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

For the past year the Los Angeles County Lifeguard Service, a division of the fire department, has used a fleet of 2009 Ford Escape Hybrids to help save lives while reducing fuel consumption and protecting the environment. During the first 11 months of service, Escape Hybrids have played a crucial part in thousands of rescues and more than a million rescue preventions at L.A. County beaches.

Seaside Escapes
More than 58 million people visit Los Angeles’ sandy beaches every year, and the number is going up. Public safety is the primary concern of Los Angeles County lifeguards, who use a fleet of 45 customized Escape Hybrids to patrol 72 miles of coastline.

After nearly a year of beach patrol, L.A. County lifeguards and officials say the Escape Hybrids have been valuable tools in efforts ranging from saving injured surfers to moving swimmers out of rip currents to reuniting lost children with their parents.

Escape Hybrids have become critical tools for the lifeguards stationed in Malibu, for example. Last October, they used three Escape Hybrids and an F-350 in the rescue of two men involved in a single-engine plane crash near the Malibu Pier. In January 2009, lifeguards used an Escape Hybrid to tow a wave runner into position to launch a rescue of a capsized kayaker who was at risk of hypothermia. Two months later, lifeguards patrolling in an Escape Hybrid were in the right place at the right time to rescue a surfer who had been knocked unconscious in the water and was in danger of drowning.

Geared Up
The customized Escape Hybrids enable L.A.’s lifeguards to efficiently stow rescue gear and protect it from the elements, said Fernando Boiteux, the department’s northern section chief. Based on input from the lifeguards, Ford designers removed 60 percent of the rear seat on the driver’s side and replaced it with a rescue equipment storage unit – an aluminum box with specially designated spaces for important emergency equipment, such as defibrillators, trauma boxes and oxygen tanks. The remaining 40 percent of the seat was left intact in case the lifeguards had to transport someone, such as a lost child.

Ford designers also outfitted the Escape Hybrids with a custom-fit roof rack for the lifeguards’ paddle board and spine boards. The vehicles were painted a vibrant yellow – iconic for lifeguards – and then detailed with authoritative graphics and finished off with dark wheels.

The lifeguards said their Escape Hybrids offer excellent visibility, a significant safety plus on the beach, and that the four-wheel drive feature enables them to navigate the sandy terrain without getting stuck and make more precise turns.

Protect and Conserve
In addition to saving lives, the Escape Hybrid fleet enabled L.A. lifeguards to reduce their entire fleet’s fuel usage by 25 percent – more than 5,000 gallons of gas – during the first six months of service despite increased driving due to 20 percent higher beach attendance than the previous year. The fuel cost savings has helped L.A. County to maintain its critical front line staffing despite the economic downturn.

The lifeguards use four-wheel-drive Escape Hybrids, which deliver outstanding fuel economy of 29 mpg city and 27 mpg highway; also available is the front-wheel-drive Escape Hybrid – the most fuel-efficient SUV on the planet – which is delivers 34 mpg in city driving and 30 mpg on the highway. The lifeguards also use six F-350s and two F-250s along with other specialized vehicles.

In addition to fuel savings, the lifeguards reduced their fleet’s emissions by approximately 97,500 lbs. (44,250 kg) of CO2 during the first half year of service. The Escape Hybrid is one of the cleanest vehicles available today, meeting California’s strict Partial Zero Emissions Vehicle (PZEV) standard.

Safety and Technology Advances
The 2010 Escape and Escape Hybrid, which arrive in showrooms this summer, add five new features that can help improve safety, reduce driver distractions and aid drivers by automatically parallel parking their vehicle.

The new Escapes will add MyKey™ teen-safety technology, Integrated Spotter Mirrors – both offered standard (MyKey on XLT and above models) – optional Rear View Camera System and SYNC with real-time Traffic, Directions and Information. The new model also will be North America’s first SUV to offer Active Park Assist, which uses an ultrasonic-based sensing system and Electric Power Assisted Steering (EPAS) to position the vehicle for parallel parking, calculate the optimal steering angle and quickly steer the vehicle into a parking spot.

