Ford invests US$135 million in hybrid-electric vehicles

Ford Motor Co. has taken steps to challenge Toyota Motor Corp.’s supremacy in the auto market. The automaker is bringing more of its hybrid and electric-vehicle development in-house. Ford has undertaken several measures to ensure its success:

• It has created a new advanced electrification center in Dearborn with a US$135 million investment and will populate it with 1,000 engineers.
• For the first time Ford began building its own hybrid transmissions at a plant in Michigan after outsourcing the work from Japan.
• The company is set to launch five new electric or hybrid electric vehicles this year.
• Ford is assembling its batteries for EVs at another Michigan plant.
• Next up is the C-Max hybrid, a car based on the Focus that gets a combined 47 miles per gallon that is meant to compete with Toyota’s Prius models.
• Later this year, Ford will sell a plugin C-Max hybrid called Energi that will travel 20 miles on the battery before the gasoline engine powers the vehicle, similar to the Chevrolet Volt made by General Motors Co.
• Ford will also offer a hybrid and plugin hybrid on its forthcoming Fusion sedan.

Ford has cut the cost of its hybrid technology by 30% since it developed its first hybrid Escape SUV in 2004. Ford’s strategy for electrification is to lower the cost of the vehicle by building it on the same line as the mainstream gasoline engine.
Amy Machesney, C-Max marketing manager, said, “Ford feels it now has a product capable of competing on equal footing with the Prius. We are going to have credible choices in each category.” Ford can aim for lofty sales goals because they only have to build to demand and the company is intent on challenging Toyota in sales. Ford won’t give sales projections for the upcoming models, but is expanding its capacity to make hybrids and electric vehicles to 100,000 units, three times the current level. (August 16, 2012)