will decrease CO₂ emissions by up to 3.5 percent over traditional hydraulic systems, depending on the vehicle and powertrain application. For example, on the 1.4-liter Duratorq Diesel Fiesta, which is available in Europe, EPAS provides a 3 to 4 percent improvement in fuel efficiency compared with a hydraulic-based power steering system. By combining EPAS with aerodynamic improvements, we improved the gas mileage of this vehicle by approximately 8 percent compared to the previous model year. In addition, EPAS supports other fuel-saving activities we plan to introduce. For example, "automatic start/stop" technology can be introduced without degrading steering assist to the driver. (For details on this technology see "Automatic Start/Stop.")

We began implementing EPAS in 2008 in North America on the Ford Escape and Mercury Mariner gasoline and hybrid vehicles. In Europe, we introduced EPAS on the new Ford Fiesta, which launched in the summer of 2008, and will be launched in the United States in 2010. In 2009, we added EPAS to the North American Ford Fusion, Mercury Milan, Ford Flex and Lincoln MKS with the EcoBoost engine, and in Europe we implemented EPAS on the 2009 Ka. Several additional launches of this technology are planned for 2010, including on the new Ford Mustang and Ford Explorer in North America and the new C-MAX and Focus in Europe. Ultimately, we will introduce EPAS into all of our passenger cars and light-duty vehicles.

Electrical systems are another area in which we are making progress. By reducing vehicle electricity loads and increasing the efficiency of vehicle electrical systems, we can improve fuel efficiency. Our Battery Management Systems (BMS), for example, control the power supply system (in particular the alternator) to maximize the overall efficiency of the electrical system and reduce its negative impacts on fuel economy. This is accomplished by maximizing electricity generation during the most fuel-efficient situations, such as during vehicle deceleration. In less fuel-efficient situations, the alternator's electricity generation is minimized to meet in-vehicle electrical requirements (e.g., for entertainment systems). BMS has already been launched in Europe and will be incorporated in the United States beginning with the 2011 Edge. We have also introduced more-efficient alternators, which improve fuel economy.

We are deploying Aggressive Deceleration Fuel Shut-Off (ADFSO) technology to improve fuel efficiency. ADFSO allows fuel supply to the engine to be shut off during vehicle deceleration and then automatically restarted when needed for acceleration or when the vehicle's speed approaches zero. This new system builds on the Deceleration Fuel Shut-Off technology available in our existing vehicles by extending the fuel shut-off feature to lower speeds and more types of common driving conditions, without compromising driving performance or non-CO₂ emissions reductions.

This improved fuel shut-off will increase fuel economy by an average of 1 percent. An additional benefit of the ADFSO technology is increased deceleration rates, which should extend brake life and improve speed control on undulating roads. This technology was implemented in mid-2008 on the new Ford Flex and the Lincoln MKS and in late 2008 on the 2009 model year Ford F-150, Ford Expedition and Lincoln Navigator regular and extra-long models, as well as the Ford Escape and Mercury Mariner. In the next two to three years we plan to implement this technology on as many vehicles as possible, beginning with front-wheel-drive, six-speed-transmission vehicles.

We have developed a "start/stop" technology that shuts down the engine when the vehicle is stopped and automatically restarts it before the accelerator pedal is pressed to resume driving. This technology maintains the same vehicle functionality as a vehicle without the technology, but it improves city driving fuel economy by up to 6 percent.

Start/stop technology includes sensors to monitor functions such as cabin temperature, power supply state and steering input, so that vehicle functioning remains exactly the same to the driver as when the engine remains on continuously. If the system senses that a vehicle function has been reduced and will negatively impact the driver's experience, the engine will restart automatically. Start/stop technology is already being used in our hybrid vehicles and will eventually provide a cost-effective way to improve fuel efficiency on a large volume of non-hybrid vehicles. In the United States, we are planning to introduce the technology into non-hybrid, automatic transmission vehicles by the 2013 model year. In Europe, auto start/stop is already available on the Ford Focus ECOnetic. By 2016, 90 percent of our vehicle nameplates will be equipped with start/stop technology.

Smaller vehicles provide consumers with another way to get better fuel economy. We are planning to launch additional small cars to provide more fuel-efficient options. For example:

• We are introducing subcompact vehicles commonly referred to as "B-cars." These include the all-new Ford Fiesta, which was introduced in Europe in 2008 and in the Asia Pacific region in 2009, and will be available in the Americas in 2010.
• In addition, we brought the European Transit Connect small commercial van to North America. This vehicle fills an unmet need in the U.S. market by offering the large cargo space that small business owners need in a fuel-efficient, maneuverable, durable and flexible vehicle package.
• We have also announced plans to bring the next-generation European Focus to North America. This vehicle, which will be our new global "C-sized" or compact offering, was revealed at the 2010 North American International Auto Show. It includes the first in a series of powertrain technology developments we are introducing that will give our new global C-car segment offerings a combination of power, performance and unsurpassed fuel economy. Ford has disclosed that North American models of the new Focus will be equipped with a responsive, fuel-efficient combination of a 2.0-liter I-4 engine with Twin Independent Variable Camshaft Timing and direct injection plus a dual-clutch PowerShift transmission.

All of these smaller vehicles illustrate Ford's actions to provide consumers with a wider range of fuel-efficient options as well as our efforts to leverage the best of our global products to offer new choices and solutions to customers in all of our global regions.