Ford Applauds President Bush's Plan to Accelerate Ethanol Fuel Adoption

DEARBORN, Mich., January 31, 2006 - In his State of the Union address tonight, President Bush has indicated that he will promote alternative energy sources such as ethanol to help the nation move toward energy independence.

Ford Motor Company has long been at work on these efforts, pioneering new hybrid and ethanol technologies.

"Ethanol can provide relief for customers at the pump and lessen America 's dependence on foreign oil," said Bill Ford, Chairman and CEO of Ford Motor Company. "Plus, these vehicles can run on fuel that's grown in the heartland of America."

Ford has already put more than 1.5 million ethanol-capable vehicles on the road, and will produce 250,000 more this year. Ford's record of innovation also includes the first American hybrid-electric vehicle and the first hybrid SUV in the world.

"We believe focusing on alternative fuels such as ethanol will bring this issue where it belongs -- to the forefront of the national agenda," Ford said.

Recognizing ethanol's potential for cleaner emissions and renewable energy, Ford has partnered with state and federal governments and VeraSun Energy Corporation to expand ethanol's infrastructure throughout the country.

"If we're serious about making ethanol a viable fuel source, we must ensure that consumers have access to it at the pump," said Sue Cischke, Ford vice president of environmental and safety engineering.

Just last week at the Washington, DC Auto Show, Ford unveiled the first-ever hybrid-ethanol research vehicle, a Ford Escape Hybrid E85, capable of running on a fuel blend of 85 percent ethanol and 15 percent gasoline.

Although gasoline nationwide currently contains an average of two to three percent of ethanol, all Ford gasoline vehicles can run on up to10 percent blended ethanol. Ford has been a leader in developing ethanol-capable vehicles that can run on E85.

If just 5 percent of U.S. vehicles were powered by E85-hybrids, imports of oil could be reduced by about 140 million barrels a year. That would increase U.S. energy security, improve the nation's balance of payments, support America's agricultural economy and reduce greenhouse gas emissions.

"We as a nation--government working with the private sector--must do more to accelerate this technology and make it accessible to American drivers," Cischke said.

FACT SHEET ON FORD’S INNOVATIONS IN ADVANCED TECHNOLOGY VEHICLES

Ford’s Ethanol-Capable Vehicles

Ethanol is a clean, renewable fuel that is most commonly made in the U.S from corn. All Ford gasoline vehicles can run on up to 10 percent blended ethanol. Nationwide gasoline currently contains an average of 2 to 3 percent ethanol. Ford has been a leader in developing ethanol-capable vehicles that can run on up to 85 percent ethanol known as E85 which contains15 percent gasoline. Ford’s leadership with ethanol-fueled vehicles goes back to the earliest days of the company: Henry Ford designed the famed Model T Ford to run on ethyl alcohol (i.e. ethanol). Ford has put more than 1.5 million ethanol-capable vehicles on America’s roads in the last decade, and plans to produce 250,000 of them in 2006. Ford is offering four new models that are ethanol-capable for 2006, including America's best-selling vehicle – the Ford F-150. The Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car are now available with the E85 option. Industry-wide, there are approximately five million ethanol-capable vehicles on the road today, but only about 500 of the more than 180,000 fuel stations in the U.S. currently offer E85. Ford is partnering with VeraSun Energy Corporation to increase the number of stations offering E85, largely in Midwest markets where ethanol availability is growing. The initiative will serve to convert existing fuel pumps to VeraSun's branded E85 product, VE85, in existing retail outlets. Ford’s Hybrid Vehicles

The 2005 Ford Escape Hybrid is the world’s first hybrid-electric SUV as well as the first hybrid built in North America. Ford recently unveiled a research vehicle, the Ford Escape Hybrid E85, the world’s first hybrid capable of operating on E85 fuel. It produces 25 percent less carbon dioxide than a gasoline-fueled Escape Hybrid – already the world’s cleanest and most fuel-efficient small SUV. Ford has two full hybrid electric vehicle models on the road today – the Ford Escape Hybrid and the Mercury Mariner Hybrid – and will increase production capacity to 250,000 hybrid vehicles a year globally by the end of the decade. Ford will introduce several new hybrids in the coming years, including a Mazda Tribute Hybrid next year and hybrid versions of the Ford Fusion and Mercury Milan midsize sedans in 2008. Next up, in the 2008 to 2010 time period, will be hybrid versions of the Ford Five Hundred and Mercury Montego full-size sedans, and the Ford Edge and Lincoln MKX crossovers.