The new technologies build on Escape’s unsurpassed crash ratings – a “Top Safety Pick” award from the Insurance Institute for Highway Safety (IIHS) and 5-star government ratings in all crash tests. The Escape, which Kelley Blue Book editors recently named one of the “2009 Best New Family Vehicles,” also is the only compact SUV to offer standard AdvanceTrac® with RSC® (Roll Stability Control) and a standard Safety Canopy® side curtain air-bag system.

QUOTES

“When we partnered with the L.A. County lifeguards we knew the Escape Hybrid would serve them well by providing clean, fuel-efficient transportation with a high degree of utility and durability. Now, we’re absolutely thrilled to know the fleet has been a reliable tool in so many lifesaving efforts.” – David Finnegan, Ford Hybrids Marketing Manager

“Our philosophy in LA County is to be proactive and prevent rescues before they happen. Mitigating hazardous conditions is the prime reason for our amazing safety record. Our Ford fleet of Escape Hybrids is an integral part of our entire lifeguard operation – we’re saving lives and the environment.” – Mike Frazier, Chief Lifeguard, Los Angeles County Fire Department

“Not only does the Escape Hybrid play a key role in our lifeguard rescue activities, it also is one of the cleanest vehicles available today, releasing fewer emissions into the atmosphere during a three-hour drive than grilling one hamburger in your backyard.” – Dusty Crane, Chief of Community and Marketing Services Division at the Los Angeles County Department of Beaches and Harbors

Ford Motor Company recognizes the importance of working jointly with environmental stakeholders to engineer sustainable vehicles in an eco-friendly manner. Its commitment to a greener future is demonstrated on a daily basis with numerous ongoing environmental initiatives.

On Tuesday, May 6, Ford Motor Company was recognized with the esteemed ‘Green Choice Award’ by Natural Health magazine. Ford received this award for its continuous efforts towards building a greener future. The company and its products were judged in a number of different areas such as alternative energy use, greenhouse gas emissions, water use, recycling, operational energy footprints, and LEED certifications. All data collected by Natural Health magazine was submitted by Ford.

The following are some highlights of Ford’s ongoing environmental initiatives:

• Each year, Ford conserves up to 900 tons of carbon emissions and 600,000 gallons of water because Escape Hybrid seats are made with 100 per cent post-industrial recycled fabric.
• Since 2000, Ford has cut its global energy use by nearly one third, in part by upgrading plants with more efficient equipment.
• Ford gives employees two paid days off a year to do volunteer work—in 2008, they committed a total of 124,000 hours. At 17 of the company’s facilities, staffers have turned vacant plots of land into habitats for local plants and animals, and created walking trails to encourage nearby residents to visit.
• Ford’s EcoBoost engine, which the company launched this year, improves vehicle fuel economy by as much as 20 per cent.

The ‘Green Choice Award’ was presented to Ford, along with nine other corporations, by renowned actor and environmental activist Ed Begley, Jr. in New York City. Accepting the award on behalf of Ford was David Berdish, Manager of Sustainable Business Development.

QUOTES:

“Ford is making a difference by creating fuel efficient technology that everyone can use.” – Alan Mulally, President and CEO, Ford Motor Company

“Ford facilities are often faced with complex environmental challenges, and every year – even in hard times – our employees rise to the challenge with innovative solutions that reduce environmental impact while promoting sustainability. The Green Choice Award honors their achievements, and challenges others to take bold steps.” – David Berdish, Manager, Ford Sustainable Business Development

Averaging 81.5 miles per gallon in a, non-modified 2010 Ford Fusion Hybrid, a team of drivers drove the vehicle around Washington.

The 2010 Ford Fusion Hybrid 1,000 Mile Challenge team, which included NASCAR star Carl Edwards, high mileage trailblazer Wayne Gerdes and several Ford Motor Company engineers, maximized their mileage by using a few simple techniques that can be used in any vehicle to improve fuel economy.

