Ford Expands Lineup of Gas-Electric Hybrid Vehicles

Jan. 9, 2005; Bill Koenig writing for Bloomberg reported that Ford Motor Co plans to expand its fleet of gasoline-electric hybrid vehicles as part of Chief Executive Officer William Clay Ford Jr.'s renewed efforts to make cleaner vehicles.

A gasoline-electric version of the Mariner sport-utility vehicle will be sold this year, 12 months ahead of schedule, Bill Ford said today at the North American International Auto Show in Detroit. Hybrid versions of the Fusion, introduced at the show, and Mercury Milan sedans will debut in 2008, the company said.

Ford and U.S. carmakers are seeking to catch Toyota Motor Corp., which seven years ago introduced a hybrid using an electric motor at low speeds to burn less fuel and cut emissions. Ford began selling a gasoline-electric version of the Escape SUV in 2004. General Motors Corp. and DaimlerChrysler AG last month said they will have hybrid power system by 2007.

The announcement ``indicates to me they had a major breakthrough,'' said Dennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan. ``Auto companies don't typically pull programs ahead; they usually delay them.''

Dearborn, Michigan-based Ford previously said the hybrid version of the Mariner would come out in two years. The company had announced plans for a hybrid version of the Fusion car without setting a date.

The Escape ``was our first hybrid and we had to get that right,'' David Szczupak, Ford's vice president of powertrain operations, said in an interview at the auto show. ``We've got that in production and the successfulness of it, the way it drives and the customer reaction to it, we've really got to expand it quickly.''

Escape

Production of the hybrid Escape began in August. The automaker made 4,000 last year and is on target for 20,000 this year, Szczupak said. The ``basic hardware'' of the Escape hybrid will be used in the Fusion car, while computer software will be ``tuned to the riding characteristics'' of the different types of vehicles, he said.

``That now gives us two platforms with a common power pack to really be able to accelerate'' production, Szczupak said.

The automaker hasn't set sales targets for the new hybrid vehicles, Bill Ford told reporters later. ``We wouldn't be rolling out four new ones if we didn't we feel like we had tremendous upside,'' he said.

Bill Ford, 47, said in May 2004 that improving the fuel efficiency of his company's cars and trucks represents a ``business opportunity.'' The chief executive, great-grandson of company founder Henry Ford, also pushed for a ``living roof'' with trees and grass that has been installed on a new $2 billion assembly plant in Dearborn.

Mazda Tributes

Ford said in the statement that it planned to have a test fleet of hybrid Mazda Tribute SUVs on the road this year for production in 2007. Ford builds the Tribute for affiliate Mazda Motor Corp. The Escape, Mariner and Tribute share common components. The hybrid versions of each will be assembled in the same Kansas City factory.

Versions of the Fusion and Milan with conventional engines go on sale this year and will be built in Mexico.

The state of Florida will buy eight hydrogen-powered E-450 buses in 2006, Ford said in its statement.

In addition, Ford said the Dallas-Fort Worth International Airport is working with Ford on plans for fleet use of hydrogen- powered buses next year.

Bill Ford said in annual corporate citizenship reports in 2000 and 2001 that sport-utility vehicles aren't as fuel-efficient or clean as cars and that automakers may have helped contribute to global warming.

After becoming chief executive in October 2001, Bill Ford had to deal with losses that totaled $6.4 billion in 2001 and 2002 combined. The company turned profitable in 2003.

``Ford has major financial issues to overcome'' that delayed development of hybrid vehicles at the company, analyst Virag said. The executive's push for more environmentally friendly vehicles is ``very insightful on what Ford and the industry needs,'' he said.

To contact the reporter on this story: Bill Koenig in Detroit at or wkoenig@bloomberg.net