FORD’S 10TH ANNUAL SUSTAINABILITY REPORT DETAILS PROGRESS ON BLUEPRINT FOR SUSTAINABILITY

Ford Motor Company’s 10th annual Sustainability Report released today provides a comprehensive look at the company’s progress on environmental and social issues over the past year.

The 2008/2009 reported entitled “Blueprint for Sustainability: Our Future Works” updates the company’s progress in key areas of climate change, fuel economy, mobility, vehicle safety and human rights.

The full report is now available online at www.ford.com/go/sustainability. In the interest of the environment and as a cost saving measure, Ford elected not to do a traditional print version of the report.

On Climate Change
Ford remains on track to reach its goal to reduce by 30 percent the carbon dioxide (CO2) emissions of its new U.S. and European vehicles by 2020, compared to the 2006 model year. To learn more about Ford’s commitment to its climate change strategy, click here.

On Fuel Economy
Ford is committed to make all of its new vehicles either best in class or among the best in class in fuel economy. All of its North American 2010 model year vehicles and many 2009 model year vehicles meet this commitment. To learn more about Ford’s commitment to delivering fuel efficient technologies to millions, click here.

On Electrification
Ford is accelerating the development of battery electric vehicles (BEV) and plug-in hybrids (PHEV), which it will introduce in North America from 2010 to 2012. To learn more about Ford’s commitment to electric vehicles, click here.

On Mobility
With the rise of mega-cities around the world – urban areas of 5 million to 10 million people or more – Ford is working on sustainable mobility solutions that reduce personal transportation’s environmental and social impacts. To learn more about Ford’s commitment to new mobility solutions, click here.

On Human Rights
For several years Ford facilities and those of its joint-venture companies and suppliers have operated under the Ford Code of Basic Working Conditions, which requires products to be manufactured under conditions that demonstrate respect for the people who make them. To learn more about Ford’s commitment to human rights, click here.

On Vehicle Safety
Ford Motor Company holds more Top Safety Pick ratings (awarded by the Insurance Institute for Highway Safety, or IIHS)) than any other automaker and more U.S. government 5-star-rated vehicles than any brand. To learn more about Ford’s commitment to vehicle safety, click here.

On Sustaining Ford
Over the past several years, Ford has undertaken a fundamental restructuring of its operations that affects every part of its business, from product innovation and fuel efficiency to labor relations and its interactions with suppliers and dealers. To learn more about Ford’s plan to return to profitability, click here.

QUOTES

“Our economic and environmental goals are aligned. In fact, we believe that the best way for us to be more profitable is to make our business and products more sustainable.” – Bill Ford, executive chairman, Ford Motor Company

“We recognize these issues are increasingly important to our stakeholders, including our customers, investors and business partners. We want them to understand that we will continue to pursue our sustainability agenda despite very challenging economic conditions.”
– Sue Cischke, Ford group vice president, Sustainability, Environment and Safety Engineering

“Ford’s reporting has benefited greatly from open and honest dialogue with shareholders, environmental organizations and other key stakeholders regarding a variety of sustainability issues, including global climate change and good governance practices.” – Carol Lee Rawn, senior manager of the Transportation Program at Ceres, who led the Ceres stakeholder team that advised Ford on its Sustainability Report

FORD’S ACCELERATED BATTERY RESEARCH DRIVES DEVELOPMENT OF VEHICLE ELECTRIFICATION PLANS

One of the hurdles in the race to develop automotive Lithium-ion (Li-ion) battery systems for high volume hybrid, plug-in hybrid and battery electric vehicle programs is improving the technology’s durability.

Ford’s advanced battery researchers are working with battery suppliers, utility companies and top-tier academic researchers to develop, test and validate high-powered battery systems that are durable enough to last the lifetime of a vehicle.

More Efficient, Less Costly
According to Ford’s advanced battery researchers’ recent findings, which were presented at SAE International’s 2009 World Congress this week, Li-ion battery systems:

• Will be 5 percent more energy efficient than the nickel-metal hydride batteries used in today’s hybrid electric vehicles, and;
• Would be less costly than NiMH in large volumes – approximately 30 percent less expensive at an annual volume of 3 million hybrids

Adaptable Technology
The Li-ion battery packs that Ford will use in its hybrids and electric vehicles, are 25 to 30 percent smaller and 50 percent lighter than NiMH batteries. That makes them easier to package in a vehicle. Unlike NiMH batteries, Li-ion can be tuned to increase power to boost acceleration, or to increase energy to extend driving distance.

Ford will use Li-ion battery systems to power:

• a pure battery electric (BEV) Transit Connect commercial van in 2010
• a BEV passenger car developed jointly with Magna International by 2011
• a Plug-in hybrid electric (PHEV) and next-generation hybrid electric vehicle (HEV) by 2012

Unique Li-ion systems are in development for each type of vehicle, because the drive cycles of BEVs, HEVs and PHEVs have different types of battery storage and usage requirements.

