Low Carbon Global National Context

1
Low CarbonGlobal / National Context
Opportunities

• Ian Porter
• Powertrain Strategy Sustainability, Ford of
  Europe

2
Global Market Outlook

• Global economic collapse late 08 / early 09
• Signs of stabilisation in major markets
• Consumer confidence increasing in US and UK
• Purchasing Managers Index increases for US,
  Europe, and China
• UK and US housing markets bottoming out
• Vehicle scrappage programs in 19 markets / tax
  cuts in Asia Brazil
• But
• Industry sales headwinds remain strong
• Job market outlook, unemployment to rise further
  in 2010
• Credit availability

3
Low Carbon is Important

• continued investment essential if we are to
  achieve the UK target of 80 CO2 reduction by
  2050
• but differing global priorities for low carbon
  climate change, energy independence, local air
  quality
• with different regional and national
  legislative targets (e.g. EU 130g/km, Obamas one
  national standard)
• and different market composition and customer
  expectations globally

4
Portfolio of Solutions

• Further advances in conventional powertrains,
  including new generations of clean diesel
  technologies and petrol engines based around
  advanced fuel-saving direct injection
  technologies.
• Alternative Fuel powered Vehicles (AFVs),
  including bio-ethanol powered Flexifuel
  technology.
• Electrification and hybridization of
  technologies, incl. stop/start and plug-in hybrid
  technology, and the development of pure battery
  electric vehicles (BEVs).
• Further advances in areas such as new generation
  fuel-saving transmissions and weight-reduction.

5
Future Technology Mix
Source Collaborative RD for the future, EUCAR
6
What is the Opportunity?

• Design, development, engineering, testing and
  verification must take place somewhere
• Where do we have significant expertise and
  competence?
• No coincidence that most F1 teams and many
  motorsport teams are based in UK
• Strength in technology consultancies and academia
  (Ricardo, Cambridge, Millbrook, Cranfield, etc.)
• UK recognised for its ICE manufacturing scale
  (NAIGT report)

7
Ford Motor Company UK Footprint
Design/Engineering Facilities
8
Dunton PT CV lead in Europe
9
Global Products, Global Markets
10
Key Challenge

• Delivering low carbon vehicles with-
• Lower Emissions standards
• Improved Safety standards
• More Functionality Features
• Low cost for mass market appeal
• where there is uncertainty over re-fuelling
  alternatives
• Alternative / renewable fuels
• EV charging infrastructure
• in a tough economic environment where skills in
  low cost countries are growing rapidly

11
How to Respond?

• we in the East of England need to come together
  and explore areas of mutual interest.

12
Thank you
13
Ford Geographic Footprint
WARLEY FOB HQ Ford Credit Europe HQ
DAVENTRY Parts Distribution
HALEWOOD Transmission JV
DUNTON RD Centre
DAGENHAM Engine Manufacturing (Diesel) Stamping
Tooling Operations Transport Logistics
BRIDGEND Engine Manufacturing (Petrol)
SOUTHAMPTON Transit Production
14
Dunton UKs Largest Automotive Technical Centre
Conception, Design, Engineering, Testing
Verification of Commercial Vehicles Powertrains

• Originally opened in 1967 cost 10.5 million
• Extensive modernisation and extension over 35
  years cumulative investment exceeds 5.5 billion
• 4,000 employees on site
• In the top 10 of UK RD investors across all
  sectors
• Supplemented by Dagenham Diesel Centre staff of
  300
• 1 of 2 Ford Technical Centres in Europe Cologne
  focusing on vehicle development
• Linked to Dearborn Development Centre in US

15
Dagenham DDC UKs Largest Automotive Diesel
Design Centre
Conception, Design, Engineering, Testing
Verification of new Diesel Powertrains

• Opened in 2003
• Total investment 850 million
• 300 Engineering Staff
• Area - 44,530m2
• Cross functional business groups
• Combines design and production engineers with
  manufacturing teams, purchase, quality control
  operations and support staff.