0. Transportation in the 21st Century
Transportation Panel– March 9, 2012
Transportation in the 21st Century
Thank you for including me on this panel. There are a lot of exciting things going on at Ford and in the automotive sector and I wanted to spend some time sharing those with you.
At Ford we have developed a strategy that sets priorities & guides actions to achieve our vision of bringing affordable technologies to the millions through Green, Safe, Smart Designs, and Quality products.
Ford’s lineup of fuel-efficient cars, trucks, SUV’s and crossovers underscores the company’s commitment to continually improve fuel economy.
At Ford – we are committed to providing choices for our customers that are best in class.
Mary Culler
Director
Government Affairs

1. Sustainability at Ford
Environmental
CO2
Energy Security
Product
Process
Manufacturing
Dealers
Economic
Profitability
Cash Flow
So what does the future of transportation. Well, if you have heard Bill Ford speak about this at Ford – her refers to the importance of providing “sustainable mobility“. Since we’ve been enabling mobility for over one hundred years through the cars and trucks we manufacture – we are passionate about taking things further. Sustainable mobility is really about meeting the needs of today without compromising the future.
When we consider sustainable mobility, we look at three principle factors:
One is Financial – we have to make profit to satisfy our shareholders, make product investments, and produce our products.
Another is Social – we have to contribute to society as a whole. This includes such items as product safety, human rights, emerging markets and working conditions.
The third factor is Environmental stewardship. Key factors here include addressing energy security and reducing greenhouse gases from our products and processes.
So let me start by sharing our approach to 21st Century Transporation
Sustainable
Social
Human Rights
Working Conditions
Meeting the needs of the present without compromising the future.

2. Process to Manage Sustainability for Our Products
The process we use to develop our future products considers a range of inputs that can broadly be categorized into four areas.
Let me start science. Our plan is grounded in the science of climate stabilization and what light-duty cars and trucks can do to help address climate change
The role of consumers is pivotal in dictating our strategies. Consumers are the ultimate decision maker on which products and technologies win and heavily influence our efforts to introduce products that are efficient, safe and affordable.
We can’t let our competitors develop technologies ahead of us, so we constantly look ahead and keep an eye on them as we bring affordable technologies to the market.
And finally government – clearly regulatory requirements and government policies will shape the products we introduce. Our goal is to stay ahead of those requirements and shape the policies based on our plans. Next I will focus on Fuel Economy requirements.
Marketing/
Communications Plan

3. Ford’s Path to Sustainability
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
Fuel Cells
Electrified Vehicles
Advanced Gasoline Engines
Five years ago, in recognition of the need to reduce the CO2 impact of our vehicles and deliver the fuel economy customers desire, we set a clear technology pathway to follow for our product line up.
Many of you have seen this before but it is critical to understand the strategy that grounds us.
It outlines a near, mid and long term strategy – that we refer to as our blueprint for sustainability.
Near term we are leveraging current technologies, including EcoBoost which I will explain in detail later and increasing our hybrids.
Midterm we are leveraging those technologies on a global basis and introducing electric vehicles.
And longer term we may be moving away from petroleum based technologies.
We are already making significant headway with our efforts.
Hydrogen Powered Engines
Hybrids
Weight Reduction
Natural Gas
27.6 MPG
CAFE Requirements
54.5 MPG 3 3

4. Technologies Support Affordable Fuel Economy for All
Auto Start-Stop
Active Transmission Warm-Up
Active Grille Shutters
Deceleration Fuel Shut-Off
Alternative Friction Materials
So – while everyone is talking about electric vehicles and plug ins – we at Ford are also producing vehicles with affordable fuel economy technology for all that includes:
Active Transmission Warm-Up
Active Grille Shutters
Deceleration Fuel Shut-Off
Alternative Friction Materials
Electric Power Assisted Steering
Underbody Aeroshields
Battery Management System
In the next few slides I will provide you with an overview of how a few of the technologies listed on the slide work and how it improves fuel consumption.
Electric Power Assisted Steering
Underbody Aeroshields
Battery Management System
Systematic / Aggressive Implementation of High Value Technologies Across Vehicle Line-up for Improved Fuel Economy 4

