Thursday, November 10, 2005

Ford answers hybrid concerns

Ford announces that its hybrid vehicles program has not changed its goals since the head of its hybrid program resigned.Just a couple of weeks ago, Ford's head of hybrid vehicles program resigned (more). Amidst the financial restructuring that Ford is exploring, many wondered whether the axe was coming down on Ford's hybrids, thus resulting in this resignation.

Today, Ford, which makes the Ford Escape hybrid and the Mercury Mariner hybrid, announced that its hybrid plans had not changed and that Ford was moving forward with its plan to make 250,000 hybrids by 2010.

Still, it isn't hard to speculate as to whether Ford is really serious about hybrids. By 2010, there is a very good chance that Toyota will sell as many, or even more, than a million hybrids.

Currently, Toyota is selling 3 hybrids, the Toyota Prius, the Highlander Hybrid, and the Lexus RX400h. Soon, Toyota will add the Camry hybrid and a Lexus GS model won't be far behind. Additionally, work on the Toyota Tundra hybrid has already begun and who knows what else Toyota has up its sleeve, such as a hybrid minivan.

In terms of production capability, Toyota could climb several years ahead of Ford by 2010. Then, Ford won't be just competing with Toyota and Honda, but GM, Nissan, Volkswagen, Hyundai, and more.

Ford's hybrid plan will enable them to compete in the hybrid market in 2010, but their current plan won't let them keep the leadership role they currently maintain into 2010.

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2 Comments:

Blogger Raymondj said...

Ford is not a major market leader anymore, but at least it has stared with the first small SUV hybrids, with Toyota following (with the Highlander). As a corrective note, Ford did not buy the hybrid technology from Toyota. Ford developed its own, and while the research went on, it discovered that Toyota already has many patents covering what Ford was developing, so Ford agreeed to license Toyota's patents to avoid problems. Now with two SUV hybrids (Escape and Mariner) and two more to come (Tribute and Equator - you read it first here!), Ford will mainain a foothold in the SUV market where most of the new buyers are interested. Then Ford will catch up with Toyota with its hybrid sedans.

As a final comment, Toyota did not make the first hybrid. I will post a new comment on this.

6:44 AM  
Blogger Dahcredyns said...

Not only did Ford license Toyota technology, it also hired Toyota engineers to help implement the technology. Nonetheless, you are correct that Ford had developed much of its own hybrid technology.

In fact tax dollars went to this project. More than a billion tax dollars were given to Detroit in the 90's to create a next generation of clean vehicles, and hybrid prototypes were developed and shown at autoshows.

Ultimately, I think it will take a lot for Ford to catch Toyota when it comes to hybrids. The hybrid SUV niche is a great market for them to follow in the short term, and I think if they could also add a pickup or two, they would be even in a better position. For that; however, they and Toyota have some issues to deal with when it comes to towing and their hybrid technology.

8:26 AM  

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