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Sustainability 2011/12

Improving Fuel Economy

This section outlines our plans for improving the fuel economy of traditional gas and diesel engines. These actions include

implementing advanced engine and transmission technologies, weight reductions and aerodynamic improvements, as well as

increasing the efficiency of vehicle sub-systems.

For more information about each of our fuel efficiency technologies please click on the icons in the graphic above.

EcoBoost®

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Significant number of vehicles

with EcoBoost engines

EcoBoost engines available in nearly

all vehicle nameplates

Increase percentage of internalcombustion engines dependent on

renewable fuels

The centerpiece of our near-term fuel-economy improvement efforts is the EcoBoost engine, which uses turbocharging and direct

injection along with reduced displacement to deliver significant fuel-efficiency gains without sacrificing vehicle performance.

EcoBoost engines help to improve vehicle fuel economy 10 to 20 percent and reduce CO emissions up to 15 percent compared

to larger-displacement engines.

EcoBoost offers comparatively better value than many other advanced fuel-efficiency technologies. Due to its affordability relative to

competing powertrain options, and its compatibility with most of the gas-powered vehicles we produce, we are able to offer

EcoBoost’s fuel-economy benefits throughout our product lineup more quickly and to a greater number of our customers. Our

rapid deployment of EcoBoost in high volumes across a wide array of our vehicle nameplates is also helping us make a dramatic

step forward in CO emission reductions.

We have introduced four EcoBoost engine displacements with multiple derivatives for specific vehicles and markets.

3.5L V6 EcoBoost: We introduced the first EcoBoost engine – a 3.5L V6 – in North America on the 2010 Lincoln MKS, Lincoln

MKT, Ford Taurus SHO and Ford Flex. This engine provides comparable or superior performance to a normally aspirated V8

engine, but with the fuel economy of a V6. Thanks largely to EcoBoost technology, the V6 Ford Taurus SHO and Lincoln MKT

deliver unsurpassed fuel economy in their respective segments. We also offer the 3.5L EcoBoost on the F-150 beginning with

the 2011 model, making it the most fuel-efficient pickup truck in its class, with a rating from the U.S. Environmental Protection

Agency of 16 mpg city and 22 mpg highway.1 The new F-150 also has best-in-class torque, payload and towing capacity.

2.0L I-4 EcoBoost: In 2010 we introduced a 2.0L I-4 EcoBoost engine, the first in the EcoBoost lineup to go truly global.

In the U.S., the 2.0L I-4 EcoBoost engine is currently available on the 2012 Ford Edge, the all-new 2012 Ford Explorer and

the 2012 Ford Focus. The Edge and Explorer with the 2.0L I-4 EcoBoost deliver best-in-class fuel economy, with the

performance feel of a traditional V6. The new Explorer offers vehicle fuel economy that is 20 percent better than the

previous model.

We also introduced this engine on the first high-performance vehicle with an EcoBoost – the Ford Focus ST, a special

high-performance version of the Focus.

In 2012, this engine will be introduced on the all-new 2013 Escape and the 2013 Fusion.

In Europe, we introduced the Ford S-MAX, Mondeo and Galaxy with a 2.0L EcoBoost option.

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In China, we launched the 2.0L EcoBoost on the Ford Mondeo.

In Australia, we introduced the 2.0L EcoBoost on the Mondeo in 2011 and will introduce it on the Falcon in 2012.

1.6L I-4 EcoBoost:

The 1.6L I-4 EcoBoost engine debuted in Europe on the 2011 Ford C-MAX and is also available on the all-new Ford Focus.

In the U.S., this engine’s first application is the 2013 Ford Escape, which has segment-leading fuel economy among

small SUVs and gets 5 mpg better than the outgoing Escape. The 1.6L EcoBoost will also be an option on the all-new

2013 Fusion, which will achieve best-in-class, four-cylinder fuel efficiency of 37 mpg on the highway. We also plan to offer

the 1.6L I-4 EcoBoost on the 2013 Ford C-MAX when it is launched in the U.S.

1.0L I-3 EcoBoost:

We introduced a 1.0L three-cylinder EcoBoost in Europe on the European Ford Focus, which will produce approximately

125 horsepower while delivering ultra-low CO emissions performance for a gasoline engine of 114 g/km – a level

unmatched by Focus competitors. An approximately 100 horsepower version of the same engine will deliver best-in-class

gasoline CO emissions of 109 g/km. This engine delivers the power of a normally aspirated 1.6L I-4 with better fuel

economy.

In India, we introduced the 1.0L three-cylinder EcoBoost on the all-new Ford EcoSport, which has power and performance

that will rival a normally aspirated 1.6L gasoline engine while emitting less than 140 g/km of CO .

