Ford hybrids to turn a profit in 2008

Ford's been cranking out hybrid CUVs on the CD2 platform for four years now, and with over 40,000 produced, it's gotten to be old hat. Since it started in 2004, Ford's managed to make the Escape, Mercury Mariner and Mazda Tribute 30-percent cheaper to build. That cost reduction, coupled with the pending introduction of the hybrid Fusion and Milan platform-mates, will allow Ford's hybrid program to actually turn a profit for the first time in 2008. The Mariner and Escape hybrids find about 21,000 owners per year, and adding the hardware to the sedans could spur sales of Ford's hybrid system, further reducing costs. We're excited to try out the sedans with the hybrid system and the potential for a winner is there if Ford manages to deliver the goods at an attractive price.
[Source: Automotive News, sub. req'd]






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Reader Comments (Page 1 of 2)
Cory 4:21PM (1/30/2008)
To see which are still getting tax credits for buyers and which are phased out, head to the source:
http://www.fueleconomy.gov/feg/tax_hybrid.shtml
I am considering a hybrid Escape to replace my 1998 Blazer, since I drive over 25k miles/year and the gas pumps are eating me alive. The only way it will be fiscally prudent for me (even at high miles and $3/gal) is if I get the tax credit to offset the high initial cost of going hybrid. I would get the Mariner and go "luxury" with my next car, but our first baby is due in two months. :-) I'd prefer to save my capital for now. Plus, the Mariner doesn't have the pretty blue color. Why do hybrids have to be drab silver/blue/green? Where are the bright colors that make you feel good like Dodge's TorRed?
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Mercury Fan Forever 11:46AM (1/17/2008)
I am looking forward to the Mercury Milan Hybrid!
I hope it will be a great sales success.
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Yggdrasilly 11:49AM (1/17/2008)
Hm. I had a Toyota salesman tell me the other day that the Ford Explorer hybrid system was built on license from Toyota. True or sales pitch?
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Shawn 11:55AM (1/17/2008)
Nope, but it's a common myth. Ford's system is competely indepently developed by Ford. They traded 2 patents with Toyota because they feel those areas were too similiar. However, Ford's hybrid system as a whole is different.
Max 12:56PM (1/17/2008)
@ Shawne:
Ford IS licensing the hybrid patents from Toyota. So yes, Ford is building the hybrids on license from Toyota.
http://en.wikipedia.org/wiki/Ford_Escape_Hybrid#Development
Ford is still buying and importing the Aisin (23% Toyota owned) transmissions from Japan.
Now Ford is limited to whatever Toyota/Aisin decides to sell them in transmissions.
Would any business owner put himself in that situation if he had any other choice?
Can you really claim to have developed your own 'hybrid system' without developing a transmission to make it work?
Kind of like AMD claiming to have a great new processor...built on license from Intel and oh yeah the user will need to buy a special Intel motherboard for it to work.
Austin 1:20PM (1/17/2008)
the Fusion system is supposed to be all ford, no toyota patients or materials at all. it will go over to the escape as well next year. the battery is devolped in California.
tghe Fusion will debut in Washington next week with the milan coming in Chicago
yaroukh 4:49PM (1/17/2008)
Max: you're wrong, check Google for "ford hybrid toyota patents" and read on
Randy 5:46PM (1/17/2008)
Ford and Toyota BOTH license technology back and forth. Ford's hybrid system has some Toyota specs as well, Toyota Vehicles have Ford Specs. The Hybrid system IS NOT a complete license job. Just parts on both ends! So you could say there's a little bit of Ford in every Toyota and a little bit of Toyota and the Hybrid Fords.
naggs 6:06PM (1/17/2008)
all car companies license specific parts from each other, the only difference is that some pay for their overlapping hybrid tech while others have to get their asses handed to them in court
Toyota Loses Bid to Overturn Hybrid Patent Verdict
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aS2X9oQ9QIng
pat 6:19PM (1/18/2008)
@Austin
Is the redesigned Fusion debuting at Washington?
Sorry if it is a dumb question but I have heard too many rumors at this point in time.
Yggdrasilly 11:51AM (1/17/2008)
For "Explorer," above, read "Escape."
For "me," before morning coffee, read "moron."
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Jason 11:59AM (1/17/2008)
I actually just priced an Escape hybrid from ford.ca. 11.2% lease rate and $700+ per month payment doesn't seem all that affordable to me.
