Investor News

To help battle climate change, we’re pursuing multiple technological paths and working to find solutions that align with our plans to create safer, more fuel-efficient, quality products customers want to drive.

Thinking Ahead While Improving Today’s Vehicles

While we’re working on technologies to make our future vehicles more environmentally friendly, we continue to refine technology for today’s vehicles. For instance, we’re eliminating energy waste in every vehicle system, such as power steering, cooling and electrical systems, as well as minimizing wind drag through design and optimizing new 6-speed transmissions.

In addition, we’ll soon introduce technologies to further eliminate energy waste in vehicle systems by improving powertrain warm-up time, using vehicle control technologies like aggressive fuel shutoff during vehicle deceleration, and reducing engine workload through better battery recharging systems.

Advancements to Save Fuel

During the next five years, we’re going to introduce a new generation of smaller-displacement turbo-charged gasoline engines with advanced fuel-saving direct injection technologies. The new family of engines will deliver fuel savings of between 10 to 20 percent without compromising performance.

In addition to the new family of gasoline turbo-charged direct injection, we’ll also introduce a portfolio of technologies to achieve even greater fuel savings and emissions reductions for future vehicles, including the following:

• A new generation of fuel-saving twin-clutch transmissions, which deliver the fuel economy of a manual with the convenience of an automatic. These new transmissions include greater use of 6-speeds to replace less-efficient 4- and 5-speed gearboxes.
• The use of advanced electric power-assisted steering systems in 80 to 90 percent of Ford vehicles.
• Aerodynamic improvements through better design and wind tunnel optimization.
• Weight reductions through platform efficiencies and greater use of aluminum and high-strength steel.

Between 2012 and 2020, we’ll focus on improving fuel efficiency by reducing weight. Substantial vehicle weight reductions will enable us to use smaller displacement engines that provide secondary efficiencies, such as lighter chassis and suspension components, which in turn, will lower vehicle weight even further. This type of change can be done for millions of vehicles without compromising safety, quality, interior room or performance.

Bio-Fuels

We’re committed to delivering products capable of running on renewable fuels such as bio-diesel and ethanol. Globally, we already have more than five million flexible fuel vehicles on the road. In the U.S., we’ve pledged to make half of our production capable of running on alternative fuels by 2012, provided the necessary fuel and infrastructure are in place.

We currently offer a total of 14 flexible fuel vehicle models in various markets globally. We also continue to support the development of cellulosic biofuels, which, in the long-term, promise up to 90 percent reduction in greenhouse gas emissions.

Clean Diesels

By the end of the decade, our large sport utility vehicles and best-selling F-150 will be available with a new mid-displacement clean diesel engine.

In Europe, we’ll soon begin rolling out our ECOnetic range of ultra-low CO2 models that cleverly use affordable, conventional technology to deliver superb CO2 performance and fuel economy. These vehicles will sit alongside our standard range of clean diesel engines in Europe.

Hybrid Electric Systems

We’re now in our fourth year producing the world’s most fuel-efficient SUV – the Escape Hybrid. We have another hybrid on the road, the Mercury Mariner Hybrid. In 2008, production begins on two new hybrids, the Ford Fusion Hybrid and Mercury Milan Hybrid sedans.

Moving forward, we plan to deploy different levels of hybridization with either diesel or gasoline engines – depending on the market and vehicle type.

Ford Plug-in Hybrids

In December 2007, we delivered the first Ford Escape Plug-in Hybrid to Southern California Edison to explore the commercialization of plug-in hybrids and the business models that might make them viable. The relationship is designed to advance plug-in technology as well as an energy vision that connects transportation to the energy grid.

Hydrogen Power

We’re developing a range of hydrogen technology solutions simultaneously, including hydrogen fuel cells and hydrogen-fueled internal combustion engines.

We currently have a fleet of 30 hydrogen-powered Focus fuel cell vehicles on the road as part of a worldwide, seven-city program to conduct real-world testing of fuel cell technology. What we’ve learned from vehicles that have logged more than 650,000 miles will be integrated into future fuel cell vehicle propulsion systems.

In addition, we have 24 hydrogen-fueled internal combustion engine shuttle buses operating in cities across the United States and Canada. This fleet of hydrogen internal combustion engine shuttle buses is providing valuable real-world experience to assist in the research and production of next-generation hydrogen internal combustion engines.