Product Competitiveness

Overall, 2010 marked another pivotal year as we launched 24 new or redesigned vehicles in key markets around the world, including the redesigned Ford Explorer, Ford Edge and Lincoln MKX and the new Ford Fiesta in North America; the redesigned Ford C-MAX and new Ford Grand C-MAX in Europe; and the new Ford Figo in India. In 2011, we are launching the new global Ford Focus in North America, Europe, and Asia Pacific and Africa.

We are boosting global production of smaller-sized vehicles, such as the Fiesta, which debuted in the U.S. in 2010. And we are expanding our lineup of vehicles with affordable advanced technologies, such as the fuel-efficient EcoBoost™ engine. We’re on track to offer EcoBoost on as much as 80 percent of our global nameplates and 90 percent of our North American nameplates by 2013. That’s about 1.5 million engines.

Our blueprint for sustainability, which highlights how we will meet our product carbon dioxide-reduction goal, has positioned us to lead in our industry and will help us meet new regulatory emissions standards. In the U.S., government regulations will require 36 miles per gallon (fleet average) by 2016 – a 30 percent improvement from the 27 mpg required for 2011 models.

The size of and mileage for our light trucks and SUVs has changed dramatically. Our bestselling SUV for 2010 – the compact Ford Escape – is the smallest in our U.S. lineup, getting 23 combined miles to the gallon (a gas-electric hybrid version gets 32 mpg). Our revamped Ford Explorer, meanwhile, gets 25 to 30 percent better gas mileage than the prior model. We also now offer our first full-size pickup built with a smaller, turbocharged engine.

Electrification is another important piece of our overall product development strategy. We have launched or plan to launch five new electrified vehicles in North America by 2012 and Europe by 2013: the Transit Connect Battery Electric Vehicle (BEV), the Focus Electric BEV, the CMAX Energi Plug-In Hybrid Vehicle (PHEV), the C-MAX Hybrid and a next-generation hybrid sedan yet to be named. Our electrification approach is built around customer choice, with options for hybrids, plug-in hybrids and pure battery electric vehicles.

We see ourselves as more than just a car company. To be competitive, we must also be a technology company.