Climate Change and the Environment
To meet our climate change goals, we are focused in the near term on implementing the most cost-effective fuel-efficiency technologies across a large volume of our vehicles, as well as on introducing new products that offer improved fuel efficiency without compromising style or performance. We are concentrating on affordable and near-term sustainable technology solutions that can be used not for hundreds or thousands of cars, but for millions of cars, because that is how Ford can truly make a difference.
For each of our new or significantly refreshed vehicles, we will continue to offer a popular version powertrain with leading fuel economy. Global platforms, such as those on which our Ford Fiesta and Focus are built, allow us to roll out our advanced technologies at a lower cost, achieving the large volumes that provide a real benefit.
We are offering our customers the “power of choice” when it comes to fuel-efficient vehicles and fuel-saving technologies – i.e., the ability to choose what best suits their needs from a wide range of advanced technologies implemented across our product lineup. To do this, we have introduced a wide variety of new engine and transmission technologies – as well as electrical system improvements, weight reductions and aerodynamic improvements – that deliver significant fuel-economy benefits for millions of drivers in the near term. We also offer electrified products, natural gas- and propane-ready engines, and vehicles that can operate on higher blends of biofuels. EcoBoost® engines, which use gasoline turbocharged direct-injection technology, are an important part of our efforts to improve vehicle fuel efficiency. EcoBoost engines significantly improve fuel economy and reduce CO2 emissions, and provide superior driving performance compared to larger-displacement engines. Because EcoBoost is affordable and can be applied to existing gasoline engines, we can implement it across our vehicle fleet, bringing fuel-efficiency benefits to a wide range of our customers. We produced over 2 million EcoBoost engines globally by the end of 2013, surpassing our previously announced goal of producing 1.5 million in that timeframe. We now offer EcoBoost engines on 90 percent of our North American and European nameplates, and 80 percent of our nameplates globally. In addition to EcoBoost engines we now offer a wide range of fuel-efficient technologies on our conventionally fueled vehicles, including advanced transmissions and Auto Start-Stop.
We offer six electrified vehicles (EVs) in the U.S: the all-electric Focus Electric, the Fusion Energi and C‑MAX Energi plug-in hybrid electric vehicles (PHEVs), and three hybrid electric vehicles (HEVs). We launched the Focus Electric in Europe in 2013 and plan to launch the C‑MAX Energi plug-in hybrid and a hybrid electric version of the Ford Mondeo in Europe in 2014. We plan to launch additional electrified vehicles in other global markets in coming years. Consumer interest in EVs grew in 2013. In 2013, the total number of EVs sold in the U.S. was 596,948, which accounted for a 3.8 percent of the total vehicles sold, up from 492,319 sold in 2012, which was 3.3 percent of vehicles sold in 2012.1 In 2013 Ford sold over 87,000 EVs including battery electric vehicles (BEVs), HEVs, and PHEVs – an all-time record for Ford. EV sales accounted for 3.5 percent of company sales, up from 1.6 percent share in 2012. Our overall share of the EV market also grew substantially. In the fourth quarter of 2013, our retail EV market share was 14.3 percent, up from 6.5 percent in 2013. While Ford’s share of the electrified vehicle market is growing, electrified vehicles still only represent a small fraction of U.S. sales. Electrified vehicles still have a long way to go to get significant penetration in a market that is still dominated by gasoline-powered vehicles.
In 2014, we will introduce the 3.2L Power Stroke® diesel engine in the U.S. in the fuel-efficient Transit full-size van. This engine, which will be manufactured in South Africa, adds to our lineup of advanced, clean diesel technologies used in vehicles marketed around the globe.
In Europe we also offer advanced common rail diesel engines across our European model range, as well as an ECOnetic Technology range of low-CO2 vehicles.
We have committed that for each of our new or significantly refreshed vehicles, we will offer a powertrain with leading fuel economy. For more information on our overall approach to fuel-efficient and alternative powertrain technologies, please see our Sustainable Technologies and Alternative Fuels Plan.
The following are some examples of our fuel-efficient vehicles and progress in improving fuel efficiency by region.
In North America, we continued to introduce new vehicles that use the technologies identified in our Sustainable Technologies and Alternative Fuels Plan, and that offer outstanding fuel economy and reduced CO2 emissions.
In 2013 in the U.S., we improved the average fuel economy of our car fleet by 2 percent, and of our truck fleet by 3 percent compared to 2012. However, our combined U.S. corporate average fuel economy decreased by 1.7 percent in 2013 due to increased customer demand for trucks over cars. Fleet CO2 emissions improved by 11 percent compared to 2008.
We now have the most fuel-efficient vehicle lineup in our company’s history.
We also continued to expand the use of our EcoBoost engines, which significantly improve the fuel economy of gasoline engines. As of the end of 2013, 90 percent of our North American and European nameplates offer EcoBoost engines.
We have made significant progress in improving the fuel economy of, and hence reducing the CO2 emissions from, our vehicles in North America. Figure 1 illustrates the improvement in fuel economy of key Ford vehicle models from 2004 to 2014.
Ford offers one of the broadest low-CO2 vehicle portfolios in Europe. Our efforts to improve fuel efficiency are paying off. Preliminary data shows that we have reduced the average CO2 emissions of our European car fleet by around 18 percent between the 2007 and 2013 calendar years.6
We are using a variety of technologies to accomplish these gains. We offer three ECOnetic vehicles, ultra-low-CO2 versions of selected Ford diesel vehicles that leverage several advanced, fuel-saving technologies. The ECOnetic name was chosen because it links ecologically sensitive technology to our “energy in motion” design philosophy, which combines driving quality and emotional styling.