5. Ecoboost Strategy Is Key
Direct Injection
Fuel Economy (10-20%) + =
Engine Downsizing
CO2 Emissions +
Turbocharging
Performance
EcoBoost a great example of having the right technology at the right time.
To sum up the “Why” part of EcoBoost with these simple words: EcoBoost delivers better fuel economy, lower CO2 emissions and improved performance versus larger displacement engines.
The easiest way to think of it is offering the power of a V-8 with the fuel economy of a V6 or the power of a V6 with the fuel economy of an I-4 engine.
Best of all – it will be affordable relative to other technologies ( a faster payback to consumers than diesels or hybrids)
It offers consistent real-world fuel economy benefit, regardless of drive cycle
Is affordable relative to other technologies
Has competitive gradeability and trailer tow compared to Diesel engines
The combination of fuel economy as a reason to buy along with great performance feel offers customers a no-compromise, value proposition.
The EcoBoost technology system was developed in order to
provide a high volume, affordable solution for our customers. 5

6. Unprecedented Powertrain Investment
2.5-L I-4 iVCT
3.7-L V-6 iVCT
3.0-L V-6 Flex Fuel
3.5-L EcoBoost V-6
6.2-L V-8
Ford has made an unprecedented investment in our powertrain lineup..
This slide shows examples of powertrain actions that we have implemented to better leverage existing technologies: EcoBoost and new transmission technologies. Our new generation of six-speed transmissions has been another area where Ford has really changed the game. From Fiesta to Super Duty, six-speeds are standard equipment across most of our lineup now.
We are wringing every drop of fuel efficiency possible from internal combustion engines…
We are well along our goal of introducing 60 new global powertrains by This year, we have the not only the freshest lineup among full-line automakers, but the freshest powertrain line up.
Finally, fresh after equipping nearly all our cars, trucks, SUVs and CUVs with six-speed transmissions, we have just announced we are designing a new and very high tech 8-speed automatic.
2.5-L I-4 Atkinson HEV
2.0L EcoBoost I4
6F55 Select-Shift Automatic
6F35 Mid Automatic 6

7. Powertrain Technologies: Auto Start-Stop
12V battery designed for long lasting service with no additional maintenance
Voltage quality module assures vehicle accessories function normally when engine is off
12V enhanced starter motor provides quick, quiet and seamless engine starts once driver removes foot from brake pedal
Fuel economy gains of as much as 10 percent in city driving
Vehicle emits zero emissions when stopped
Vehicle remains warm or cool even when engine is off
System is smooth, quiet and seamless
No additional maintenance is required
Top five benefits of Auto Start-Stop:
Auto-Start-Stop
How it works:
Stop Start is a technology that conserves energy by shutting off the engine when the vehicle is idling (i.e. traffic light) and automatically re- starting it when the driver releases the brake. Ford technology assumption is Starter-Assisted Direct Start.
How it improves fuel consumption:
Reduces idle fuel consumption during targeted operating conditions/idle durations.
Direct injection engine enables quick restarts to provide propulsion when requested
Fuel Economy Benefit:
2.5% depending on cycle
Coming to North American cars, crossovers, and utilities starting in 2012, the Auto Start-Stop system has been designed to work with conventional gasoline-powered vehicles with automatic and manual transmissions. 7

8. Active Grill Shutters How it works: How it improves fuel consumption:
Reduce drag coefficient by closing the opening in front of
the radiator with electrically controlled vents under
certain conditions.
How it improves fuel consumption:
Improved coefficient of drag (Cd)
Reduces work done overcoming aerodynamic losses at
speeds > 30 mph.
Shutters may open on braking decelerations to cool
without penalty if there is a cooling need.
Faster engine warm-up
Improves fuel economy as well as heater/defrost
performance
Reduces parasitic losses from cold fluids during engine
warm-up
Reduces other parasitic loads used to warm engine
coolant (higher idle speeds and shift delays).
Installed in both Grill and Bumper opening
Installed in Grill opening only
Active Grille Shutters
How it works:
Reduce drag coefficient by closing the opening in front of the radiator with electrically controlled vents under certain conditions.
How it improves fuel consumption:
Improved coefficient of drag (Cd)
Reduces work done overcoming aerodynamic losses at speeds > 30 mph.
Shutters may open on braking decelerations to cool without penalty if there is a cooling need.
Faster engine warm-up
Improves fuel economy as well as heater/defrost performance
Reduces parasitic losses from cold fluids during engine warm-up
Reduces other parasitic loads used to warm engine coolant (higher idle speeds and shift delays).
Fuel Economy Benefit:
0.5–1% depending on system/vehicle/Test Conditions.
Fuel economy benefit is predominately Highway 8

