Ford content to fall behind on PHEVs
GM thinks that it has learned the lesson not to fall behind on technology and won't make that same mistake again. It's for this reason that the Volt is such a big deal for the automaker. Depending on how the next few years play out, though, we will either look back on Ford and realize just how smart the company was or just how deeply its head was stuck in the sand. It seems that Ford believes it has a solid position in hybrid technology and doesn't see an immediate need to be a leader in the development of a plug-in.
Instead, the Blue Oval is content to sit back and let cross-town rival GM and Toyota take the lead. In the meantime, Ford will continue to churn out hybrid versions of its Escape SUV and will introduce a new Fusion hybrid shortly. Hopefully, Ford will be able to play catch-up if the PHEV technology proves popular, otherwise, it could find itself in the same position as GM currently finds itself: as a technology-laggard.
[Source: Bloomberg]
Reader Comments (Page 1 of 1)
Mike Z 8:28PM (6/29/2008)
It's obvious Ford does not have the cash to make a bet on battery technology. They are just waiting on the sideline for a supplier to do the work for them.
Overall, I think the Escape Hybrid is one of the better platforms for a PHEV conversion. It would likely would be a nice companion for Firefly PbA batteries, if they can get the cycle life up a little. That would be one great sleeper comeback.
Reply
A.Brien 8:48PM (6/29/2008)
Every new technologies Gm has innovated was a mistake like the ev1 or the corvair. Only the germans have brouth new innovation that lasted but was copied the next year by japanese and 5 to 10 years after by the americans like for example fuel injection.
Reply
Bill Young 9:40PM (6/29/2008)
As an interesting contrapoint;
Ford is teaming with Smith Electric Trucks to bring out a dual badged service van called the "Ampere". Ford is providing the gliders, Smith the drive train and Valence the batteries.
Reply
Throwback 9:19PM (6/29/2008)
Ford has other priorities right now. Like, merging their European and American platforms and revamping the US car line. I think Ford is on the right track, they just have limited funds.
Reply
Throwback 9:26PM (6/29/2008)
Some things "innovated" by American companies, electric starter, automatic transmission, moving assembly lines, wrap around windscreens, electric convertible tops, just to name a few. As for recent history, large SUVs (for good or bad dpending on your point of view), the modern minivan, yes VW had the bus first, but it did not have the commercial success like the Chrysler vans did.
Reply
Harry 10:53PM (6/29/2008)
This shouldn't come as a surprise. These the same people that poured $150m into the Th!nk City and then unloaded it as soon as California dropped the electric car requirement. That was early 2003 - remember $1.66 gas? - but things haven't gone well for Ford since then.
Call me crazy, but I was kind of expecting (hoping?) that as soon as Ford got some liquidity, they'd immediately pour it into R&D. Offloading Jaguar and Land Rover gave Ford the kind of coin they needed to really keep up with GM, Toyota, and Honda. Apparently Ford still hasn't got a clue.
Reply
Dad 11:26PM (6/29/2008)
"it could find itself in the same position as GM currently finds itself: as a technology-laggard."
Okay, who is offering a PHEV right now? In volume?
GM is not a technology laggard, unless you define the Prius as the benchmark. Get a grip on your comments. You write stuff that is just wrong.
Reply
Rob 11:34PM (6/29/2008)
Ford is already testing PHEV Escapes
ANAHEIM, Calif., Dec. 4, 2007 - Ford Motor Company's first demonstration Escape Plug-In Hybrid is ready to roll on California roads. Ford delivered the first of 20 research PHEVs to Southern California Edison to begin road testing as part of a unique partnership between the automaker and utility.
Reply
jake 1:58AM (6/30/2008)
@Dad
I don't think that statement is too overboard, esp if most of the time it is more about the general public perception. The Volt isn't out yet, and it's just mule right now. Even though you can argue the 2-mode means GM is technologically in front of the Prius, judging by the statements by GM's leadership (not to mention the relative interest in the 2-mode compared to the Prius or even the Volt), I don't think that's really true. If the Volt comes out as promised then GM will truely be in front. I think even GM thinks they are still a little behind Toyota on the technology front so far, and they are going all out with the Volt to change that.
