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GLOBAL PRODUCTS THAT CUSTOMERS WANT: THE BUSINESS OF FORD’S ELECTRIFICATION PLAN
DETROIT, Jan. 11, 2009 – Ford has announced a major commitment to deliver a suite of electrified vehicles by 2012, with a strategy designed to address the business and technical challenges of a new, high-tech direction for the automobile based on its global vehicle platforms.
Ford’s path to the complicated future of vehicle electrification is simple: build products that customers want. Build on them on global platforms. Build them affordably. The results in terms of significantly reduced energy consumption and CO2 emissions will follow.
“Our electrification plan is about executing a key piece of the Ford Blueprint for Sustainability,” said Derrick Kuzak, Ford group vice president, Global Product Development. “That’s the strategic engine driving our approach to advanced technology vehicles. We’re building on our near-term momentum with technologies such as EcoBoost, increased hybrid production and now electrification. These are all actions that will make a difference, and doing it globally – leveraging platforms, organizations and talent – demonstrates the true power of the ‘One Ford’ approach.”
Ford recognizes that the challenge of vehicle electrification is anything but simple:
- Future technologies, such as battery electric vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV) systems, are still in their development stage. New-generation electric vehicles will depend on advances in lithium-ion battery technology, commonly used in consumer electronics from laptops to mobile phones. Work is focusing on making lithium-ion battery packs, which are still too expensive for mass-market cars, viable for the more intensive requirements of the automotive environment.
- Pursuing a new technological direction for the automobile is an expensive process, requiring investment levels conservatively forecast in the billions of dollars.
- Electrification also brings with it new stakeholders who are key to the successful transformation of our personal vehicles from their dependence on traditional internal combustion engines to more sophisticated, fuel saving, reduced-emission powerplants of the future. Electrical utilities are foremost among these stakeholders, as new-generation electrical vehicles will need to be charged from the power grid.
“We’ve explored and tested many different technologies for the future and we’re convinced that electrification is the next major shift in the light-duty transport sector,” said Nancy Gioia, director of Sustained Mobility Technology for Ford Motor Company. “That’s why we’re making this a significant part of our Blueprint for Sustainability.”
Ford’s approach is to create electrified vehicles customers want and leverage its global platform capability to bring those vehicles to market affordably.
Near-term sustainability actions include downsizing and boosting engines with EcoBoost, volume introduction of fuel-saving six-speed transmissions, weight reductions and aerodynamic enhancements. Mid-term and long-term actions will be driven by similar requirements for mass-market accessibility.
“We can touch millions with great technology by making it affordable and attainable,” Gioia said.
Ford’s electrification strategy foresees a future which would offer different types of electrified vehicles, depending on customers’ needs and usage requirements. There will not be a one-size-fits-all approach, but a more diverse, smart application of different types of electrified vehicle technology.
That vision could make electrification even more complex, but Ford’s global product development capability is expected to enable not only the technical diversity but to drive mass-market pricing of the new technology.
Ford is incorporating electrified powertrains into two major new global product platforms on the horizon – one a new Focus-size C-car platform and another for Fusion-size, CD segment vehicles.
Because the product platforms are global, they offer tremendous production economies of scale to Ford. That’s key to enabling lower component prices for technology that’s too expensive in lower-volume production, especially lithium-ion battery technology.
“It’s all about the battery,” Gioia said. “Battery technology is now at a point where it’s really promising, but we have to get to the affordability that will make it viable for high volume. Our strategy and our products have to be customer driven and we know that affordability is absolutely critical.”
Ford plans to introduce its electrified vehicles in North America and later leverage opportunities for the products in Europe and Asia-Pacific, as well.
Gearing up for the infusion of new technology will also be a global challenge. Major advancements have already been made on the electrical technology at the core of a next-generation electrified vehicle, and there’s more to come.
Traditional automotive suppliers transforming themselves for electrification are being joined by new suppliers adapting electronics to the automotive environment. The possibilities for innovation in battery technology, power electronics and the development of motors, generators, high-voltage systems and other components are significant.
Ford’s plan calls for strategic partnering with key suppliers who bring the technical expertise, financial solidity and collaborative spirit. It also has begun collaborations with other stakeholders, like electrical utility companies, who will also be central to the electrified vehicle experience of the future.
Together, a coalition of automotive manufacturers and other stakeholders will develop technologies, standards and cost efficiencies to commercialize electrified vehicles, according to the Ford vision.
“Our path toward electrification is a story about speed and collaboration and the effective use of global resources and talents,” Kuzak said. “And it’s about executing a strategic philosophy to achieve Ford’s “green, global, high-tech” vision.”
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About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 224,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.