Ford and Mobil Form Strategic Alliance
5 March 1998
Ford and Mobil Form Strategic Alliance
DEARBORN, Mich., March 5 -- Ford Motor Company and
Mobil Corporation have entered into a broad-based strategic
alliance to speed the development and integration of breakthrough fuel and
vehicle technologies.
Mobil chairman and CEO Lucio A. Noto and Ford chairman and CEO Alex
Trotman said that the alliance calls for near-, intermediate- and longer-term
initiatives that could lead to major advancements in automotive fuel and
powertrain technology and a wider market for alternative-fuel vehicles. These
developments, in turn, would have the potential to produce big gains in
vehicle fuel efficiency and significant reductions in emissions.
"We look forward to this alliance with Ford," said Mobil's Noto. "It
offers great potential to develop new hydrocarbon-based fuels and power
sources which could be of significant benefit to both the traveling public and
the environment. We have always supported the efficient use of our products
and want to continue enhancing them to make them environmentally welcome in
the 21st century. That's why we are calling our joint effort 'Let's Drive for
a Better Future.'"
"The pooling of the vast resources and experience of two great companies
to bring better fuels and vehicles to market sooner is an exciting
development," said Trotman. "Combining our efforts on fuel-processor
technology and clean diesel systems, in particular, can speed the R&D process.
"This is an excellent fit. We've felt for some time at Ford that having a
strategic partner from the petroleum industry was a high priority, and Mobil
is an ideal choice. Our products depend on each other and we share the same
customers. This alliance not only holds promise for our customers and the
environment, but can also provide both our companies with competitive
advantage."
Mobil and Ford have worked with each other for many years both directly
and through larger auto-oil industry meetings and information exchanges. In
recent months, technical teams from the two companies have been meeting on all
subjects involved in the alliance. Their efforts are the substance of today's
announcement. Noto and Trotman said they will meet together periodically with
these teams to follow the progress being made.
The longer term project focuses on the technology needed to develop a
commercially viable compact fuel processor for fuel-cell-powered vehicles.
The processor would extract hydrogen from hydrocarbon fuels such as gasoline
and diesel. The hydrogen would be converted by the fuel cell to generate
electric power to drive the vehicle. Such a system could yield major fuel
efficiency and emissions benefits, as well as the important advantages of
utilizing an existing fuel-distribution infrastructure.
Ford indicated that the project will support its already announced
fuel-cell alliance with Daimler-Benz and Ballard Power Systems and that both
of these partners would be involved. Mobil officials confirmed that they too
had been involved in discussions with Daimler.
"We wanted to participate in the promising development of fuel processor
technology so that the motoring public will benefit from the most efficient,
lowest environmental impact technology," said Noto, "and we were very much
impressed with the work that Ford and its alliance partners have been doing on
fuel cell-based powertrains."
The Mobil-Ford alliance's focus for the intermediate term is on the
development of a fully integrated direct-injection diesel system, encompassing
fuel, engine and catalytic after-treatment processes. The two companies have
been working on various aspects of this system independently for their own
products. "Advanced diesel engines and cleaner diesel fuels offer one of the
best internal-combustion approaches for reducing CO2 emissions without
compromising reliability, affordability or range. These could be very
different fuels from what the public presently thinks of as diesel, and Mobil
is a clear leader in their development," said Trotman.
The companies will also work on addressing the logjam that has kept
alternative-fuel vehicles from reaching the market in full force. "Ford leads
the industry in developing and offering a range of alternative-fuel cars and
trucks, and we are proud of what we have accomplished," said the Ford
chairman. "But market acceptance has been slow, partly because of limited
infrastructure. We believe that by working with Mobil to evaluate the full
vehicle/fuel supply equation, we can determine the potential of natural gas
and other alternative fuels, and perhaps find some better ways of marketing
our excellent alternative-fuel products."
SOURCE Ford Motor Company