In addition, we offer three EcoBoost gasoline engines in Europe, the 2.0L, 1.6L, and the 1.0L EcoBoost engines. These engines are available on the Ford Fiesta, B‑MAX, EcoSport, C‑MAX, Grand C‑MAX, Focus, Modeo, S‑MAX, and Galaxy. They are available in combination with other fuel-saving technologies such as Auto Start-Stop, Smart Regenerative Charging, Active Grille Shutter, and EcoMode. Ford is the only non-premium manufacturer currently offering Active Grille Shutter.
In 2013 and 2014 we are also extending our global electric vehicle plan to Europe. We launched the Focus Electric, an all-electric vehicle, in June 2013. We will launch the C‑MAX Energi, plug-in hybrid and a hybrid version of the Mondeo in late 2014. We also offer compressed natural gas (CNG) and liquefied petroleum gas (LPG, or propane autogas) versions of the Ford Fiesta, Focus, B‑MAX, C‑MAX, and Mondeo. And, we offer a flex-fuel version of the Ford Focus that can run on E85 (85 percent ethanol). All of our diesel vehicles can run on up a fuel blend of up to seven percent bio-diesel (B7).
Some examples of vehicles we offer in Europe with best-in-class, or extremely low-CO2 include:
In total, Ford offers 48 models and variants in Europe with CO2 emissions below 130 g/km, of which 13 models or variants have CO2 emissions below 100 g/km.
In the Asia Pacific region, we are launching more vehicles equipped with the EcoBoost engine in response to growing consumer demand for more fuel efficient vehicles. We will offer EcoBoost engines in 20 vehicles in Asia Pacific by mid-decade, a five-fold increase from 2012. In 2013, EcoBoost was available in 10 vehicles in the region. The 1L I-3 EcoBoost was introduced in the region for the first time on the Ford Fiesta, available in Australia, China, New Zealand, Taiwan, and ASEAN, and the EcoSport, available in Australia, China, India, and New Zealand. Also in 2013, the 1.5L I-4 EcoBoost was available the new Mondeo in China. The new Mondeo in China is the first vehicle at Ford to include the newly introduced 1.5L EcoBoost engine. We also offer the 1.6L and 2.0L I-4 EcoBoost variants in the Edge, Kuga, Mondeo, Falcon, Focus ST, and Fiesta ST. In March 2014, Ford’s joint venture, Changan Ford Automobile Co., Ltd. (CAF), began producing 1L EcoBoost engines at a new engine plant in Chongqing to power the Ford Fiesta and EcoSport vehicles built for China.
The fuel-efficient EcoBoost engines are being well received by our customers in the Asia Pacific region. In 2013, sales of EcoBoost equipped vehicles in the region rose by 250 percent compared to 2012. Seventy-seven percent of the Ford Mondeos and 90 percent of the Ford Edges sold in China are equipped with EcoBoost.
In China, Ford will upgrade its entire powertrain portfolio with 20 advanced engines and transmissions to support its aggressive plan to introduce 15 new vehicles to China by mid-decade. These advanced, fuel-efficient technologies – including turbocharging, direct injection, twin independent variable camshaft timing (Ti-VCT) and six-speed transmissions – will deliver more than a 20 percent improvement in fuel economy to Ford’s passenger vehicle fleet in China by 2015, which represents a key part of Ford’s near-term sustainability goals in China.
In India, we are also continuing to introduce vehicles with excellent fuel economy. In 2013, we introduced the all-new Ford EcoSport with a 1.0L EcoBoost, the first vehicle in India to have this technology. We also continue to offer the Ford Fiesta – powered by TDCi diesel powertrain developed for India – that delivers class-leading fuel economy and reduced CO2 emissions. This builds on fuel economy leadership established with the Ford Figo, launched in March 2010, which has two engine options: a best-in-class, fuel-efficient 1.4L TDCi diesel and a very competitive 1.2L gasoline engine. In Australia, we introduced the 1.0 L EcoBoost on the Fiesta and all-new EcoSport, We also offer an EcoBoost versions of the Ford Mondeo, and Ford Falcon, Fiesta ST, Focus ST, and Kuga. Also in Australia, we offer our EcoLPi liquid-injection liquefied petroleum gas (LPG) system for the Falcon, providing customers with the most advanced LPG technology on the market. The Falcon EcoLPi fuel system improves fuel economy by 12 to 15 percent, while also improving power by approximately 27 percent over the prior LPG Falcon model.
In South America, we are improving fuel economy by introducing some of the efficient engine and transmission technologies currently used in North America, and by offering technologies compatible with the widespread use of biofuels in Brazil. We offer our EcoBoost engine on the Ford Mondeo in Argentina and the Ford Fusion in Brazil.
We are continuing to implement the new, more-efficient “Sigma” engine, which improves efficiency compared to current engines through reduced internal friction and improved electronic throttle controls. We have also improved the gearing ratios, aerodynamics and rolling resistance of our South American models, further increasing fuel economy. In Brazil, our Ford EcoSport, a B-segment SUV, is a fuel economy leader in its segment. In 2013 in Brazil, we launched the new Ford Fiesta, which received an “A” rating for fuel efficiency in the new Brazilian fuel-efficiency labeling system. Ford also received a “Seal of Excellence” award for the Ford Fusion Hybrid and 2014 model year Fiesta 1.6L TiVC in Brazil; these awards are given to vehicles in the top 20 percent for fuel economy, regardless of vehicle segment or type.
Over the past few years, we have successfully implemented a large number of fuel-efficiency technologies in our B- and C-sized vehicle segments, which make up approximately 80 percent of the Brazilian market. These include twin independent variable cam timing engines and direct-injection engines, Battery Management Systems, smart alternator systems, and dual-clutch automatic transmissions.
© 2014 Ford Motor Company