Transportation in the 21st Century Mary Culler

Director

Government Affairs

Transportation Panel– March 9, 2012

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Sustainability at Ford

Environmental•CO2

•Energy Security

Economic•Profitability•Cash Flow

Social•Human Rights•Working Conditions

Meeting the needs of the present without compromising the

future.

SustainableSustainable

ProductProductProcessProcess

• ManufacturingManufacturing• DealersDealers

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•Marketing/ •Communications

Plan

Process to Manage Sustainability for Our Products

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2007 2011 2020 2030

Near Term

Begin migration to advanced technology

Mid Term

Full implementation of known technology

Long TermContinue leverage of Hybrid technologies and deployment of alternative energy sources

Near TermNear Term

Mid TermMid Term

Long TermLong Term

Ford’s Path to Sustainability

Advanced Gasoline Engines

Weight Reduction

Electrified Vehicles

Fuel Cells

Hydrogen Powered Engines

Natural Gas

Hybrids

•CAFE Requirements 54.5 MPG27.6 MPG

Technologies Support Affordable Fuel Economy for All

• Auto Start-Stop

• Active Transmission Warm-Up

• Active Grille Shutters

• Deceleration Fuel Shut-Off

• Alternative Friction Materials

• Electric Power Assisted Steering

• Underbody Aeroshields

• Battery Management System

Weight

Design

Efficiency

Aero

FE

Technology

Weight

Design

Efficiency

Aero

FE

Technology

• Systematic / Aggressive Implementation of High Value Technologies Across Vehicle Line-up for Improved Fuel Economy

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Ecoboost Strategy Is Key

CO2 Emissions

Direct Injection

Performance

=

Fuel Economy (10-20%)

Turbocharging

Engine Downsizing

+

+

The EcoBoost technology system was developed in order to provide a high volume, affordable solution for our customers.

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Unprecedented Powertrain Investment

3.7-L V-6 iVCT

6.2-L V-8

6F55 Select-Shift Automatic

3.5-L EcoBoost V-6

2.5-L I-4 Atkinson HEV

2.5-L I-4 iVCT3.0-L V-6 Flex Fuel

6F35 Mid Automatic

2.0L EcoBoost I4

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•12V batterydesigned for long

lasting service with no additional maintenance •Voltage quality

moduleassures 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

• 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

•Top five benefits of Auto Start-Stop:

Powertrain Technologies: Auto Start-Stop

Coming to North American cars, crossovers, and utilities starting in 2012, the Auto Start-Stop system has been designed to work with conventional gasoline-powered vehicles with automatic and manual transmissions.

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Active Grill Shutters

•Installed in both Grill and Bumper

opening

•Installed in Grill opening only

•How it works:• Reduce drag coefficient by closing the opening in front of

the radiator with electrically controlled vents under

certain conditions.

•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.

• 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).

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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.

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Leveraging Global Platforms

HEV

PHEV

BEV

Gas Engin

e

Diesel Engin

e

Plug & Play into High Volume Platforms with Global Reach

Bio-fuel

Weight

Design

Efficiency

Aero

FE

Technology

Weight

Design

Efficiency

Aero

FE

Technology

The Payoff: 4 WITH 40 OR MORE MPG

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POWERTHE

CHOICEOF

Ford’s Strategy Is To Electrify Global Platforms With All 5 Electric Solutions – To Drive Choice Of Top Hats, Scale And Affordability

New C-Platform Electrified Vehicles

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Electrification Strategy

•Transit Connect BEV•Focus Electric BEV

•C-Max Energi Plug-In Hybrid

•2010•2011

•2012 •2013

•Fusion Hybrid/Plug-In Hybrid

3-4 HOUR CHARGEON 240V HOME OUTLET

VALUE CHARGING

INNOVATIVE DESIGN

REMOVABLE, UPGRADABLE, SERVICEABLE

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Ford Focus Electric

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Ford’s Mobile Apps

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 ethanol-containing fuels (incl. E85)

available in the U.S. 17

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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

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The Payoff: Ford Offers B20-Capable Diesel Engines

•Medium Truck (F-650/F-750)•Super Duty (F-450/550)•Super Duty (F-250/350)

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•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

Sustainable Materials

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Opportunities for Recycled Materials

•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

•Post Industrial•recycled bumpers

•100% Recycled•carpets & fabrics

•Recycled•Polyurethane•foam components

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Ford Vehicles ~85% Recyclable

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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.

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A Ford Perspective/Approach

Ford’s Sustainability Report

More about Climate Change corporate.ford.com/go/sustainability

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.

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