Ford’s gas-electric vehicles will be profitable for the first time ever in 2008, hybrid program director Nancy Gioia said at the Detroit auto show. She said Ford has reduced the cost of producing its Escape, Mercury Mariner and Mazda Tribute hybrids by 30 percent since production first began, and the introduction of the Fusion and Mercury Milan hybrid sedans will push costs down further.
Ford will launch production of the hybrid Fusion an Milan later this year, Gioia told Automotive News. Ford currently sells about 21,000 Mariner and Escape hybrids per year, and those numbers could increase considerably when the new sedans join the fold.
Automakers have struggled to produce hybrid vehicles at a profit, because pricing them too high negates any possible savings in fuel costs for consumers. Because all five of the automaker’s hybrid vehicles will share the same powertrain and battery pack, increased sales volume should help reduce costs associated with building the vehicles.


01/16, 1:06 AM
posted by:
AxeHead
FairlightJackass are you really that stupid? Get real.
Toyota is not in trouble, and the big 2.5 have a long way to go to reach quality levels of Honda or Toyota. GM is getting close but Chrysler still can’t make a transmission and Ford still produces ugly vehicles like the Mercury above.
Diesel Tech is the future, hybrids are only a stepping stone - I wouldn’t buy one of these greenhead slugs.
01/16, 1:21 AM
posted by:
jdasch1
Nice namecalling Axehead! Quality levels at Honda or Toyota?? You should get real and try to stay objective about who has ugly cars and quality issues. Oh yah…the Prius is probably your version of a beautiful car huh? Quality levels?? Which study are you refering to? Currently the big 3 are achieving levels of the Japanese imports. Toyota has record number of recalls and Honda has odometer problems…quality yah, right!
01/16, 8:59 AM
posted by:
corvette
at least something is working out for them. i cant wait till the same thing that happened to the big three happens to Toyota. its going to happen maybe not in 3-5 years but just like they though GM would be ok the same will happen to Toyota.
01/16, 9:11 AM
posted by:
Fleming in Tennessee
That Mercury pictured is beautiful! Simple, elegant lines, no wart nose front like Camry, and no shame like the Toyota exec said about one of their products! You go Ford; Go Big Merc.
01/16, 9:18 AM
posted by:
livelyjay
All the complaining aside, I am glad to see Ford is finally taking an initiative and putting the hybrid drivetrain into their sedans. They should can the Fusion though, and bring the Mondeo over, because that car is beautiful, while the Fusion is blah. Ford needs to think about putting hybrid technology into the Focus as well as their soon to be subcompact Fiesta.
01/16, 9:29 AM
posted by:
global_lightning
The Fusion/Milan is already selling very well for Ford. Furthermore it’s competing against the Accord and Camry in quality. Adding a hybrid to their line-up will make an attractive offer to buyers. The Mercury in particular will appeal to female buyers and would give that marque a good boost in sales.
01/16, 9:49 AM
posted by:
autonut
Every farmer knows to count chickens when they hatch. So far, Ford has been in serious financial trouble and is no longer #2 in US market share. BTW it is hardly #3 in the world. All the PR announcements are assuming that cost of hybrids went up at GM, Toyota and Honda. Now the dose of reality: GM, Chrysler, Benz & BMW own 2 stage auto transmission, which revolutionary not evolutionary. Ford licensed it’s hybrid technology from Toyota 5 years ago, so I assume Toyota is a bit ahead in this technology then licensee. Honda was the first company to introduce hybrid and next year will introduce small diesel which is cheaper, cleaner and much lighter. It is a nice PR, but we should read Ford P&L reports this time next year to get an honest picture.
01/16, 9:52 AM
posted by:
maximus
so does this mean that Ford is going to charge less for the cars?
01/16, 10:45 AM
posted by:
moto-racer13
somehow the words Ford and Profit don’t go together. Other words that don’t go with Ford: Quality, Technology, Reliability, High resale value, and Customer Satisfaction.
01/16, 10:45 AM
posted by:
gizmo2
I think what Ford meant is that hybrid price will come closer to the gasoline engine price. I am not taking sides but when I think about ugly vehicles on the market today, it’s the Toyota Prius, Sequoia, Seinna, Honda Ridgeline, Chrysler Sebring.
01/16, 11:10 AM
posted by:
global_lightning
For all of you asking of Ford will lower the selling price: No
From Economics 101, the selling price is determined by supply and demand, not by the cost of production. If the selling price is higher than the COP, then it’s a profit; otherwise it’s a loss. Ford and most of the other hybrid manufacturers have been selling these vehicles at a loss for a while to build the market. Now Ford has reached point where these vehicles will generate a profit. At the very least, they should cover the losses for the first years these cars were not making money.
01/16, 11:52 AM
posted by:
Gary
Blah…Blah…Blah…Nothing but crap comming out of everyones mouth. Quality and customer satisfaction is were Ford is soaring right now. Resale value..we shall see since alot of Ford’s products are fairly new to market. Reliability…doesn’t that go hand in hand with quality?? I don’t know, but I do know this. Since I took a chance and bought a Fusion 1 year ago I have been very impressed. The only thing I could say that is bad about it is the fact that it’s a Ford, but hell lately they have turned alot of things around. Has anyone else seen the past what 30 articles on Ford? Take a look their all still in here, just look and stop pissing and moaning, those that do obviously don’t know.
01/16, 11:56 AM
posted by:
SwerveEarly
Insert ignorant comment here>
01/16, 12:13 PM
posted by:
autonut
If we to refer to economics, then selling product at a loss is a sure way to bankruptcy.
I should correct myself: Ford is a partner with GM on 2 stage hybrid transmission. Therefore, they could make announcement about upcoming vehicle incorporating it. Did I miss it, or they did not announced it yet? Everyone else already waved the victory flag, especially GM. I don’t believe that press release regarding cheaper hybrids has anything to do with Escape or Milano, it is referring to older first generation technology.
As far as customer satisfaction: Ford must soar now there are so few of those customers left, except in Hertz.
01/16, 1:22 PM
posted by:
johnnycanuck
Car makers are such whores. Do you think the first Plasma and LCD TVs were sold below cost? Not freakin likely. So why was Ford ‘giving away’ their hybrids up until now. I know, I know… because no one would buy them if the fuel savings never would offset the initial difference in purchase price. But as Deanster so rightly points out: why hasn’t the price changed? I might have paid three large for that 42 inch Sony 2-3 years ago but I’m sure as hell not going to pay that now.
01/16, 3:13 PM
posted by:
global_lightning
Damn, that’s a good idea. This ties in with their ‘feminine’ marketing (Jill Wagner: schwing!)
01/16, 3:41 PM
posted by:
rsg
Thanks. I should probably patent that idea before they actually do it and I feel slighted, like Kramer with the Calvin Klein Beach cologne. ****, I’ll run Ford into the ground for a heluva lot less than whatever they’re paying the new guy.
01/17, 10:57 AM
posted by:
planet_drive
Fords are just crap, they should shut down all their factories so we can finally be done with this worthless company.