Airport Ground Transportation Association Doug Walczak Limousine & Livery Manager

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Airport Ground Transportation Association

Doug WalczakLimousine & Livery Manager

Ford North American Fleet, Lease, & Remarketing Operations

4/8/08

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Why High Oil prices

Haven't Cut Demand

Bush Seeks to “Break Addiction” to Foreign Oil

Energy Bill won’t wean US off of oil imports

…CO is down 62%, SO2 is down

52% and NOx is down 24% in gas powered vehicles

External Factors have Triggered Increased Environmental Focus

What is the impact on your company?

http://www.msnbc.msn.com/

http://www.washpost.com/index.shtml

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Questions for You

1. What is your company’s environmental objective? If alternative fuels are the focus….. Is it to meet regulatory

requirements or to modify your existing fuel policy? If emissions compliance is the focus……. is it a reduction in

Greenhouse Gas (CO2)? Is it to promote a corporate environmental image?

2. How does your vehicle fleet play a role in achieving your company’s objective?

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What you ask for Clean Air

Global Warming/

Sustainability

Energy Independence

Fuel Economy

What It Means

Tailpipe Emissions

of NMOG/HC.

Low EVAP of HC

Reduction of fossil fuels & reducing CO2 to a

sustainable level using renewable fuels

Conservation & reduction of

petroleum based fuels

Increased mileage capability / gallon

gas

Ethanol Operation

PZEV Emissions

ICE Gas Technology

Diesel Operation

Hybrid Operation

Becoming Environmentally Friendly

d

a

b

c c

A) Hybrid with PZEV operation (AT-PZEV)B) Improves as you move from “corn” based to cellulosicC) Improves with long term move to bio-dieselD Coupled with PZEV emissions operation

Leverage a flexible array of technology options including Hybrids, Clean Diesels, Bio-diesel and Ethanol

Advance research on Lithium battery hybrids, H2ICE and Fuel Cell technology

Customers will decide what technology best suits their needs for the future

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Near Term Mid Term Long Term

Sp

ecif

ic B

en

efi

t

Deployment Timeframe

Hybrid PowertrainFE % 5 - 45

Diesel I.C.E.FE % 25 – 35

Today

Hydrogen I.C.E.FE % 20 - 25

3x Cost3x Cost

5x Cost5x Cost

100x Cost100x Cost

Advanced Gasoline I.C.E.FE % 15 - 20

1.2x Cost1.2x Cost

Flexible Fuel EnginesFE % (15) – (25) / >500%

1.01x Cost 1.01x Cost

1.5x Cost1.5x Cost

Fuel CellFE % 90 -

Powertrain Technologies – Timeline

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Pathway to the Future: Advanced Technology

Advanced Gasoline InternalCombustion Engines (ICE)

(Including Biofuels)

Modern Clean Diesels(Including Biodiesel

Hybrid Powertrains(Including Plug-Ins)

Fuel Cells

Gasoline Engine Efficiency: Core for 30+ yrs• Low cost, reliable, familiar• Existing capital & refueling infrastructure

Modern Clean Diesel: Core for next 40+ yrs• Challenges – fuel quality, Tailpipe Emissions

standards

Hybrid Powertrain: 10-• Market driven niche solution• Benefits realized in urban driving conditions

Hydrogen Internal Combustion Engines: Bridging technology

• Bridging action / enabler for H2 Economy• H2 emissions benefits realized in near term

Fuel Cell: Impact in 20-30 yrs • Endgame for the hydrogen economy• Environmentally neutral powertrain



standards

Hybrid Powertrain: 10-15% Market • Market driven niche solution• Benefits realized in urban driving conditions




Hydrogen PoweredInternal Combustion Engines


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Advanced Gasoline Engines

Benefits Reliable and familiar

to consumers Compatible with

ethanol fuel blends up to 10%

U.S. gas prices relatively low compared to other markets

Approaching near-zero emissions

Fuel economy tradeoffs required to comply with increasingly stringent emissions and safety standards

Cost effectiveness of incremental technologies

Challenges Key Facts Incremental

improvements in efficiency are being achieved via: Six Speed Transmissions, Variable Displacement Engines, Direct Injection, Variable Cam Timing, Variable Compression Ratios

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EcoBoost Engine Technology

EcoBoost – Ford Motor Company’s new high-volume engine technology:

o uses gasoline turbocharged direct-injection for up to 20% better fuel economy and 15% fewer CO2 emissions