This engine will also be available in vehicles in North America, China and other regions, and we ultimately expect to

produce up to 1.3 million units annually.

These EcoBoost engines illustrate Ford’s plans to use smaller-displacement, power-boosted engines to deliver improved fuel

economy and performance throughout our vehicle lineup. At the end of 2011, Ford had built nearly 180,000 EcoBoost-powered

vehicles in North America. In 2012 we will offer 11 EcoBoost-equipped vehicles in the U.S., up from seven in 2011, tripling the

production capacity of EcoBoost-equipped Ford vehicles. By 2013, we plan to offer EcoBoost engines on 85 to 90 percent of our

North American and European nameplates and continue to migrate them to our other regions.

EcoBoost has thus far proven to be popular with customers. The Ford F-150 with the 3.5L EcoBoost engine accounts for more

than 40 percent of total F-150 sales, making it the top-selling, full-sized V6 pickup truck on the market. In addition, the F-150 with

the EcoBoost engine has received the same high quality ratings as the F-150’s popular 5.0L V8 engine, according to data from

GQRS, a quarterly survey conducted for Ford by the RDA Group. EcoBoost is also influencing many consumers to consider and

buy our vehicles, increasing our “conquest rate” – i.e., the number of customers who are switching from other manufacturers to

buy Ford vehicles. More than half of all Taurus SHO buyers are new to the Ford brand, and more than 62 percent of Flex with

EcoBoost buyers had not previously considered a Ford product. EcoBoost is proving especially attractive to 35- to 55-year-old

males, an important demographic that has been less likely to purchase Ford vehicles in the past.

In addition to these commercial successes, the EcoBoost engine has received multiple awards, including the Breakthrough

Award from Popular Mechanics and a “10 Best Engines” award from Ward’s.

As EcoBoost is a key element of our long-term powertrain strategy, we will continue to improve its efficiency and vehicle application

potential through the further development of supporting advanced technologies.

1. The F-150’s fuel efficiency is compared to other high-volume pickup trucks, not including low -volume special fuel-economy models.

Advanced transmissions

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Dual-clutch and six-speed

transmissions begin replacing

four- and five-speeds

Full implementation of six-speed

transmissions

We have introduced six-speed transmissions to replace less-efficient four- and five-speed transmissions in a majority of our

vehicles, improving fuel economy by up to 9 percent depending on the application. These six-speed gearboxes also provide better

acceleration, smoother shifting and a quieter driving experience. By the end of 2012, 98 percent of Ford’s North American

transmissions will be advanced six-speed gearboxes.

In the near term we are also improving the performance of all our advanced transmissions by further optimizing their operation

with EcoBoost engines and further reducing parasitic losses, such as mechanical friction and extraneous hydraulic and fluid

pumping, to achieve higher operating efficiency. In the longer term we will be researching advanced transmission concepts to

support further efficiency improvements, engine downsizing and electrification.

Electric Power-Assisted Steering (EPAS)

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Electric power steering Full implementation of electric power

steering

We are phasing in electric power-assisted steering technology, which typically will reduce fuel consumption and decrease carbon

dioxide emissions by up to 3.5 percent over traditional hydraulic systems, depending on the vehicle and powertrain application. On

the 1.4L Duratorq® diesel Ford Fiesta, for example, which is available in Europe, EPAS provides a 3–4 percent improvement in

fuel efficiency compared with a hydraulic-based power steering system. By combining EPAS with aerodynamic improvements, we

improved the mileage of this vehicle by approximately 8 percent compared to the previous model year. In addition, EPAS supports

other fuel-saving activities we plan to introduce. For example, “automatic start/stop” technology can be introduced without

degrading steering assist to the driver. (For details on this technology, see Automatic Start/Stop.)

We already offer EPAS in the Ford Explorer, F-150, Mustang, Fusion, Flex, Taurus and Escape and the Lincoln MKS, MKT and the

MKZ Hybrid in North America; the new Ford C-MAX and Focus in North America and Europe; and the Ford Fiesta and Ka in Europe.

By the end of 2012 we will introduce EPAS into the new Ford Edge in North America, the Ford Kuga in Europe and China and a

sport vehicle based on the Ford Focus. EPAS will also be used in all of our new electrified vehicles. In addition, the all-new Ford

Fusion will use a second-generation EPAS system on all variants, including the gas, hybrid and plug-in hybrid versions. Ultimately,

we will introduce EPAS into all of our passenger cars and light-duty vehicles.

