Ford Selects Compact Power to Supply Ford Focus EV Battery Pack

Ford Motor Company today announced it has selected Compact Power, Inc. (CPI), a subsidiary of LG Chem, (the same company supplying GM Volt batteries) to build lithium-ion battery packs for the Ford Focus Electric, which will go on sale in the U.S. in 2011.

The Focus Electric battery packs will leverage CPI and parent company LG Chem’s deep expertise in advanced flat format lithium-ion cells and advanced liquid-cooled modules and battery management systems.

“CPI is an emerging leader in the lithium-ion battery field and we are pleased to have them as a strategic supplier as we prepare to bring the Ford Focus Electric to market,” said Sherif Marakby, Ford director, Sustainable Mobility Products and Hybrid programs. “We are moving aggressively with our electrification strategy and our work to help make Michigan a center of excellence for a range of electrified vehicles.”

CPI, based in Troy, Mich., will begin battery pack assembly for the Ford Focus Electric next year and is finalizing production site selection for the U.S. The lithium-ion cells for the packs will initially be sourced from Korea through LG Chem. LG Chem and CPI will be localizing cell production at their new site in Holland, Mich.

“We are very excited to be partnering with Ford on their new battery electric-powered Ford Focus,” said Prabhakar Patil, CEO of CPI. “It tells us we are on track in developing high-power and high-energy lithium-ion batteries that the industry needs as it moves toward the electrification of vehicles that lessen our dependence on foreign oil.”

The cells will incorporate LG Chem’s proprietary chemistry and its industry-leading safety-reinforced-separator technology that provides unparalleled safety performance.

Focus Electric will have a targeted range of up to 100 miles per full charge with zero tailpipe emissions. It is one of five electrified vehicles Ford is bringing to market in the U.S. in the next two years. These include the Transit Connect Electric, a small commercial van in 2010; Focus Electric in 2011; two new lithium-ion battery-powered hybrids; and a plug-in hybrid in 2012.

Focus Electric, a full battery electric passenger car, will be produced at Michigan Assembly Plant in Wayne, Mich., which will begin producing gasoline versions of the all-new 2011 Focus later this year.

Ford previously announced plans to invest $550 million to transform Michigan Assembly Plant from a large SUV factory to a modern car plant to build the new Focus and Focus Electric. The plant also will produce a next-generation hybrid and a plug-in hybrid in 2012. All of the vehicles will be built off the company’s new global C-car platform.

This complements Ford’s overall strategy to establish a center of excellence in Michigan for electrification of a broad range of vehicles, including lithium-ion battery-powered hybrids, plug-ins and pure electric vehicles. Ford is committed to delivering electrified vehicles as part of its overall vehicle portfolio designed to deliver both the fuel efficiency and the performance customers demand.

Toyota Loses Bid to End Patent Dispute Over Hybrids

Toyota Motor Corp lost its bid to dismiss a Florida company’s patent-infringement claim that may result in a ban on imports of the carmaker’s newest hybrid models including the Prius and Camry.

Theodore Essex, a judge with the U.S. International Trade Commission in Washington, denied Toyota’s request to end the case brought by Paice LLC. He also said Toyota can’t argue that the Paice patent is invalid because that issue was resolved in court. The judge’s May 21 findings are subject to review by the six-member commission.

The dispute is scheduled for a hearing starting July 19 and the two sides have been wrangling over what issues will be considered. The arguments concern the effect of a trial Bonita Springs, Florida-based Paice won against Toyota in a case over the patent that was upheld on appeal. The case involved earlier versions of the Prius and Highlander gas-electric hybrids.

“We are encouraged by the judge’s rulings and look forward to completing our case at the upcoming trial,” said a Paice lawyer, Ruffin Cordell of Fish & Richardson in Washington.

A federal judge in the earlier case rejected Paice’s request to halt sales of the cars and instead ordered royalty payments on the Prius, as well as the hybrid-engine Highlander and Lexus RX400h sport-utility vehicles. Paice filed a new complaint, at both the court and the ITC, over the Camry hybrid, third-generation Prius, Lexus HS250h sedan and Lexus RX450h SUV.

“Toyota is disappointed, but our overall position in the case remains unchanged,” Celeste Migliore, a spokeswoman for Toyota, the world’s biggest automaker, said in an e-mail.

Torque Patent

In a separate case, the Toyota City, Japan-based company is challenging the royalty rate it was ordered to pay by the federal judge in Texas.

Paice, which is an acronym for Power-Assisted Internal Combustion Engines, said Toyota is infringing a patent for a way to supply torque, or force, to a car’s wheels from both an electric motor and an internal combustion engine.

It also has a patent-infringement claim against Ford Motor Co. over Fusion and Escape hybrid vehicles. Ford is challenging the patent.

The ITC case is In the Matter of Hybrid Electric Vehicles, 337-688, U.S. International Trade Commission (Washington). The civil cases are Paice LLC v. Toyota Motor Corp., 04-cv-211; 07cv180 and 08-cv-261, U.S. District Court, Eastern District of Texas (Marshall).

Ford to add 170 jobs for hybrid and electric cars

Two Ford Motor Co. factories near Detroit will see 170 additional blue-collar jobs in the next two years as the automaker brings battery pack and gas-electric hybrid transmission assembly to the United States.

Ford said Monday it will invest $135 million by 2012 at factories in Ypsilanti Township and Sterling Heights, Mich., to design, engineer and produce components for its next generation of hybrids and fully electric vehicles. About half the investment comes from a federal grant.

The Ypsilanti factory, which now makes auto parts, will get $10 million of investment to build battery packs, creating about 40 new jobs. The packs are now assembled by Delphi Corp. in Mexico. Ford will get its advanced lithium-ion battery cells from a parts supplier that it would not identify.

The Sterling Heights transmission factory will get a $125 million investment and 130 new jobs to build the continuously variable hybrid transmissions now built in Japan.
Currently a supplier makes complex hybrid transmissions for Ford in Japan, the company said.

Ford also said that future development of electric and hybrid vehicles will be centered in the Detroit area, and it also will add 50 engineers to help do the work.
Mark Fields, Ford's president of the Americas, said further job growth and investment depends on acceptance of electric vehicles in the marketplace. Ford plans to sell five electric or hybrid vehicles in the U.S. by 2012 and Europe by 2013. It currently offers four hybrid models, including the Ford Fusion and Mercury Milan midsize cars and the Ford Edge and Mercury Mariner midsize sport utility vehicles.

"The good news is we're making the investment now, it's going to result in obviously driving innovation, driving job growth. We'll see where we go from there," Fields said.

Ford received a $62.7 million grant from the U.S. Department of Energy for hybrid and electric vehicles. The money is part of the federal economic stimulus package, Ford officials said Monday at a news conference at the Ypsilanti Township factory. The company also received tax breaks and from state and local governments.

Fields said Ford was able to bring the jobs to the U.S. because of cooperation with the United Auto Workers on wages and productivity. The company and the union, he said, agreed on how to do the work so the business case made sense.

UAW Vice President Bob King, who has been nominated to become the union's president, said the cooperation was essential to bringing jobs that Ford, which is based in Dearborn, Mich., could have kept in other countries. The company's decision also creates the potential for more work, he said.

"This is an area that will expand and grow, especially the batteries," he said.
Ypsilanti Township Supervisor Brenda Stumbo said the battery pack assembly offers hope of future jobs in the township, which has been hit hard by auto job losses. General Motors recently closed a transmission plant in the township that once employed thousands of workers.

The township approved about a $500,000 tax break for six years on a $9 million investment, Ford said. The state of Michigan also approved $188 million in tax credits for Ford, which includes building an electric car at a factory in Wayne, Michigan. Ford is seeking a $2 million tax abatement from the city of Sterling Heights.