Challenges Remain
The Li-ion battery needed for automotive use is expected to handle a multitude of vehicle operations under extremely hot and cold conditions, making thermal and safety management much more complex than that needed for batteries in consumer electronics, such as laptops.

Testing Underway
Ford is accelerating its research, development and testing of advanced Li-ion battery technology, thanks, in part, to a $55 million tax credit incentive from the Michigan Economic Development Corporation. Ford has engaged researchers at the University of Michigan and the Massachusetts Institute of Technology (MIT) to conduct digital simulation tests, collecting degradation data that Ford and its battery suppliers have used to improve Li-ion performance.

In addition, Ford has entered into research partnerships with eight regional electrical utility companies to conduct real-world tests on Li-ion-powered Ford Escape PHEVs.

These vehicles:

• Use a common household current (120 volts) for charging, with a full charge of the battery completed within six to eight hours
• Can achieve up to 120 mpg when driven on surface streets for the first 30 miles following a full charge
• Operate in two modes, electric drive and blended electric-engine drive
• Run as a fuel-efficient standard Ford Escape Hybrid one the charge in the battery as been depleted

QUOTES

“Ford is strongly positioned to accelerate its electric vehicle strategy this year thanks to the significant research we’ve already completed. Our collaborative work with suppliers and partners will help us be one of the first automakers to bring the next generation of personal transportation to market.” – Susan Cischke, Group Vice President, Ford Sustainability, Environment and Safety Engineering

“Our PHEV fleet is a direct result of our Li-ion research, and the data mined from these field tests will provide crucial information as we make advances in battery technology.” – Ted Miller, Manager, Ford Energy Storage Strategy and Research

“The efforts of Ted Miller’s team to reduce the cost and mass of Li-ion systems have been important to the research community at large. Their efforts are yielding improved Li-ion systems, and more knowledgeable workers.” – Ann Marie Sastry, Professor of Mechanical Engineering and
Director of the University of Michigan’s Energy Systems Engineering Program

Li-ion Battery Plant Investment Boosts Ford’s Electrification Plans

Ford Motor Company is another step closer to putting plug-in hybrid electric vehicles into production with supplier Johnson Controls-Saft’s announcement Tuesday that the battery maker plans to build its first U.S. cell manufacturing facility for Lithium-ion (Li-ion) battery systems in Holland, Mich.

Ford recently entered into a partnership with Johnson Controls-Saft to develop an advanced Li-ion battery system to power Ford’s first commercial plug-in hybrid (PHEV) as part of its electrification strategy.

Ford will use Li-ion battery systems to power:

• a pure battery electric (BEV) Transit Connect commercial van in 2010

• a BEV passenger car developed jointly with Magna International by 2011
• a plug-in hybrid electric (PHEV) and next-generation hybrid electric vehicle (HEV) by 2012

Unique Li-ion systems are needed for each type of vehicle, because the drive cycles of BEVs, HEVs and PHEVs have different types of battery storage and usage requirements.

Michigan’s Bid for Battery Dominance

Johnson Controls-Saft, a leading global provider of hybrid battery systems, announced that it will receive a combination of tax credits and incentives from the state of Michigan totaling $148.5 million.

The estimated cost to renovate Johnson Controls-Saft’s Holland, Mich., facility for Li-ion automotive battery production is approximately $220 million. Initial capacity is expected to be 15 million Li-ion cells.

Johnson Controls-Saft is one of four companies investing a total $1.7 billion to launch advanced battery manufacturing facilities in Michigan as part of the state’s strategy to become what Governor Jennifer M. Granholm calls the “advanced battery capital of the world.”

LG Chem-Compact Power Inc., KD Advanced Battery Group LLC and A123Systems Inc. also have announced projects that are expected to contribute to the creation of more than 6,600 new jobs in the Michigan.

Quotes:

“These incentives are an important step to building a domestic advanced battery industry. Johnson Controls-Saft is well positioned to become a key manufacturer of advanced lithium-ion batteries for electrified vehicles and we have partnered with them to supply our plug-in electric vehicle coming in 2012, as part of our overall electrification strategy.”
– Susan Cischke, group vice president of Sustainability, Environment and Safety Engineering
Ford Motor Company

“Battery technology is strategically important to the future of the U.S. automotive industry and the economy at large. Our first U.S. plant will bring about 500 jobs to Michigan, and many additional jobs through suppliers and the businesses these employees will support. It is a key element of our broader strategy and commitment to the hybrid vehicle industry in North America.”
– Alex Molinaroli, president of Power Solutions for Johnson Controls