1. Electrifying New England
October 2010
Ford Motor Company

2. Environmentally, Socially & Economically
Sustainable Mobility
From Our Executive Chairman…
“Improved sustainable performance is not just a requirement, but a tremendous business opportunity.”
- Bill Ford
Our vision for the 21st century is to provide SUSTAINABLE transportation that is affordable in every sense of the word:
Environmentally, Socially & Economically
William Clay Ford 2nd

3. Environmental Sustainability Goals
Reduce Emissions, including CO2
Eliminate Toxins
Improve Air Quality
Conserve Water
Increase Use of Renewable Resources
Increase Recyclability
Increase Recycled Content
Reduce Waste to Landfills
Improve Energy Diversity
Transparency in Reporting

4. Sustainability Strategy – Technology Migration
2007
2011
2020
2030
Near Term
Mid Term
Long Term
Continue leverage of Hybrid technologies and deployment of alternative energy sources
Begin migration to advanced technology
Full implementation of known technology
Near Term
Mid Term
Long Term
Significant number of vehicles with EcoBoost engines
Electric power steering 70 – 80%
Dual clutch and 6 speed transmissions replacing 4 and 5 speeds
Increase Hybrid applications
Increased unibody applications
Introduction of additional small vehicles
Battery management systems 75%
Aero improvement up to 5%
EcoBoost engines available in nearly all vehicles
Electric power steering 100%
Six speed transmissions 100%
Weight reduction of 250 – 750 lbs
Engine displacement reduction aligned with weight save
Additional Aero improvements up to 5%
Increased use of Hybrids
Introduction of PHEV and BEV
Diesel use as market demands
Percentage of internal combustion dependent on renewable fuels
Volume expansion of Hybrid technologies
Continued leverage of PHEV, BEV
Clean electric / hydrogen fuels

5. Announced Ford Electrification Projects: Key is Leverage of High Volume Global Platforms
2004 CY
2010 CY
2012 CY
2018+ CY
Transit Connect
(Global C-Platform)
BEV
Battery Electric Vehicles
Focus
(Global C-Platform)
PHEV
Plug-in Hybrid Electric Vehicles
Global Platform
Global C-Platform
Next Generation HEV
HEV
Hybrid Electric Vehicles
Escape
Global CD-Platform
Next Generation HEV
Fusion/Milan 4

6. 2011
2020
Mid Term
TRANSIT CONNECT BEV 2010 5

7. 2011
2020
Mid Term
PASSENGER CAR BEV 2011 6

8. PLUG-IN HYBRID 2012 Mid Term 2011 2020
PRODUCTION PLATFORM NOT YET ANNOUNCED
EARLY/DEVELOPMENT WORK WAS DONE ON
THE ESCAPE
PLUG-IN HYBRID 2012 7

9. The key to success will be partnerships.
What will it take to Commercialize
Electric Vehicles?
Cost-competitive technology
Ownership (purchase and operation) costs as low as or better than gasoline vehicles
Infrastructure
Public, private, business, retail recharging infrastructure
Vehicle to grid integration
Incentives and education – federal and local
The key to success will be partnerships.

10. The Key is Partnerships

11. Ford, DOE, EPRI and Utility Partners

12. Today’s Ford Escape Plug-in Project
Formed in 2007
Unique partnership between automotive and utility sectors to accelerate the commercialization of PHEVs
Project goals:
Creation of New Business Models
Development of open architectures, standards and specifications
Create Customer Demand based on realistic expectations
Diversifies transportation energy supply
Two industries connected by a common fuel … driving our transportation and energy future…

13. Affordable Technology - Batteries
Largely due to the battery, plug in electric vehicles are considerably more expensive than comparable ICE vehicles.
Efforts are underway to address battery costs
Pre-competitive industry research through the US Automotive Battery Consortium (USABC).
Significant federal funding to establish domestic manufacturing and supply chain.
Creating the demand for Lithium-ion batteries in stationary applications could make battery electric vehicles more competitive:
New: economies of scale will reduce initial purchase price
Used: residual value will improve the financing opportunities

14. Infrastructure Charging Customer Segments
Most Frequent
Less Frequent
Main charge spot located in garage or driveway of residence.
For fleets customers, main charge location is fleet depot where multiple chargers could be installed.
Main charge location is work – allowing urban commuters/street parkers to have reliable charge. Also allows extended range for home chargers.
For occasional trips, municipal charge locations could be viable option. If reservation system is implemented, could be used for main charge location.
Charging Infrastructure is a key enabler to BEV’s – regardless of where the consumers end up charging their vehicles.

