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.

New Vehicles Coming to Market

Ford already offers four hybrid electric vehicles: The Ford Escape and Mercury Mariner Hybrids and, beginning in early 2009, the Ford Fusion and Mercury Milan Hybrids. 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.

We recently announced plans to introduce two BEVs. 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 Smith Electric Vehicles, the European market's leading battery-electric adapter of commercial vehicles. In 2011, we will introduce a Focus BEV, developed in partnership with Magna International. Both of these BEVs will be ideal for customers who routinely travel relatively short distances between charges.

We are also planning to introduce a PHEV commercially in 2012, along with our next-generation HEV technology. We already have a test fleet of PHEVs on the road in partnership with a number of utility companies.

Ford plans to introduce its electrified vehicles in North America first and, based on that experience, will consider expanding the availability of the products to Europe and Asia as well.

Because the platforms on which these future Ford products will be based are global, they offer tremendous opportunities for production economies of scale. That's key to reducing the cost of components that would be too expensive in lower-volume production, especially lithium-ion battery technology.

Collaborative Approach

Gearing up for the infusion 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, suppliers, fuel producers and utilities, educators and researchers, and 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. As mentioned above, for example, we are partnering with Magna International to develop our small sedan BEV and with Smith Electric Vehicles to develop a BEV version of our Transit Connect commercial utility van. We have also begun collaborating with other stakeholders, such as electrical utility companies, who will be central to the electrified vehicle experience of the future. We are working with a number of electric utilities and industry groups to understand how to make these vehicles work most effectively for our customers and within the current electrical system. These partners include the Electric Power Research Institute, the New York State Energy Research and Development Authority, and utilities including American Electric Power, ConEdison, DTE Energy, National Grid, New York Power Authority, Progress Energy and Southern Company-Alabama Power.

Ford is working with researchers at the University of Michigan and the Massachusetts Institute of Technology to develop and test improved lithium-ion battery technology. This research is funded in part by a $55 million tax credit incentive Ford received from the Michigan Economic Development Corporation.

Ford is also exploring a possible "eco-partnership" in China to expand its global expertise with electric-powered vehicles. Ford, Changan Auto Group and the cities of Chongqing, China, and Denver, Colorado, are exploring ways to develop projects to help further energy security and promote economic and environmental sustainability. Areas of focus could include developing electrified vehicle technologies, green city planning, efficient urban transportation and grid integration.

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.