Ford’s Electrification Strategy

Ford foresees a future that includes different types of electrified vehicles (EVs), depending on customers’ needs. There will not be a one-size-fits-all approach, but a diverse and smart range of applications of different types of electrified vehicle technologies. Our strategy includes the following elements.

“Power of Choice”: Bringing a Range of Electrified Vehicles to Market

EVs are an important part of Ford’s overall sustainability strategy and delivering on our commitment to reduce the carbon dioxide (CO₂) emissions of our fleet. We are pursuing an aggressive electrified-vehicle strategy that we call “power of choice.” We believe that offering a range of electrified vehicles is the best way to reduce CO₂ emissions, deliver leading fuel economy across our lineup and meet different customers’ transportation needs.

To do this, we are electrifying global vehicle lines rather than limiting development to a single, special electrified vehicle model. This allows our customers to choose from a variety of electrified vehicle powertrains – including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and full battery electric vehicles (BEVs) – in a range of vehicle segments, including sedans, utility vehicles and luxury vehicles.

In the U.S., we offer three HEVs: the Ford Fusion Hybrid, the Lincoln MKZ Hybrid and the new C‑MAX Hybrid. In 2014, we plan to introduce a hybrid version of Ford Mondeo in Europe. These HEVs are ideal for customers who cover a range of distances in varied driving conditions. The most significant benefits come under urban stop-and-go driving conditions, in which braking energy is stored and reused. But these HEVs should also appeal to drivers who do a mix of city and highway driving. For more information about our hybrid vehicles and technology, please see the Hybrid Electric Vehicles section.

In 2012, we launched the Focus Electric, a BEV version of the new Ford Focus, to retail customers in North America. We introduced this vehicle in Europe in 2013. By using innovative technologies, the Focus Electric can be fully charged in under four hours. The Focus Electric has an EPA-certified driving range of 76 miles on a single charge and can go up to 100 miles on a charge depending on driving habits. (The average driver in the U.S. drives approximately 45 miles a day, according to the Bureau of Transportation Statistics.) For more information about our battery electric vehicles and technology, please see the Battery Electric Vehicles section.

In North America, we also sell two PHEVs: the C‑MAX Energi, launched in 2012, and the Fusion Energi, a plug-in hybrid version of our all-new Fusion that launched in early 2013. For more information about our PHEVs and technology, please see the Plug-In Hybrid Electric Vehicles section.

All of our electrified vehicles use state-of-the-art lithium-ion batteries, as discussed in the Battery Technologies section.

Sales of our electrified vehicles are increasing, and Ford is the second-leading seller of electrified vehicles in the U.S. For calendar year 2013, we held 14.3 percent market share in the U.S. EV market, up from approximately 6.5 percent in 2012. In 2013 we sold 87,776 total EVs – a record number for Ford. EVs accounted for 3.5 percent of total company sales, up from 1.6 percent in 2012.

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Using Global Platforms

We are basing our EV products on our highest-volume global platforms. This approach offers tremendous opportunities for production economies of scale. For example, the Focus Electric, C‑MAX Energi and C‑MAX Hybrid are based on Ford’s next-generation compact, or “C-car” platform, and are being built alongside gas-powered Focus models at Ford’s Michigan Assembly Plant. This plant is the first in the world to build vehicles with five different fuel-efficient powertrain technologies on the same line.

Globally, we expect to build as many as 2 million vehicles per year on the C-car platform. The new Fusion Hybrid and the Fusion Energi PHEV are based on our global mid-sized platform. This flexibility allows us to switch production between different vehicles as needed to meet changing consumer demand. We also share many of the electrified components between the different vehicles. These strategies are key to making electrified vehicles affordable.

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Delivering a Complete Electrified-Vehicle Lifestyle

EVs have many advantages for consumers. But they may sometimes require owners to adjust their travel routines and driving habits, and may cause some new considerations to arise in regard to how a driver uses a car. For example, BEV drivers have to plan for their car to have enough charge to get to the next destination. BEV and PHEV drivers have to consider where they will charge their vehicles. Even HEV drivers can make changes to their driving routines to maximize the efficiency of their vehicles. To help drivers make the transition to EVs and get the most out of their EVs, we are offering more than just the vehicle. We are delivering a total electrified-vehicle lifestyle.

