Our Blueprint for Sustainability

Public Policy Positions

This section summarizes Ford’s positions on key public policy issues currently under discussion in the U.S. Two important topics are not addressed here: Climate change policy is discussed in the Climate Change Policy and Partnerships section, and policy regarding sustainable raw materials is discussed in the Sustainable Raw Materials section.

Non-CO₂ Tailpipe Emissions

In the U.S., the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) regulate smog-forming tailpipe emissions, including hydrocarbons, nitrogen oxides, carbon monoxide and particulate matter. California finalized Low Emission Vehicle III Standards in 2012, and the EPA issued Tier 3 emissions and fuels standards in early 2014.

We will continue to work with the agencies through their regulatory processes to help develop rules that are both effective and feasible. In setting tailpipe emission regulations, consideration of other vehicle rules such as fuel economy and greenhouse gas standards and safety standards must be taken into account to ensure that the total package of requirements is workable.

Ford continues to oppose technology mandates that seek to impose quotas or limits on the production or sale of vehicles with specified powertrain technologies. Regulatory efforts to dictate market outcomes, or to pick technology “winners” and “losers,” have never produced a successful outcome. Manufacturers need the flexibility to build the kinds of vehicles that the marketplace demands based on consumer preferences and other external factors. Emissions standards should be performance-based and should be designed to enable manufacturers to introduce vehicles with an array of different, affordable technologies.

Undesirable Chemicals

The European Union’s REACH program (Registration, Evaluation, Authorization and restriction of CHemical substances) regulates and seeks to phase out chemicals of concern. More and more countries have adopted similar regulations, including Turkey, Romania, China, Japan, Taiwan, South Korea and Canada.

In the U.S., the Senate and House have both proposed bills since 2010 to overhaul the Toxic Substances Control Act, which was first enacted in 1976, but to date none have passed. The state of California passed a “safer consumer products” law (the Green Chemistry Initiative), which took effect in late 2013, which will require manufacturers of selected products (so called “priority products”) sold in California to identify safer alternatives to a potential range of 1,200 chemicals known to be harmful to public health and the environment. The California law will also phase in a requirement that manufacturers whose priority products contain listed chemicals of concern must conduct an “alternative assessment” and replace the chemicals of concern with safer alternatives, or explain to state regulators why the chemicals of concern are needed and warn consumers or undertake steps to mitigate the public’s exposure to those substances. Vermont has proposed a similar green chemistry law, which has not yet passed but is expected to. The California law and the Vermont bill, with their requirements of alternative assessments, go beyond REACH-like statutes, which mandate simply removing or phasing out substances of concern.

In January 2009, the United Nations implemented regulations requiring a globally harmonized system (GHS) of classification and labeling of chemicals. In the U.S., implementation of the GHS requirements starts with employee training, which must be completed by the end of 2013. By June 1, 2016, employers must be in full compliance with the revised Hazard Communication Standard (HCS), including complete training of employees on new hazards and/or revisions to workplace hazard communication programs.

We believe that regulatory requirements for the phase-out of undesirable chemicals need to be prioritized and implemented in a workable manner. Government and industry resource constraints mean that not all chemicals of concern can be addressed at once. Moreover, manufacturers and suppliers need adequate lead-time to identify replacement substances that are more environmentally friendly than the ones they replace, and also to design and engineer components that incorporate these new substances. Ford will continue to work with regulatory agencies to help develop rules that target the highest-priority chemicals first, and that drive steady progress toward the elimination of chemicals of concern in an effective and efficient manner.

Manufacturing Policy

Manufacturing is a critical driver of economic growth, providing jobs and tax revenue, creating new products and technologies, and promoting overall prosperity. About 70 percent of all the research and development investment in the U.S. comes from the manufacturing sector. Ford alone spends $5 billion on research and development annually. We believe that a strong manufacturing base – with its attendant focus on engineering, science and technology innovations – is important not only for national prosperity but for energy independence, energy security and sustainability.

A variety of policy areas impact the success of U.S. manufacturing, and it is important that Ford informs U.S. policy makers shaping a climate for economic growth, regulatory certainty and a strong foundation for U.S. exports. Integrated elements of a competitive U.S. manufacturing agenda include the following:

