Ford, Microsoft Announce Collaboration for Electric Vehicles

Ford Motor Co. (NYSE: F) and Microsoft Corp. (Nasdaq: MSFT) yesterday announced plans to collaborate on an initiative to integrate plug-in hybrid electric vehicles (PHEV) with home energy management.

The two companies are teaming up to implement the Microsoft Hohm energy management application for Ford’s electric vehicles. Hohm, an Internet-based service, is designed to help customers avoid
unnecessary expense by providing insight into their energy usage
patterns and suggesting recommendations to increase conservation.

Ford is the first automaker announcing the use of Hohm, starting with the Focus Electric next year. Hohm will help owners determine when and how to most efficiently and affordably recharge battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). It also is expected to help utility companies manage the added demands of electric vehicles on the electrical grid.

“For Ford, this is a needed step in the development of the infrastructure that will make electric vehicles viable,” said Alan Mulally, Ford Motor Company president and CEO.

Both companies agree that effective management of the energy ecosystem is critical for electric vehicles to be successful and for consumer interest to grow. In a recent Accenture survey, 42% of consumers said they are likely to buy a hybrid or electric vehicle in the next two years.

Increasing numbers of electric vehicles, however, will have a significant impact on energy demand. That is because the addition of an electric vehicle to a household could effectively double home energy consumption while the vehicle is charging.

Ford plans to put five new electric vehicles on the road in North America and Europe by 2013. In North America, they include the Transit Connect Electric later this year, Focus Electric in 2011, a plug-in hybrid electric vehicle and two next-generation hybrids in 2012.

Ford and Microsoft’s participation in the Hohm program builds on an earlier partnership. The Ford SYNC communications and infotainment system, built on the Windows Embedded Automotive platform, has been installed on more than 2 million Ford, Lincoln and Mercury vehicles since its launch in 2007, helping drivers connect and voice-control their mobile devices while driving.

Ford and Microsoft said they plan to continue to work with utility partners and municipalities to help further develop the energy ecosystem.

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