Sustainability 2011/12

Climate Change and the Environment

Ford’s Electrification Strategy

Ford’s electrification strategy foresees a future that includes different types of electrified vehicles, depending on customers’ needs. There will not be a one-size-fits-all approach, but a diverse, smart application of different types of electrified vehicle technologies. Our strategy includes the following:

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

Electrified vehicles are an important part of Ford’s overall sustainability strategy and 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 and deliver leading fuel economy across our lineup to meet different customers’ transportation needs. To do this, we are electrifying global vehicle lines rather than creating a special electrified vehicle model. That way, our customers can choose from a variety of electrified vehicle powertrains, including hybrid electric vehicles (HEVs), plug-in hybrid vehicles (PHEVs) and full battery electric vehicles (BEVs). We are also delivering electrified vehicles in a range of different vehicle segments, including sedans, utility vehicles and luxury vehicles. By 2020 we expect that 10 to 25 percent of Ford’s global sales will be electrified vehicles, including HEVs, PHEVs and BEVs. We expect HEVs to make up about 70 percent of that share. Currently, HEVs make up approximately 2 percent of Ford’s total fleet.

By the end of 2012, Ford will offer the following HEVs: the Ford Fusion Hybrid, the Lincoln MKZ Hybrid and the new C-MAX Hybrid (based on the successful C-MAX in Europe), all of which will deliver leading fuel economy. 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, where braking energy is stored and reused. The Ford C-MAX Hybrid will be our first multi-activity vehicle in North America and will launch in the fall of 2012; it is expected to be among the leaders in its segment for fuel economy. The hybrid version of the all-new, redesigned Fusion, which will also be introduced in the fall of 2012, is expected to deliver 47 miles per gallon (mpg) – segment-leading fuel economy. For more information about our hybrid vehicles and technology, please see the Hybrid Electric Vehicles section.

In the spring of 2012, we launched the Focus Electric, a BEV version of the all-new Ford Focus, in North America. The Focus Electric has a U.S. Environmental Protection Agency (EPA) fuel-efficiency rating of 110 miles per gallon equivalent (MPGe) city and 99 MPGe highway, making it the most fuel-efficient compact vehicle in the U.S. With innovative technologies, the Focus Electric can be fully recharged in half the time (4 hours) and at a lower cost (approximately $1 for a full charge) than competitors’ BEVs with comparably sized batteries. The Focus Electric also offers more power, more space and more standard features than any other comparable all-electric vehicle. It 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 29 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 2012 in North America, we will introduce our first PHEV, the C-MAX Energi. In addition, the Fusion Energi, a plug-in hybrid version of our all-new Fusion, will go into production by the end of 2012 in the U.S. For more information about our plug-in hybrid vehicles and technology, please see the Plug-In Hybrid Electric Vehicles section. All of these vehicles will use next-generation lithium-ion batteries.

We will also expand our electrified vehicle lineup to Europe beginning with the Focus Electric in late 2012. We will launch hybrid vehicles in Europe in coming years.

Using Global Platforms

We are basing our electrified vehicle 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 will all be based on Ford’s next-generation “C-car” platform, and will be built alongside the 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 Fusion Energi PHEV will be based on our global C/D 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.

Delivering a Total Electric Vehicle Lifestyle

Electric vehicles have many advantages for consumers, like possibly never having to visit a gas station again. But they also require drivers to make changes to their driving routines and may cause some new anxieties, like wondering if the car has enough charge to get to the next destination. To help drivers make the transition to electric vehicles and get the most out of their EVs, we are offering more than just the vehicle. We are delivering a total electric vehicle lifestyle.

In the U.S., for example, our plug-in electrified vehicles have advanced in-vehicle communications and innovative applications for wireless devices that help drivers maximize the efficiency and range of their vehicles, find charging stations along their planned routes, and know exactly how far they can go until the next charge based on their own driving style. Our innovative MyFord Mobile app, co-developed with technology leaders such as Microsoft and MapQuest®, allows owners to control charging and other in-vehicle operations remotely. For example, the app can “wake up” to pre-heat or pre-cool the cabin while the car is being charged, to help reduce battery usage for these energy-intensive functions. We have also developed a comprehensive approach to vehicle charging that makes it fast, easy, affordable and environmentally friendly. Our goal is to deliver electric vehicles that are as engaging, easy to use and empowering as other forms of consumer electronics like smartphones.

Bringing EVs to Market Thoughtfully

Ford is taking a proactive approach to making EVs successful in the marketplace. We are working with utilities, municipalities, dealers and customers to make the transition to EVs as smooth as possible. 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, EV dealers were required to install two EV charge stations at their facilities – one in the service area and another in the customer-facing area. EV dealers are also undergoing a “green dealer onsite facility assessment” to identify energy- and cost-saving opportunities, with a goal of facilitating energy efficiency, lower operating expenses and a reduced carbon footprint. For more information on this Go Green Dealership effort, please see the Dealers section.

We have also developed websites, videos and brochures to help consumers understand electrified vehicle offerings and incorporate EVs into their lifestyle. For example, our electrified vehicle website helps consumers understand key features and differences between electrified vehicle options, and our site helps customers understand how to get the most from their electric vehicle. We have also developed videos on vehicle features like MyFord Mobile, how to charge the vehicle or set the charge time, and the Best Buy charge station installation process.

We are also targeting our initial EV offerings in markets that we believe will be able to take advantage of the full range of EVs’ benefits right away. We are initially introducing the Focus Electric in the spring of 2012 in the largest electrified vehicle markets – New York, New Jersey and California – that have some of the most established, fastest-growing charging station infrastructures and government support. We will follow this initial launch by rolling the car out in the fall of 2012 to 15 more U.S. metropolitan areas: Atlanta, Austin, Boston, Chicago, Denver, Detroit, Houston, Orlando, Phoenix, Portland (Oregon), Raleigh-Durham, Richmond, Seattle, Tucson and Washington, D.C. These markets were chosen based on several criteria, including commuting patterns, existing hybrid purchase trends, utility company collaboration and local government commitment to electrification. The Certified EV Dealer Network will be expanded to cover a broader national market in the third quarter of 2012 as the C-Max Hybrid and C-Max Energi become available.

As part of our collaboration with dealers, utilities and local governments, Ford is helping to develop consumer outreach and education programs on electric vehicles 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 “Charging into the Future Tour” in 14 cities around the country as part of this effort. This tour promotes Ford’s electric vehicle strategy, solidifies our collaborations with local utilities and municipalities to make EVs 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.

Collaborating with Partners

Gearing up for the development and diffusion of electrified vehicle technologies will be a global challenge. Major advances have already been made on the electrical technology at the core of next-generation electrified vehicles, and there’s more to come. In Ford’s vision, a coalition of automotive manufacturers and other stakeholders will work together to develop technologies, standards and cost efficiencies to commercialize electrified vehicles. It will take a collaborative approach of automakers, battery producers, suppliers, fuel producers, utilities, municipalities, educators and researchers, as well as policy makers and opinion shapers, to help us make the transition and realize the full benefits of electrification.

Traditional automotive suppliers, transforming themselves for electrification, are being joined by new suppliers adapting electronics to the automotive environment. Significant possibilities exist for innovation in battery technology, power electronics and the development of motors, generators, high-voltage systems and other components, as well as the information technology necessary to maximize the potential of electric vehicles.

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.