Under the terms of its UAW contract, it's highly likely that Ford will pay the new workers around $14 per hour, about half the hourly wage it pays existing workers, Fields said. Before hiring new staff, though, the automaker will have to recall about 450 laid-off workers nationwide, but it expects to do that well before the Ypsilanti and Sterling Heights jobs are filled.

Ford's plans include a fully electric small commercial van this year, the Transit Connect; an electric Focus compact in 2011; new midsize and compact hybrids in 2012; and a new compact plug-in rechargeable hybrid, also in 2012.

The Fusion hybrid, Ford's top-selling gas-electric vehicle, outsold Toyota's Camry midsize hybrid through the first four months of the year. Ford sold 5,512 Fusion hybrids, compared with Toyota's 5,082 Camry hybrid sales. But Toyota's Prius still leads in hybrid sales at 40,793.

Ford's news follows Friday's announcement that Chrysler Group LLC will add nearly 1,100 new jobs at a Detroit plant that makes the new Jeep Grand Cherokee.

Both announcements give hope to Michigan, which has the highest unemployment rate in the nation at 14 percent.

Ford To Build It's First Hybrid Electric Models For EU

Ford's Valencia plant in Spain will build the company's first hybrid models for European customers with two advanced technology derivatives of the all-new five-seat Ford C-MAX compact multi-activity model to be launched in 2013 – a full Hybrid Electric Vehicle (HEV), and a Plug-In Hybrid Electric Vehicle (PHEV).

Valencia was confirmed in 2009 as the European single source for all versions of the
all-new Ford C-MAX and Grand C-MAX which launch later this year, and which feature a range of highly efficient new Ford EcoBoost petrol and Duratorq TDCi diesel engines.

As part of the company's global sourcing strategy, the Valencia Plant also will produce the seven-seat version of the C-MAX for export to North America beginning in late 2011.

"The Hybrid Electric and Plug-In Hybrid Electric derivatives of the all-new Ford
C-MAX are great news for the Valencia plant and region, for Spain, and for Ford customers across Europe. These new advanced technology models are key to Ford's commitment to delivering a portfolio of alternative powertrain vehicles globally and to European customers in the next few years," said John Fleming, Chairman and CEO, Ford of Europe and executive vice president of Global Manufacturing and Labour Affairs.

John Fleming was speaking at a ceremony to mark the HEV and PHEV C-MAX announcement in the city of Valencia. He was joined by Spain's Minister for Industry, Trade and Tourism, Señor Miguel Sebastián Gascón, and by Señor Francisco Camps Ortiz, President of the Generalitat Velenciana, the Valencia regional administration.

"Our Valencia Plant here in Spain will build these new C-MAX five-seat hybrid models exclusively for European customers seeking a practical, efficient and affordable environmental vehicle, while the export to North America of the new Grand C-MAX petrol model beginning in late 2011 opens a new era of production for the team at the plant," Fleming added.

Investing in Valencia
Total investment in the new Ford C-MAX programme in Spain over the next three years, including the hybrid models, is almost $410 million (over €300 million). Investment in the hybrid programmes is expected to be up to $36 million (around €27 million). The Spanish government and Valencia regional administration are providing the highest grant support in line with European Union requirements. The exact amount of this support will be determined at a later date.

"I want to thank the Spanish government and the Valencia regional administration for their outstanding assistance in supporting the C-MAX programme in Spain and, in particular, for helping to turn our hybrid vehicles plan into reality. Their support means that customers in Spain and around Europe will soon be driving the all-new C-MAX later in 2010, and from 2013 will be able to choose from Ford's first hybrid models to be launched in this region of the world," said Fleming.

The programme supports the Spanish government and Valencia regional administration's goal of establishing Spain and the Valencia region as important centres for advanced research and development in environmental engineering.

A Choice of Hybrids
Ford Motor Company has significant experience with hybrid vehicles in North America, and will now extend this expertise to Europe as part of the company's aggressive global electrified vehicles strategy.

The reason for building both full Hybrid Electric Vehicle and Plug-In Hybrid Electric Vehicle versions of the five-seat Ford C-MAX is to provide customers with greater choice to suit their specific driving and living environments.

Full HEVs charge their electric batteries through the use of the small displacement internal combustion engine along with energy recapture through the regenerative brake system, whereas PHEVs have the ability to also recharge their electric batteries through an external source, such as a conventional electric power socket.

"The extra benefit of being able to additionally recharge your batteries at home or other parking location means that PHEVs might better suit those customers who do the majority of their driving in city and other urban environments where electric battery power is the preferred powertrain alternative," commented Fleming.

Ford's Electrification Commitment
Today's announcement forms part of Ford's commitment to extend its global electrified vehicles strategy and introduce five Battery Electric Vehicle (BEV) and Hybrid models in Europe by 2013. The C-MAX HEV and PHEV models will join the full battery-electric Ford Transit Connect, already announced for 2011, and a battery-electric derivative of the next-generation Ford Focus, due in 2012. The fifth vehicle will also be a hybrid-electric model and will be announced at a later time.

"Ford is a leader today in Europe when it comes to offering customers efficient and affordable environmental technologies, such as our ECOnetic range of ultra-low CO2 diesel-powered vehicles and our new EcoBoost advanced petrol engine range.

"The five alternative powertrains we will introduce by 2013 – including the new HEV and PHEV C-MAX models we are confirming today – strengthen our ongoing commitment to providing customers with access to significant fuel economy improvements and reduced CO2 emissions to meet their functional needs and without compromising their driving experience," said Fleming.

Ford's Global C-Car Strategy and the All-New Ford C-MAX
The new five-seat Ford C-MAX and seven-seat Grand C-MAX models are the first of at least ten new models or derivatives that the company will launch around the world based on its new global C-segment platform – Ford's first truly ONE Ford platform.

Ford's new generation of C-segment vehicles will be sold in more than 120 markets and will account for more than two million units annually. The C-segment accounts for one-in-four cars sold worldwide today and, in conjunction with the B-segment, is expected to rise to 50 per cent of all cars sold globally by 2013.

With the new C-MAX family of models, Ford's C-segment MAV customers will now have a choice of two alternative and distinctive models – the sporty five-seat C-MAX or the spacious seven-seat Grand C-MAX, which features twin sliding doors and innovative seat design for outstanding space and flexibility.

This all-new Ford C-MAX range also introduces a number of advanced new technologies to the compact MAV class. More often found only on larger or more premium cars, these technologies are focused on enhanced comfort, safety and sustainability, including the availability of new and powerful yet highly fuel-efficient low-CO2 Ford EcoBoost petrol engines.

The previous C-MAX model quickly established a reputation for providing a fine balance of enjoyable driving dynamics and impressive comfort. The all-new model is set to take that performance to a new level, giving drivers a class-leading combination of responsive, sporty handling, and overall refinement approaching the standards usually associated with larger, luxury vehicles.

The new C-MAX and Grand C-MAX models go on sale across Europe during the second half of 2010, while the seven-seat version of the C-MAX model for North America will go into production in Valencia in late 2011.

Ford and Azure Dynamics Collaborate on Transit Connect Electric for Europe

Ford Motor Company and Azure Dynamics Corporation today announced that they have signed a collaborative agreement to begin delivering a pure battery electric version of the successful Ford Transit Connect van to customers in Europebeginning in late summer 2011.

Azure will integrate its Force Drive™ battery electric drive train into Transit Connect vehicles in Europe to support the sale of the zero-emission battery-electric models in selected markets.