Available in half a million vehicles during the next five years beginning with the new Lincoln MKS sedan in 2009

o 3.5L twin-turbocharged V-6 delivering power (340 hp) and torque (340 lb. ft.) of a V-8 with the fuel efficiency of a V-6

Real-world fuel economy benefit is achieved in all drive cycles – city and highway

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A Pathway for Today:Ethanol (E85)

● Ethanol has been a transportation alternative fuel choice for more than 10 years

● About 4.9 billion gallons of ethanol were produced for transportation purposes in 2006

● Most U.S. ethanol is currently derived from corn

● Ethanol produced from cellulosic feedstocks planned for the future

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Why Ethanol Now?Opportunity for Immediate Impact

• Ford has placed over 2 million E85 FFVs on America’s roads

• As a whole, U.S. automakers have produced more than 6 million E85 flexible fuel vehicles

• If all of these vehicles were operated on E85, over 3.6 billion gallons of gasoline a year could be displaced.That’s like saving a full year of gasoline consumption in a state like Missouri

or Tennessee.

• Ford, GM and DaimlerChrysler voluntarily committed to doubling our production of FFVs by 2010.We expanded that commitment to include half our vehicles each

year by 2012, provided sufficient infrastructure is in place

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E85 Flex Fuel

Benefits Promotes U.S.

energy security and fuel diversity

Agricultural-based renewable fuel

Offers fuel flexibility for customers

Incremental cost absorbed by Ford

Limited fuel infrastructure

Fuel cost vs. gasoline – 20% price differential needed

Customer acceptance of fuel

Fuel system components more expensive than gasoline

Challenges Key Facts Over 6 million E85

FFVs on the road today in the U.S.

About 1,100 E85 stations in the U.S.

The 5.4L F-Series is Ford’s latest FFV

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What Is Needed?More E85 Stations Will Solve The “Chicken & Egg” Problem

E85 Availability Primarily in the Midwest (presently about 1,100 stations – out of about 170,000 retail gasoline stations nationwide)

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Ethanol Vehicle Availability (E85)

Three new products - Crown Victoria Police, Taxi and E-Series

50 State Certification on F-150, Crown Victoria, Grand Marquis

New Yellow Gas Cap highlighting E-85 capability

Three new products - Crown Victoria Police, Taxi and E-Series

50 State Certification on F-150, Crown Victoria, Grand Marquis

New Yellow Gas Cap highlighting E-85 capability

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Fuel Cells



standards







standards







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Advanced Technology Diesel

Benefits Significant increase

in fuel economy (20-30%)

Higher performance, less noise, less odor

Improved emissions Ample refueling

infrastructure

Lingering public perception

Meeting stringent U.S. emission standards

Fuel quality improvements (low sulfur, cetane)

Higher incremental cost for vehicle and fuel

Challenges Key Facts All Ford diesel

applications can use 5% biodiesel blends

Low Nitrous Oxides (NOx) levels may be achieved with urea co-fueling

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B-20 Applications

•All New 6.4L Diesel launched with the 2008 MY Super Duty

•Ford Powertrain Engineering presently developing B-20 capabilities

•Working with Fuel partners on development of B-20 specification

•Pilot Demonstrator Program is in development

•All New 6.4L Diesel launched with the 2008 MY Super Duty

•Ford Powertrain Engineering presently developing B-20 capabilities

•Working with Fuel partners on development of B-20 specification

•Pilot Demonstrator Program is in development

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Fuel Cells



standards







standards







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Hybrid Electric

Benefits Significant increases

in fuel economy(full hybrids)

Uses existing fueling infrastructure

Can achieve near zero emission levels

Full-hybrid technology is most effective in city and stop-and-go driving

Incremental cost for hybrid option

Limited U.S. supply base for battery technology

Applications to broader vehicle segments (i.e. trucks, larger SUVs, etc.)