Automatic Start/Stop

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Start/stop systems (micro

hybrids)

Increased application of start/stop

systems

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We have developed a “start/stop” technology that shuts down the engine when the vehicle is stopped and automatically restarts it

before the accelerator pedal is pressed to resume driving. This technology maintains the same vehicle functionality as that offered

in a conventional vehicle, but it improves city driving fuel economy by up to 6 percent, with potentially higher gains possible for

specific vehicle size and usage applications. The technology can also reduce tailpipe emissions to zero while the vehicle is

stationary, for example when waiting at a stoplight.

Start/stop technology includes sensors to monitor functions such as cabin temperature, power supply state and steering input, so

that vehicle functioning remains exactly the same to the driver as when the engine remains on continuously. If the system senses

that a vehicle function has been reduced and will negatively impact the driver’s experience, the engine will restart automatically.

Start/stop technology is already being used in our hybrid vehicles and will eventually provide a cost-effective way to improve fuel

efficiency on a large volume of non-hybrid vehicles. In the U.S., we are planning to introduce the technology into non-hybrid

automatic transmission vehicles in 2012. In Europe, automatic start/stop is already standard on the Ford Ka and certain versions

of the Mondeo, S-MAX Galaxy, Focus, C-MAX and Grand C-MAX. By 2016, 90 percent of our vehicle nameplates globally will be

available with start/stop technology.

Weight Reductions

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Increased unibody applications Weight reductions of 250–750 lbs Continue weight reductions using

advanced materials

We are also working to improve fuel economy by decreasing the weight of our vehicles – in particular by increasing our use of

unibody vehicle designs, lighter-weight components and lighter-weight materials.

Unibody vehicle designs reduce weight by eliminating the need for the body-on-frame design used in truck-based products.

Unibody-based crossover vehicles provide many of the benefits of truck-based SUVs, such as roominess, all-wheel drive and

higher stance, with significantly reduced total vehicle weight. The all-new 2011 Ford Explorer uses a lightweight unibody design,

as do the current Ford Edge and Lincoln MKX crossovers.

EcoBoost® engine technology allows us to use a smaller, lighter-weight engine system while delivering more power and better

fuel economy. Similarly, the dual-clutch PowerShift transmission available on the Ford Fiesta and Focus weighs less than the

conventional automatic transmission it replaced.

The lighter-weight materials we are using include advanced high-strength steel, aluminum, magnesium, natural fibers and nanobased materials. To achieve our fuel-efficiency goals, we need to reduce the weight of our vehicles by 250 to 750 pounds, without

compromising vehicle size, safety, performance or customer-desired features. The following are examples of our use of lighterweight materials:

In 2012, we introduced a new, lightweight, injection-molded plastic technology called MuCell on the all-new Ford Escape.

Manufacturing MuCell involves the highly controlled use of a gas such as CO or nitrogen in the injection-molding process,

which creates millions of micron-sized bubbles in uniform configurations, lowering the weight of the plastic part by more than

one pound per vehicle. This is the first time MuCell has been used in an instrument panel. In addition to reducing weight, the

MuCell microcellular foam saves money and production time. On the 2012 Escape, MuCell saves an estimated $3 per vehicle

vs. solid injection molding, and molding cycle time is reduced 15 percent. This plastic was the Grand Award Winner at the 2011

Society of Plastic Engineers competition in the “Most Innovative Use of Plastics Award” category.

The Lincoln MKT crossover has an advanced lightweight magnesium and aluminum liftgate, which is more than 20 pounds, or

40 percent, lighter than a similar part made from standard steel.

We use an aluminum hood on the Ford F-150 and high-strength, lighter-weight steels in more than 50 percent of the F-150 cab.

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The Ford Explorer makes extensive use of high-strength steels. Nearly half of the vehicle’s structure – including the A-pillars,

rocker panels and front beams –are comprised of high-strength steels, such as boron. The Explorer also has an aluminum

hood.

In the 2012 Ford Focus, more than 55 percent of the vehicle shell is made from high-strength steel and more than 26 percent of

the vehicle’s structure is formed from ultra-high-strength boron steels. The Focus combines these high-strength steels with

innovative manufacturing methods to further reduce weight. For example, the vehicle’s B-pillar reinforcement, a key structural

part, is made from ultra-high-strength boron steel that has been produced using an innovative tailor-rolling process. The

process allows the thickness of the steel sheet to be varied along its length, so the component has increased strength in the

areas that are subjected to the greatest loads. The tailor-rolled B-pillar has eight different gauge thicknesses, to improve sideimpact crash performance while saving more than three pounds per vehicle.