The Ford Transit Connect was first launched in Europe in 2002 and is designed, engineered and constructed to meet the unique needs of small business operators who want the same levels of durability, functionality and strength that are hallmarks of the larger Ford Transit range. Precisely these qualities led to it receiving the 'International Van of the Year' award in 2003.

Under Ford's global ONE Ford initiative, the Transit Connect was also introduced to the U.S., and Canadian markets in 2009 and received the '2010 North American Truck of the Year' award at the 2010 North American International Auto Show in Detroit.

"We're proud of Transit Connect as it has conclusively proved itself to be a versatile, adaptable and thoroughly dependable vehicle for real world commercial customers," said John Fleming, Ford of Europe's Chairman and CEO. "Adding a practical, full battery-electric, zero-emission alternative to the range further demonstrates the enormous flexibility of this vehicle and gives customers the option of being among the first to adopt this environmentally friendly technology."

European project builds on existing business relationship

Ford's relationship with Azure Dynamics is already well established in North America and is now extending to Europe.

In North America, Azure develops hybrid electric and electric drive technology for shuttle buses and commercial trucks, such as the Balance™ Hybrid Electric, which is built on a Ford E-450 'cutaway and strip' chassis for the medium duty commercial vehicle segment.

Michigan-based Azure began work on its collaborative agreement to deliver the pure battery-electric powertrain for the Transit Connect in the U.S. and Canada in October 2009, and the extension of this collaboration into Europe is a logical next step and the first time Azure will operate in the region.

"We're excited about the extension of the Transit Connect Electric program to Europe and understand that putting electric vehicles on the world's roads in significant quantities will be a long term proposition," said Scott T. Harrison, Azure Dynamics CEO. "However, with the Transit Connect Electric, Ford and Azure are doing their part in helping to lead that transition."

"The European Union and individual governments are keen to encourage adoption of electric transportation technology because they understand the potential benefits to energy infrastructure and to society at large," Harrison added. "We believe that European commercial vehicle customers will be eager to adopt the Transit Connect Electric into their fleets, to demonstrate their commitment to becoming part of the solution."

Transit Connect is ideal platform for electrification

The Ford Transit Connect is built on a dedicated global commercial van platform and offers a unique combination of car-like driving dynamics, significant cargo capacity, accessibility and low purchase and operating costs. It is already a proven success and an ideal choice for electrification.

Commercial van users often travel predictable, short-range, routes with frequent stop and go driving in tight urban or suburban environments, resulting in a negative impact on the fuel efficiency of internal combustion engines - which gives the Transit Connect Electric an added economic benefit in busy urban centers. In addition commercial users generally return to a central location at the end of a driving cycle perfect for recharging over night.

The Transit Connect Electric will offer European fleet owners the opportunity to eliminate the use of diesel or petrol fuel in their small vans and help to lower operating costs. The vehicle will have a targeted range of up to 130 km/80 miles on a full charge and zero exhaust emissions. It will be rechargeable using standard European 220/240-volt outlets within 6 to 8 hours.

'Glider' units, vehicles built without the powertrain, will be shipped from the current Ford Otosan manufacturing facility in Kocaeli, Turkey, directly to an Azure-contracted manufacturing location in Europe for final assembly.

The completed Transit Connect Electric will then be sold by Azure Dynamics, who will define a specially-created network of dealerships. Repair works under the Ford warranty will be provided by Ford dealers. They will be offered in both right- and left-hand drive configurations. Further details of market availability and pricing will be announced closer to launch.

Azure's Force Drive™ components have previously been deployed in more than 40 vehicle integrations and have more than 25 million miles of on-the-road experience. The European Transit Connect Electric will be badged with both the Ford Blue Oval and Azure's Force Drive logo like its North American sibling.

Ford's Global Electric vehicles plan

At the 2010 Geneva Motor Show last month, Ford Motor Company confirmed that its global electric vehicles plan would be extending to Europe with five full electric or hybrid vehicles across its C, CD and light commercial vehicle ranges coming for European customers by 2013.

Specifically, Ford announced it would launch in Europe:

• Two zero-emission full battery-electric vehicles: the light commercial Transit Connect Electric in 2011 followed by the Ford Focus Electric in 2012.
• Two next-generation petrol hybrid-electric vehicles to be introduced in 2013
• A plug-in hybrid-electric vehicle also to be introduced in 2013.

Ford's global electrification strategy will deliver a suite of electrified vehicles to a variety of markets and build on the company's overall vision of offering the widest possible range of technology solutions – instead of a single vehicle or technology – to improve fuel economy and lower CO2 emissions for customers around the world.

"We recognise that one technology does not work for all our customers," said Derrick Kuzak, Ford's group vice president of Global Product Development. "Our electrification strategy and plans include hybrids, plug-in hybrids and battery electric vehicles to best meet our global customers' needs. Leveraging our global platforms is also central to this strategy and allows us to build on our strong product line-up in the most customer-driven, affordable way."

As Ford's global product vision accelerates to ensure that all the company's vehicles competing in global segments become common in Europe, North America and Asia, the resulting efficiencies will allow a global portfolio of environmentally friendly transportation solutions to be developed based around hybrid electric, plug-in hybrid electric and all-electric vehicles.

"There is increasing interest among a number of customers in Europe for electrified versions of vehicles like the Transit Connect so we are responding by stepping up our efforts to bring these models to the marketplace alongside our latest-generation, fuel-efficient petrol and diesel powered models," Fleming added. "This is further evidence of how the ONE Ford global product vision is transforming our business. European consumers will not have to wait too long before they can choose from a range of electrified alternatives from Ford."

Further details of Ford's hybrid and plug-in hybrid models will be revealed closer to launch.

Ford team up with Microsoft In Electric Car Venture

Microsoft is working with automaker Ford to develop an application that will help consumers better manage the power required to charge electric vehicles.

The two companies are teaming up to implement the Microsoft Hohm™ energy management application for Ford's electric vehicles. Ford is the first automaker announcing the use of Hohm, starting with the Focus Electric next year. Hohm will help owners determine when and how to most efficiently and affordably recharge battery electric (BEV) and plug-in hybrid (PHEV) vehicles. It also should help utility companies manage the added demands of electric vehicles on the electric grid.

"Ford and Microsoft both share a strong commitment to contributing to a better world. Today, we begin the next major step in our working together and leading the way for energy efficiency and environmental sustainability," said Alan Mulally, Ford Motor Company president and CEO. "For Ford, this is a needed step in the development of the infrastructure that will make electric vehicles viable."

Both companies agree that effective management of the energy ecosystem is critical for electric vehicles to be successful and for consumer interest to grow. In a recent Accenture survey, 42 percent of consumers said they are likely to buy a hybrid or electric vehicle in the next two years.

Increasing numbers of electric vehicles, however, will have a significant impact on energy demand. That is because the addition of an electric vehicle to a household could effectively double home energy consumption while the vehicle is charging.

Ford and Microsoft agree that making energy management easy and affordable for consumers will be key to the success of electric vehicles in the marketplace as well as in creating a positive environmental impact.

"Electric vehicles will play an important role in the global effort to improve energy efficiency and address the issues of climate change and sustainability," said Steve Ballmer, Microsoft CEO. "But as the market for electric vehicles expands, it will have a significant impact on home energy consumption and demand across the nation's energy grid. With Microsoft Hohm, Ford and Microsoft will deliver a solution that will make it easier for car owners to make smart decisions about the most affordable and efficient ways to recharge electric vehicles, while giving utilities better tools for managing the expected changes in energy demand."

Introducing Hohm to Ford's electric vehicles supports Ford's aggressive global electrification plan, which will put five new electrified vehicles on the road in North America and Europe by 2013. In North America, they include the Transit Connect Electric later this year, Focus Electric in 2011, a plug-in hybrid electric vehicle and two next-generation hybrids in 2012.

