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Ford Escape Hybrid Profitable In a Few Years March 2005Ford Motor Co. doesn't expect its Escape gasoline-electric hybrid SUV to be profitable for "at least a couple of years," President Jim Padilla said."The costs are pretty high," Padilla said Monday at a Ford presentation before the Geneva Motor Show. "Our supply base needs to become more efficient. The car has a complicated electronic control system. I don't think there's a chance with the first generation of product" for it to be profitable. Ford began making the Escape hybrid in August. Padilla affirmed that the company expects to sell 20,000 gasoline-electric hybrid Escape and Mariner SUVs in 2005. The hybrid version of the Mariner goes on sale late this year. CEO Bill Ford said last month that Ford is expanding its fleet of hybrids as part of renewed efforts to make cleaner vehicles. He moved up the hybrid Mariner to this year from its original date of 2006 and said the hybrid versions of the new Ford Fusion and Mercury Milan sedans will debut in 2008. Regular versions of the Fusion and Milan go on sale in the second half of this year. Hybrids use an electric motor at low speeds, burning less gasoline and producing fewer emissions. Bill Ford said in May that improving fuel efficiency of his company's cars and trucks presents a business opportunity. Trailing Toyota, Honda The Escape hybrid SUV trailed Toyota Motor Corp.'s debut of hybrids by seven years and Honda Motor Co.'s by five. General Motors Corp. and DaimlerChrysler AG announced in December a joint effort to develop a gasoline-electric power system by 2007. Toyota has sold hybrids since 1997 when it introduced the Prius in Japan. The company has said the car has been profitable since 2001, as the added cost of the battery, electronics and other components are covered in the sale price. The company's definition of profitability excludes research and development investments of as much as $2 billion made a decade ago to develop hybrid and fuel-cell vehicles. Honda entered the segment in 1999 with the Insight and says its hybrids have become profitable. Ford hasn't specified when the next version of the hybrid Escape will be introduced, spokesman David Reuter said in an interview. Ford shares fell 35 cents to $12.65 in New York Stock Exchange composite trading. Earlier Monday, Banc of America analyst Ronald Tadross cut his rating on the stock to "sell" from "neutral." SOURCE: Detroit Free Press | ||
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