Ford Plans Both Electric Vehicles and Plug-In Hybrids

By John Addison

Ford (F) is now taking orders for electric vehicles. By 2011, the Ford Motor Company will start taking orders for the new Ford Focus EV. Beyond 2011, Ford will offer the popular Focus in a variety of affordable options including hybrid-electric (HEV), plug-in hybrid (PHEV), and battery electric-vehicle (EV).

Although Nissan (NSANY) will take an early lead with EVs, and GM will beat Ford to market with a plug-in hybrid Chevy Volt, Ford will be fighting for market leadership with both electric vehicles and plug-in hybrids.

The Ford EV roadmap in this article is based on my interviews with Susan Cischke, Ford Group Vice President, Mike Tinskey, Plug-in 2009 Conference presentations, and my discussions with some of Ford’s utility partners.

2010 orders are likely to come from municipalities and other government agencies that will use the new Transit Connect light-duty van in a variety of applications from city maintenance to on-demand transit. Deliveries of these electric vehicles, made for Ford by Smith Electric Vehicles (TAN.L), will start in 2010. Transit Connect may also do well with small businesses and local delivery fleets.

It is the Ford Focus EV that captures the imagination of mainstream Americans eager to secure a zero-emission vehicle that they can take on freeways and travel up to 100 miles between charges. The new Ford Focus EV will be a 4-door sedan that seats five.

The Focus EV will be made in America. The lithium battery maker and specs are to be announced. Ford has expressed a preference for a battery whose cells are made in America. Ford’s final battery decision may be influenced by federal funding.

Ford's additional PHEV Plans in Clean Fleet Report.

Ford is investing $550 million to transform its Michigan Assembly Plant into a lean, green and flexible manufacturing complex that will build Ford’s next-generation Focus global small car along with a new battery-electric version of the Focus for the North American market. Both will be based on a new global C platform. The EV is being developed in partnership with Magna International (MGA).

Ford has been actively testing the plug-in hybrid Ford Escape with a number of utilities and partners. These tests have helped establish the standards necessary for electric vehicle success, such as the J1772 electrical connection that will be standard on Ford EVs.

Thanks to a new DOE award of $30 million, 50/50 matched, a total of $60 million will go into expanded deployment of Ford plug-in hybrids, electric vehicles, and infrastructure. Early pilots of the Ford Focus EV are likely to be part of this.

The new electric vehicles are smart EVs. Customers will be provided with charging options to save money. Drivers will be connected with traffic and location services and assisted with electronics that make driving safer. Passengers will have more information and entertainment options than ever. Like the new smartphones from Apple, Blackberry, Palm and others, the value of a full value of a smart car is in the networks. Just as smartphones can be purchased at a discount with network subscriptions, we may see similar offerings from car makers and their partners.

Subscription models are being explored where vehicles like the Ford Focus EV could be purchased, with the lithium battery and charging being offered as a subscription. Ford, Nissan, and other automakers are discussing such possibilities with electric utilities, financial institutions and others. Should a utility or JV own the batteries, then it would be easier to repurpose lithium batteries into less demanding stationary power back-up applications after the batteries decline in charge after several years of use.

Possibilities include 50/50 joint ventures and long-term secure financing. Because utilities are regulated, public utility commissions will be involved in approving new business models. If everyone gets their act together, which is certainly an “if,” the customer could be a big winner with an affordable EV and subscription offerings that cost less than monthly gasoline costs.

Under the leadership of CEO Alan Mulally, Ford has shown a new flexibility in partnering with suppliers, vehicle integrators, battery JV, electric utilities, financial institutions, and even information technology firms like Microsoft (MSFT). With global platforms, smarter cars, richer partnerships, and greater speed to market, customers will see some interesting new offerings in the next two years.

Comments

[Douglas Kor...:]

Good news. If Mulally says it, it might really get done.

Unlike failed GM manglers, Ford intends to stay in business.

The only difference: Ford voting stock is controlled by the Ford family, and they didn't want the company to go under. GM and Chrysler didn't care, they were just tools of the oil industry.

However, leased batteries are no good. Leasing is ALWAYS more expensive then buying.

The 1999 EV1 had over 100 miles range with cheap PSB 1260 lead-acid batteries; and the Toyota RAV4-EV, last sold in Nov., 2002 (and the ONLY electric car offered to the public for sale by an Auto Alliance member) is still over 100 miles on NiMH batteries.

NiMH is the standard EV battery; Lithium is much more expensive.

Ford should look to NiMH or lead-acid, and forget about high-cost short-lived Lithium.

One more thing: it's a vapid FANTASY to think that spent batteries have ANY value as peak-shaving or battery backup solar system use. New lead-acid deep-cycle batteries are FAR superior to spent EV batteries.

Aug 26 08:40 PM

[TinyTim:]

Interesting article.
Sounds like Ford is getting its act together. I hope they decide to keep it simple and skip all the partnerships and networking and "programs". Smart Grid cars? They're over-reaching. Let's keep it basic to start with. It's a transportation appliance after all.

"charging being offered as a subscription."
I believe the utilities call this an electric meter. Costs about $50.

"subscription offerings that cost less than monthly gasoline costs."
If they don't, then what's the point in trying to sell it, except as an environmental statement.