The sticker isn't too bad if you're paying cash but their lease and financing rates are just crazy.
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YouFaceTheTick 12:52PM (1/17/2008)
Finance through a credit union. Navy Fed's at 5% for up to 6 years. 3.5% on 3 year loans.
Also, check Leasecompare.com.
jte 12:08PM (1/17/2008)
Why no Ford Focus hybrid that would get even better gas mileage than an SUV hybrid?
People who buy hybrids want the best gas mileage possible. A hybrid SUV does not give that!
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C.W. 12:20PM (1/17/2008)
actually it does. it gives you that in an SUV. people in america love their suv's and trucks (both large and small). the escape hybrid gives you the storage and functionality of a small suv with better gas mileage than a lot of cars.
People dont understand that the current hybrid drivetrain is relatively large. which is why concealing the battery unit under the cargo area in the back makes putting it in an suv a lot easier than a small car.
C.W. 12:22PM (1/17/2008)
another thing a lot of people dont realize now is that Ford is officially the only manufacturer who's hybrid line is still eligible for Federal (and state) tax credits. Toyota.. NO... Honda... NO... GM... NO.... automakers need a certain amount of "credits" they earn by making these vehicles, and Ford customers are the only ones who get this when they purchase a hybrid. depending on what state you live in, these tax credits can be upwards of $4500...
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Max 1:19PM (1/17/2008)
Bzzt. Wrong. Fail. Please cite your source.
Toyota/Lexus is the only one who has been phased out. Honda will be phased out 01/01/09.
http://www.irs.gov/newsroom/article/0,,id=157632,00.html
http://www.irs.gov/irs/article/0,,id=176409,00.html
C.W. 4:06PM (1/17/2008)
bzzt. wrong. fail. YOU are misinformed. CITED from Detroit Free Press... article by Susan Tompor, today:
"The first 60,000 hybrids or lean-technology vehicles sold per manufacturer -- and that clock started ticking in 2006 -- qualify for the full credit.
The cap was part of the compromise lawmakers made to win support for the credit from Detroit automakers, which did not want to give an unlimited benefit to Toyota and Honda.
And, no surprise, Toyota Motor Corp. and Honda Motor Co. each have hit the 60,000 sales limit."
(continued)
"Once that 60,000 limit is hit, buyers gradually get a much smaller credit -- the credit is first cut in half and later cut into one quarter of the full amount of the tax credit. And down the road, the credit vanishes.
Toyota, Honda maxed out
This year, you're out of luck when it comes to tax credits if you plan to buy a 2008 Toyota Camry Hybrid, a 2008 Toyota Highlander Hybrid or a 2008 Toyota Prius.
Anyone who bought a hybrid from Toyota or Lexus after Sept. 30, 2007, will not be eligible for any tax credit.
"We maxxed out," said Martha Voss, a spokeswoman for Toyota Motor Sales USA in Washington, D.C.
"We would, however, like to see the government continue to take a leadership role supporting consumer interest in hybrids and other alternative-fuel vehicles," she said.
The Toyota Prius started out with a $3,150 tax credit if bought from Jan. 1, 2006, through Sept. 30, 2006. But that credit had fallen to $787.50 for purchases made April 1, 2007, through Sept. 30, 2007.
If you're looking at a Honda Civic CVT, you should know that the Honda hybrid tax credit for vehicles bought in 2008 also will be smaller than last year.
Honda's cumulative sales of qualified vehicles hit the 60,000 limit during the third quarter that ended Sept. 30.
So the credits for Honda are being phased out this year."
mk 12:38PM (1/17/2008)
Imagine that...
Tax breaks actually making a difference.
Try pulling the taxes out of a lot of things, and we wouln't be looking down the barrel of a nice big economic crap-storm.
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naggs 6:19PM (1/17/2008)
yeah, too bad there was no tax break for NOT lending $400k to an unemployed 25 year old guy with no credit history!
but seriously, there is a limit to how much tax cuts can help the economy and they always come at the expense of other thing. its too late to prevent a recession now, its just a matter how long and how bad.
corporate earnings have been great over the past 7 years but disposable income is way down. companies are just now starting to feel the pinch that everyone has been feeling for years. job cuts will further worsen the situation. how deep is the hole we are in? no way to tell until we hit bottom.