Corporate tax reform: The U.S. has the highest corporate tax rate among developed countries. A lower rate allows U.S. companies to compete on a level playing field and frees up capital that can be reinvested in new products, technologies and manufacturing innovation.
Regulatory efficiency and certainty: Ford’s continued investment in the U.S. is enhanced by a stable and predictable regulatory environment for safety, fuel economy and greenhouse gas emissions that balance our shared policy goals, economic realities and consumer acceptance. A performance-based, data-driven approach to regulation is critical as we develop emerging technologies such as vehicle-to-vehicle communications and driver assist features. We need efficiency in the regulatory process that provides certainty and avoids a patchwork of state regulations that can undermine efficiency – often with no societal or environmental benefit. When multiple regulators exist, we need to work together to ensure that we ultimately develop standards that are achievable and consistent with one another so that compliance costs are minimized.
Trade: Ford has supported every free trade agreement approved by the U.S., and Ford is the leading vehicle exporter in the U.S. As noted below, we support strong free trade policies – enabling market access and prohibiting currency manipulation In addition, trade agreements also can help shape and harmonize regulations. A U.S.–E.U. trade agreement that pursues regulatory harmonization and mutual recognition of standards would enhance both regions’ competitiveness in today’s global marketplace.
Training and Education: We need to continue training our work force and encourage education in math, science and engineering if the U.S. is to remain competitive and innovative. In our hourly work force, continued “up-skilling” is critical to maintaining our competitive performance. Existing federal training programs should be flexible, work closely with states, and prioritize incumbent worker training.

Vehicle Safety

At Ford, safety is one of the key principles that inform and guide our every design and engineering effort. We are committed to continuous improvement in vehicle safety; we are also actively involved in driver education and efforts to promote safer roadways. Ford will continue working with governments and the public to help further reduce auto accident and fatality rates, which in 2012 increased from the historic lows of 2011. (Early estimates from the U.S. National Highway Traffic Safety Administration project that traffic fatalities in 2013 declined to nearly the 2011 level.)

At Ford, we take our commitment to safe driving seriously and recognize that driver distraction is an important safety issue. Extensive research shows that manually operating electronic devices, such as cell phones, that are not integrated into the vehicle can divert a driver’s eyes from the road and cause drivers to take their hands off the steering wheel, increasing the risk of a crash substantially. That is why Ford pioneered the use of hands-free, voice-activated technology to help drivers keep their hands on the wheel and eyes on the road. It is also why Ford was the first automaker to support a national ban on the use of hand-held devices while driving; we also support graduated driver license programs that restrict cell phone use and text messaging by new drivers, as discussed below. We go further by educating young drivers across the country about safe driving techniques through our Driving Skills for Life program. And we try to lead by example; Ford has a corporate policy prohibiting the use of hand-held mobile devices while driving company-owned vehicles.

Ford is rapidly expanding its research on connected vehicles that can wirelessly talk to each other, when appropriate, to warn of potential dangers, to enhance safety and identify impending traffic congestion for more efficient driving. Ford participates in field tests in the U.S. and Europe to aid in the development of these next-generation vehicle-to-vehicle and vehicle-to-infrastructure communication technologies. We are also working closely with governments, standards organizations and other automakers globally to develop harmonized standards around the world to help deliver these technologies as quickly, safely and affordably as possible.

Ford strongly supports Graduated Driver Licensing (GDL) programs in the U.S. as a means of helping to reduce crashes, injuries and fatalities involving novice teen drivers. The most effective GDL programs require a minimum learner permit age of 16, an intermediate license until age 17, and at least 65 hours of supervised training, in addition to prohibiting night-time driving after 8 pm and banning all teenage passengers for intermediate drivers. All U.S. states have adopted some level of GDL requirements, though not all states have chosen to adopt all GDL elements. Ford encourages every state and the District of Columbia to adopt strong GDL programs, including information on safety belt use and the dangers of impaired and distracted driving.

See the Vehicle Safety and Driver Assist Technologies section for more on our vehicle safety technologies and activities.

Human Rights

Ford is committed to respecting human rights everywhere we operate, because it is the right thing to do and it strengthens our business in the long run. We are a leader in addressing human rights and working conditions in the auto industry. As discussed on the Policy Letters and Directives page, our commitment to human rights is embodied in our Policy Letter 24: Code of Human Rights, Basic Working Conditions, and Corporate Responsibility.

In 2008, we joined the United Nations Global Compact, a framework for businesses committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, the environment and anti-corruption.

And for several years, we have worked with leaders of the U.S. Department of State’s human rights programs and the U.S. Department of Labor to explore how to encourage multinational companies to act as a positive force in protecting human rights in global trade, both through work in their own supply chains and through advocacy. We have also consulted with these agencies on how the U.S. government can encourage the protection of human rights through its purchasing practices.

Several states have passed local legislation to prevent human trafficking, and we are watching for a federal regulation. Ford supports the underlying goals of human rights legislation, and where appropriate, we are participating in sector-specific initiatives and with international organizations to systematically evaluate supply chains to determine the most effective measures to combat human rights violations.

For more on our commitment to human rights, see Human Rights in the Supply Chain.

International Trade

As a global automaker, Ford has a strong interest in issues relating to international trade. With manufacturing facilities in the Americas, Europe, and Asia Pacific Africa, sales in all key global markets and a global supply chain that moves parts worldwide, we are a strong supporter of trade liberalization. Free trade is foundational to our business model. In fact, the auto sector is the largest exporter of goods in the U.S., and Ford is the largest exporter within the sector.