9. Aggressive Decel Fuel Shutoff
How it works:
Shut-off fuel during deceleration events and realize F.E. benefit
Maintain engine speed with torque management and engine/trans
strategies and converter management
Catalyst O2 regeneration strategy applied to manage NOx emission
when fuel is turned on.
How it improves fuel consumption:
Reduces Fuel Consumption during Decel events.
Fuel Management Technology – Aggressive Decel Fuel Shutoff
How it works:
Shut-off fuel during deceleration events and realize
F.E. benefit
Maintain engine speed with torque management and
engine/trans strategies and converter management
Catalyst O2 regeneration strategy applied to manage
NOx emission when fuel is turned on.
How it improves fuel consumption:
Reduces Fuel Consumption during Decel events.
Fuel Economy Benefit:
% depending on number of events and Transmission type (4 or 6 Speed) 9

10. Leveraging Global Platforms
Plug & Play into High Volume
Platforms with Global Reach
PHEV
BEV
HEV
Ford’s strategy is to leverage global platforms. Building the common platforms that will allow us to have the right vehicles for the right markets on a global basis.
It means quite simply that we could take one platform and create a vehicle with an internal combustion engine, a diesel engine, a hybrid, a plug in hybrid or a battery electric vehicle, according to the markets and regional customer demand.
It is, in essence, a plug and play approach, providing different but appropriate propulsion technologies that could be built into high volume global platforms for economies of scale.
I’ve been telling you about the greener powertrain alternatives like EcoBoost, hybrid and battery electric technologies, but you should know that Ford is taking a more sustainable approach to the materials we use inside and outside our products as well…
Bio-fuel
Diesel Engine
Gas Engine

11. The Payoff: 4 WITH 40 OR MORE MPG
In 2011 calendar year, Ford Motor Company featured four vehicles rated at 40 mpg or higher, we are passionate about improving fuel economy.
We continue to introduce vehicles in 2012 that are best in class regarding fuel economy.
Some of those are part of our electrification strategy 11

12. New C-Platform Electrified Vehicles
POWER
THE
CHOICE OF
Ford’s Strategy Is To Electrify Global Platforms With All 5 Electric Solutions – To Drive Choice Of Top Hats, Scale And Affordability and to give our customers the Power of Choice
C-Max Hybrid - seven seater with advanced Li Ion battery that is 30% smaller and 50% lighter than the nickel metal hydride batteries in the earlier hybrid models. The battery charges while the engine is running and regenerative breaking captures 90% of the energy.
C-Max Energi Hybrid – plug in – 500 miles. Charges on 120 or 240 volt. Power - split technology that allows electric mode operation at higher speeds.
Fusion Hybrid and Fusion Energi Hybrid – great example of the Power of Choice. You can get a Fusion ICE ecoboos, a hybrid or a plug in hybrid with stop/start technology.
Fusion Hybrid get 47 City and 44 Highway with a 2.0 Atkinson Cycle 4 cylinder engine.
Fusion Energi Hybrid get 100 mpg
And of course the Focus Electric BEV which will be coming to showrooms near you in April – EAP rating of 110 mpg – the most fuel efficient 5 passenger vehicle. $9,700 fuel savings in 5 yrs (on label) Better than Nissan by 6 miles – more passenger room
Ford’s Strategy Is To Electrify Global Platforms With All 5 Electric Solutions – To Drive Choice Of Top Hats, Scale And Affordability

13. Electrification Strategy
Focus Electric BEV
Transit Connect BEV
2010
2011
Fusion Hybrid/Plug-In Hybrid
C-Max Energi Plug-In Hybrid
Transit Connect and Transit Connect electric – great commercial vehicle
2012
2013 13 13

14. REMOVABLE, UPGRADABLE, SERVICEABLE
Ford Focus Electric
INNOVATIVE DESIGN
REMOVABLE, UPGRADABLE, SERVICEABLE
3-4 HOUR CHARGE
ON 240V HOME OUTLET
The Ford Focus EV offers a unique value charging feature, powered by Microsoft, to help owners in the U.S. charge their vehicles at the cheapest utility rates, lowering the cost of ownership.
VALUE CHARGING 14

15. Ford’s Mobile Apps
Will also come with MY Ford Mobile - an application that enable access via smartphone or web based I to perform key functions remotely and monitor the vehicles state of charge and current range.
You can get alerts when it needs charging or when the vehicle has finished charging
You can also remotely program charge settings
SYNC with My Ford Touch will offer real time information on charging status and available stations. 15