America's largest domestic hybrid seller, Ford Motor Company today has four hybrids on the road and another coming this year. They include the Ford Fusion Hybrid, Ford Escape Hybrid, Mercury Milan Hybrid and Mercury Mariner Hybrid. Also coming this fall is the Lincoln MKZ Hybrid, which is expected to be the most fuel-efficient luxury sedan in America.

Life with electrified vehicles – with full battery electric (BEV) and plug-in hybrid (PHEV) vehicles needing to be recharged daily – will require consumers to change how they think about personal transportation and energy use.

Hohm, an Internet-based service, is designed to help customers avoid unnecessary expense by providing insight into their energy usage patterns and suggesting recommendations to increase conservation. With Ford electric vehicles, Hohm also will help drivers to determine the best time to charge their vehicle. Smart recharging habits will help utility companies understand and better manage the increased demands placed upon the electric grid because of electrified vehicles.

Ford and Microsoft's participation in the Hohm program builds on the success of their decade-long partnership to provide customers with superior in-car experiences. The Ford SYNC® communications and infotainment system, built on the Windows Embedded Automotive platform, has been installed on more than 2 million Ford, Lincoln and Mercury vehicles since its launch in 2007, helping drivers connect and voice-control their mobile devices while driving.

Microsoft Hohm is available today for free to all U.S. residential energy consumers and has multiple partnerships with utilities and other stakeholders already in place. Ford is the first automaker to join in collaboration with Hohm.

Ford and Microsoft also plan to continue to work with utility partners and municipalities to help further develop the energy ecosystem. Ford's work includes collaboration with a dozen North American energy companies to road-test a fleet of 21 Ford Escape plug-in hybrid vehicles. The research has accumulated more than 160,000 miles of real-world data, which provided important groundwork for the new Hohm application.

"Rechargeable vehicles represent a new frontier. Their commercialization will take broad-based collaboration and systems solutions," said Mulally. "Working together, Ford and Microsoft will provide the systems solutions to help facilitate this exciting future."

BorgWarner eGearDrive Transmission Propels 2011 Ford Transit Connect Electric

BorgWarner's 31-03 eGearDrive™ transmission will propel the 2011 Transit Connect Electric, Ford's first all-electric production vehicle based on the global Transit Connect, the 2010 North American Truck of the Year. Targeted at urban delivery fleets, the all-electric commercial van will reach a top speed of 75 miles per hour and offers a range of up to 80 miles on a full charge. Ford's Transit Connect will be upfitted to an all-electric model by Azure Dynamics, which will install its electric propulsion system driving the front wheels through BorgWarner's eGearDrive™ single-speed transmission. Adapted in collaboration with Azure Dynamics, the eGearDrive™ transmission delivers high torque capacity, high efficiency, and low noise, vibration and harshness (NVH) in a compact package.

"With this latest application, BorgWarner's eGearDrive™ transmission is proving its broad adaptability to a variety of electric propulsion vehicles, from high-performance roadsters to sedans to commercial vans," said John Sanderson, President and General Manager, BorgWarner Drivetrain Systems. "Partnering with Azure Dynamics allows both companies to build on their legacies of innovation, driving growth in environmentally friendly solutions that also deliver efficiency and performance."
Named a finalist for the 2010 Automotive News PACE Awards, BorgWarner's eGearDrive™ transmission incorporates patented and proprietary technology as well as over 100 years of powertrain know-how. Through its high-efficiency gear train and compact, low-weight design, the BorgWarner eGearDrive™ transmission contributes to extended battery-powered driving range which in turn reduces the required amount of battery capacity needed. The transmission also achieves high torque capacity in a compact package with greater than 97% efficiency, while providing smooth, quiet operation. Approximately 99% of the materials used in the eGearDrive™ transmission are recyclable.

BorgWarner Drivetrain Systems produces highly engineered drivetrain technologies for the global vehicle industry. Key product segments include: dual clutch modules; wet friction clutch components and systems; mechatronic transmission control modules; electro-hydraulic solenoid valves; mechanical clutch assemblies; all-wheel drive couplings, transfer cases and software/controls; and electric vehicle transmissions. These systems improve fuel economy and performance while enhancing vehicle stability. BorgWarner Drivetrain Systems is a trusted supplier to virtually every major light vehicle and automatic transmission producer in the world today.

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 59 locations in 18 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN.

BorgWarner will supply its 31-03 eGearDrive™ transmission (left) for Ford's first all-electric production vehicle, the 2011 Transit Connect (right), a 100% electric version of the 2010 North American Truck of the Year. Vehicle photo courtesy of Ford Motor Company.

AT&T Becomes Lead Customer for Ford Transit Connect Electric

Azure Dynamics Corporation today announced AT&T has agreed to purchase two of the first Ford Transit Connect Electric vans, the latest addition to AT&T’s growing fleet of alternative-fuel vehicles.

The Ford Transit Connect Electric -- the all-electric version of the 2010 Ford Transit Connect, the North American Truck of the Year -- will be powered by Azure Dynamics’patented Force DriveTM electric drivetrain with an advanced lithium-ion battery from Johnson Controls-Saft. The vehicle, which goes on sale later this year, has a range of up to 80 miles on a single charge and will be rechargeable using either 240-volt or standard 120-volt outlets. It has a top speed of 75 miles per hour.

“Cleaner, alternative-fuel vehicles are the future of our corporate fleet, and the Transit Connect Electric represents a real breakthrough and will be a strong addition to our range of alternative-fuel vehicles,” said Jerome Webber, vice president of fleet operations at AT&T. “It’s exactly the kind of vehicle we envisioned when we mapped our long-term vision to invest up to $565 million to deploy more than 15,000 alternative-fuel vehicles through 2018.” AT&T currently operates more than 77,000 vehicles in its corporate fleet, including 15 gasoline-powered Ford Transit Connect vehicles AT&T began piloting in 2009.

Scott T. Harrison, CEO of Azure Dynamics, said the Transit Connect Electric project is in line with his company’s mission. “Our business is built on great technology, committed partners and customers who want to improve efficiency while reducing their environmental footprint,” Harrison said. “The Transit Connect Electric brings all of those elements together in a single package and is exactly on target with our goal at Azure of ‘driving a world of difference.’”

According to Harrison, commercial vehicles are ideal candidates for electrification due to typical duty cycle characteristics like predictable drive routes and a return to a central location each night for recharging. The zero tailpipe emission Ford Transit Connect Electric also will help protect air quality in the urban environments where it operates.

By combining car-like driving dynamics with truck-like cargo capacity, Ford Transit Connect Electric is well-suited to the demands placed on urban delivery vehicles for small businesses and larger, corporate fleets.

The Transit Connect Electric is expected to offer lower cost of operation because recharging with electricity is generally less expensive than refueling with gasoline. Additionally, customers will benefit from lower maintenance costs as the electric drive train has far fewer moving parts to maintain.

“Ford Transit Connect was first introduced in the U.S. last year as a new fuel efficient alternative to larger commercial vehicles. Adding the electric option addresses a growing demand from our customers for sustainable vehicles for their fleets,” said Gerry Koss, Ford fleet marketing manager. “This Transit Connect Electric represents the first in a family of electrified vehicles, including new hybrids, plug-in hybrids and all battery electric vehicles, which Ford will deliver over the next three years.” AT&T plans to take delivery of the Transit Connect Electric in late 2010.

Ford to Launch 5 EV models in Europe by 2013

Ford Motor Company is confirming today that its global electric vehicles plan is extending to Europe with five full electric or hybrid vehicles across its C, CD and light commercial vehicle ranges coming for European customers by 2013.

