SLIDE 1

Electrified Transportation Challenges

Shahram Zarei

Electrified Powertrain Engineering

Ford Motor Co.

An Industry Session

APEC 2017

SLIDE 2

Introduction

At the end of the 19th century, big cities such as New York, Boston, and Philadelphia

welcomed clean electric vehicles to replace polluting horse-drawn carriages.

And now more than a century later, it seems that we have come full circle since regulatory,

environmental, and economic concerns are driving the world to electrify transportation.

Although, such move poses numerous challenges due to a fully articulated infrastructure;

and a society, economy, and culture tightly bound to ICE.

That is why effective solutions and proper implementations are required in order to make

the electrified vehicle an acceptable and even desirable choice to the customers.

This presentation attempts to address some of the key challenges facing the electrification

of passenger vehicles, although, the same challenges could apply to other types of road

transportation.

SLIDE 3

Powertrain Topologies

Internal Combustion Engine

TransmissionDriven Wheels

Conventional Vehicle

Powertrain

Internal Combustion Engine

HV Battery

Electric Motor(s)Traction Inverter

TransmissionDriven Wheels

Plug-in Hybrid Electric Vehicle

Powertrain

HV Battery Electric Motor(s)Traction Inverter

Driven Wheels

Battery Electric Vehicle

Powertrain

PEV

SLIDE 4

Challenges: Customer Expectations

TCO (Total Cost of Ownership) – More attractive cost equation

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

0

10000

20000

30000

40000

50000

60000

Oct

-14

No

v-1

4

De

c-1

4

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

OEM Total Sales Volume vs. Avg Gas Price

PEV

xEV

Gas Price

SLIDE 5

2016 Incentives for Electrified Vehicles – US (Federal)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2012-15 Toyota Prius 2013 - 2017 Ford Fusion 2016 Volvo XC-90 2011 - 16 Nissan Leaf 2012-16 Ford Focus 2013-16 Fiat 500e

PHEV EV

Additional Incentives:

Tax credit up to $1,000 for consumers and $30,000 for businesses toward

purchasing and installing charging stations.

SLIDE 6

2016 Incentives for Electrified Vehicles – US (States)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

EV PHEV EV PHEV EV PHEV EV

California Tennessee Pennsylvania Massachusetts West Virginia(Tax Credit)

Louisiana(Tax Credit)

Ohio provides funding for 80% of purchasing and installing charging stations.

SLIDE 7

2016 Incentives for Electrified Vehicles - Europe

€ 0

€ 1,000

€ 2,000

€ 3,000

€ 4,000

€ 5,000

€ 6,000

€ 7,000

EV PHEV EV PHEV EV PHEV EV PHEV EV PHEV EV

France Germany Ireland Sweden Malta Hungary

Denmark, Netherlands, and Norway have vehicle registration tax exemptions.

SLIDE 8

Energy Cost Comparison (xEV vs Conventional)*

* Source: Idaho National Laboratory

SLIDE 9

Challenges: Customer Expectations

TCO (Total Cost of Ownership) – More attractive cost equation

Price Operating cost

$29,170

$23,000$21,670

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2016 Focus BEV 2016 Focus2.0L 4 Cyl Auto

2016 Focus BEV vs Focus Pricing

MSR

P

MSR

P

Incl

Tax

Cre

dit

$4.10*

$8.00**

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

2016 Focus BEV 2016 Focus

* 32 kwh/100 miles @ 12.8 cents/kwh** 3.2 gals/100 miles @ $2.5/gal

Fuel Cost

* Source: www.fueleconomy.gov

SLIDE 10

No Compromises – At least same vehicle attributes

Performance Demand for higher vehicle acceleration and max speed

Challenges: Customer Expectations

Electric Driving Range Bigger battery pack

Cargo Capacity Available cargo space for larger battery pack

There are inter-dependencies and possible conflicts exist between vehicle attributes expected

by customers which, of course, needs to be resolved thru technical solution(s).

SLIDE 11

Charging Stations – Convenient and fast

Charging Time Fast DC charger best suited for “en-route” charging

Challenges: Charging Infrastructure

• Source: Bay Area Plug-in Electric Vehicle Readiness Plan – Dec. 2013

(* Ford data: 2017 Focus BEV)

0

100

200

300

400

500

600

700

800

900

1000

Prius Volt Leaf Prius Volt Leaf Focus*

AC Level 1 (1.4 kW) AC Level 2 (7.5 kW)

Ch

arge

Tim

e (

Min

)

0

20

40

60

80

100

120

Prius Volt Leaf Focus* Prius Volt Leaf

DC Fast (50 kW) DC Fast (150 kW)

Ch

arge

Tim

e (

Min

)

SLIDE 12

Upfront Infrastructure Cost of EVSE Significant investment for charging stations network

Challenges: Charging Infrastructure

• Source: U.S. Department of Energy– Nov. 2015

EVSE -> Electric Vehicle Supply Equipment

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Low High Low High Low High Low High Low High Low High

AC Level 1 AC Level 2 DC Fast AC Level 1 AC Level 2 DC Fast

Unit Cost Installation Cost

EVSE

SLIDE 13

Impact on Electrical Grid and Cost of Charging Infrastructure needs to match the demand

Challenges: Charging Infrastructure

SLIDE 14

Optimal System Functionality

Understanding of global customer usage and expectations

Challenges: Design & Engineering

Packaging

Modular and common design vs. vehicle packaging constraints

Reliability

Highly reliable and durable electrified vehicles

Homologation

Ever increasing regulatory standards

SLIDE 15

Although fuel economy and CO2 improvements required by global regulations do point to

electrified road transportation as the only practical solution, consumer’s willingness to

widely accept that will require other key factors beyond consideration of ecological impact.

Summary

Numerous studies and publications have concluded that such key factors include price,

operating cost, performance, functionality, and driving range.

Even though hybrid and plug-in hybrid electric vehicles do offer acceptable key attributes

such as performance and functionality without driving range compromise, more emphasis

is given globally to the adaption of electric vehicles.

If electric vehicles are to claim a substantial share of the electrified vehicle market,

reduction in total cost of ownership would be required as well as convenient and fast

charging infrastructure would need to be developed.

SLIDE 16

for your attention!

Questions???

Thank you