We are also expanding our use of aluminum engine parts and all-aluminum engines. The 2011 Mustang, for example, has an

aluminum engine. Combined with other fuel-efficiency improvements, this lighter-weight engine delivers class-leading fuel

economy at 19 mpg city/30 mpg highway with a six-speed automatic transmission – a 25 percent improvement over the 2010

model.

By using high-strength steels, the European Ford Fiesta weighs approximately 40 kilograms less, depending on engine choice,

even though it stands on virtually the same footprint as the previous model and has 10 kilograms of new safety features and

sound insulation.

Ford researchers are also investigating additional new lightweight materials. For example, we are investigating and developing:

New types of steel that are up to three times stronger than current steels and improve manufacturing feasibility because they

can be formed into parts more easily.

Polymeric plastic strengthening foams that are strong enough to stabilize bodywork in an accident but light enough to float on

water. These foams are being used to reinforce sections of the steel auto body, such as the B-pillars.

Surface coatings that reduce engine friction and remain intact even under the most adverse conditions.

Alternative (copper-based) wire harness technologies that will enable significant weight reductions.

Nanotechnology to model material properties and performance at the nanoscale, which will allow us to develop better materials

more quickly and with lower research and development costs.

Nano-filler materials in metal and plastic composites, to reduce their weight while increasing their strength. For example, we

are developing the ability to use nano-clays that can replace glass fibers as structural agents in reinforced plastics. Early testing

shows plastic reinforced with 5 percent nano-filler instead of the typical 30 percent glass filler has strength and lightweight

properties that are better than glass-reinforced plastics.

Ford is also working to understand the health and safety issues that may be posed by nano-materials. Ford has joined with other

automakers under the U.S. Council for Automotive Research (USCAR) umbrella to sponsor research into nano-materials’

potential impact on human health and the environment. This research has addressed many health and environment-related

questions so that we can focus our nano-materials research and development in areas that will be most beneficial.

Weight reductions alone may have relatively small impacts on fuel economy. By itself, a 10 percent reduction in weight results in

approximately a 3 percent improvement in fuel efficiency. However, if vehicle weights can be reduced even more substantially, it

becomes possible to downsize the powertrains required to run the vehicle. Weight reductions combined with powertrain

rematching not only improves fuel economy, but helps maintain overall performance (compared to a heavier vehicle with a larger

engine).

Battery Management Systems (BMS)

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Introduction of battery

management systems

Electrical systems are another area in which we are making progress. By reducing vehicle electrical loads and increasing the

efficiency of the vehicle’s electrical power generation systems, we can improve fuel efficiency. Our battery management systems,

for example, control the power supply system (in particular the alternator) to maximize the overall efficiency of the electrical system

and reduce its negative impacts on fuel economy. This is accomplished by maximizing electricity generation during the most fuelefficient situations, such as vehicle deceleration. In less fuel-efficient situations, the alternator’s electricity generation is minimized

to conserve fuel. BMSs have already been launched in Europe on the Ford Focus and Mondeo and in the U.S. beginning with the

2011 Ford Edge, Explorer and F-150, the 2011 Lincoln MKX and the 2012 Ford Focus. We will continue to implement BMSs on the

2013 Ford Taurus, Flex, Escape and Fusion and on the Lincoln MKZ, MKX and MKT. We have also introduced more-efficient

alternators, which improve fuel economy.

Aggressive Deceleration Fuel Shut-Off (ADFSO)

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Begin implementing ADFSO ADFSO at high volume

We are deploying Aggressive Deceleration Fuel Shut-Off technology to improve fuel efficiency. ADFSO allows fuel supply to the

engine to be shut off during vehicle deceleration and then automatically restarted when needed for acceleration or when the

vehicle’s speed approaches zero. This new system builds on the Deceleration Fuel Shut-Off technology available in our existing

vehicles by extending the fuel shut-off feature to lower speeds and more types of common driving conditions, without

compromising driving performance or emission.

This improved fuel shut-off will increase fuel economy by an average of 1 percent. An additional benefit is increased deceleration

rates, which should extend brake life and improve speed control on undulating roads.

Starting in 2008 this technology was implemented on the Ford Flex, F-150, Expedition and Escape and the Lincoln MKS and

Navigator. We are continuing to implement it as we bring out new vehicles. For example, the 2011 Ford Edge, Ford Explorer and

Lincoln MKX use ADFSO. The ADFSO technology will be a standard feature in all of our North American vehicles by 2015, and we

will continue to expand implementation globally.