Specifically, Ford will launch two zero-emission full battery-electric vehicles including the Transit Connect Electric light commercial vehicle in 2011 followed by the Ford Focus Electric in 2012. Three other vehicles – two next-generation petrol hybrid-electric vehicles and a plug-in hybrid – will be introduced in 2013.

Ford’s global electrification strategy will deliver a suite of electrified vehicles to a variety of markets and build on the company's overall vision of offering the widest possible range of technology solutions – instead of a single vehicle or technology – to improve fuel economy and lower CO2 emissions for customers around the world.
"We recognise that one technology does not work for all our customers," said Derrick Kuzak, Ford's group vice president of Global Product Development. "Our electrification strategy and plans include hybrids, plug-in hybrids and battery electric vehicles to best meet our global customers' needs. Leveraging our global platforms is also central to this strategy and allows us to build on our strong product line-up in the most customer-driven, affordable way."

As Ford's global product vision accelerates to ensure that all the company's vehicles competing in global segments become common in Europe, North America and Asia, the resulting efficiencies will allow a global portfolio of environmentally friendly transportation solutions to be developed based around hybrid electric, plug-in hybrid electric and all-electric vehicles.

"Our goal is to provide consumers with access to significant fuel economy improvements and reduced CO2 emissions to meet their functional needs and without compromising their driving experience," said John Fleming, Chairman and CEO, Ford of Europe.

"There is increasing interest among a number of customers in Europe for electrified vehicles and we are responding by stepping up our efforts to bring these models to the marketplace alongside our latest-generation, fuel-efficient petrol and diesel powered models," Fleming added. "This is further evidence of how the ONE Ford global product vision is transforming our business. European consumers will not have to wait too long before they can choose from a range of electrified alternatives from Ford."



Zero-Emission

The first models to be launched in Europe will be zero-emission, full-electric versions of two significant models in Ford's global product portfolio.

The Focus Electric will be based on Ford's next-generation Focus model and is one of at least ten vehicles that will be developed from the company's new global C-car platform. Focus Electric will be introduced in the US and Canada in 2011, followed by Europe in 2012.

The Ford Transit Connect Electric is a zero-emission, pure electric-powered version of the award-winning Transit Connect light commercial vehicle and goes on sale in North America later this year. Ford is aiming to make the Transit Connect Electric available for European customers from 2011.

Future Hybrids

While Ford has considerable experience in the North American market with full petrol-hybrid vehicles, the company also is planning to expand its presence in Europe with two all-new, next-generation hybrid passenger cars based on global platforms following in 2013.

In addition, European customers will be able to opt for a plug-in hybrid model, also coming in 2013.

"Thanks to the global economies of scale afforded to us by our ONE Ford initiative, I am delighted we are able to make the commitment now to deliver these models to customers in Europe, particularly as the demand for hybrid vehicles grows," added John Fleming.

Further details of Ford's hybrid and plug-in hybrid models will be revealed closer to launch.

Prototype Trials in Europe

Ford's Product Development team is participating in two specific European trial initiatives to demonstrate the technology in real world driving conditions, and generate feedback to help develop further the Focus Electric and the Transit Connect Electric for market acceptance in Europe.

In the UK, a consortium of Ford, Scottish and Southern Energy (SSE) and Strathclyde University is preparing later this year to run a fleet of zero emissions prototype Ford Focus Battery Electric Vehicle prototypes, based around the current Focus model sold in Europe and using elements of the technology under development for the new Focus Electric.

The vehicles will be used for evaluation by both SSE and a number of fleet and private customers based in Hillingdon, Middlesex from mid-2010.

This new UK-based BEV demonstration fleet is being created partly with public funding from the UK Government's Technology Strategy Board (TSB), which promotes innovative industry-led projects that reduce CO2. The BEV research programme aims to test the technology's suitability and to gain greater insight into customer charging behaviour.

In Germany, Ford has recently announced its participation in the colognE-mobil project. This initiative will research the impact of electric vehicles on urban air quality, traffic safety and the electricity supply infrastructure. Scientists will then scale up the results to examine the true benefits an electric future could deliver for German cities.

Ford is one of four partners in the colognE-mobil project and will provide an early fleet of next-generation Focus Electric vehicles in late 2011.
The other partners are utility company RheinEnergie AG, the City of Cologne and the University of Duisburg-Essen. The colognE-mobil project is partly funded by the German Government and coordinated by the federal state of North Rhine-Westphalia.

"These initiatives are a revolution for both the utility and automotive industries," Fleming said. "Collaborating across sectors is essential to ensure customer focused products that provide the right value along with the readiness of the infrastructure. We need to work and learn together and Ford is very pleased to be a part of these important trials."

Portfolio of Technologies

Ford Motor Company is committed to offering customers affordable environmental technologies in the vehicles they want and value.

To do this, Ford is introducing a range of global environmental technologies, including electrified vehicles that provide customers with more fuel-efficient models emitting fewer greenhouse gases without compromising safety, interior room or performance.

"Ford is focused on solutions that reach not just hundreds or thousands of cars, but millions of vehicles – because that is how Ford can truly make a difference," Derrick Kuzak said.

Near- and longer-term advancements include the new Ford EcoBoost global engine family featuring turbocharging and direct injection technology, Ford's ECOnetic range of low- CO2 technologies in Europe, and multi-speed transmissions such as Ford PowerShift.

Also, Ford is developing a range of other environmentally focused features, including advanced electric power steering, weight reduction and aerodynamic improvements, plus biofuel-capable vehicles, hybrids and plug-in hybrids.

“Electrification is a key element in the effective use of Ford's global resources and talents to provide a portfolio of affordable and fuel-efficient technologies for customers,” said Fleming. “In particular our fleet trials in the UK and Germany will give us vital experience and insight into how fleet and private customers for these niche models will use them on a daily basis. This will ensure that the five models we bring to market are fully developed to meet their expectations."

Ford Launch 2011 Transit Connect Electric Van

Ford Motor Company today unveiled the all-electric version of the Ford Transit Connect – the 2010 North American Truck of the Year – at the Chicago Auto Show and confirmed the zero-emissions small van will be in fleet operators’ hands later this year.

The 2011 Transit Connect Electric will use a Force Drive electric powertrain manufactured and integrated by specialty upfitter Azure Dynamics.

“Transit Connect Electric exemplifies how we are leveraging our relationships as well as our hybrid and advanced powertrain programs to bring energy-efficient technologies from the laboratory to the street,” said Derrick Kuzak, Ford group vice president, Global Product Development. “Not only is this an ideal vehicle for eco-conscious fleet operators, it is an important part of Ford’s future.”

In addition to the Transit Connect Electric, Ford plans to bring three more electrified vehicles to market by 2012 – the Focus Electric in 2011, a plug-in hybrid electric vehicle in 2012 and a next-generation hybrid in 2012.

Getting charged up and moving



Transit Connect Electric is well-suited for commercial fleets that travel predictable, short-range routes with frequent stop-and-go driving in urban and suburban environments and a central location for daily recharging. The vehicle, which will accelerate at a similar rate as the gas-powered Transit Connect and will have a top speed of 75 mph, has a targeted range of up to 80 miles on a full charge.

Owners will have the option of recharging the Transit Connect Electric with either a standard 120V outlet or preferably a 240V charge station installed at the user’s base of operations for optimal recharging in six to eight hours. A transportable cord that works with both types of outlets will be available for recharging at both kinds of locations.

