Battery Electric Vehicles (BEVs)

Ford has announced an expanded, comprehensive electric vehicle strategy aligned with growing public interest in advanced technologies that can help reduce the use of gasoline. We are employing a comprehensive approach to electrification that will tackle commercial issues such as batteries, standards and infrastructure. Strategic partnerships are an important part of this new approach. We are working with partners to develop and produce batteries, infrastructure and government policy to speed the commercialization and acceptance of electric vehicles. This global electrification strategy is not a test program. It is a vital element of our business plan going forward and is aimed at making Ford a leader in sustainable transportation.

BEVs do not have an internal-combustion engine and do not use any onboard gasoline. Instead, they use a high-voltage electric motor, which takes its power from a battery pack charged by plugging into a standard 110-volt or 220-volt outlet in the U.S., or a 230-volt outlet in Europe. Our early BEV test vehicles charge in six hours when plugged into a 220-volt outlet. The production models will be rechargeable in six hours from 230- and 220-volt outlets or 12 hours from a 110-volt outlet. As reliable and durable fast-charge technology becomes available, Ford's BEVs will be designed to take advantage of this capability.

In 2010, we will deliver a BEV version of our Transit Connect commercial utility van for use by fleet customers in the U.S. This vehicle is being developed in partnership with Smith Electric Vehicles, the European market's leading battery electric upfitter of commercial vehicles and part of the UK-based Tanfield Group. In 2011 we will deliver a BEV small sedan in partnership with Magna International, which will be aimed at U.S. retail customers. This car will be based on our new global Focus-sized platform and will have a driving range of up to 100 miles on a single charge of its lithium-ion high-voltage battery. We are targeting urban markets with this vehicle and expect to sell between 5,000 and 10,000 units annually to start. We will be ready to ramp up to higher volumes as the infrastructure develops and customer demand grows.

In addition to this work in the U.S., Ford is collaborating with Tanfield, the market leader for electric vehicles, to offer battery-electric versions of the Ford Transit and Transit Connect commercial vehicles to fleet customers in the UK and European markets.

Ford's aggressive new electrification plan represents the next step in the Company's sustainability plan. The plan includes a commitment to greater vehicle fuel economy and lower CO2 emissions as part of Ford's longer-term commitment to addressing climate change and energy security.