Lewis BoothExecutive Vice PresidentFord of Europe and Premier Automotive GroupFord Motor Company

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Climate Change

• One of society’s most fundamental challenges

• Requires a mindset change

• Biggest challenge facing the motor industry today

• Motor industry cannot solve climate change alone

Climate Change

The ideal-- Treat all carbon dioxide molecules equally-- Incentives and disincentives-- Cross-region and cross-sector carbon trading

The immediate reality -- Pro-rata reductions for different industries

Integrated Approach

Today-- Auto industry-- Fuel suppliers-- Government-- Consumers

Unbroken Reduction TrendUnbroken Reduction Trend Intermediate target achieved ahead of timeIntermediate target achieved ahead of time

13% CO13% CO22 emission reduction by 2004 emission reduction by 2004

140

150

160

170

180

190

200

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

CO2

g/k

m

Petrol+Diesel (ACEA)

Petrol (ACEA)

Diesel (ACEA)

Petrol

Diesel

Petrol+Diesel

2003 Indicative Target Range: 165 170 g/km 2008 Target: 140 g/km

Automotive CO2 Emissions Development to date

110

180

190

150

160

170

130

120

140

(g CO2/km)

1998 2007Engine Transmission Ancillaries Tyres Emissions Aero Weight

137

*Approx

1.9

Tonnes

per yr

-63 g/km

*Approx 0.9

tonnes/yr

34%+17 g/km

Technology

Market

Regulatory

DI DieselCommon RailFriction imps

Gear ratiosFriction imps

P/steeringImprovedalternators Low

rollingresistance

St III/IV NOx emiss.

Frontalareamirrors

Customerfeaturesand safety

185

*Approx

2.6

Tonnes

per yr

-48 g/km

*Approx 0.7

Tonnes/yr

26%

* * Based on an average mileage of 14,000km/yearBased on an average mileage of 14,000km/year

Technological Challenge

• Customer will decide

• Solutions must be affordable

• Geared towards volume implementation

• Rapidly adopted

Technological Challenge

• No single solution

• Need a broad portfolio of solutions

• Expensive but unavoidable

Ford Direct Injection Gasoline Engine

Ford Turbo-Diesel with BISGFord Turbo-Diesel with BISG

Ford Focus FFV

Volvo Multi-FuelVolvo Multi-Fuel

Ford Escape HybridFord Escape Hybrid

Ford Edge with Ford Edge with HySeries Drive™HySeries Drive™

Ford E-450 V10 HydrogenFord E-450 V10 Hydrogen

Ford Focus Fuel Cell VehicleFord Focus Fuel Cell Vehicle

Powertrain Building BlocksDiesel EnginesDiesel Engines Alternative Fuel EnginesAlternative Fuel Engines Gas EnginesGas Engines

AdvancedAdvanced Gas Gas EnginesEngines

Advanced Diesel Advanced Diesel EnginesEngines

HEVHEV

Fuel CellsFuel Cells

H2 - ICEH2 - ICETransmissionTransmission TechnologiesTechnologies

Getrag-FordGetrag-Ford PowershiftPowershift

Jaguar XJ Aluminium Bodyshell

Other technologies Other technologies

Integrated Approach

Today-- Auto industry-- Fuel suppliers-- Government-- Consumers

Q&A