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Thursday, June 04, 2009

Fusion hybrid: Most patented car ever. So what?

Can Ford become a major player in the hybrid cars segment? So far the news appears compelling, but Ford needs to significantly increase their hybrid output before anyone can make that call.Ford's most important car ever?

The other day Ford sent me a press release claiming that the Ford Fusion hybrid is the "most patented car in history".

Then why am I so unimpressed?

While I believe the Fusion hybrid is a fantastic automobile, Ford has no plans to sell more than 25,000 of these hybrid vehicles per year. Other than for marketing purposes, what does that really do for Ford?

Granted, Ford is almost assuredly waiting to finalize lithium development before mass-producing any Ford hybrid vehicle, and such a move probably makes economic sense, especially in the short term. Still, Toyota might roll out more than half a million hybrids this year, and Ford can only manage 50,000?

Anyway, I have high expectations for the future of Ford - or at least high hopes - so let's end this on a positive note. According to the The Patent Board, "Ford's patented technologies are closer to cutting edge than its competitors".

There is no doubt Alan Mulally's financial moves since assuming the helm of Ford were more cutting edge than Ford's competitors. If Mulally has been concurrently driving Ford more aggressively towards next generation, cutting edge technologies, then maybe - hopefully - Ford's small hybrid output today is just the calm before Ford's hybrid storm.

Labels: Ford fusion hybrid, Hybrid Vehicles

posted by Dahcredyns at 7:14 AM

10 Comments:

Blogger LB said...

This seems to be better than Camry Hybrid, even in hypermiling mode:
http://www.autobloggreen.com/2009/04/28/ford-fusion-hybrid-hypermiles-goes-1-445-miles-on-a-single-tank/

9:04 AM  
Anonymous Anonymous said...

I havent bought a Ford product in many decades,however if they put their hybrid technology now, in a Ford Focus and sold it out the door with basic amenities(auto air pwr locks)...for say 19k I would definitely consider it. If it were sold for much more Id have to go Toyota III for sure as its the cadillac of technology for me in its price range(you know the normal middle class price range)..
Toyota has really done amazing things for the world car industry...they will bounce back in year or so ....GM ? mmm have no idea I think their going to bring the SPARK slight hybrid here in 2010..its cute car too but not a toyota...:)

9:34 AM  
Blogger Dahcredyns said...

LB -

Overall, as a Camry hybrid owner, I have to admit some Fusion hybrid envy.

Still, just to be fair in terms of technology, the Camry hybrid is built on an HSD was that mostly designed in preparation for the 2nd gen Prius. Thus, the Camry hybrid is based on pretty old technology.

If Toyota were adding the third gen HSD to the Camry hybrid today, I'd bet the differences would be far less significant.

The electrification of the automobile is going to soon become like buying a computer. As soon as you buy it, there is already computers being delivered with more memory and faster processors. Thus, 6 mos later your new computer is old.

This trend is slowly building for cars as well. I think it's kind of exciting. It really pushes automakers to constantly innovate.

Ford's Fusion hybrid will almost certainly result in a better camry hybrid. This kind of competition is long over due, but at least it's finally coming.

10:08 AM  
Blogger Dahcredyns said...

anon-

until lithium such a small ford hybrid just doesn't seem conceivable, particularly in terms of pricing. toyota just has too much of an advantage with NiMH supply chains.

that makes me wonder, has the government screwed up by offering tax credits for only plug-in hybrids? why not for all lithium hybrids? if ford could start selling a lithium focus that qualified for a lithium tax credit, maybe it would give ford a legitimate chance to challenge the prius in the next few years.

10:14 AM  
Blogger LB said...

Yep, I agree that it is slightly outdated, which is not a problem, still a great fuel economy that other cars of this class will not achieve until cough cough cough 2015.
Just making the point is that Ford ain't bad and probably stands for it patents. However, in terms of reliability and price Toyota certainly beats Ford.