15. Key Elements of the EV Infrastructure
Smart vehicle to grid integration is necessary to minimize the impact of plug-in vehicles on the grid and to achieve charging efficiencies
Time of use (load leveling)
Renewables (charge when the wind is blowing)
Consistent communication protocols are necessary
National solution
Open architecture
Ability to charge anywhere, anytime?
Bi-directional communication is necessary, bi-directional powerflow is not.
Faster charging will be a key enabler of broader adoption (ie., <15 minutes).

16. Incentives and Education
Closing the cost gap between plug-in vehicles and traditional technology will require additional incentivization – Federal, state, and local.
Need to motivate purchases to drive toward economies of scale
Non-fiscal incentives can be effective (eg., preferential parking, HOV lanes, etc.)
Consumer Education is critical to create rational expectations
Impact of temperature and accessories
on range
Charging impacts on battery life and
condition
Charging requirements – home, work,
and public.
This is not infrastructure
Incentives are key to bridging the cost gap between plug in electric vehicles and more traditional technologies
Incentives for infrastructure investment are also supported.
Don’t always have to be fiscal – HOV lanes did a lot to push HEVs in the market; preferential parking, etc.
Education is necessary to ensure consumers find the right car for their needs, and have access to the right infrastructure.
How will their driving style impact performance? The climate of their region? Their use of interior accessories?
What infrastructure do they need? How much time will their vehicle take to recharge? Is 240V necessary, or can they charge with 120V?
While most plug-in vehicles will be designed to charge with either 240V or 120V, plugging in your car requires equipment more advanced than just an extension cord. Even 120V charging requires a simple EVSE that provide safety features.

17. Electrification of vehicles: not a new idea …..
In the early 1900’s more than 27 companies were building electric cars
In 1914, Henry Ford and Thomas Edison experimented with an electric car using by Edison Batteries
In 1915 the Ward Motor Vehicle Company offered an electric wagon for $875 on an 1yr installment plan for the vehicle and a $10.50/month rental fee for the Edison Storage battery
Electrification is not a new idea.

18. Most Important Reason for Purchasing Electric Drive Vehicles is Fuel Savings
Note: this 2009 survey is of car buyers - the target public audience, not first adopters, and thus provides a more realistic insight to the market for larger volumes.
The good news is, customers recognize the fuel cost savings potential of battery electric vehicles.
It’s interesting to note that “making a statement”, for these non-first adopters, was the lowest rated priority for over 60%.
Over 70% of respondents indicated that fuel cost savings were the
main reason for purchasing a BEV, PHEV or HEV.
Source: Ford / University of Michigan Consumer Survey

19. Commercial Challenges
However, customers are only willing to spend so much for that fuel economy improvement. 65% of the customers would only be willing to pay up to $3,000 to reduce fuel costs in half, a price that is comparable to today’s incremental costs for an HEV.
And while some customers would be willing to spend up to $10,000, even that does not cover the incremental cost of an all electric vehicle battery system.
Over 65% of customers would only be willing to pay up to $3,000
to reduce fuel costs in half – a price that is comparable to today’s
incremental cost for an HEV.
Source: Ford / University of Michigan Consumer Survey

20. Conclusions
Electric vehicles – in many shapes and flavors – are coming; we need to make sure the market is ready for them.
We need to focus on our common customer, working together to ensure they are comfortable with the new technology.
It has to be easy: access to infrastructure where they need it, and where they want it
Good communication about rates and options.
An understanding of what EV technologies are: PHEV, EREV, BEV, HEV
Ability to pick the best technology for their needs and personal goals.
Foreknowledge of future charging needs.
Streamlined permitting processes.
Moving forward we need to continue working together:
To get costs down,
Car companies and utilities need to work together to identify potential hot-spots – clustered demand that may cause infrastructure challenges.
We all need to work together to provide the education and outreach to educate the market.