Fuel Economy and Greenhouse Gas Emissions
Our current fuel economy performance is discussed in this section. We are also aggressively pursuing the development of new technologies, including additional hybrids, advanced diesel engines, hydrogen-fueled internal-combustion engines, fuel cell vehicles and biofueled vehicles, as discussed in the Sustainable Technologies and Alternative Fuels Plan. Our climate change strategy and participation in public policy processes related to climate change and fuel economy are discussed in the Climate Change section.
Fuel Economy Performance – U.S.
For the 2007 model year, the Corporate Average Fuel Economy (CAFE) of our cars and trucks increased by 5.9 percent. This represents increases of 2.4 percent for cars and 5.2 percent for trucks relative to 2006. Preliminary data for the 2008 model year shows a 0.7 percent improvement in CAFE compared to 2007, with a 1.3 percent improvement for cars and a 4.0 percent improvement for trucks.
Ford is a fuel economy leader in various vehicle size classes. The 2008 Ford Escape Hybrid, Mercury Mariner Hybrid and Mazda Tribute Hybrid have the highest fuel economy in the SUV class, and the Ford Ranger and Mazda B2300 are leaders in the small pickup truck class. In addition, the Ford Taurus and Mercury Sable have the highest fuel economy for an all-wheel-drive large car, according to the EPA's Green Vehicle Guide.
As seen in the Fuel Economy of U.S. Ford Vehicles by EPA Segment graphic, our U.S. vehicles are generally competitive with others in the industry in fuel economy, ranking better than average in four of 12 categories, worse in five and the same in three.
We currently build five vehicles that get 30 miles per gallon or better, based on highway fuel economy estimates. These vehicles include the Ford Focus (models of which get 35 miles per gallon on the highway), Mazda3, Ford Escape Hybrid, Mercury Mariner Hybrid and Mazda Tribute Hybrid. Compared to 2007, the number of 2008 vehicles that achieve 30 miles per gallon or better decreased significantly due to changes in the EPA's fuel economy calculation and labeling system. The new system includes tests that help better reflect real-world driving (e.g., higher highway speeds, use of air conditioning and the effects of seasonal temperature changes). Consequently, the EPA's fuel economy estimates for all 2008 vehicles sold in the U.S. are expected to be lower than for the 2007 models, even though the actual fuel economy may be comparable to or better than those models.
In 2007, Congress passed legislation requiring the National Highway Transportation Safety Administration to set standards to increase average fleet-wide fuel economy to 35 miles per gallon by 2020. Our plan to improve fuel economy is discussed in detail in the Climate Change section and the Sustainable Technology and Alternative Fuels Plan section.
We continue to add features that boost the fuel economy of our vehicles. See the Sustainable Technology and Alternative Fuels Plan section and the Design for Fuel Efficiency section for more information.
Fuel Economy Performance – Europe
In Europe, we have reduced the average CO2 emissions of the vehicles we sell by 14 to 33 percent depending on the brand, compared with a 1995 baseline. We have achieved these reductions by introducing a variety of innovations, including an advanced common-rail diesel engine, available on many of our vehicles, and lightweight materials, such as the all-aluminum body of the Jaguar XJ.
In 2007, we announced a new line of ultra-low CO2 alternatives for selected car lines, to be sold under the Ford ECOnetic label. The ECOnetic name was chosen because it links ecologically friendly technology to our kinetic design "energy in motion" philosophy, which combines driving quality and emotional styling. These cars use a combination of the latest common-rail diesel powertrains and other carefully selected features engineered to reduce CO2 emissions to the absolute minimum. The new Ford Focus ECOnetic is the first in this line. It is powered by the highly efficient 109-horsepower, 1.6-liter Duratorq TDCi engine with standard diesel particulate filter. Other fuel-efficiency features include electric-power-assisted hydraulic steering; an aerodynamics kit consisting of a modified front bumper skirt, rocker claddings, a rear spoiler, and blanking plates on the lower grill; low-rolling-resistance tires; and a first-time introduction of low-viscosity transmission oil developed by Ford's fuel partner BP. Through the combination of these features, the Ford Focus ECOnetic delivers excellent fuel economy of just 4.3 liters (l) per 100 kilometers (km) and best-in-class CO2 emissions for conventional powertrain technology of just 115 grams (g) per km. The Ford ECOnetic line will be extended in 2008 to include a sub-140 g/km CO2 Mondeo and a sub-100g/km CO2 model of Ford's all-new Fiesta.
The auto industry to date has made a very significant contribution to the European Union's overall efforts to address climate change. Ford, along with other European automakers, is part of a voluntary agreement with the EU to reduce the CO2 emissions of vehicles. This agreement commits its members to reduce CO2 emissions by an average of 25 percent from 1995 levels by 2008. The industry has consistently pointed out that the agreement constitutes one of the most challenging CO2 reduction initiatives within the EU and that it is extremely ambitious, both technically and economically. Despite increasingly adverse market conditions, Ford and the industry continue to work hard to move toward the 2008 calendar year target. The focus is now on developing appropriate 2012 calendar year targets.