Mileage-maximizing techniques include:

• Accelerating smoothly up to the posted speed limit
• Applying the “Pulse and Glide” technique while maintaining the flow of traffic
• Anticipating traffic signal timing and traffic patterns, and slowing down to minimize stops
• Coasting up to red lights and stop signs to avoid fuel waste and brake wear
• Minimizing the use of vehicle systems such as heated seats and air conditioning
• Keeping windows closed whenever possible to reduce drag
• Minimizing excessive engine workload by using the vehicle’s kinetic forward motion to climb hills, and use downhill momentum to build speed
• Avoiding bumps and potholes that can reduce momentum

The Fusion Hybrid 1,000 Mile Challenge called upon the team to drive several routes in and around the national capital over the course of approximately 48 continuous hours. The drivers took turns during the round-the-clock event. The route involved elevation changes, and ranged from the relatively open George Washington Parkway to a 3-mile stretch in the heart of the city that is clogged with approximately 30 traffic signals.

Carl Edwards Drives Past 1000 Miles:

Quotes
“It was very exciting to be an active part in this challenge. The fact that it will help spread the word about the Fusion Hybrid’s great mileage, and help out a great charity like JDRF, makes it even more special. There’s no question that the Fusion Hybrid will help consumers save fuel when they drive it. Having driven the car, I feel strongly about how great it is – so strong that I’ve purchased one myself.”
- Carl Edwards, Ford NASCAR racer

“The Fusion Hybrid works brilliantly. When you don’t need acceleration power while driving around town the gas engine shuts down just the way it is supposed to. There is not another hybrid drivetrain in the world that does that as effectively. The Fusion engineering team really knocked it out of the park.”
- Wayne Gerdes, CleanMPG.com founder

Ford Motor Company is committed to the fight against breast cancer, and is a proud supporter of breast cancer research and critical breast cancer services. Over the years Ford has dedicated more than $100 million to the Susan G. Komen for the Cure fight against breast cancer.

To further show their support, Ford will donate $20, up to $1 million, to the Susan G. Komen for the Cure® in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle through June 1. This charitable initiative will run alongside the Ford Advantage Plan, designed to boost consumer confidence by offering valued Ford customers a guaranteed 12 months of vehicle payments on any new Ford, Lincoln or Mercury vehicle up to $700 a month, if the customer loses his/her job.

Customers interested in a test drive can join in and participate by logging on to www.fordcares.com and getting a registration form and number to provide to their dealer. Customers participating in any upcoming Komen Race for the Cure event through June 1st will receive a registration form and can also follow the same steps to have a $20 donation made on their behalf as well.

Twitter users can follow this story @Ford. Please help by getting the word out by sending a tweet. Here’s a sample: For test drives until 6/1, Ford donates $20 to Komen for the Cure. RT and @ at least ONE woman you love! http://is.gd/unhl

Quotes:

“Our goal with the Ford Advantage Plan is to rebuild consumer confidence and assist local charitable organizations that also are struggling in this economy.” - Ken Czubay, vice president of Sales and Marketing, Ford Motor Company

“This program will go a long way in helping Komen directly serve women and men in hundreds of communities across the country with education, screening and treatment programs that address breast cancer issues close to home.” - Hala Moddelmog, President and CEO, Susan G. Komen for the Cure.

Putting the 2010 Ford Fusion Hybrid to the ultimate fuel-efficiency test, a team of drivers will be attempting to drive over 1000 miles on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process. Currently the most fuel-efficient, mid-sized sedan in America, the Fusion Hybrid will have to best its EPA rating of 41 mpg in the city by attaining an average of at least 57 mpg.

Demonstrating its message “Ford is Different”, Ford has invested in creating vehicles with strong fuel-economy numbers and is working with all drivers to encourage more fuel-efficient driving in any vehicle. Throughout the challenge, driver Wayne Gerdes, who is the World Record Breaking Hypermiling champion and founder of cleanmpg.com, will be providing fuel-saving driving tips.

Other than a fresh change of oil before the drive commences and having the tire pressures checked, the 2010 Ford Fusion Hybrid used in the challenge will not be altered in any way. It will run on regular 87 octane gas.