The vehicle’s charge port is located above the passenger-side rear wheel well. The onboard liquid-cooled 28-kilowatt-hour lithium-ion battery pack is charged by connecting the charge port to a power outlet. Inside the vehicle, an onboard charger converts the AC power from the electric grid to DC power to charge the battery pack.

“We’re excited about the potential for our electrified vehicles,” said Praveen Cherian, program manager for the Transit Connect Electric, who added that today’s electric vehicle buyers are similar to early adopters of hybrid vehicles. “People were a little hesitant about hybrid technology at first, but now they accept it and embrace it. We expect the same will be true of electric vehicles.”

Driving on electric power



When the vehicle is operating, battery power is provided to the drive motor through the electric powertrain’s motor controller. The motor controller uses throttle input from the driver to convert DC power supplied by the battery into three precisely timed signals used to drive the motor.

The onboard DC/DC converter allows the vehicle’s main battery pack to charge the onboard 12V battery, which powers the vehicle’s various accessories, such as headlights, power steering and coolant pumps.

In the Transit Connect Electric, the battery pack has been efficiently integrated without compromising interior passenger room and cargo space. The battery pack is expected to last the life of the vehicle.

Collaborations are key
Transit Connect Electric builds on the existing business relationship between Ford and Azure Dynamics, as well as their shared experience with battery supplier, Johnson Controls-Saft.

“There is an increasing interest in electrified vehicles, and we are committed to bringing these vehicles to the marketplace,” said Nancy Gioia, Ford director of Global Electrification. “Ford’s work with Azure and Johnson Controls-Saft to create a purely electric Transit Connect will allow us to offer fleet customers an additional option for eco-friendly transportation.”

Oak Park, Mich.-based Azure Dynamics develops hybrid electric and electric drive technology for shuttle buses and commercial trucks, such as the Balance™ Hybrid Electric, which is built on the Ford E-450 cutaway and strip chassis for the medium-duty commercial vehicle segment.

“The opportunity to work with Ford on the Transit Connect Electric is a breakthrough advancement for us at Azure and for the light-commercial vehicle market,” said Scott Harrison, Azure Dynamics CEO. “For us, it’s an important evolution of our existing relationship with Ford. From an industry standpoint, we are seeing delivery fleet and utility vehicle operators move to smaller, more fuel-efficient vehicles.”

Azure Dynamics’ proprietary Force Drive battery electric powertrain will be the driving force in the Transit Connect Electric. Force Drive components have previously been deployed in more than 40 vehicle integrations and have more than 25 million miles of on-the-road experience.

Johnson Controls-Saft was selected by Azure Dynamics as the supplier for lithium-ion battery cells and battery packs for the Transit Connect Electric. Azure Dynamics and Ford both currently use Johnson Controls-Saft battery technology for other products.

An ideal platform
With a unique combination of car-like driving dynamics, cargo capacity, accessibility and low purchase and operation costs, the Transit Connect is an ideal choice for electrification.

The Transit Connect Electric is expected to offer lower cost of operation, because recharging with electricity is generally less expensive than refueling with gasoline. Users may also benefit from much lower maintenance costs over the life of the vehicle. Consider the following:

* The number of components typical in an internal combustion engine and transmission are dramatically reduced in an electric vehicle to just a few moving parts in the electric motor and transaxle, which results in much fewer parts to wear out or maintain
* Electric powertrains operate with solid state electronics, which have demonstrated low or no maintenance over the life of the product
* Electric vehicles have completely sealed cooling systems that do not require refilling, replacement or flushing
* Electric vehicles require no oil changes or tune-ups
* There are no belts to wear out or break and no spark plugs or injectors to clean or adjust
* There is no exhaust system to replace and no liquid fuel system to freeze or clog
* The use of regenerative braking reduces wear and tear on brake pads

Common strengths
Although there are significant differences between the Transit Connect Electric and its gas-powered twin, there are many things in common as well. Both models offer:

* 135 cubic feet of cargo volume with 59.1 inches of floor-to-ceiling load height and 47.8 inches of load width between the wheel arches
* Load length a generous 72.6 inches, or more than six feet of cargo floor space
* Split rear cargo doors that open at a standard 180 degrees, or an optionally available 255 degrees
* Lift-over height less than two feet when the vehicle is unloaded
* Power-assisted rack-and-pinion steering allows a 39-foot curb-to-curb turning circle for maneuverability in tight urban spaces
* Bulkheads, racks, bins and other upfits can be mixed, matched and configured to suit many specific commercial applications and needs

“With interest in eco-friendly vehicles stronger than ever among commercial and government fleet operators, the Transit Connect Electric promises to offer another unique solution for their needs,” said Gerry Koss, Ford fleet marketing manager.

Ford to fix brake software in Fusion hybrids

While not labeling it a recall, Ford Motor Co. said Thursday that it will update the software of the regenerative braking system on some already-delivered 2010 Ford Fusion Hybrids and Mercury Milan Hybrids. An Associated Press report said a total of 17,600 Fusion and Milan hybrids will be updated.

Ford calls the update a “customer satisfaction program” and will notify owners by mail.

“We have received reports that some drivers have experienced a different brake feel when the hybrid's unique regenerative brakes switch to conventional hydraulic braking,” Ford said in a statement. “While the vehicles maintain full braking capability, customers may initially perceive the condition as loss of brakes.”

Ford's announcement came on the same day that the National Highway Traffic Safety Administration opened a formal investigation of the 2010 Toyota Prius hybrid to determine whether 37,000 of those vehicles suffer momentary loss of braking capabilities. Toyota said its fix involves reprogramming the car's software.

Ford said its affected vehicles will have the software reprogrammed by dealers at no charge to the customer.

The Fusion Hybrid's regenerative braking system reclaims kinetic energy by having electric motors use braking force to regenerate electricity. Ford says the 2010 Fusion Hybrid returns to the battery 94 percent of energy that otherwise would be lost to heat and friction.

Ford sold 15,559 Fusion Hybrids last year.

Ford will start selling electric Focus next year

Ford Motor Co on Monday announced its intentions to sell an all-electric version of the Focus starting next year.

The company said the electric version of the Focus would be built at a factory in Michigan that previously manufactured sport utility vehicles, which Ford President of the Americas Mark Fields observed was an example of how quickly the auto industry and consumer tastes were shifting.

The price will be competitive with other electric vehicles, such as rival Chevrolet's Volt, Fields said, but he didn't elaborate. GM hasn't announced pricing for the Volt either.

The electric vehicle will be built alongside the next-generation Focus, a compact car that Ford sees as a key part of its strategy to leverage global design and engineering to produce a vehicle that will sell well in many global markets.

The new Focus will be nearly identical in all markets, with 80% parts commonality around the world.

"The efficiencies generated by our new global C-car platform will enable us to provide Ford Focus customers with an affordable product offering quality, fuel efficiency, safety and technology beyond their expectations," said Alan Mulally, Ford's chief executive.

The Focus will come in both four-door sedan and five-door hatchback styles. Production will start for Europe and North America late in 2010 and sales are expected to begin early in 2011.

In other news, Ford captured the North American Car of the Year and North American Truck of the Year awards for the 2010 Ford Fusion Hybrid and 2010 Ford Transit Connect, respectively. It marked the third time in 17 years that one manufacturer had won both titles, which were awarded by a panel of automotive journalists.

The Fusion Hybrid, a mid-size hybrid that gets about 40 miles a gallon in city driving, edged out finalists including the Buick LaCrosse and Volkswagen Golf/GTI.

The Transit Connect, a cargo and work van targeted at small businesses and people in construction trades, beat out the Chevrolet Equinox and Subaru Outback.

