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Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External Business Environment Strong, Cyclical Downturn in Economy Structural, Secular Shift in Product Mix Extraordinary, Sharp Increases in Commodity Costs

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Page 1: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Blueprint for a Sustainable Future

Bob HolycrossVehicle Environmental EngineeringSeptember 17, 2008

Extraordinary, Rapid Changesin External Business Environment

Strong, Cyclical Downturnin Economy

Structural, Secular Shiftin Product Mix

Extraordinary, Sharp Increasesin Commodity Costs

Page 2: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Ford’s plan to address climate change and energy independence includes a comprehensive strategy to increase fuel economy and reduce emissions through the migration of advanced technology that is affordable and attainable in high volumes for all our customers.

Sustainability Strategy

2007 2012 2020 2030

Migration of advanced technology across current product line

Full implementation of known technology

Volume roll-out of emerging technologies and alternative energy sources

Page 3: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Fuel Economy Leadership on the Road Today

2009 Escape

20 28CITY MPG HIGHWAY MPG

Class-Leading Compact SUV Fuel Economy

2007 2012 2020 2030

• 6-speed automatic• Electric power assisted steering• Lower rolling resistance tires

• Improved aerodynamics• Variable intake cam timing

Fuel Economy Leadership on the Road Today

2007 2012 2020 2030

17 24CITY MPG HIGHWAY MPG

Unsurpassed Fuel Economy Among 7-Passenger Vehicles

• 6-speed transmission• Aggressive deceleration fuel shut-off

• Improved aerodynamics

2009 Flex

Page 4: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Fuel Economy Leadership on the Road Today

2007 2012 2020 2030

24 35CITY MPG HIGHWAY MPG

Beats smaller Nissan Versa & Chevy Aveo

• Weight reduction• Improved aerodynamics

• Lower rolling resistance tires• PZEV

2009 Focus

Fuel Economy Leadership on the Road Today

2007 2012 2020 2030

Ford Escape Hybrid

Mercury Mariner Hybrid34 31

CITY MPG HIGHWAY MPG

Most Fuel Efficient SUV on the Planet

• Atkinson cycle 2.5-liter 4-cylinder• Improved battery-only operation• SULEV II/AT-PZEV

emissions certification

Page 5: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Hybrid production

volume doubled

Ford Fusion and Mercury Milan Arrive in Early 2009

2007 2012 2020 2030

Fusion Hybrid

Milan Hybrid

Escape Hybrid

Mariner Hybrid

Mazda Tribute Hybrid

Leveraging Our Global Portfolio

2007 2012 2020 2030

• Small• Fuel efficient• 4-cylinder engine• Commercial applications

Transit Connect

Page 6: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Leveraging Our Global Portfolio

2007 2012 2020 2030

Fiesta

Focus

Total of six European small vehicles to be introduced in North America by the end of 2012

Transition to Lighter Weight Unibody Construction

2007 2012 2020 2030

2009 Explorer Explorer America Concept

Next generation Explorer arrives

in 2010

Next generation Explorer arrives

in 2010

Page 7: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

6-Speed Transmissions

Perc

ent o

f Nam

epla

tes

86%86%

2008 CY 2010 CY

100

80

60

40

20

02013 CY

100%100%

72%72%

• 4-6% fuel economy improvement

• Ford has more 6-speedson the road thanToyota and Chevy

2007 2012 2020 2030

Electric Power Assisted Steering

Perc

ent o

f Nam

epla

tes

68%68%

2008 CY 2010 CY

100

80

60

40

20

02013 CY

100%100%

18%18%

• 3-5% fuel economyimprovement

• Lighter weight

2007 2012 2020 2030

Page 8: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Introduction of EcoBoost Technology

2007 2012 2020 2030

Introduction of EcoBoost Technology

2007 2012 2020 2030

Downsize & Boost• Increased fuel efficiency

and performance versus a larger displacement engine

Page 9: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Introduction of EcoBoost TechnologyLaunching Lincoln MKS and Ford Flex in 2009

2007 2012 2020 2030

• Power of a V-8, fuel efficiency of a V-6

Lincoln MKS Ford Flex

3.5L Twin-Turbo V-6

F-150 comingin 2010

F-150 comingin 2010

1000 1500 2500 3500 4500 5250 56503.5L GTDI

150

200

250

300

350

400

450

Engine Speed [rpm]

Engi

ne T

orqu

e [lb

-ft]

EcoBoost 3.5L V-6

Competitor’s 4.6L V-8

Torque ComparisonEcoBoost V-6 vs. Large V-8

2007 2012 2020 2030

Up to 10%improvement infuel economy

Up to 10%improvement infuel economy

Page 10: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Perc

ent o

f Nam

epla

tes

23%23%2008 CY 2010 CY

100

80

60

40

20

02013 CY

90%90%

0%0%

EcoBoost Migration

2007 2012 2020 2030

Sustainability Strategy

2007 2012 2020 2030

• EcoBoost across line-up• Increased use of hybridization• Significant weight reduction• Low volume introduction of plug-in hybrids

Page 11: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

250-750

Weight Reduction of 250–750 lbs.

2007 2012 2020 2030

• Smaller displacement engines• Smaller components• Lightweight materials

Research Today Leading to Low Volume Introduction of Plug-in Hybrids

2007 2012 2020 2030

Partnership with Southern California Electric (SCE) and Electric Power

Research Institute (EPRI)

Page 12: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Low Volume Introduction of Plug-in Hybrids

2007 2012 2020 2030

• 20 Escape PHEV test fleet • Battery-only operation

up to 30 miles• Estimated fuel economy: 120 mpg• Lithium-ion battery

Sustainability Strategy

2007 2012 2020 2030

• Higher percentage of bio fuels• Increased electrification • Hydrogen

Page 13: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

2007 2012 2020 2030

• Fossil fuels ramp down

• Higher percentage of biofuels

• 2nd generation biofuels become viable (cellulosic based ethanol)

• Domestically produced, renewable fuel

• Greater volumes ofFFVs if infrastructure in place

• 1st generation biofuels ramp up to capacity (i.e. corn based ethanol)

• Domestically produced, renewable fuel

• US automakers commitment to flexible fuel capablevehicles

Research Today in Hydrogen Vehicles

2007 2012 2020 2030

• 30 vehicle hydrogenfuel cell test fleet

• Over 865,000 test milesdriven

• Hydrogen internal combustion V-10 engine

• 30 shuttle bus test fleet

• Edge with HySeries drive• World’s first driveable

hydrogen fuel cell plug-in hybrid

Page 14: Blueprint for a Sustainable Future...Blueprint for a Sustainable Future Bob Holycross Vehicle Environmental Engineering September 17, 2008 Extraordinary, Rapid Changes in External

Drive green: Go Farther, Use Less