100 miles at 30mpg at $3.00 / gall = $10.00
100 miles at 25kWh at $0.06 (off peak) = $1.50

Someone has an eye on that $8.50

Leasing the battery, as opposed to selling it, will effectively eliminate any aftermarket competition and also reduce the potential value of secondary uses, The more generic the battery is, the better for the consumer.

Let's keep it simple, cut the smoke and mirrors and all the other marketing tricks.

Aug 26 10:06 PM

[Davewmart:]

Douglas,
I am not sure on what you are basing this:
'NiMH is the standard EV battery; Lithium is much more expensive.

Ford should look to NiMH or lead-acid, and forget about high-cost short-lived Lithium.'

Which lithium chemistry are you talking about?
I can only imagine that it is the lithium cobalt used in laptops, some of which ignited.

The chemistries under consideration for cars are far different, and lithium iron for one is good for many, many cycles.
Most of them however use manganese, and have somewhat lower cycle lives, but still very respectable.
As for cost, the Nissan Leaf is reckoned to have a 24kwh battery pack costing around $10k, which works out to around $400kwh.
That's expensive, but not out of this world, and a lot of very clever people are working hard to reduce cost.
BYD seems to have similar costs, and GM too says that their 16kwh battery pack from LG will be way less than the $1000kwh that early estimates centred on.

And:
'One more thing: it's a vapid FANTASY to think that spent batteries have ANY value as peak-shaving or battery backup solar system use. New lead-acid deep-cycle batteries are FAR superior to spent EV batteries. '

Why?
A lithium battery is reckoned to go down to a charging capacity of 80% in a car by the time it needs replacing - you don't want the range reduced that greatly in a car.
But at that stage it is paid for, so however cheap the deep charge lead acid batteries may be, the lithium battery can undercut them and do the job perfectly well for many years.
Incidentally, there is no present sign that deep charge lead acid are very cheap, and boosting them by use of capacitors and whatever costs money.

Your stance against leasing is also a bit difficult to understand, as it is perfectly normal business practise for vehicles.
In any case, since you are so doubtful of the reliability and longevity of lithium batteries, it would presumably make even more sense to lease them and let the risk be borne by the manufacturer.

As for NiMH batteries, Toyota is not finding it easy to source batteries for it's hybrid line-up, and in any case whilst they might be fine for relatively mild hybrids like the Prius, the fact that they weigh twice as much per kwh as lithium makes them impractical for plug-in hybrids or EV's.
As for lead acid, while OK for hobbyist converters, the fact that no major car manufacturer seems to be looking at them should say something about their practicality for this use.

Aug 27 07:59 AM

[jerrydd:]

Davewmart is correct on batteries.

Ford is very smart going the Focus route on BEV, HEV. PHEV. It saves much money developing a new platform. They again save money farming the EV drive out to Magna.

This allows them to get into these cheaply, quickly to get experience before doing a new platform for them when the economy gets better and EV drive production levels are high enough to support it..

Plus if something goes wrong with any of the EV parts, they can just pop out the modular part and replace it with a better one.

Likewise with their EV van using their Euro model and Smith who has been building EV's longer than anyone for the conversion has the same benefits.

Because of these saving their EV Drive units will cost much less I'd bet.

Ford has a better idea!!

Aug 27 10:29 AM

[lhaus:]

EV are the future of the automotive industry - no question

Aug 27 02:21 PM

[Mayascribe:]

@ Ihaus: Nat gas first, then EV down the road. For once, Cramer is right about this one.

Aug 27 02:39 PM

[John Addison:]

Davewmart, once again you are on the money. To give lithium batteries long-life, the state of charge window will not use the entire battery. After a few years, its ability to fully recharge could deplete 20 percent. It could then be used in stationary applications such as backup power or spinning reserves. Subscription agreements are not a done deal; look at how PPAs accelerated the adoption of solar power. Use of lithium batteries in EVs does not imply that there are not plenty of applications for lead-acid. Mayascribe, we are starting to see hybrid natural gas heavy-duty vehicles from buses to trash trucks. There are different solutions for different needs.

Aug 27 08:31 PM

[Michael Fit...:]

why aren't ford and GM making a natural gas/electric hybrid like this:

www.autoblog.com/2008/...

and working with Fuel Systems Solutions (FSYS) to package the car with a "Phill" home garage nat gas refueling appliance?

Aug 27 08:49 PM

[Davewmart:]

Michael,
the lethargy of the US automakers regarding liquified natural gas for use in transport is indeed difficult to comprehend.
The US is unlikely to be a leader in EV cars, as petrol still costs far less there than in most other countries and distances travelled are far greater.
In London, for instance, exemption from the congestion charge alone will comfortably pay for the batteries.
In many cities in the world, delivery vehicles etc can easily switch.
There are fairly decent prospects for hybrids in the US, but why not use the large resources of natural gas that they have, and Europe and Japan doesn't?

Aug 28 07:14 AM

[gooddog2:]

I've been waiting for an EV since the mid 70's. I helped to reduce weight from the Ford vehicles in the emission lab's and crash area all we needed at that time was a battery, and we talked about a 48 volt battery for the electronic of the cars. NOW is the time for lithium, after a period of time it could be replaced for further use to store power from either wind or solar. In the 80's we had Nat. Gas Crown Vic's running around Dearborn, Mi. I would've like to see them on the road back then.

Aug 29 04:39 PM