Ford Consolidating Electric Car Program In Michigan

Ford Motor Co. has promised to create 1,000 jobs in southeast Michigan where it will further consolidate its electric vehicle program under a tax incentive agreement approved by a state economic development board Monday.

The company told the Michigan Economic Growth Authority that the new jobs would be in advanced lithium ion battery production.

At the Monday meeting, the state also expanded its already established tax incentive program that aims to retain thousands of Ford jobs through other work related to gas-electric hybrid and plug-in vehicles using the advanced batteries.

Ford announced in May that it plans to build its next-generation Focus, including an electric version, in a facility near Detroit.

Ford facilities in Wayne, Warren, Sterling Heights and possibly Rawsonville near Ypsilanti could get the new work, according to a memo outlining the agreement between the state and Ford.

Under the agreement, the new battery-related jobs would come with the help of a tax credit valued at up to $78 million over a multi-year period. Ford would invest at least $250 million in the project.

The other tax credit approved to help save existing jobs is worth up to $110 million. Around 3,900 more jobs could be saved with the expansion of the program, adding to the up to 4,700 jobs expected to be saved when the project was first announced in May.

Ford could invest an additional $300 million to $500 million tied to the expansion of the project.

Ford officials and Gov. Jennifer Granholm were expected to announce further details of the company's plans Monday at the Detroit auto show.

Magna International to show electrification competence at Detroit

Magna International announced today it will join the ranks of companies displaying at the 2010 North American International Auto Show, a first for the world's most diverse automotive supplier.

The company's exhibit will be located in Michigan Hall from January 11-15 as part of the EcoXperience ride & drive track and alternative energy showcase. The exhibit, which will highlight green-car technologies from across Magna's operating units, will also introduce E-Car Systems, Magna's newly created global operating unit that serves as an integrator to Magna's broad range of electrification capabilities.

The exhibit coincides with Magna's strategy to strengthen its position as a leader in hybrid and electric vehicle development and products. This is in direct response to consumer interest and demand for vehicles that use renewable energy and reduce dependency on fossil fuels.

"The global trends towards CO(2) reduction and improved fuel economy are important drivers of future growth in hybrid and electric vehicles," said Don Walker, co-CEO of Magna International. "We have been enhancing our capability in this area by developing systems such as electric motors and motor control units, chargers, electric pumps, electric drivetrain and lithium ion battery packs. Our complete-vehicle expertise and cell-to-pack battery competence, combined with our capabilities in developing lightweight technologies, adds to our overall hybrid and electric vehicle competence."

In addition to developing products and technologies to meet current market demands, Magna has also embarked on the development of next-generation systems and components. An early success of the company's efforts is a collaborative project with Ford Motor Co. on a fully electric, zero-emission BEV to arrive in the U.S. market in 2011.

Magna is the only supplier with the range of capabilities and expertise to develop electric/hybrid vehicle components, systems and sub-systems, and provide complete vehicle integration and assembly. Additionally, through E-Car Systems, Magna has an even greater advantage of being able to draw on the resources of experts in each of these areas as needed on a customer program.

Ford Plans to Start Electric-Car Tests in Germany Next Month

Ford Motor Co. will start a two-year test program of electric Focus compact cars and Transit vans in Germany on Jan. 4 as the U.S. company prepares to introduce battery-powered models as early as next year.

The 25 vehicles will be driven under normal traffic conditions in Cologne, where Ford’s European division is based, said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at Germany’s University of Duisburg-Essen, which is overseeing the 15 million-euro ($22 million) study.

The drivers will include researchers and customers selected by Ford, Dudenhoeffer said today in a telephone interview. Data from the models will be monitored on computers that can simulate testing of more than 10,000 vehicles, he said.

Bernd Meier, a spokesman for Ford in Cologne, said the study is the automaker’s first in mainland Europe. The company is already trying out battery-powered vehicles in London, Meier said.

Ford, the first U.S. automaker to offer a hybrid model, said on Dec. 8 that it may spend $300 million to $500 million on factories in its home state of Michigan to build electric vehicles and batteries. The Dearborn-based company has a target of rolling out an electric-powered version of the Transit Connect commercial van next year, followed by an electric Focus in 2011.

Local utility RheinEnergie AG will supply vehicle-charging stations for the test, which is being financed by the German government’s economic-stimulus package, Dudenhoeffer said.

Ford reports 67 percent increase in hybrid sales

In November of this year, overall hybrid sales were up 21 percent, and most manufacturers did better with hybrids than they did in the same month of 2008. Toyota moved 14,473 hybrids, up 16.3 percent from the previous year. Honda sold 1,646, which was a 57.8 gain. Nissan found new homes for 503 Altimas, which was nonetheless a 42.5 percent increase.

Ford was behind only Toyota in hybrid sales, with 2,361 units, up 73.5 percent. Overall, Ford, Lincoln and Mercury sales were down (0.2 percent).

Despite the industry problems, Ford is crowing about its hybrid sales. It sold 31,000 of them through November, beating its previous high in 2007. For the year, Ford’s hybrid sales were up 67 percent, a development it credits to the successful launch of the midsized Fusion and Milan Hybrid twins (41 mpg city/36 highway).

Ford sales analyst George Pipas claims that it is making more “conquest” sales, luring customers from other brands (mostly Toyota and Honda). These shoppers, he said, want fuel-efficient cars and the hybrids, Pipas said, lure “a whole community of customers who might have otherwise never visited a Ford showroom.”

Green concern remains a major factor in hybrid purchase decisions. Bill Casselberry of San Angelo, Texas (who happens to be 91) says he traded in his 2006 Camry on a 2010 Fusion Hybrid because “I’m concerned about all the greenhouse gases we’re putting into the air, and I wanted to do my part to reduce the negative effect on our atmosphere. If we don’t do something now, future generations are not going to have a world to live in.”

Black & Veatch, an engineering, consulting and construction company, has 22 Escape Hybrids, and they didn’t buy them to save money on gas (though that’s a welcome benefit). “Our company is always looking at ways to reduce our carbon footprint,” said Rod Cramer, fleet manager at the company. “The Escape Hybrids also play a major role in showing our employees and clients how serious our commitment is to the environment that we all share.”

Ford to Invest $500 million in EVs

Ford are looking to invest up to $500 million for its hybrid vehicle projects and create more than 1,000 new jobs in Michigan if state lawmakers expand an existing incentive program and approve $85 million in tax credits, according to the Detroit News.

If Ford's needs are met, the company will go ahead with plans to design and assemble battery packs for a new generation of hybrid vehicles in Michigan, and possibly even make a new hybrid and plug-in hybrid vehicle based on the Ford Focus platform it plans to launch in Detroit in January.

Last year, Michigan lawmakers authorized tax credits for the assemblage of high-capacity lithium-ion battery packs, but Ford is now requesting them to expand the incentives to include lower-capacity batteries used in hybrid vehicles.

Ford is specifically requesting $85 million in tax credits from the program through 2014, and on top of that, an additional $35 million beyond 2014 if the lithium-ion cells for the battery packs are made in Michigan.

Currently auto-parts supplier Delphi assembles the battery pack for Ford's current hybrid vehicles in Mexico according to Reuters. Ford says the change it is trying to make is in no way a reflection of Delphi's performance. Rather, it represents Ford's desire to set itself apart from competitors through battery development.

Ford team up with Azure to produce EV Transit

Ford Motor Company announced today that Azure Dynamics Corporation has joined in a collaborative effort to deliver a pure battery electric Ford Transit Connect van for the United States and Canadian markets in 2010. Azure will integrate its Force Drive(TM) battery electric drive train in the Transit Connect van for commercial fleet and retail use.

