Ford 2004 Annual Report Download - page 8

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Innovation
One of the ways we plan to differentiate
ourselves is by becoming a leader in offering
innovations that make a difference for our
customers and the world in which they live. A
great example of this is the Ford Escape Hybrid.
Escape Hybrid can do anything that our regular
Escape can, only with up to 75 percent better fuel
economy in city driving. It is not just a sensible
solution that uses new technology. It is a hot-
selling new product which is appealing to every
demographic group. Escape Hybrid also was
named “North American Truck of the Year.”
Hybrids represent an opportunity for us to
differentiate ourselves. For the first time in many
years, there are companies that have a significant
new technology, and companies that don’t.
We have our own patented hybrid technology
and proprietary drive system and electronic
controls. By the time many of our competitors offer
a hybrid, we’ll be on to our next generation, and
some won’t be able to afford their own systems.
In the next three years, we will have four other
hybrids joining the Escape: Mercury Mariner,
which we’ve pulled ahead to go on sale in the
United States later this year, Ford Fusion, Mercury
Milan and Mazda Tribute. Much of what we’ve
learned in developing these hybrids will help us
as we explore other alternative fuel technologies.
Sustainability
Our customers are concerned about energy
security, the price of fuel and the threat of climate
change. Providing market-driven solutions to these
issues is an outstanding business opportunity.
My great-grandfather’s vision was to provide
affordable transportation for the world. I want to
expand that vision for the 21st century
and provide transportation that is affordable in
every sense of the word – socially and
environmentally, as well as economically.
In other words, sustainable transportation.
This is another way in which we plan to differentiate
ourselves. We are the only auto company doing
serious development work with four of the most
promising advanced fuel technologies: clean
diesels, gasoline-electric hybrids, hydrogen-powered
internal combustion engines and fuel cell vehicles.
We are working hard to introduce technologies in
the near term that help improve fuel economy and
reduce greenhouse gases that affect the climate. As
we look further ahead, we are especially excited
about creating a path to a clean, renewable,
hydrogen-powered future. We are investing huge
resources to advance and demonstrate hydrogen
technology. Ford is a leader in hydrogen-powered
Internal Combustion Engines (ICE). Our E-450
Hydrogen ICE shuttle buses are the first commercially
available hydrogen vehicles in North America.
We also are testing a state-of-the-art Ford Focus
Fuel Cell vehicle in fleets around the world.
We are doing our development in-house, with
technical talent and a depth of capability that we’d
match against anyone in the world. However, given
the enormity of the task, we believe that partnerships
involving industry, energy providers and government
will be required to make hydrogen power a reality.
We are working to make that happen through
partnerships with the U.S. Department of Energy,
the State of Florida, BP, Fuel Cells Canada, the
Clean Energy Partnership in Germany and others.
There are many obstacles to overcome, but the
potential rewards of hydrogen power are tremendous.
It could redefine the competitive landscape of
the automotive industry in the 21st century.
The Family Of Ford
The innovations that will give us a competitive
advantage in the near future and in the long term
will come from our 325,000 employees around the
world. I believe that our people are our greatest
asset, which means the most fundamental way
for us to differentiate ourselves is by leveraging
their strengths. This has been a key element of
our strategic plan for the last three years. It also
is an area that builds on our unique heritage.
CHAIRMAN’S MESSAGE (CONTINUED)
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