In the U.S., our electrified vehicles have advanced in-vehicle communications and innovative applications for wireless devices that help drivers maximize the efficiency and range of their vehicles. Our tools for BEVs and PHEVs also help drivers to find charging stations along their planned routes, and advise how far they can go until the next charge based on their own driving style. For example, our MyFord Mobile™ app, developed using MapQuest® and PlugShare technology, allows owners to control charging and other in-vehicle operations remotely. The app can “wake up” to preheat or precool the cabin while the car is plugged in, to help reduce battery usage for these energy-intensive functions. Owners can use MapQuest to find their way to a new destination and PlugShare to find public recharging stations. We have also developed a comprehensive approach to vehicle charging that makes it fast, easy, affordable and environmentally responsible. Our goal is to deliver EVs that are as engaging, easy to use and empowering as other forms of consumer electronics like smartphones.

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Improving the Electric Vehicle “Ecosystem”

The development and diffusion of EV technologies is a global challenge. It will take a collaborative approach of automakers, battery producers, suppliers, fuel producers, utilities, municipalities, educators and researchers, as well as policy makers, opinion shapers and consumers, to help us make the transition and realize the full benefits of electrification. We are collaborating with all of these players to develop an “electric vehicle ecosystem” that supports and enhances the operation of EVs and increases their benefits to customers and the environment.

Ford’s plan calls for strategic partnering with key suppliers who bring technical expertise, financial solidity and collaborative spirit. We believe that working with a range of partners will allow us to gain greater understanding of the connectivity of vehicles to the electric grid, promote the necessary infrastructure and bring down the costs of the technology to make it more accessible for consumers. We are partnering with companies that are already the best in their fields, instead of attempting to recreate products, services and technologies internally, to offer customers the best possible suite of electrified vehicle-related products, services and technologies. For example, we are working with municipalities across the U.S. to help them develop infrastructure to support EVs including public charging stations. And, we are working with a coalition of other automotive manufacturers and other stakeholders to develop technologies, standards and cost efficiencies to commercialize EVs.

In January 2013, Ford launched the MyEnergi Lifestyle project, a collaboration with representatives of the consumer-appliance, renewable-energy and power-management industries to demonstrate how plug-in vehicle technology can be applied across household appliances and renewable energy generation for an energy- and money-saving lifestyle. Current partners include Whirpool, Easton, SunPower and Georgia Institute of Technology. Please see the longer “Improving the Electric Vehicle Ecosystem” for more information on our efforts in this area.

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Bringing EVs to Market Thoughtfully

Ford is taking a proactive approach to making PHEVs and BEVs successful in the marketplace including efforts to help customers and dealers better understand the technology. For instance, we have developed extensive training materials to educate dealers’ sales personnel on the unique features and functionality of electric vehicles so that they are able to assist customers with their purchase decisions. As part of these preparations, dealers who sell BEVs and PHEVs are required to install two EV charge stations at their facilities – one in the service area and another in the customer-facing area. These dealers are also participating in a “green dealer on-site facility assessment” to identify energy- and cost-saving opportunities, with a goal to improve energy efficiency, lower operating expenses and reduce the dealership’s carbon footprint. For more information on our “Go Green” dealer initiative, please see the Dealers section.

We have also developed websites, videos and brochures to help consumers understand our EV offerings and incorporate BEVs and PHEVs into their lifestyle. For example, our ”green vehicles” website helps consumers understand the key features of and differences between electrified vehicle options, and our www.plugintoford.com site helps customers understand how to get the most from their electric vehicle. We have also developed videos on vehicle features such as MyFord Mobile, how to charge the vehicle or set the charge time, and how to have a charging station installed.

As part of our collaboration with dealers, utilities and local governments, Ford is helping to develop consumer outreach and education programs as well as share information on charging needs and requirements to ensure that the electrical grid can support customers’ needs. For example, we launched a “Go Further” test drive tour in 17 U.S. markets as part of this effort. This tour promotes Ford’s electric-vehicle strategy, solidifies our collaborations with local utilities and municipalities to make BEVs and PHEVs a success, and educates consumers about what to expect from electrified automobiles and what is needed from the public and private sector to support this new technology, all while giving them the opportunity to test-drive a Ford vehicle with fuel-efficient technology. In 2013, we also held consumer education events in key BEV and PHEV markets around the country; some were stand-alone Ford events and some were larger sustainable-lifestyle events in which we participated. These consumer education events included educational exhibits about Ford’s electrified-vehicle offerings, the benefits of BEVs and PHEVs, and recharging options, as well as live demonstrations of the MyFord Mobile technology and the opportunity to test-drive Ford vehicles.

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