Delivering More Fuel-Efficient Vehicles

Consumer demand for more fuel-efficient and cleaner vehicles continues to grow. In the 2007 New Vehicle Customer Survey, fuel economy was chosen as the feature most influencing drivers' next vehicle purchase decision and ranked higher than pricing incentives and advanced safety features. Seventy-five percent of respondents (up from 66 percent in 2006) ranked fuel economy as extremely or very influential in their next vehicle purchase decision. This demand for fuel efficiency, largely driven by consumers' growing concern over rising and volatile fuel prices, energy security and climate change, is reflected in shifts in vehicles purchased. For example, the more fuel-efficient crossover segment has seen significant growth compared to traditional truck-based SUVs. This shift in demand is visible in the chart of sales by vehicle segment.

Ford is taking a multi-pronged approach to meeting this demand. We have committed to improving the overall fuel economy of our entire fleet. In the near term, we are focused on implementing the most cost-effective fuel-efficiency technologies across a large volume of our vehicles and introducing new products that offer improved fuel efficiency without compromising style or performance. We are also continuing to develop and introduce advanced technologies that improve fuel efficiency, reduce emissions and reduce dependence on foreign oil. In the mid to long term, we will implement these advanced technologies as they become cost effective.

For example, we recently announced plans to use EcoBoost, a key technology in our fuel-efficiency strategy, in half-a-million Ford, Lincoln and Mercury vehicles annually in North America during the next five years. EcoBoost uses gasoline turbocharged direct-injection technology for up to 20 percent better fuel economy, 15 percent fewer CO2 emissions, and superior driving performance versus larger displacement engines. EcoBoost is also affordable. For example, customers in North America can expect to recoup their initial investment in a 4-cylinder EcoBoost engine through fuel savings in approximately 30 months compared with a 4-cylinder diesel, which would take about 6 years, and a hybrid, which may take about 9 years to recoup, given equivalent miles driven per year and fuel costs. The EcoBoost technology will debut on the new Lincoln MKS sedan in 2009. Read about our other short-, mid- and long-term plans to improve fuel economy in the Sustainable Technologies and Alternative Fuels Plan section.