Aerodynamics

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Aerodynamic improvements Additional aerodynamic

improvements

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We are optimizing vehicle aerodynamics to improve the fuel economy of our global product lineup. Using a systems engineering

approach that integrates aerodynamics in an interdisciplinary and collaborative design and development process with other fueleconomy technologies, we maximize the fuel efficiency of every vehicle we develop. During the development process, we use

advanced computer simulations and optimization methods coupled with wind-tunnel testing to create vehicle designs that deliver

up to 5 percent better fuel economy. In addition, we are developing simulation systems that allow us to replicate on-the-road

driving conditions during the virtual design phase, to further improve the real-world benefits of aerodynamic improvements.

In 2011, we introduced an Active Grille Shutter technology that reduces aerodynamic drag by up to 6 percent, thereby increasing

fuel economy and reducing CO emissions. When fully closed, the reduction in drag means that the Active Grille Shutter can

reduce CO emissions by 2 percent. This technology was implemented first on our European vehicles. In the U.S., we have

implemented it on the 2012 Ford Focus and Edge, the 2013 Ford Escape and the all-new 2013 Ford Fusion.

We are making significant improvements in aerodynamics on vehicles introduced for the 2011 to 2013 model years. For example:

We reduced aerodynamic drag in the 2013 Fusion and Lincoln MKZ up to 10 percent, in comparison with the 2012 models,

through extensive aerodynamic improvements, including underbody shielding, tire spoilers, wheels, body shape, vehicle

proportion and Active Grille Shutters. Our aerodynamics engineers even optimized the aerodynamics of wheel and mirror design

to further reduce drag from the front of the vehicle. The 2013 Fusion Hybrid achieved an outstanding drag coefficient of as low as

0.27 – among the best in the world. The 2013 Fusion is also expected to be best in its class for fuel economy. (For more

information on our fuel economy leaders please see Climate Change Progress and Performance (environment-climateprogress-vehicle).)

The 2013 Ford Escape is nearly 10 percent more aerodynamic than the outgoing model.

We have significantly reduced the drag coefficient on the all-new 2012 Focus four-door to 0.297 from the current model’s 0.320.

Optimized aerodynamics also help to reduce wind noise in the Focus.

Aerodynamic improvements helped the 2011 Ford Fiesta SFE achieve a U.S. Environmental Protection Agency-rated 40 mpg.

We continue to leverage our global aerodynamic team to support global product design. Aerodynamics engineers from North

America, Europe, South America and Asia Pacific and Africa collaborated to deliver three of our most important global vehicles –

the 2013 Ford EcoSport, C-MAX and Ranger pickup – with improved aerodynamics.

Smaller Vehicles

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Introduction of additional small

vehicles

Engine displacement reductions

facilitated by weight savings

Smaller vehicles provide consumers with another way to get better fuel economy. We are launching more small cars to provide

more fuel-efficient options. For example:

We are introducing subcompact vehicles commonly referred to as “B-cars.” These include the all-new Ford Fiesta, which was

introduced in Europe in 2008, the Asia Pacific region in 2009 and the Americas in 2010.

We are introducing a wide range of new vehicles in the U.S. and other markets based on our global “C-platform,” or compact

sedan. At the 2011 North American Auto Show we showcased 10 new vehicles based on this C-platform, most of which will be

available in the U.S. in the next few years. In 2011 we are introducing the next-generation global Ford Focus to North America.

This vehicle includes the first in a series of powertrain technology developments that will give our C-car segment offerings a

combination of power, performance and unsurpassed fuel economy. For example, the Focus will be equipped with a

responsive, fuel-efficient, 2.0L I-4 engine with twin independent variable camshaft timing and direct injection, plus a dual-clutch

PowerShift transmission. We also now offer a battery electric version called the Focus Electric. In addition, we are introducing the

Ford C-MAX in the U.S., a multi-activity vehicle based on our C-platform. This vehicle will ultimately include a hybrid and plug-in

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hybrid version.

We brought the European Transit Connect small commercial van to North America. This vehicle fills an unmet need in the U.S.

market by offering the large cargo space that small business owners need in a fuel-efficient, maneuverable, durable and flexible

vehicle package.

In 2012 we revealed the all-new Ford EcoSport compact SUV, which will ultimately be available in nearly 100 markets globally,

including India and Brazil. This vehicle is part of our global commitment to deliver fuel-efficient vehicles that customers truly want

and value.

We have loaded these smaller vehicles with features and options commonly found on larger or luxury vehicles to make them

attractive, thus encouraging customers to choose more fuel-efficient cars and trucks.

All of these smaller vehicles illustrate Ford’s actions to provide consumers with a wider range of fuel-efficient options, as well as

our efforts to leverage the best of our global products to offer new choices to customers in all of our regions worldwide.