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Future PowertrainsGlobal Opportunities & Challenges

Sue CischkeVice President of Environmental & Safety Engineering

January 14, 2004January 14, 2004

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Overview

• Powertrain Drivers

• Powertrain Technology Solutions

• Ford’s Powertrain Technology Development

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Powertrain Drivers

• Climate Change

• Fuel Economy

• Emissions

• Customer Satisfaction

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C02, Fuel Economy and Energy Independence are public and political issues worldwide. However, regional differences exist and drive different technology solutions.

North America• Currently a Gas market • Energy security and fuel

efficiency goals drive diesels and HEV’s

Europe• Currently a split Gas/Diesel

market • High fuel tax and climate focus

continue to drive EU further toward diesel

Japan• Currently a Gas market but

with growing HEV penetration

• High fuel tax, emissions (smog) and climate focus drive HEV development in Japan today

• Energy dependencies may drive to H2 solutions sooner then rest of world

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Diesels offer ~25% CO2 benefit versus gasoline engines

Diesel Technology Lowers Fuel Consumption and Carbon Dioxide Emissions

100

110

120

130

140

150

160

170

180

190

200

1995 1996 1997 1998 1999 2000 2001 2002

CO

2 g

ms/

Km

Petrol-fuelled vehicles

Diesel–fuelled vehicles

German vs. US Annual Vehicle Fuel Taxes

0

200

400

600

800

1,000

1,200

1,400

1,600

1.4LPetrol

1.4LDiesel

1.8LPetrol

1.8LDiesel

2LPetrol

2LDiesel

4.4LPetrol

3LDiesel

Euro

s

GermanyUS

Higher Fuel Prices Drive Smaller Vehicles and Different Technoogy Solutions

$-

$1

$2

$3

$4

$5

$6

US Europe

$ pe

r US

gallo

n

GasolineDiesel

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Emissions regulations continue to drive technology advancement. Differences in standards worldwide result in different solutions.

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

Gasoline Challenges:Emissions Regulations

LEV/Bin 5

ULEVSULEV

EU III

EU IV

Tier 1

NOx, g/mi

HC

, g

/mi

Lower Emissions

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NOx and Particulate emissions are driving future diesel technologies. New technologies will add significant cost and result in attribute trade-off risks.

Diesel Challenges:Emissions Standards

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

NOx, g/mi

PM

, g

/mi

LEV/Bin 5

Bin 10

Euro 4 PC

Euro 3 PC

Japan(~2006MY)

Lower Emissions

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Customers increasingly demand a variety of attributes from their Powertrains

• Performance feel

• Quietness

• Quality and reliability

• Fuel economy and range

• Towing performance

• Affordability

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HEVHEV

Fuel CellFuel Cell

Advanced Gas Engines

Advanced Gas Engines

Gas EngineGas EngineDiesel EngineDiesel Engine

Advanced Diesel Engines

Advanced Diesel Engines

H2-ICEH2-ICE

H2

Alternative Fuel EnginesAlternative Fuel Engines

Technology Solutions

10Well to Wheels CO2 (g/km)

Tailp

ipe N

Ox E

mis

sio

ns

Renewable H2 Fuel

Cell

H2 (NG) Fuel Cell

Renewable

Gasoline Engine

Infrastructure Changes

Carbon Sequestration

Renewable Fuels (H2 or Bio-Fuels)

Current Gasoline Engine

Gasoline Engine Hybrid

Advanced Diesel Engine

Advanced

Gasoline Engine

Diesel Engine Hybrid

Renewable Diesel Engine

Powertrain Technology

Limit

With conventionally derived fuels, air quality differentiates powertrain options more than CO2. New infrastructures are required to reach zero CO2

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Traditional powertrains will be increasingly supplemented by one or more advanced alternatives. No single global technology solution has yet emerged.

