Improving Fuel Economy

EcoBoost

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 up to 20 percent and reduce CO2 emissions up to 15 percent compared to larger-displacement engines1.

EcoBoost is also more affordable than many other fuel-efficiency technologies. Vehicles equipped with EcoBoost will have a significantly lower purchase price than vehicles with clean diesel or hybrid technologies, which means that customers will be able to pay back their investment in EcoBoost through fuel savings more quickly. Because of EcoBoost's relatively low cost – 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.

EcoBoost will be introduced on the V-6 models of the 2010 Lincoln MKS, Lincoln MKT, Taurus SHO and Ford Flex. Thanks largely to the EcoBoost technology, both the V-6 Flex and the V-6 MKT are among the leaders in fuel economy in their respective segments. By 2013, Ford expects to sell approximately 1.3 million vehicles per year globally containing EcoBoost V-6 and I-4 engines, and in North America, 90 percent of Ford's nameplates will offer the technology.

PowerShift Transmission

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 will increase fuel efficiency by up to nine 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 C-MAX 2.0-liter Duratorq TDCi diesel and the Volvo C30, S40 and V50 diesel models. A "dry clutch" version will be introduced globally in 2010 on the all-new Ford Fiesta and on the Ford Focus. The dry clutch version gets even better gas mileage and is more durable. Unlike wet clutch systems, it does not use an oil pump or torque converter, making the system more efficient, more durable and up to 30 pounds lighter than a traditional four-speed automatic transmission. We plan to offer advanced six-speed transmissions, both PowerShift and regular six-speed technology, on 100 percent of our new vehicles by 2013.

Weight Reductions

We are also working to improve fuel economy by decreasing the weight of our vehicles. For example, we are increasing our use of unibody vehicle designs, which reduce weight by eliminating the need for extra body framing used in truck-based products. Unibody-based crossover products provide many of the benefits of truck-based SUVs, such as roominess, all-wheel drive and higher stance, while significantly reducing total vehicle weight. The Ford Edge and Lincoln MKX crossovers are examples of our lightweight unibody designs.

Other weight-reduction plans include 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 also using lighter-weight materials, such as aluminum, magnesium, natural fiber and nano-based materials, which can reduce the weight of our vehicles by 250 to 750 pounds, without compromising vehicle size, safety, performance or customer-desired features. For example, the 2010 Lincoln MKT crossover has an advanced magnesium and aluminum liftgate. Please see the Environment section for further information on materials-based weight reductions.

Aerodynamics

We are also improving vehicle aerodynamics to improve fuel economy. We are using advanced computer simulations and wind tunnel testing to develop vehicle designs with up to five percent better fuel economy. We improved the fuel efficiency of the Ford Focus ECOnetic model, for example, by lowering the vehicle, adding an aerodynamics kit and using low-rolling-resistance tires. Similarly, the 2009 Ford Flex is among the most aerodynamic in its class, and we improved the aerodynamics of the 2009 Ford Escape by six percent over the previous models. Through a combination of aerodynamics and other fuel-economy improvements, we improved the fuel efficiency of the entire 2009 F-150 lineup by an average of eight percent. We also introduced an F-150 Special Fuel Economy edition that delivers 21 miles per gallon (mpg) in highway driving; a 12 percent improvement over previous models and best-in-class fuel economy for full-size pickup trucks.

Vehicle Sub-Systems Efficiencies

We are also improving the efficiency of every vehicle subsystem that affects fuel economy. For example, 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. We initially implemented this technology in North America on the 2008 Ford Escape and Mercury Mariner gasoline and hybrid vehicles. By combining EPAS with aerodynamics improvements, we improved the gas mileage of these vehicles by approximately eight percent compared to the previous model year. For 2009, we added EPAS to the Ford Fusion and Mercury Milan. In Europe, we introduced EPAS on the new Ford Fiesta, which launched in the summer of 2008, and the new Ka, launched in February 2009. On the 1.4-liter Duratorq Diesel Fiesta, EPAS provides a three to four percent improvement in fuel efficiency. Ultimately, we will introduce EPAS into all of our passenger cars and light-duty vehicles. The next implementation of the technology is scheduled for the Ford Flex and Lincoln MKS with the EcoBoost engine in 2009. In 2010 and 2011, we will introduce EPAS on the Ford Focus, Mustang, Taurus, Explorer and F-150.

Electrical Systems

Electrical Systems is 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 forthcoming Battery Management Systems (BMS), for example, will 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 like entertainment systems. BMS will be introduced in Europe soon and on the Ford Edge in North America in 2011. We have also introduced more efficient alternators, which improve fuel economy.

Aggressive Deceleration Fuel Shut-Off

We are also 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 one 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.

Stop/Start

We are developing a "stop/start" 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 will maintain the same vehicle functionality as a vehicle without the technology, but it will improve city driving fuel economy by up to six percent. Stop/start 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 U.S. we are planning to introduce the technology into non-hybrid, automatic transmission vehicles by the 2012 model year, and in Europe in manual transmission vehicles by the 2010 model year. By 2016, 90 percent of our vehicle nameplates will be equipped with stop/start technology.

Smaller Vehicles

Smaller vehicles provide consumers with another way to get better fuel economy. We are planning to launch additional small cars, commonly referred to as "B-cars." These include the all-new Ford Fiesta, which was introduced in Europe in 2008 and will be available in Asia, South Africa, Australia and the Americas by 2010.