16. The Payoff: Ford Flex Fuel Vehicles
U.S. ethanol production increased 8-fold over the past decade, and accounts for approximately 10% of gasoline sold in the U.S.; it is projected to nearly double over the next decade.
Ford Flex Fuel Vehicles include:
Escape
Fusion
F-150
Expedition
E-Series
Lincoln Navigator
Super Duty
New models to be added in 2012
While everyone is excited about the electrified platforms – energy diversity is also important and so we support vehicles that operate on less expensive alternative fuels:
Such as 85% ethanol and 15% gasoline
Ford Flex fuel vehicles can operate on any combination up to 85% ethanol. Engine automatically adjusts.
The Ford Flexible Fuel Vehicles include….
Ford offers a wide range of Flex-Fuel products which satisfy consumer needs while utilizing a full range of ethanol-containing fuels (incl. E85) available in the U.S. 16 16

17. Stripped Chassis – Motor Home (F53)
The Payoff: Ford Offers CNG/LPG-Ready Engines and Support to After-market Upfitters
Super Duty (F-450/F-550)
Stripped Chassis – Motor Home (F53)
Stripped Chassis – Commercial (F59)
Stripped Chassis – Commercial (E-Series)
E-Series Van/Bus
E-Series Cutaway
Transit Connect
Compressed Natural Gas seems to be making a comeback. Just Thursdya – the President announced his Alternative Fuel Vehicle Tax credit to expand support beyone Evs and particular to support CNG.
Compressed Natural Gas is a Clean burning fuel with 30-40% less greenhouse gas emissions
Less expensive than gasoline
1,000 CNG stations spread across the US
Popular for fleets including the Transit Connect Taxi fleets

18. The Payoff: Ford Offers B20-Capable Diesel Engines
Medium Truck (F-650/F-750)
Super Duty (F-450/550)
Super Duty (F-250/350)
We also offer trucks that run on B20.

19. Sustainable Materials
Soy Foam Seating
Use of 5% soy foam
Standard on Escape, Escape Hybrid, Mustang, F-150, Navigator, Expedition
Sustainable Fabric
Produced from 100% post
Industrial recycled materials
Material includes plastic intended for pop bottles and un-dyed polyester fibers

20. Opportunities for Recycled Materials
carpets & fabrics
Recycled
Polyurethane
foam components
Post Industrial
recycled bumpers
Laundry & Milk Bottles into:
-Windshield washer bottles
-Climate Control Air Ducts
Battery casings into:
-splash shields
-rocker moldings
Tires into:
-aero deflectors
-under hood covers 20

21. Ford Vehicles ~85% Recyclable
For example, Ford’s use of recycled materials in the Escape is estimated to conserve:
600,000 gallons of water;
1.8 million pounds of carbon dioxide equivalent greenhouse gas emissions; and,
The equivalent of 7 million kilowatt hours of electricity.
Approximately 85 percent of Ford vehicles are recyclable and 95 percent of vehicles retired each year are processed for recycling.
The point is that there are other ways to reduce our impact and we’re researching and leveraging those opportunities right now… 21 21

22. Going Green: Michigan Assembly Plant
World’s first factory to build gas-powered, battery electric, hybrid and plug-in hybrid vehicles
500-kilowatt solar panel system – the largest array in Michigan.
On-site electric trucks, saving an estimated 86,000 gallons of gas a year. 22

23. A Ford Perspective/Approach
Ford’s Sustainability Report
A Ford Perspective/Approach
More about Climate Change corporate.ford.com/go/sustainability 23

24. Summary
The Ford plan is based on product and operational excellence and requires people working together as lean, global enterprise.
Balancing market and regulatory drivers for improved fuel efficiency and lowering CO2 while also meeting more restrictive standards for criteria emissions is one of our greatest challenges.
Technology innovation is used as differentiator. Feature content and technologies that improve comfort and convenience, safety and fuel efficiency will continue to be increasingly important in all markets.
Sustainable technology must be affordable for millions of customers
Ford has established, and continues to develop, a comprehensive portfolio of technologies to improve efficiency and reduce weight.
EcoBoost is being migrated widely in lieu of larger conventional engines, offering increased fuel economy at comparable or improved performance.
Ford will offer a complete array of hybrid and electric vehicle choices that over time will contribute on a volume basis.
Ford has developed a strategy that sets priorities & guides actions to achieve our vision of bringing affordable technologies to the millions through Green, Safe, Smart Designs, and Quality products.
Ford’s lineup of fuel-efficient cars, trucks, SUV’s and crossovers underscores the company’s commitment to continually improve fuel economy. 24