Ford has announced that it expects to turn a profit on its hybrid vehicles in 2008. Ford launched its first hybrid vehicle in 2004 — the Escape Hybrid — followed by hybrid versions of the Mercury Mariner and Mazda Tribute. Later this year, Ford will introduce the Ford Fusion and Mercury Milan hybrids, pushing the program into the black.
Ford sold about 21,000 Ford Escape s and Mercury Mariners last year, but has yet to announce how many Fusion and Milan hybrids it expects to sell. The price of Ford’s hybrid system has fallen about 30% since 2004, and it is expected that the two models will continue to bring down the price.
According to Nancy Gioia, Ford ’s director of sustainable mobility technologies and hybrid vehicle programs, the cost cuts are a result of better batteries, and upgraded electrical systems that require less complex controls.
Gioia says that Ford is also considering using its new EcoBoost technology in future hybrids. The new technology would allow Ford to use smaller displacement engines without sacrificing performance.