Customer acceptance/ value

Challenges Key Facts Wide variety of hybrid

technologies exist across the industry (mild to full)

Ford delivered 20 HEV-FFV demo vehicles this spring

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Ford’s “Family of Hybrids”

Ford Fusion & Mercury MilanProduction beginning in 2008 CY

Ford Escape & Mercury Mariner• Available now

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Escape Hybrid Taxi

Ford Escape Hybrid Taxi has received overwhelming positive press and awareness as a result of its successful fleet application

o USA Today – San Francisco Taxio CNN – New York Escape Hybrid Taxi

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Current Fleet – 328 vehicles Taxi Locations

– San Francisco Feb 2005 (40)

– New York City Nov 2005 (288)

Annual Vehicle Environmental Benefits* Savings of 1,666 gallons of gasoline

Removal of 32,000 lbs of carbon emissions

Vehicle Durability– Up to 200,000 miles, San Francisco

Driver Benefits– Taxi Drivers save up to $30 / shift or more

than $6,000 annually in fuel

Hybrid Taxi FleetHybrid Taxi Fleet

* Annual savings based upon San Francisco experience of 100,000 miles per year.

Ford holds more than 150 patents on Ford holds more than 150 patents on the Hybrid Escapethe Hybrid Escape

FWD Escape rated at 36mpg in city FWD Escape rated at 36mpg in city driving & provides 500 miles to a tankdriving & provides 500 miles to a tank

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Escape Hybrid E-85 Demonstration Fleet

Demonstration program marrying two petroleum-saving technologies – hybrid electric and flex fuel

20 vehicles delivered for real world testing and engineering evaluation

Helps reduce dependence on imported oil

Produces about 25% less carbon dioxide than a gasoline-fueled Escape Hybrid

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Hybrid E-Series Commercial Chassis

E-Series strip chassis Parallel Hybrid design using the 5.4L 5R110 Powertrain All development and integration done by Azure Dynamics Electric motor in drive train providing regenerative braking plus

additional start up power. Engine off capability and limited full electric mode operation also provided.

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Plug-in HybridsPlug-in Hybrids

Benefits Breakthrough fuel

economy improvements for customers with 20-40 miles daily use

Off-peak electric charging provides low-cost power opportunity

Interconnectivity with home/business power system can offset peak load costs

High cost of battery storage systems (2-3x hybrid systems) requires new business model involving wind, utilities, renewable fuel providers and policy makers

Battery must complement stationary applications to ensure high residual value after vehicle use

Challenges Key Facts Ford and Southern

California Edison collaborating on industry first demo program

Ford to deliver small fleet of vehicles for testing

High-density lithium ion battery cost exceeds $15,000; long-life characteristics can support vehicle and post-vehicle energy storage applications

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Fuel Cells



standards







standards







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Hydrogen Powered Internal Combustion Engines (H2ICEs)

Key “Bridge” Technology

H2ICE Shuttle Bus Demonstration w/6.8L Supercharged H2 Triton V10

Holds up to 12 passengers plus luggage

Worked with State of Florida, Dallas-Ft.Worth airport, Canadian government and others to launch a demo fleet

Key “Bridge” Technology

H2ICE Shuttle Bus Demonstration w/6.8L Supercharged H2 Triton V10

Holds up to 12 passengers plus luggage

Worked with State of Florida, Dallas-Ft.Worth airport, Canadian government and others to launch a demo fleet

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Fuel Cells



standards







standards







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Fuel Cell

Benefits Zero Emission

Vehicle (ZEV) Breakthrough

performance in energy efficiency

Hydrogen can be derived from multiple sources

Promotes long-term renewable fuel vision

High cost of technology

On-board hydrogen fuel storage

Hydrogen infrastructure is in its infancy

Lack of uniform codes and standards

Challenges Key Facts DOE demonstration

projects are under way

Significant volume applications are not expected before 2030+

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Edge HySeries Drive Hybrid

First drivable fuel cell HEV with plug-in capability

Operates using a fuel cell, small gasoline or diesel engine connected to an electric generator

Powered by a 336-volt lithium-ion battery pack (refreshed by an on-board charger from a standard home outlet)

Drives first 25 miles on stored electricty, after which the fuel cell kicks in to keep battery charged (provide additional 200 miles range

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Environmental Interiors

First U.S. automotive application of seating surfaces made from 100% post-industrial materials. Positive benefits include:

o Estimated conservation of 600,000 gallons of watero 1.8 million pounds of carbon dioxide equivalentso More than 7 million kilowatt hours of electricity annually

Soy foam technology launched in the Mustang seat cushions and seat backso Potential to replace up to 30 pounds of petroleum based foam used today

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EasyFuel – Capless Fuel Fill Technology

Industry exclusive feature

Eliminates the need for a fuel cap speeding up the refueling process

Provides a better seal than a fuel cap which reduces the escape of smog-producing emissions