The 1,000 mile challenge starts at around 8:00 a.m. on Saturday April 25th from Mount Vernon, Virginia, and ends the morning of Monday April 27th in Washington, DC. Using The George Washington Boulevard as the main drive route, the Fusion Hybrid will be driven with driver change-over stops only throughout the day and night of Saturday April 25th as well as the day and night of Sunday April 26th.

The team comprises:

• Wayne Gerdes – World Record Breaking Hypermiling champion and founder of cleanmpg.com
• Sherif Maraky – Graduate of Maryland University, Sherif is the Chief Engineer in the Hybrid Team
• Gil Portalatin – Gil is the Hybrid Applications Manager and the man responsible for leading the 2010 Ford Fusion Hybrid team
• Tom Rolewiszc – Tom is one of Ford’s top calibration experts and has all the key information about how the hybrid system works
• Steve Burke – Steve is another product expert on hybrid applications.
• Carl Edwards – Carl is a NASCAR race legend. He will be joining the team on Sunday night and Monday morning and will be doing a significant part of the driving. Carl has recently bought his own 2010 Ford Fusion Hybrid and loves the car.

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

The scene at Barber Motorsports Park and Museum in Birmingham, Ala., on Monday, wasn’t the sort of engine-revving, tire-smoking event one normally sees in NASCAR country. But it was arguably more “electrifying.”

The media turned out in force at the venue to test drive the Ford Escape plug-in hybrid electric vehicle (PHEV), which Alabama Power and its parent Southern Company is road testing in partnership with Ford. Representatives from the Electric Power Research Institute and the Alabama Clean Fuels Coalition also participated in the event, which was followed on Tuesday by a “Green Fleet” event for Alabama Power and Southern Company employees.

Electric Companies Get Plugged in with Ford
Alabama Power is one of Ford’s several utility and research partners conducting real world road testing with the Escape PHEV. The other partners include:

• Southern California Edison
• New York Power Authority
• Consolidated Edison of New York
• American Electric Power of Columbus, Ohio
• Progress Energy of Raleigh, N.C.
• DTE Energy of Detroit
• National Grid of Waltham, Mass.
• New York State Energy and Research Development Authority, a state agency

Ford was the first automotive manufacturer to partner with the utility industry in a shared effort to understand all of the issues related to PHEV technology and its interconnectivity with the electric grid.

The research into PHEVs focuses on four primary areas: battery technology, vehicle systems, customer usage, and grid infrastructure. The utility companies also will explore the potential for stationary battery application and the value of energy storage.

The partnerships will help Ford accelerate its electrification strategy, including bringing a full battery electric vehicle (BEV) van to market in 2010 for commercial use, a small BEV sedan developed jointly with Magna International by 2011 and a PHEV by 2012.

Charging up tomorrow’s technology today
Drivers of the demonstration Ford Escape PHEV will make far fewer trips to the gas station. It uses common household current (120 volts) for charging, with a full charge of the battery completed within six to eight hours. When driven on surface streets for the first 30 miles following a full charge, the Ford Escape PHEV can achieve up to 120 mpg – roughly 4.5 times its traditional gas internal combustion engine-powered counterpart.

A fully charged Ford Escape PHEV operates in two modes, electric drive and blended electric/engine drive. It is not range-limited by the amount of charge available in the high-voltage lithium-ion battery. Once the charge in the battery has been depleted, the vehicle continues to operate as a fuel-efficient, standard Ford Escape Hybrid.

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

Progressive and innovative thinking is an essential component of Ford’s culture. With an already active social media presence, Ford continues to join, participate and contribute to the online conversation.

Ford Motor Company is excited to announce that Alan Mulally, President and Chief Executive Officer, will be taking questions live on Twitter on April 15th from 1:00-1:30pm EDT. During this time Ford invites you to join Alan at @Ford - http://twitter.com/Ford - (and to use the hashtag #FordCEO) on Twitter for an exciting and unique Q&A forum. Feel free to tweet your questions, concerns and suggestions, we’d love to hear what you think!

Links:
Biography for Alan Mulally, President and CEO, Ford Motor Company