Transportation Panel– March 9, 2012 Transportation in the 21st Century Mary Culler Director Government Affairs Sustainability at Ford Product Process • Manufacturing • Dealers Environmental Economic • CO2 • Energy Security • Profitability • Cash Flow Sustainable Social Meeting the needs of the present without compromising the future. • Human Rights • Working Conditions 1 Process to Manage Sustainability for Our Products •Marketing/ •Communications Plan 2 Ford’s Path to Sustainability 2007 2011 Near Term Begin migration to advanced technology Near Term Full implementation of known technology 27.6 MPG Continue leverage of Hybrid technologies and deployment of alternative energy sources Long Term Mid Term Fuel Cells Hydrogen Powered Engines Hybrids Natural Gas Long Term Mid Term Electrified Vehicles Advanced Gasoline Engines 2030 2020 Weight Reduction •CAFE Requirements 54.5 MPG 3 Technologies Support Affordable Fuel Economy for All • Auto Start-Stop Design Weight Efficiency • Active Transmission Warm-Up FE Aero Technology • Active Grille Shutters • Deceleration Fuel Shut-Off • Electric Power Assisted Steering • Alternative Friction Materials • Underbody Aeroshields • Battery Management System • Systematic / Aggressive Implementation of High Value Technologies Across Vehicle Line-up for Improved Fuel Economy 4 Ecoboost Strategy Is Key Direct Injection Fuel Economy (10-20%) + Engine Downsizing = CO2 Emissions + Turbocharging Performance The EcoBoost technology system was developed in order to provide a high volume, affordable solution for our customers. 5 Unprecedented Powertrain Investment 3.7-L V-6 iVCT 3.0-L V-6 Flex Fuel 2.5-L I-4 iVCT 3.5-L EcoBoost V-6 6.2-L V-8 2.0L EcoBoost I4 2.5-L I-4 Atkinson HEV 6F55 Select-Shift Automatic 6F35 Mid Automatic 6 Powertrain Technologies: Auto Start-Stop •12V battery designed for long lasting service with no additional maintenance •Voltage quality module assures vehicle accessories function normally when engine is off •12V enhanced starter motor provides quick, quiet and seamless engine starts once driver removes foot from brake pedal •Top five benefits of Auto Start-Stop: • Fuel economy gains of as much as 10 percent in city driving • Vehicle emits zero emissions when stopped • Vehicle remains warm or cool even when engine is off • System is smooth, quiet and seamless • No additional maintenance is required Coming to North American cars, crossovers, and utilities starting in 2012, the Auto Start-Stop system has been designed to work with conventional gasolinepowered vehicles with automatic and manual transmissions. 7 Active Grill Shutters •How it works: • Reduce drag coefficient by closing the opening in front of the radiator with electrically controlled vents under certain conditions. •Installed in both Grill and Bumper opening •How it improves fuel consumption: • Improved coefficient of drag (Cd) • Reduces work done overcoming aerodynamic losses at speeds > 30 mph. • Shutters may open on braking decelerations to cool without penalty if there is a cooling need. •Installed in Grill opening only • Faster engine warm-up • • • • • • Improves fuel economy as well as heater/defrost performance Reduces parasitic losses from cold fluids during engine warm-up Reduces other parasitic loads used to warm engine coolant (higher idle speeds and shift delays). 8 Aggressive Decel Fuel Shutoff How it works: • Shut-off fuel during deceleration events and realize F.E. benefit • Maintain engine speed with torque management and engine/trans • strategies and converter management • Catalyst O2 regeneration strategy applied to manage NOx emission • when fuel is turned on. How it improves fuel consumption: • Reduces Fuel Consumption during Decel events. 9 Leveraging Global Platforms Design Plug & Play into High Volume Platforms with Global Reach Weight Efficiency FE Aero Technology PHEV BEV HEV Biofuel Diesel Engine Gas Engine 10 The Payoff: 4 WITH 40 OR MORE MPG 11 New C-Platform Electrified Vehicles POWER OF CHOICE THE Ford’s Strategy Is To Electrify Global Platforms With All 5 Electric Solutions – To Drive Choice Of Top Hats, Scale And Affordability Electrification Strategy •Focus Electric BEV •Transit Connect BEV •2010 •C-Max Energi Plug-In Hybrid •2012 •2011 •Fusion Hybrid/Plug-In Hybrid •2013 13 Ford Focus Electric INNOVATIVE DESIGN REMOVABLE, UPGRADABLE, SERVICEABLE 3-4 HOUR CHARGE ON 240V HOME OUTLET VALUE CHARGING 14 Ford’s Mobile Apps 15 The Payoff: Ford Flex Fuel Vehicles • U.S. ethanol production increased 8-fold over the past decade, and accounts for approximately 10% of gasoline sold in the U.S.; it is projected to nearly double over the next decade. • Ford Flex Fuel Vehicles include: − Escape − Fusion − F-150 − Expedition − E-Series − Lincoln Navigator − Super Duty − New models to be added in 2012 Ford offers a wide range of Flex-Fuel products which satisfy consumer needs while utilizing a full range of ethanol16 containing fuels (incl. E85) available in the U.S. The Payoff: Ford Offers CNG/LPG-Ready Engines and Support to After-market Upfitters •Super Duty (F-450/F-550) •Stripped Chassis – Motor Home (F53) •Stripped Chassis – Commercial (F59) •Stripped Chassis – Commercial (E-Series) •E-Series Van/Bus •E-Series Cutaway •Transit Connect 17 The Payoff: Ford Offers B20-Capable Diesel Engines •Medium Truck (F-650/F-750) •Super Duty (F-450/550) •Super Duty (F-250/350) 18 Sustainable Materials •Soy Foam Seating • Use of 5% soy foam • Standard on Escape, Escape Hybrid, Mustang, F-150, Navigator, Expedition •Sustainable Fabric • Produced from 100% post • Industrial recycled materials • Material includes plastic intended for pop bottles and un-dyed polyester fibers 19 Opportunities for Recycled Materials •100% Recycled •carpets & fabrics •Post Industrial •recycled bumpers •Recycled •Polyurethane •foam components •Laundry & Milk Bottles into: •-Windshield washer bottles •-Climate Control Air Ducts •Tires into: •-aero deflectors •-under hood covers •Battery casings into: •-splash shields •-rocker moldings 20 Ford Vehicles ~85% Recyclable 21 Going Green: Michigan Assembly Plant • World’s first factory to build gas-powered, battery electric, hybrid and plug-in hybrid vehicles • 500-kilowatt solar panel system – the largest array in Michigan. • On-site electric trucks, saving an estimated 86,000 gallons of gas a year. 22 Ford’s Sustainability Report A Ford Perspective/Approach More about Climate Change corporate.ford.com/go/sustainability 23 Summary • The Ford plan is based on product and operational excellence and requires people working together as lean, global enterprise. • Balancing market and regulatory drivers for improved fuel efficiency and lowering CO2 while also meeting more restrictive standards for criteria emissions is one of our greatest challenges. • Technology innovation is used as differentiator. Feature content and technologies that improve comfort and convenience, safety and fuel efficiency will continue to be increasingly important in all markets. • Sustainable technology must be affordable for millions of customers • Ford has established, and continues to develop, a comprehensive portfolio of technologies to improve efficiency and reduce weight. • EcoBoost is being migrated widely in lieu of larger conventional engines, offering increased fuel economy at comparable or improved performance. • Ford will offer a complete array of hybrid and electric vehicle choices that over time will contribute on a volume basis. 24