The collaboration with Azure Dynamics for the Transit Connect BEV will build
on the existing business relationship between Ford and Azure as well as their
shared experience with battery supplier, Johnson Controls-Saft.

"We recognize an increasing interest in electrified vehicles and have an
aggressive strategy to bring these vehicles to the marketplace," said Nancy
Gioia, Ford director of Global Electrification. "Our work with Azure to
create a pure electric battery Transit Connect vehicle will allow us to offer
our commercial customers an additional option for environmentally friendly
transportation."

The Transit Connect BEV will be built on Ford's global commercial vehicle
platform as part of the company's One Ford global product vision. It is the
first of four electrified vehicles from Ford that will become available over
the next three years in the U.S. and Canada including:

-- Battery electric Transit Connect van in 2010
-- Battery electric Ford Focus passenger car in 2011
-- Next generation hybrid vehicle in 2012
-- Plug-In hybrid vehicle in 2012


Collaboration builds on existing business relationship Azure Dynamics develops hybrid electric and electric drive technology for shuttle buses and commercial trucks, such as the Balance(TM) Hybrid Electric,which is built on the Ford E-450 cutaway and strip chassis for the medium duty commercial vehicle segment.

"The opportunity to work with Ford on the Transit Connect BEV is a
breakthrough advancement for us at Azure and for the light commercial vehicle
market," said Scott Harrison, Azure Dynamics CEO. "For Azure, it's an
important evolution of our existing relationship with Ford. From an industry
standpoint, we are seeing delivery fleet and utility vehicle operators move to
smaller, more fuel efficient vehicles. The Transit Connect BEV will come to
market at an ideal time to meet this growing trend."

Oak Park, Mich.-based Azure Dynamics will integrate its proprietary Force
Drive(TM) battery electric drive train into the Transit Connect BEV, which
will have a targeted range of 80 miles minimum on a full charge and zero
tailpipe emissions. Force Drive(TM) components have previously been deployed
in more than 40 vehicle integrations and have more than 25 million miles of
on-the-road experience. The Transit Connect BEV will offer fleet owners the
opportunity to eliminate the use of gasoline and help to lower operating
costs. The vehicle will be badged with both the Ford Blue Oval and Azure's
Force Drive logo.

Azure Dynamics has selected Johnson Controls-Saft as the supplier for
lithium-ion battery cells and battery packs for the Transit Connect BEV. Azure Dynamics and Ford both currently utilize Johnson Controls-Saft battery technology for other products. The Transit Connect BEV will use the same proven cell technology that is currently deployed in the Ford Escape plug-in hybrid fleet that is on the road today.

In addition, Azure had previously announced it would use Johnson Controls-Saft
lithium-ion batteries for its E- 450 Balance Hybrid Electric beginning in the
second half of 2010. The shared supplier business relationship is expected to
provide additional synergy between Ford and Azure in the Transit Connect BEV
project.

Transit Connect commercial platform ideal choice for battery electric power
The Ford Transit Connect already is a proven global success. Ford introduced
the gasoline-engine Transit Connect to North America this year. With a unique
combination of car-like driving dynamics, cargo capacity, accessibility and
low purchase and operation costs, it is an ideal choice for electrification.
Commercial users often travel predictable, short-range routes with frequent
stop and go driving in urban and suburban environments. For customers seeking
sustainable mobility solutions, the Transit Connect Battery Electric Vehicle
with Azure Force Drive(TM) will provide a zero emissions option.

The Transit Connect was designed, engineered and manufactured on a dedicated
global commercial vehicle platform to beat tough commercial vehicle durability
standards. The final manufacturing location for the Transit Connect BEV has
not yet been determined.

Ford Hybrid sales up 73% bucking industry trend

Ford Motor Company’s hybrid vehicle sales have risen 73 percent this year in sharp contrast to a 14-percent decline in hybrid sales across the industry.

The fuel economy and durability of hybrid versions of Ford Fusion and Escape, Mercury Milan and Mariner also are winning over large numbers of conquest customers, many of whom are previous import owners. Through September, Ford has sold 26,016 hybrid vehicles, up 73 percent versus the same period in 2008, according to figures from Autodata Inc.

* Ford Motor Company’s year-to-date hybrid sales are 73 percent higher than the same period in 2008, fueled by the introduction of hybrid versions of the 2010 Ford Fusion and Mercury Milan
* More than 60 percent of the sales of Fusion Hybrid are by non-Ford owners – with more than 52 percent of those customers coming from import brands

* Numbers of Ford Escape Hybrid taxis growing on streets of San Francisco and New York where vehicles in service have exceeded 300,000 miles since their introduction
* Ford hybrids help “green” federal government fleets


“Hybrid customers increasingly are considering Ford,” said David Finnegan, Ford hybrid marketing manager. “More than 60 percent of Fusion Hybrid sales have been from non-Ford owners, and more than half of those are customers coming from import brands, mostly from Toyota and Honda.”

Ford’s strong 2009 hybrid sales have been fueled by the introduction of the Ford Fusion and Mercury Milan hybrids, the most fuel-efficient midsize sedans on the road. Both vehicles deliver a certified 41 mpg rating in the city and 36 mpg on the highway, topping the Toyota Camry hybrid by 8 mpg in the city and 2 mpg on the highway.

Durable and fuel efficient
While the introduction of the Fusion Hybrid has spurred sales from non-Ford owners, Ford’s longest-running hybrid nameplate, the Escape Hybrid, has proven particularly popular with Ford customers operating taxi, lifeguard and government fleets due to the combination of fuel efficiency and durability. The front-wheel-drive Escape Hybrid delivers 34 mpg in city driving and 30 mpg on the highway, making it the most fuel-efficient SUV on the market.

In 2005, San Francisco became one of the first cities to adopt hybrids into taxi service, with hybrids accounting for 14 percent of its current fleet. Each of the original fleet of 15 Escape Hybrids exceeded 300,000 miles per vehicle before being retired and replaced with more Escape Hybrids. There are almost 200 Escape Hybrid taxis on San Francisco’s streets today.

New York has more hybrid taxis in service than any other city in North America with 13,237, of which more than 2,000 are Escape Hybrids. The Big Apple recently has begun retiring its original fleet of Escape Hybrids put into service in the 2005 model year after accumulating 300,000 to 350,000 miles per vehicle.

“We’re extremely pleased with the performance of the Escape Hybrid in taxi service,” said Gerry Koss, Ford’s fleet marketing manager. “Not only have they proven very reliable, they’ve also saved taxi drivers money on gas and contributed to lower tailpipe and greenhouse gas emissions in the cities that use them in taxi fleets.”

“Greening” the federal government fleet
Government fleets also are seeking cleaner, more fuel-efficient vehicles and hybrids are filling that need. In 2009, federal agencies have purchased more than 3,000 hybrids from Ford, more than any other automotive brand. Included in the sales were 1,900 vehicles acquired through the American Recovery and Reinvestment Act for the purpose of improving the fuel economy of the federal fleet. The U.S. Army was the single largest purchaser among the government fleets, acquiring 400 Fusion hybrids.

Saving lives and conserving fuel
In 2008, Ford began delivery of a fleet of 45 Escape Hybrids to the Los Angeles County Lifeguards, a division of the Los Angeles County Fire Department, for use on rescue patrol along 72 miles of Southern California coastline. After the first 11 months of service, lifeguards reported that Escape Hybrids had played a crucial part in thousands of rescues and more than a million rescue preventions at L.A. County beaches.

The Escape Hybrid fleet enabled L.A. lifeguards to reduce their entire fleet’s fuel usage by 25 percent – more than 5,000 gallons of gas – during the first six months of service. That fuel cost savings has helped L.A. County to maintain its critical front line staffing despite the economic downturn.