Chances Ford is 25 percent hybrid by 2020?

The Ford Escape hybrid has helped Ford achieve about 2 percent hybrid sales. What takes Ford's hybrid farther?

Can this ever outsell the conventional Escape?

Hybrids set to become much more cost-effective?

Recently, Ford’s director of global electrification, Nancy Gioia, reiterated Ford’s plans to be between 10 and 25 percent battery-powered by 2020, with hybrid cars making up the bulk of those sales, compared with 2 percent today.

Even with gas prices at $2.80 per gallon, Gioia claimed “customers can see a reasonable payback period.”

According to Gioia, conventional hybrids will make up 70 percent of sales, with plug-in hybrids making up another 20-25 percent of sales, and electric cars making up the difference. Overall, plug-in vehicles will have to overcome major affordability and limited infrastructure issues before making up a greater percent of sales, at least as far as Ford believes.

While I would love to see Ford achieve 25 percent penetration by 2020, how do they get there? Obviously, hybrid vehicle costs have to come down, but enough to go from 2 percent to 25 percent in less than a decade?

Certainly, such a forecast seems wildly high, especially for any automaker outside of Toyota, but such a forecast does fall into line with Toyota’s projections for 2020. So, if Toyota can do it, why can’t Ford?

One reason might be batteries. Currently Toyota has a much more robust and sophisticated supply chain for NiMH battery technology, but how much longer is NiMH technology going to power conventional hybrids? When will lithium provide a real-world cost-effective challenge to Nickel?

By as early as 2012, for instance, Ford has suggested that lithium could begin powering conventional hybrids, as well as plug-in hybrids, as lithium costs begin to decline. Thus, by 2020, it isn’t inconceivable to imagine a fairly significant cost-advantage for lithium hybrids compared to NiMH hybrids, but the keyword in that sentence is imagine. Unfortunately, even Gioia admits that whether penetration is 10 or 25 percent will be based on how much lithium prices decline in the next decade.

Consequently, the chances of Ford achieving 25 percent battery-powered penetration by 2020 are probably pretty slim, but at least not impossible.