Ford has supported every free trade agreement (FTA) ratified by the U.S. government since the U.S. first began free trade negotiations in the mid-1960s.

To further increase U.S. exports and support American jobs, we believe a new approach to trade is required that puts U.S. manufacturing at the forefront. Given the importance of manufacturing to the U.S. economy, Ford supports a manufacturing-driven trade strategy that:

Drives innovation and delivers economic opportunity to its citizenry by maintaining a vibrant manufacturing sector as its cornerstone; and
Enables U.S. manufacturing to compete on a level playing field against the best competition from around the globe.

Finally, we believe 21^st century trade deals should work to remove 21^st century trade barriers. The elimination of trade-distorting policies such as currency intervention and manipulation must be included in any trade initiative. Currency manipulation provides foreign automakers with an export subsidy of several thousand dollars per vehicle, while at the same time acting as the ultimate nontariff barrier, protecting their market from imports. Ford believes the market should set currency exchange rates – not governments.

Education

Ford understands that global competitiveness depends on the ability of our K-12 educational systems and post-secondary institutions to prepare a 21^st century work force. With baby boomers beginning to retire in large numbers, and many high-skilled jobs going unfilled, improving the quality and performance of our schools has become an urgent issue facing communities large and small across the country. Within these communities, too many students are disconnected and unsuccessful in schools that struggle to be as engaging and relevant as they need to be. Add to that the considerable anxiety being generated by an economy in transition – from industrial- to knowledge-based – and education emerges as a critical factor in securing financial health and prosperity for individuals, communities and the nation.

Ford recognizes the importance of these issues and supports public policies and initiatives that are designed to mobilize educators, employers and community leaders to bring communities together to transform the entire educational system. These programs provide students with real-world learning opportunities that help them:

Develop essential higher-order skills, such as critical thinking, problem solving, communication, innovation and creativity;
Make connections between the academic subjects taught in the classroom and their application in the real world;
Make meaningful connections to higher education; and
Build more sustainable communities by involving local business and community organizations to create service-based academic projects that make learning more applicable to real-world situations and positively impact the community.

By helping communities address this most critical challenge, Ford continues its long tradition of leading and supporting educational initiatives that empower students, strengthen communities and benefit the economy. See the Investing in Communities section for more information on the programs we support.

Electrification

As advanced technology vehicles – such as hybrids, plug-in hybrids and all-electric vehicles – emerge onto our highways and roads, manufacturers must work together, and with governments as appropriate, to set standards for certain technical aspects of these new vehicles, to enable the market for them to proceed forward smoothly.

Consider, for example, when we go to a gas station, we take for granted that the pump nozzle is a size that will work with our vehicle. Early on, a standard size and configuration had to be developed and agreed to across all automobile and gasoline pump manufacturers, so that drivers could have a hassle-free experience when they went to fill up. As demand for and availability of plug-in electric vehicles continues to rise, it is similarly important that consistent standards be put in place regarding the technical aspects of these vehicles.

In North America, the Society of Automotive Engineers (SAE), with Ford’s participation, successfully aligned all original equipment manufacturers (OEMs) on a standard charge connector and communication protocol that enables all plug-in vehicles to use common charge points. This allows all public charge stations to be compatible with all vehicle manufacturers’ products. For Ford, it enables our plug-in vehicles to charge a fully depleted battery in 2.5 to 3.5 hours. The same approach is under consideration in Europe and China. For faster charging, the SAE (again with Ford’s participation) also approved a standard plug and interface to enable future equipped vehicles to charge their battery in 20 minutes or less. In Europe, the standards organizations adopted this same “fast-charge” framework, called the DC Combo System. Ford continues to participate in standards work to harmonize wireless charging globally.

Ford is also working with other OEMs and suppliers to provide a common database of charge point locations for display within vehicles’ navigation systems. And, we and the industry are working collaboratively with the Obama administration and the U.S. Congress to address the challenges associated with the deployment and commercialization of electric-drive vehicles and infrastructure. In 2013 we signed onto the U.S. Department of Energy’s pledge to increase vehicle charging infrastructure available in workplaces across the country in January 2013. As part of this program we are installing 200 electric vehicle charging stations at Ford facilities in the U.S. and Canada in 2014.

We have also taken a standards approach in the design of the Ford-branded charge stations from Leviton or AeroVironment. These charge stations not only meet the standards referenced above, but work with all of our plug-in products (i.e., plug-in electric vehicles and battery electric vehicles) and can be used in indoor, outdoor, residential and commercial use throughout U.S. and Canada. In Europe, a similar relationship has been established with Schneider Electric consistent with our European deployment of electrified vehicles.

See Electrification: A Closer Look for more information about our collaborative approach to encouraging the development of electric vehicles.