@Rob
But it doesn't sound like a serious push to get them into customer hands. I think Ford, as others mentioned, has it's hands are full with other things. Unlike GM, Ford really doesn't have the extra capital to work on a project like the Volt.
Reply
Jeremy Korzeniewski 2:34AM (6/30/2008)
Dad - Bob Lutz himself said that GM fell behind in technology, hybrids in specific. In the public eye at least, they are still behind, though the latest 2-Modes feature excellent engineering work.
JK
Reply
doug 7:00AM (6/30/2008)
Why should Ford waste development $$ it doesn't have trying to rush bleeding edge tech to the streets? They are doing the R&D for plug-ins, and the have well developed hybrid tech. When the batteries are there, Ford will be able to react quickly. In the mean time, let GM and Toyota burn cash and lose money selling premature tech.
Reply
Mark 7:22AM (6/30/2008)
GM can spend all the money they have on developing a car, but until someone spends the hundreds of billion of dollars necessary to create enough battery production to meet the potential demand, no PHEV is going to make an impact.
Speaking of impact, think of all the copper that is going to have to be strip mined out of someones back yard to make those batteries.
I think for is smart to wait because they have at least to platforms that can be quickly converted to PHEV, the Escape and now the Fusion.
Mark
Reply
TommyD 8:11AM (6/30/2008)
Ford is better off trimming their line-up and adding Euro models. That will make a more significant dent in overall fuel economy than one halo vehicle. Ho about ramping up Escape hybrid production so you could actually find one on a dealer lot?!
Reply
GoodCheer 11:25AM (6/30/2008)
I have been at two conferences where Ford folks spoke. At the first they stated that before they could move forward with plug-in technology it would be necessary to have a nation-wide (or international) plug standard, voltage standard, communication standard for smart-grid or V2G, and all manner of other standards in place.
At the second they said that they would not move forward with plug-in vehicles until there were American battery suppliers. ('Why just change our addiction from foreign oil to foreign batteries?' ... I paraphrase).
A friend of mine has the theory that Ford simply has too many old risk-averse investors who just want to make any money they can selling big red pick-up trucks. Investing money now would require waiting years for a return, and maybe those old dudes will be dead by then, so why would they want to do that?
Reply
Sasparilla 11:36AM (6/30/2008)
Its interesting...Ford followed a similar path for the electric vehicle requirement of California (not really put much money into it, some small testing...blah blah), then in a crunch they had to buy Think so they'd have a car (which they unloaded when that requirement was eliminated). This seems somewhat reminiscent at the corporate level. They seem to like to sit on the sidelines and after they see where things are going then they get into it - follower, not a leader. BTW, Ford doesn't make more than 25,000 Escape Hybrids because they make more money on regular Escape's that are made at the same plant. (now maybe some wiz up at the executive level might think of using an idle plant to make Escape Hybrids by itself...but probably not.)
Reply
TommyD 8:55PM (6/30/2008)
I read somewhere that Ford loses money on every Escape hybrid it makes. Why not do some clever brand engineering (like make it a Lincoln) and find a way to charge more while making it appear to add value? That's the one thing American companies should be good at.
Reply
Chris M 10:38PM (6/30/2008)
Sasparilla: Ford uses a different hybrid battery supplier than Toyota, and the production of Escape Hybrids is limited by the limited supply of NiMH battery packs from Sanyo. That is also one reason why Ford delayed introduction of the Fusion hybrid. They are probably waiting for their battery supply problems to ease before introducing a production plug-in.
Toyota is also limited in hybrid production by battery supplies, though their supplier, Panasonic EV, is producing a far greater volume of battery packs than Sanyo, and is building facilities for large volume LiIon production.
TommyD: Don't believe everything you read on the internet. Ford is making money on the Escape Hybrid, if it wasn't profitable they would have dropped it by now. A similar rumour was spread about Toyota hybrids, which is obviously false as their profits rose with increased hybrid sales!
Reply