Jan 12 - McClatchy-Tribune Regional News - Brent Snavely Detroit Free Press


The electric vehicle Ford Motor Co. announced Sunday at the Detroit auto show is part of an array of products that the automaker will offer as it waits to learn what type of alternative vehicles consumers will prefer, company Chairman Bill Ford Jr. told the Free Press.

"This electrification effort is really ramping up," he said. "Not only within the company, but we think ... the country is going to put a lot of effort behind this, and so we want to make sure that we are not only there, but that we are leading the drive to get there."

The automaker announced its plans to produce an electric vehicle for sale by 2011 that will have a single-charge range of 100 miles and said it is partnering with supplier Magna International Inc. for battery production.

The company revealed details at the North American International Auto Show about its electric-vehicle development strategy. Ford first said it was working on an electric-vehicle strategy in December when it submitted a reorganization plan to Congress.

"It is not a test program," Ford said during a news conference. "It is aimed at making Ford the leader in sustainable transportation."

He said the company plans to develop a commercial electric vehicle that will reach the market by 2010 and a version for consumers that will reach the market by 2011 as part of plans to put four new hybrid or electric vehicles on the road during the next four years.

He said it is too early to know what form of alternative transportation consumers will prefer, so Ford is moving forward with the development of several types of alternative propulsion systems -- including hybrid vehicles, its EcoBoost turbo-charged engine technology, next-generation hybrid vehicles and electric vehicles.

One choice missing from Ford's plans is a range-extended electric vehicle -- one that runs on electricity, using a gasoline engine to only recharge batteries -- which General Motors Corp. and Chrysler LLC have committed to building.

Lisa Drake, chief engineer of Ford's hybrid vehicles, said the company believes its plug-in hybrids will offer a better balance of all-electric driving range and costs.

"A plug-in hybrid is the most efficient design with the current battery technology available," she said.

Moving forward

Derrick Kuzak, Ford's group vice president of global product development, said the automaker expects to start out selling 5,000 to 10,000 electric vehicles annually.

Aaron Bragman, an automotive analyst with IHS Global Insight, said the plan seemed plausible. "Given the speed at which they seem to be churning out products, I would not be surprised if they pull it off," Bragman said. "We used to be critical of Ford for lack of product development. Now, it seems" Chief Executive Officer "Alan Mulally has really lit a fire under them."

Barb Samardzich, Ford's vice president of powertrain engineering, told the Free Press that the company began exploring plans to develop electric vehicles about two years ago, accelerated the program about a year ago and had a prototype about six months ago.

Samardzich said Ford and Magna have a memorandum of understanding.

Magna, based in Aurora, Ontario, is among the world's largest and most respected automotive suppliers.

"It's a collaboration. Their desire is to be a supplier to us for not just the battery packs for some other electrification components," Samardzich said. "We are happy to have them as a partner."

Weighing the variables

Ford has been selling hybrids with both gasoline- and electric-powered engines since it introduced the Ford Escape as the first SUV hybrid in 2004.

In the United States, hybrid-vehicle sales skyrocketed during the first half of 2008 but declined later in the year as gas prices fell and the economy sank into a recession, erasing consumers' desire to buy vehicles that cost more than comparable counterparts but have higher fuel efficiency.

In 2008, Ford sold 17,110 Escape hybrids, a 20% decline from the year before, and 2,412 Mercury Mariner hybrids, a 25.2% decline from 2007.

Bill Ford said the whipsawing of gas prices illustrates the need for a cohesive energy policy.

"I think the big question is going to be: What incentives will be out there for customers to get into these types of vehicles, what will fuel prices be that will determine the level of interest for this, will there be any kind of policy like a gas tax, or incentives ... that will drive customers into this type of vehicle?" Ford said. "Those are the things we don't control. But the nice thing is, because these are global platforms, if the volume takes off, we can ramp up."

Ford also said the country must develop a better energy policy and evaluate energy production capability. Also, he said, it might need to invest in infrastructure such as power plants and ways to increase the electric grid's capacity if it wants electric vehicles to help it make progress toward becoming energy independent.

Grabbing more attention

The other part of Ford's fuel-efficiency push is EcoBoost, an engine option that uses direct fuel-injection technology to increase the horsepower of an engine without sacrificing fuel efficiency. Ford plans to introduce its EcoBoost technology this year on the Lincoln MKS, its full-size luxury sedan, the Lincoln MKT, its full-size luxury crossover, and its all-new 2010 Ford Taurus. EcoBoost engines will give cars the performance of a V8 engine with the fuel efficiency of a V6.

The company on Sunday also revealed a redesigned Shelby GT 500 and an all-new design for its 2010 Taurus that is drawing accolades from many observers. It plans to introduce the Lincoln MKT today.

Bragman said the raft of product introductions will serve Ford well this year, especially because this year will be an extremely difficult year for vehicle sales. Most forecasters expect 2009 to be even worse than 2008, and 2008 was the worst year for vehicle sales since 1992.

"In a poor market, you have to have some glitz to get people into the showroom," Bragman said. "It's exactly what you need in a down market."

Contact BRENT SNAVELY at 313-222-6512 or bsnavely@freepress.com. Business writer Justin Hyde contributed to this report.

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