FORD HYBRID VEHICLE LEADERSHIP CONTINUES WITH NEW TECHNOLOGY AND TAXI FLEET IN NYC

• Ford confirms development of third-generation of hybrids as part of its commitment to increase production ten-fold, to 250,000 units annually by 2010
• Development will be in house, and new transaxle will be capable of handling both 4-cylinder and 6-cylinder engines
• Ford’s hybrid leadership continues with the debut of Escape Hybrid taxis in New York City

DEARBORN, Mich. Nov. 9, 2005 – Ford Motor Company today took another step toward delivering on its commitment of putting 250,000 hybrid vehicles a year on the road by 2010, announcing that engineering work is under way on the third-generation of its hybrid transaxle.

“To grow our hybrid business, we have to be able to provide ourselves more flexibility,” says Dr. Gerhard Schmidt, Ford vice president of Ford Research and Advanced Engineering. “We have a good partner now on our current transaxle, but we need to control our own destiny. This is an investment in our future.”

The transaxle is the central device in Ford’s hybrid vehicles, responsible for transferring the power from the battery and/or the gasoline engine to the wheels. The hybrid transaxle also allows for the recovery of kinetic energy through the hybrid’s regenerative braking system.

Ford’s third-generation transaxle will be capable of handling both 4-cylinder and 6-cylinder engines.

The Ford Escape Hybrid and Mercury Mariner Hybrid are equipped with Ford’s first-generation transaxle, which Ford developed jointly with Aisin AW. In 2008, the Ford Fusion Hybrid and Mercury Milan Hybrid will come equipped with Ford’s second-generation transaxle.

With each new generation of transaxles, Ford is improving the fuel efficiency of its hybrids and reducing the cost of the system.

“As hybrids grow to mainstream volumes in the United States, we need to develop a supply base here, too,” Schmidt said. “We are taking the necessary steps to develop the technology, the intellectual expertise and the great products to make hybrid vehicles as commonplace as any other powertrain.”

Ford Escape Hybrid Taxis in New York City
Ford also announced that the Ford Escape Hybrid would debut this week as one of the first hybrid taxis carrying passengers throughout the five boroughs of New York City. Ford, the New York City Taxi & Limousine Commission and the Coalition for Smart Transportation will mark the milestone on Thursday.

For years, the streets of New York have been the territory of Ford Crown Victoria taxis. However, the Escape Hybrid is no stranger to the streets of New York. In 2001, the vehicle made history when it traveled 575 miles of traffic-clogged Manhattan streets over 36 hours on a single tank of gas.

Ford currently produces approximately 24,000 hybrid vehicles annually. Ford is the only American auto company with a hybrid on the road today and was the first in the world to offer an SUV hybrid.

The Ford Escape Hybrid, the cleanest, most fuel-efficient SUV on the road, is built at Ford’s Kansas City Assembly Plant.

By 2010, Ford plans to increase hybrid production to approximately 250,000 units annually – with more than half of the Ford, Lincoln and Mercury lineup to have hybrid capability.

“As we move toward delivering 250,000 hybrids by 2010, we are ramping up our capacity for hybrids and working to improve the business equation,” Schmidt said. “This involves our new transaxle and continuing to research advanced hybrid technologies to make our vehicles even more efficient.”