Eliminates annoying false “Check Engine” light

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Eco-Friendly Paint

• Industry-first paint technology that is better for the environment• Combines an advanced chemical formulation of high solids, solvent borne

paint with innovative three-part wet application process• Reduces CO2 emissions by 15% & Volatile Organic Compounds (VOC)

emissions by 10%• Ford won “Best Technical Prize” for the new paint technology at the

International Conference on Automobile Body Finishing

• Industry-first paint technology that is better for the environment• Combines an advanced chemical formulation of high solids, solvent borne

paint with innovative three-part wet application process• Reduces CO2 emissions by 15% & Volatile Organic Compounds (VOC)

emissions by 10%• Ford won “Best Technical Prize” for the new paint technology at the

International Conference on Automobile Body Finishing

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Environmental ManufacturingFord Rouge Manufacturing Plant Worlds largest living roof

Controls storm water run-off

Cools the plant in the summer

Lasts longer than a conventional roof

Never needs to be mowed

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2008 Mariner Hybrid Livery Package

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Livery PackageOption Code 47L

Mariner Hybrid Livery Package: Heated front seats Premium leather seating surfaces Lumbar controls Energy Flow Navigation system Reverse Sensing System Roof rack with satin inserts & black

cross bars Heated mirrors Body-color exterior mirrors Cargo area cover 110V AC power outlet 4-year/100,000 mile ExtraCare ESP for

livery vehicles

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Full Hybrid

A full hybrid operates in four functional states:1) Automatic gas engine start/stop2) Full regenerative braking3) Full electric launch and drive4) Electric assist

A full hybrid has a larger, more powerful battery pack and can be powered entirely by electric power.

A mild hybrid is essentially gasoline-powered, using the electric motor only to assist the gas engine as needed.

Full hybrids also take advantage of the efficiencies of hybrid technology by:– Recharging the batteries during braking (full regenerative braking)– Moving the vehicle solely by electric power

Full hybrids are more efficient than mild hybrids, which do not employ full regenerative braking or electric-only operation

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Hybrid Function / Benefits

HEV Type

Battery Size

Electric Motors

Regen.Braking

Start/ Stop

Electric Launch

Electric Only Mode

MetroHwy Fuel

Economy Benefit

Starter/Generator

Drive eAWD

Saturn VUE HEV Mild 36V 4 kW - - Minimal Y N Brief 20%1

Honda Accord Medium 144V 12kW4 - - Y Y N N 30%

Toyota Prius Full 201.6V 29kWEstimate2

50kW - Y Y Y Y NA3

Toyota Camry HEV Full 244.8V 75kWestimate2

105kW - Y Y Y Y 43%

Toyota HighlanderLexus 400H HEV

Full 288 V 78kWestimate2

123kW 50kW Y Y Y Y 45%

Ford Escape HEVMercury Mariner HEVMazda Tribute HEV

Full 330V 45kW 70kW - Y Y Y Y 42%

1 Saturn VUE HEV 20% FE benefit – approximately 5% is from BISG HEV, while approximately 15% are from other vehicle actions (aero, engine actions - 2.2 I4 to 2.4 VVT I4, DFSO, FDR, weight, others)

2 Toyota does not publish starter/generator motor values, therefore these numbers are estimates based upon battery and drive motor size.3 Toyota Prius does not have an equivalent gasoline vehicle, so the fuel economy percent benefit cannot be determined.

Competitive System OverviewMild vs. Full Hybirds

4 Honda Accord electric motor provides starter, generator, and electric boost (supplemental torque) functions, but cannot operate alone without the gasoline engine.

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Key Comparison Data

VEHICLE LINE: 2007 Toyota Prius 2008 Mariner Hybrid

Mechanical

Gas 76 hp @ 5000 rpm 133 hp @ 6000 rpm

Electric 67 hp @ 1200-1540 rpm 94 hp @ 5000 rpm

Hybrid System Net Power 110 hp (82 kW) 155

EPA Estimated MPG (C/H) 60/51 34/30

Key Specifications

Passenger Volume 96.2 99.4

Cargo Capacity 14.4 29.2

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Tax Credits

For 2008MY, Escape and Mariner Hybrid tax credits have increased due to improvements in real world fuel economy

FWD: $2600 $3,0004WD: $1950 $2,200

Mariner now has the highest Mariner now has the highest Hybrid tax credit of ANY vehicleHybrid tax credit of ANY vehicle

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Thank You!

Documents

Airport Ground Transportation Association Doug Walczak Limousine & Livery Manager