Ford Outlines Fuel Economy, Electric Car Plans to Feds - Needs $9 Billion

By Michael Kanellos

Loan us $9 billion and we'll improve the efficiency of our cars.

That's the pitch Ford (F) made to Congress Tuesday in its bid to get a rescue loan from the federal government. The ailing motor company said it plans to boost gas mileage, come out with more hybrids and release fully electric cars as part of an overall strategy to return to profitability by 2011.

Under the plan, Ford says it will improve the fuel economy of its fleet of cars by 14 percent in 2009 compared to 2005 and by 26 and 36 percent by 2012 and 2015, respectively, over 2005. (Ford's average has hovered around 20 miles per gallon.) Some of these improvements, however, will be mandated by improved mileage regulations already passed.

Additionally, the company will make a more concerted push into electrics. It will release an electric van in 2010 and then a sedan in 2011. These cars will be sold to fleet customers, who presumably will have their own charging stations and do not have long distance driving requirements. After fine-tuning the technology, Ford hopes to bring more hybrids and all-electric cars to consumers in 2012.

Ford will discuss the partners it has enlisted for electric drivetrains and batteries at the North American International Auto Show in Detroit which kicks off Jan. 11.

The company further added that it will increase the number of models it sells that can be defined as "advanced technology vehicles" under the Energy Independence and Security Act. By 2014, 90 percent of Ford's cars will meet the definition. However, the definition includes flex-fuel cars, which tend to get filled up with regular gas far more than alternative fuels, according to user studies.

Meanwhile, car makers are in free fall in terms of sales due to the recession. General Motors (GM) said car sales fell 41 percent in November while Ford (F), Toyota (TM) and Honda (HMC) saw sales drop in the 30 percent to 32 percent range.

Comments

[Paintguru:]

Actually they said "We really don't need the money right now, but if the economy gets worse or one of our competitors goes under, then it would be nice to have a loan." and "Oh, since you asked, here are our plans for future products that we are doing regardless of government intervention". Perhaps you should stop trying to spin things to meet your agenda.

2008 Dec 03 07:12 AM

[snakeflake:]

Although, every release Ford puts out to woo Congress mentions hybrids and fuel mileage. Fords best product is its trucks! I have owned a Ford Truck ever since I learned to drive 30+ years ago. I have tryed them all and would not own another brand of truck. The F-150 is a great recreational or light duty work truck, the F-250 is a great workhorse, and I have never owned anything larger but I am sure they are needed in industry. Many companies in this part of the country own fleets of Ford trucks (I am from the Southeast US). I never cared much for their cars since the 1970's. I used to be a service manager for Budget Rent a Car, so I have drien just about every vehicle sold in the US at that time. I hope the hybrids they keep hyping are better than their regular cars. When the economy first started turning on us and it looked like Ford might be in trouble, I told my wife that Ford should just do away with the car division and focus on trucks. My motto: Stick with what you do best.

2008 Dec 03 09:10 AM