Ford 2011 Annual Report Download - page 34

Management’s Discussion and Analysis of Financial Condition and Results of Operations
32 Ford Motor Company | 2011 Annual Report
Our European ECOnetic® range of ultra-low CO2 diesel models across small to mid-size car and commercial vehicle
segments continues to build on the success begun with the 2008 Focus ECOnetic. In 2012, we will launch the Focus
ECOnetic with further advanced technology including stop-start capability to reduce CO2 emissions to a segment-leading
89 g/km, and the Fiesta ECOnetic at 87 g/km. In 2011, the Mondeo ECOnetic provided customers with a mid-sized car
with low CO2 emissions of 114 g/km.
In South America, we will transition our top hat and powertrain offerings to 100% global products within three years.
For example, in 2012 we will launch a variety of engine technologies, including high-tech naturally-aspirated engines,
100% ethanol ("E100"), EcoBoost, and hybrid electric ("HEV"). Additionally, we will provide small, medium, and large
diesel engines to improve fuel efficiency of our products.
We also are pursuing an aggressive electrification vehicle strategy called "Power of Choice." We are adding electric
vehicle versions to existing, traditional vehicle lines, rather than creating one specific electric vehicle model. Our
approach will enable us to offer a broad portfolio of electric vehicles at affordable prices, leveraging the efficiency of scale
through the entire vehicle line. With Power of Choice, customers will be able to choose from a variety of electric
powertrains, including:
• Hybrid Electric Vehicles - powered in part by a battery and in part by an internal combustion engine, depending on
driving conditions, with on-board charging of the battery (e.g., Ford Fusion Hybrid and Lincoln MKZ Hybrid
currently available in North America)
• Plug-in HEVs - 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 in 2012 and Europe in 2013, and Fusion Energi to be launched in North America in 2012)
• Battery-Electric Vehicle ("BEV") - 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 in Europe in 2011,
and Focus Electric BEV launched in North America in 2011 and to be launched 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. For example, we have signed a memorandum of understanding with Toyota to
study potential collaboration to develop rear wheel drive truck and sport utility vehicle HEV technology. This collaboration
is expected to enable a cost-efficient solution for maintaining our truck fuel economy leadership going forward.
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 further, and pioneering the next frontier
of safety with driver-assist crash-avoidance technologies. For example, we introduced MyKey® to help parents encourage
teenagers to drive more safely and more fuel-efficiently, and to increase safety belt usage. MyKey - which debuted on the
2010 Focus and quickly has become standard on most Ford and Lincoln models - allows owners to program a key that
can limit the vehicle's top speed, limit the audio volume, and mute the audio if the front seat occupants are not buckled-up.
We also are the leader in another dimension of driver behavior - enabling drivers to more safely operate vehicles during
the recent years in which we've seen a sharp growth in the number of personal electronic devices (e.g., cell phones,
MP3 players, etc.). Our SYNC system provides hands-free connectivity, with more than 4 million SYNC units on the
road, and our 2nd generation of SYNC has added a "Do Not Disturb" feature that allows users to redirect incoming
messages and calls directly to the customer's cellular mail box.
We also offer a new advanced crash-avoidance technology - Collision Warning with Brake Support - on several Ford
and Lincoln vehicles including Ford Taurus, Edge, and Explorer, and Lincoln MKS, MKX, and MKT. This feature uses
radar to monitor traffic directly ahead, and warns the driver with an authoritative beep and a red warning light projected on
the windshield if a collision threat is detected. The all-new 2011 Explorer also debuted the auto industry's first-ever
production use of inflatable seat belts, designed to provide additional protection for rear-seat occupants - often children
and older passengers who can be more vulnerable to head, chest, and neck injuries. This technology was incorporated
into the 2013 model year Ford Flex and Lincoln MKT, and we plan to expand further offerings to other vehicles globally.
Other global driver-assist features such as Blind Spot Information System™, Active Park Assist, and Adaptive Cruise
Control have enjoyed strong customer demand and expanded vehicle applications. We also have begun offering the next
suite of new safety features and driver assistance technologies -- we will introduce Lane Keeping Aid and Driver Alert on
the 2013 model year Lincoln MKS and MKT, and Ford Flex, Explorer, Fusion, Mondeo and the Focus in Europe.