Ford Invests $135 Million in Vehicle Electrification

Ford Motor Co. says it is spending $135 million to double its battery testing capability by next year, thus reducing the time to develop hybrid, plug-in and electric vehicles 25%. The investment also will be used to develop new batteries and electric-drive components.

The company now employs more than 1,000 engineers involved in battery research and expects to hire dozens more this year. That staff is housed in the Ford Advanced Electrification Center, formerly called the Advanced Engineering Center, at the company's campus in Dearborn. Mich.

Ford has said it expects electrified vehicles to account for about one-quarter of its vehicle fleet by 2020, up from less than 3% last year.

The cost of hybrid technology in the company's latest-generation vehicles is 30% lower than systems in the first-generation gasoline-electric model launched in 2004, according to Ford. The batteries in that vehicle were designed and made by an outside supplier.

As volume rises, the company says it is saving money by developing and producing batteries and EV and hybrid parts in-house. Ford, which previously imported transmissions for its hybrid vehicles from Japan, began making them in Michigan earlier this month.

The company is introducing five electrified models in 2012 and early 2013. The electric version of its Focus compact car debuted earlier this year. This autumn Ford plans to begin selling hybrid and plug-in versions of the C-Max small MPV and the next-generation Fusion midsize hybrid sedan. A plug-in Fusion is set to arrive early next year.