Ford Planning New Electric, Hybrid and Plug-In Vehicles in Next 4 Years; Partners Help Speed Vehicles to Market

DETROIT, Jan. 11 /PRNewswire-FirstCall/ — Ford Motor Company (NYSE: F)
today launched an aggressive plan to bring pure battery-electric vehicles,
next-generation hybrids and a plug-in hybrid to market quickly and more
affordably during the next four years.

The plan, unveiled at the 2009 North American International Auto Show,
signals the next phase in Ford’s commitment to deliver the best or among the
best fuel efficiency with every new vehicle it introduces and to make fuel
efficiency solutions affordable for millions of customers.

“Ford is heading in the direction America and our customers want us to go,
which is a green, high-tech and global future,” said Ford Executive Chairman
Bill Ford. “I think that is where society would like to see the entire
industry go, and Ford is going to lead that charge.”

    To start, Ford will introduce in North America during the next four years:
    -- A new battery electric commercial van in 2010
    -- A new battery electric small car in 2011 to be developed jointly with
       Magna International
    -- Next-generation hybrid vehicles, including a plug-in version by 2012

These new vehicles pave the way for additional applications in the future,
using Ford’s high-volume global small car and midsize car platforms.

“Next-generation hybrids, plug-in hybrids and pure battery powered
vehicles are the logical next steps in our pursuit of greater fuel economy and
sustainability,” said Derrick Kuzak, Ford’s group vice president of Global
Product Development. “A growing number of consumers want that kind of choice,
and we want to be in a position to deliver it to them across multiple vehicle

The use of global platforms showcases Ford’s ability to develop products
with worldwide market opportunities in mind. Powering the company’s
electrification drive is the company’s “One Ford” global product vision.

“Around the world, we have become one Ford team, leveraging technologies
and assets across markets and vehicle lines,” said Alan Mulally, Ford
president and chief executive officer. “That is allowing us to deliver
products our customers want and value even more quickly, including our
progress with electric-powered vehicles.”

Partners Enable Speed to Market

Ford is partnering with high-tech partners to bring electric-powered
vehicles to market quickly and affordably. Today, the company announced a new
collaboration with Magna International to bring a new lithium ion
battery-powered small car to market in North America in 2011.

The new electric vehicle will have a range of up to 100 miles on a single
charge, without using a single drop of gasoline.

“We strongly believe in collaboration because it drives innovation up and
keeps costs down,” said Don Walker, co-CEO of Magna International. “Bringing
a fully functional electric vehicle quickly to market that meets customer
expectations in terms of cost and performance is a great testament to both our
companies’ expertise and collaborative efforts.”

Ford already has other collaborations and partnerships to accelerate the
commercialization of electrified vehicles. Southern California Edison and the
Electric Power Research Institute currently are road testing a fleet of Ford
Escape Hybrid Plug-ins. Work with the utility industry partners is focused on
understanding customer usage and the interconnectivity of vehicles with the
electric grid.

Ford also has entered into a four-way “Eco-Partnership” in China to expand
its global expertise with electric-powered vehicles. Ford, Changan Auto Group
and the cities of Chongqing, China and Denver, Colo., are exploring ways to
develop projects to help further energy security and promote economic and
environmental sustainability. Areas of focus could include developing
electrified vehicle technologies, green city planning, efficient urban
transportation and grid integration.

The U.S. Department of Energy awarded a $10 million grant to Ford’s
development of PHEVs. The DOE currently is road testing one of Ford’s Escape
Hybrid Plug-ins to support technological innovation related to the
electrification of transportation.

In addition, in the UK, Ford is collaborating with Tanfield, the market
leader for electric vehicles, to offer battery-electric versions of the Ford
Transit and Transit Connect commercial vehicles for fleet customers in the UK
and European markets.

Ford’s aggressive new electrification plan represents the next step in the
company’s sustainability plan. Unveiled in 2007, the plan includes a
commitment to greater vehicle fuel economy and lower CO2 emissions as part of
Ford’s longer-term commitment to addressing climate change and energy

“Our focus is to provide fuel efficiency for millions of customers,” said
Kuzak. “Rather than low-volume niche vehicles or demonstration fleets, we are
committed to developing advanced technology that is widely affordable and

Near-term elements of Ford’s sustainability plan include improving today’s
gasoline engines to make them more fuel efficient with reduced emissions.
Recent accomplishments include:

— The Ford Fusion is now America’s most fuel-efficient mid-size sedan for
both hybrid and conventional gasoline models

— The four-cylinder Ford Fusion S is now certified at 34 mpg highway and
23 mpg in the city, topping the Toyota Camry and Honda Accord

— The new Ford Fusion Hybrid and Mercury Milan Hybrids deliver up to 41
miles per gallon in the city – eight miles per gallon better than the Toyota
Camry Hybrid. In addition, the base Fusion with its 4-cylinder engine and
six-speed transmission is EPA certified with best-in-class fuel economy of 34
mpg on the highway

— The Ford Focus with its 2.0-liter 4-cylinder engine and manual
transmission delivers 35 mpg on the highway, 5 mpg better than Toyota
Corolla’s 2.4-liter 4-cylinder engine and 2 mpg better than Honda Fit’s
1.5-liter 4-cylinder, both also with manual transmissions

— The all-new 2009 Ford F-150 – which is Motor Trend magazine’s Truck of
the Year – achieves 3 mpg more than the Toyota Tundra pickup on the highway
and 1 mpg better in the city with its 4.6-liter V-8 engine, compared to
Toyota’s 4.7-liter V-8. The F-150’s larger 5.4-liter V-8 achieves 2 mpg better
on the highway than the facing Tundra engine

— The 2009 Ford Escape with its new 2.5-liter 4-cylinder engine and
six-speed transmission achieves 28 mpg on the highway, the same as Toyota’s
RAV4 and 1 mpg better than the Honda CR-V, both with 4-cylinder engines, too

— The Ford Expedition achieves 20 mpg on the highway, beating both of the
Toyota Sequoia’s V-8 engines by as much as 3 mpg on the highway

— The Ford Flex is the most fuel-efficient standard seven-passenger
vehicle on the market

This year, Ford also will introduce its EcoBoost engines on the Ford Flex
crossover and Lincoln MKS sedan.

The direct-injection turbocharged EcoBoost technology allows for fuel
economy improvements of up to 20 percent and CO2 reductions of up to 15
percent versus larger displacement engines – while improving performance. On
the Flex and the Lincoln MKS, EcoBoost will provide V-8 performance with V-6
engine fuel efficiency.

By 2013, Ford expects annual EcoBoost engine volumes to top 750,000 in
North America.

Also this year, Ford is doubling its production and offerings of hybrid
vehicles with the new Fusion and Milan hybrids. During the past five years,
Ford has sold nearly 100,000 hybrid vehicles, starting with the introduction
of the Ford Escape Hybrid and Mercury Mariner Hybrid, the most fuel efficient
SUVs in the world.

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



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