Ford 2010 Annual Report Download - page 29

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Motor Company | 2010 Annual Report 27
Drive Green. Our commitment to sustainability focuses both on advancing conventional vehicle technology that
touches millions of new vehicles each year while at the same time developing next-generation propulsion systems that
represent an important part of the long-term future for the industry.
We remain committed to our goal to deliver leadership or among the best fuel efficiency in every major new vehicle
launch. For example, the 2011 Ford Explorer is the most fuel-efficient mid-size SUV in the market.
The implementation of our new EcoBoost
®
family of gasoline engines is well underway and a major part of our
sustainability strategy, delivering both exceptional fuel economy and performance. By combining direct fuel-injection and
turbo charging, the EcoBoost engine can deliver up to 20% better fuel economy and up to 15% fewer CO
2
emissions
versus larger-displacement engines, without sacrificing driving performance. The 3.5-liter V6 engine was introduced in
2009 and is now available in the Lincoln MKS and MKT, the Ford Taurus SHO and Flex as well as the recently launched
2011 F-150.
The 3.5-liter EcoBoost was joined in 2010 by the 2.0-liter I4 EcoBoost which launched in Europe with the Ford Galaxy,
S-MAX, and Mondeo and the 1.6-liter I4 EcoBoost which launched in Europe in the Ford Focus, Mondeo, C-MAX, S-
MAX, and Galaxy. The 2.0-liter Mondeo was also the first EcoBoost introduction in China. In 2011, the 2.0L EcoBoost
will make its North American debut in the Ford Explorer and Edge. Additionally, in Australia the 1.6L EcoBoost will be
introduced in the Focus. We will continue to migrate EcoBoost technology aggressively across our product lineup in all
regions. For instance, by 2013, 90% of Ford's North American nameplates will offer EcoBoost engines, and global
annual production of EcoBoost vehicles is expected to reach 1.5 million units.
In the Asia Pacific Africa region, EcoBoost – along with other innovative global technologies such as PowerShift
transmissions – is a major part of our plan to deliver fuel efficiency improvement by up to 20% across our product lineup
by 2012. And in Australia, we will introduce an advanced liquid-injection petroleum gas ("LPG") system for the Ford
Falcon in 2011, providing customers with the most advanced LPG technology on the market.
Our European ECOnetic
®
range of ultra-low CO
2
diesel models across small to mid-size car and commercial vehicle
segments continues to build on the success started with the 2008 Focus ECOnetic. In 2009, we launched the second-
generation Focus ECOnetic with further advanced technology including stop-start capability to reduce CO
2
emissions to
99 g/km, and the Fiesta ECOnetic launched in 2010 at 98 g/km.
We also are pursuing an aggressive electrified vehicle strategy that we call Power of Choice. We are electrifying
existing, traditional vehicle lines, rather than creating a specific electrified vehicle model. This will enable us to offer a
broad portfolio of electrified vehicles. With Power of Choice, customers will be able to choose a variety of electrified
powertrains, including:
• Hybrid Electric Vehicles -- powered in part by a battery and in part by an internal combustion engine, depending
on driving conditions, with onboard charging of the battery (e.g., Ford Fusion and Escape Hybrids and
Lincoln MKZ Hybrid currently available in North America).
• Plug-in Hybrid Electric Vehicles – similar to a hybrid vehicle, but with a larger battery to provide more electric
power in more driving conditions, with the battery capable of being charged externally (e.g., Ford C-MAX Energi
to be launched in North America and Europe in 2012 and 2013, respectively)
• Battery Electric Vehicle – powered solely by battery, with no internal combustion engine, with the battery charged
externally (e.g., Ford Transit Connect BEV launched in North America in 2010 and to be launched in Europe in
2011 and Ford Focus Electric BEV to be launched in North America in late 2011 and in Europe in 2012).
We continue to engage in a number of collaborative agreements to address the many challenges that remain for
electrified transportation including battery development, component standardization, cost, electric infrastructure, and
connectivity to the national power grid.
Drive Safe.
We are building on our record of having the most U.S. government 5-star rated vehicles by expanding
both advanced crash protection and crash avoidance technology. We are strengthening our safety leadership by
focusing on three key areas – addressing driver behavior, enhancing crash protection even more, and pioneering the
next frontier of safety with driver-assist crash-avoidance technologies. For example, we introduced MyKey®
to help
parents encourage their teenagers to drive more safely and more fuel efficiently, and to increase safety belt usage.
MyKey – which debuted on the 2010 Ford Focus and has quickly become standard on most Ford and Lincoln models –
allows owners to program a key that can limit the vehicle's top speed and audio volume.