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As part of a national energy strategy to tap the potential of renewable fuels, we've committed to doubling the production of vehicles in our fleet capable of running on renewable fuels, such as ethanol and other bio-fuels, by 2010.

To reach this goal, we've developed myriad new technologies. Starting in June 2007, we'll begin delivery of 20 new hybrid flexible fuel research vehicles to officials in six states. Development of these vehicles is just one way we're helping to reduce U.S. dependence on imported oil and reduce greenhouse gas emissions.

The Best of Both Technologies

The Ford Escape Hybrid E85 is a demonstration vehicle marrying two petroleum-saving technologies: hybrid-electric power and flexible fuel capability.

The Escape Hybrid E85 is the world's first hybrid vehicle capable of operating on blends of fuel containing as much as 85 percent ethanol, a renewable fuel that can be produced from American-grown corn or sugar beets. And ethanol use releases no fossil-based CO2, so using ethanol in place of gasoline reduces the release of greenhouse gases.

Leading the Way Forward

As a leader in both hybrid vehicles and vehicles capable of operating on ethanol-based fuels, we're the right company to bring both technologies together for the first time.

We have full hybrid-electric vehicle models on the road today—Ford Escape Hybrid and Mercury Mariner Hybrid. Two additional hybrids, Ford Fusion and Mercury Milan, will soon be available.

We produced 250,000 ethanol-capable vehicles last year, including Ford F-150 pickup truck, Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car.

From the Heartland of America

E85 is a fuel blend that contains 85 percent ethanol and only 15 percent gasoline. Ethanol is a completely renewable fuel that, in the United States, most commonly is made from corn.

If all of the nearly 6 million flexible fuel vehicles now on America's highways operated on E85, more than 3.6 billion gallons of gasoline could be saved a year.

Additionally, ethanol-fueled hybrids could significantly reduce greenhouse gas emissions. The Ford Escape Hybrid would produce about 25 percent less carbon dioxide if operated exclusively on renewable E85 ethanol fuel instead of carbon-rich gasoline.

Filling Up with Ethanol

Last year, we partnered with VeraSun Energy Corporation to create the Midwest Ethanol Corridor, increasing the number of E85 pumps along two major highways to encourage greater availability of E85 fuel at retail filling stations. Today, E85 is most commonly available in parts of the Midwest.