Consequently, Ford, and other manufacturers, continue to develop all of these Powertrain Technologies

Near Term Mid Term Long Term

Sp

ecifi

c B

en

efi

t

Deployment TimeframeDeployment Deployment Development

Advanced Gasoline

Hybrid Powertrain

Diesel

Today Fuel Cell

Hydrogen I.C.E.

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Ford Motor Company‘s Powertrain Technology Development

Ford Motor Company‘s Powertrain Technology Development

• Advanced Gasoline Engines

• Advanced Diesel Engines

• Hybrid Electric Vehicles

• Hydrogen Internal Combustion Engines

• Fuel Cell Electric Vehicles

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• Acceleration performance similar to a V-6

• Significant improvement in FE vs. V-6

• Cleaner vehicle, meeting SULEV tailpipe emissions standard

• All the advantages of hybrid technologywhile maintaining all of the benefits of the base Escape, including interior roominess and versatility

• Confidence of authentic Ford SUV

• A superior value that is the rightchoice for the environment

No Boundaries …Room, Range, Performance and Green – The Smart Choice!

The Ford Escape Hybrid offers:

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Hydrogen: The Long-Term Fuel Solution?Hydrogen comes with new decisions and challenges.Hydrogen: The Long-Term Fuel Solution?Hydrogen comes with new decisions and challenges.

ProductionProduction

Storage On-BoardStorage

On-BoardInfrastructureInfrastructure

PowertrainFuel Cell vs. ICE

PowertrainFuel Cell vs. ICE

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Infrastructure: Must Be A Cooperative Effort

OEMs

Energy Providers Government

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H2 ICE EngineH2 ICE EngineH2 ICE Hybrid (H2RV)H2 ICE Hybrid (H2RV)

Fuel Cell VehicleFuel Cell Vehicle

• Fuel Cell Demo Fleet

• H2 Research Vehicle (H2RV)

• Next Gen Fuel Cell Vehicle

• H2ICE Demo Fleet

• Fuel Cell Demo Fleet

• H2 Research Vehicle (H2RV)

• Next Gen Fuel Cell Vehicle

• H2ICE Demo Fleet

Ford is Preparing for a H2 Economy

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Ford Fuel Cell Vehicles

1999

P2000 HFC

CGH2

1999

P2000 HFC

CGH2

2000

Ford Focus FC5

Methanol

2000

Ford Focus FC5

Methanol

2000

Ford Focus FCV

CGH2

2000

Ford Focus FCV

CGH2

2001

Mazda Premacy

Methanol

2001

Mazda Premacy

Methanol

2002

FCEV Hybrid

CGH2

2002

FCEV Hybrid

CGH2

2003 Fuel Cell Vehicle2003 Fuel Cell Vehicle

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What Is Ford Motor Company Doing to Address the Challenges of Fuel Cells?

• Core Fuel Cell Technology Development

Alliance with Daimler-Chrysler and Ballard

Integration of Core Technology into Vehicle Programs

• Vehicle Programs

Demonstrations

Low Volume Production Programs

• Partnerships with Government Agencies

• Core Fuel Cell Technology Development

Alliance with Daimler-Chrysler and Ballard

Integration of Core Technology into Vehicle Programs

• Vehicle Programs

Demonstrations

Low Volume Production Programs

• Partnerships with Government Agencies

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R&D Targets for Fuel Cell Technology

• Improvement of Fuel Cell Cost Reduction Power Density Increase Mass Production Durability

• Meet System Demands Cold Start Operation at High and Low Temps Durability Insensitivity to Air Impurities Vehicle Range Hydrogen Storage

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Summary• Selecting a single “winning” Powertrain Technology

solution for all markets and time frames is not possible.

• As technologies become more complex, manufacturers are challenged with affordably developing all options

• Our industry should continue to work with governments and energy suppliers worldwide to develop the infrastructures for making and delivering renewable H2, or other fuels

• Ford continues to advance Powertrain Technology on all fronts