10:24 AM  
Blogger Dahcredyns said...

although ford has made some pretty significant inroads in their quality. so ford seems headed in the right direction.

it's hard to argue that Mulally isn't making the right moves at Ford. and, since efficiency was such a big part of his direction at boeing, i'm really interested to see what ford will be like 3 years from now.

10:39 AM  
Blogger alcatholic said...

This post has been removed by the author.

2:07 PM  
Blogger alcatholic said...

You know, I think the move to plugin hybrid/EV is a disruptive technology, the kind that Intel has talked a lot about. It is a break from the ICE vehicle market. During the transition from older technology to a transformative technology it is usually the case that the old market leaders fail and new market leaders emerge.

Also, the barriers to entry can go way down. Just look at the dozen Chinese BATTERY companies that are now planning to build cars. The engineering skills and technologies needed to master ICE car design are almost obsolete in a market of electric drive trains.

So, now I'm thinking that for the Volt to succeed, the new Green GM needs a more radically restructuring than we are getting. A Volt producer probably needs to become a battery company if they want to have any hope of competing against Chinese battery companies in the plugin hybrid/EV car market.

I'm not saying that battery powered cars are going to take over from ICE cars. I'm saying that it is highly unlikely that a traditional car company will become dominant in the battery car market, not even Toyota. We'll have two separate markets and companies will need to choose between them.

Patents and Intellectual Property and effective R&D are critical in a new market like EVs, it is one of the skills you need to compete in a nascent market. It is one of the keys to Apple's model that I forgot to list. Patents and lawyers are a key strategic asset to Apple, and will need to be for GM. So, I'm glad Ford is so good at it, but arguably a GM that wants to succeed with the Volt needs to be world class at Intellectual Property management.

All this makes me more concerned about GM and even Ford. At least Ford is investing in Hybrids, which is really still an ICE car. So Ford's skill set will serve it well. The question is whether the Volt will compete in the ICE or nascent EV markets. I doubt GM's business model is aligned with the coming EV market, and I'm not sure how well the Volt will compete in the ICE market.

Fortunately, GM seem to be treating the Volt as a startup within GM. Hopefully, the Volt will be allowed to spinoff and make the investments needed to be successful in the EV market (maybe buy a battery company, definitely ramp up intellectual property work). I don't GM can compete in the EV market, but the Volt certainly could.

2:09 PM  
Blogger Ken in Michigan said...

We own a Ford Fusion Hybrid and are more than pleased with it. We carry our recumbent bikes on a receiver hitch carrier and routinely get around 40 mpg on the highway driving between 65-70 mph! Living in Michigan we are driving it in the very cold winters we have here. When the temperature dropped to the low 20s F the gas mileage fell off some to around 32 mph highway until the passenger compartment was warmed up (on an drive less than 10 miles from a cold start up I get around 32 mpg). However, on a 30-40 mile trip from a cold start we get around 37 mpg at 70 mph.

The car has a comfortable and quiet ride, looks like all the other Ford Fusions on the road, and has a large trunk (although its back seats do not fold down so some large objects cannot be carried in the Hybrid Fusion. We have had the Fusion since September and have had absolutely no problems with this car.

I would recommend that anyone considering a hybrid that they put the Ford Fusion Hybrid on the top of their list.

I have owned Toyotas and Hondas and have found that their maintenance parts costs are excessive (a thermostat for the engine on a Toyota cost over $30 while one for my Ford F150 cost $6!) and after market parts were unavailable.

FYI Ford guarantees the hybrid drive and batteries for 300,000 miles. That certainly exceeds the 100K guarantees offered by GM, Chrysler, Hundi, and others.

11:34 AM  
Blogger Dahcredyns said...

i think the fusion hybrid is a great vehicle, but can ford's hybrid technology ever be cost-effective?

overall, ford will sell well under 40,000 hybrids this year. toyota, on the other hand, will sell a few hundred thousand.

ultimately, most consumers are very fickle about paying too much up front for the long term benefits of fuel economy. and while, technologically speaking, ford hit a home run with the fusion hybrid, it base-hit bunted on cost-effectiveness.

12:49 PM  

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