In a move applauded by shareholders and environmentalists, Ford (NYSE: F) became the first U.S. auto company to detail its plans for reducing the greenhouse gas emissions of its vehicles 30% by 2020.
It appears that the automaker released the information in response to pressure brought about by shareholder resolutions initiated by the Interfaith Center on Corporate Responsibility and the Investor Network on Climate Risk.
Ford sent investors a detailed accounting of its fuel emissions goals – a 60-80% reduction by 2050.
- The cornerstone of the near-term plan is introduction of fuel-saving EcoBoost engine technology in high volumes on Ford vehicles. The first vehicle will be the Lincoln MKS, making it the most powerful and fuel-efficient all-wheel-drive luxury sedan in the market.
- Mid- and long-term advancements include weight reductions of 250 to 750 pounds, new fuel-saving transmissions, advanced electric power steering, aerodynamic improvements, additional hybrid offerings and diesel engines introduced on light-duty vehicles.
Aggressive development will continue on plug-in hybrid and hydrogen fuel cell technology for future applications.
As a result, the investors, including the Interfaith Center on Corporate Responsibility which represents more than $100 billion in assets and 300 religious groups, dropped plans for the shareholder resolution at Ford and turned its sites to the next target: General Motors (NYSE: GM).
The group of investors, which includes the Connecticut State Treasurer’s Office, intends to push General Motors to set specific emissions reduction targets for its future fleets and operations. A shareholder resolution is expected to be voted on at GM’s annual meeting in June.
Details from Ford:
Ford says it’s eliminating energy waste in every vehicle system, such as power steering, cooling and electrical systems, as well as minimizing wind drag through design and optimizing its new 6-speed transmissions. Here are some of its under-impressive results so far:
- The Ford F-250 Super Duty team has increased fuel efficiency of today’s vehicles by more than 1 mpg by reducing aerodynamic drag and optimizing gearing.
- A new 3.5-liter V-6, improved 6-speed transmission and aero changes helps the Taurus achieve a 10 percent highway fuel gain. The Focus increased 3 percent thanks to a series of other improvements, which include aero and electrical efficiencies.
- In the 2008 Ford Escape and Mercury Mariner, the addition of electric power assisted steering and improved vehicle aerodynamics contributed to an 8 percent fuel economy improvement on the gasoline and a 14 percent gain on the hybrid.
- The introduction of Ford’s dual-clutch PowerShift transmission to Europe’s Ford Focus 2.0-liter Duratorq TDCi diesel contributed to a 10 percent fuel-economy gain.
- New 6-speed automatic transmissions, combined with other actions, in the new Mondeo, S-MAX and Galaxy in Europe, have delivered a 2 to 3 percent fuel improvement.
Says Derrick Kuzak, Ford’s group vice president of Global Product Development, "We continue to make improvements in what we call the ‘1 percent’ areas – items such as reducing wind drag, eliminating engine-driven power steering pumps and switching to low-friction engine oil. Collectively, these small improvements deliver significant fuel economy gains for our customers."
Delivering the numbers
The cornerstone of Ford’s near-term plan is a new generation of smaller-displacement turbo-charged gasoline engines with advanced fuel-saving direct injection technologies called EcoBoost. The new family of engines will provide customers with a fuel savings up to 20 percent, emit up to 15 percent less CO2, and provide superior performance versus a larger displacement engine.
With direct injection, fuel is injected directly into the combustion chamber in small, precise amounts. When this is combined with turbo charging, customers will enjoy better performance and fewer trips to the gas pump.
During the next five years, Ford expects to introduce a range of EcoBoost engines in 4-cylinder and V-6 configuration in over half a million vehicles globally.
"Our first application will be in the new Lincoln MKS less than a year after launch. It will deliver the power and torque of a V-8 engine with the fuel efficiency of a V-6," said Kuzak. "The beauty of EcoBoost is that it enables us to both downsize and boost the power of our engines to deliver the performance our customers want, as well as the fuel economy they need."
Ford will introduce a portfolio of technologies to achieve even greater fuel savings and emissions reductions, including:
- A new generation of fuel-saving twin-clutch transmissions, which deliver the fuel economy of a manual with the convenience of an automatic. These new transmissions include greater use of 6-speeds to replace less-efficient 4- and 5-speed gearboxes.
- The use of advanced electric power assisted steering systems in between 80 and 90 percent of Ford vehicles.
- Aerodynamic improvements through better design and wind tunnel optimization.
- Weight reductions through platform efficiencies and greater use of aluminum and high-strength steel.
"These actions will require reengineering and redesigning our vehicles," said Kuzak. "To apply the range of technologies across our fleet and in our plants will require a significant financial investment, which we are committed to make."
The fuel savings will grow during the mid-term – between 2012 and 2020 – as weight reductions become a critical focus of Ford’s plan. Targeted vehicle weight reductions will range from 250 to 750 pounds, depending on the segment – without compromising safety.
In addition to flex fuel cars, Ford plans to add more diesel engines to more products in more markets. By the end of the decade, Ford’s large sport utility vehicles and best-selling
F-150 will be available with a new mid-displacement clean diesel engine.
In Europe, Ford soon will begin rolling out its ECOnetic range of ultra-low CO2 models that cleverly use affordable, conventional technology to deliver superb CO2 performance and fuel economy. The first vehicle will be the Ford Focus ECOnetic, followed by ECOnetic versions of the Mondeo and Ford’s all new B-car later this year.
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