Airport Ground Transportation Association Doug Walczak Limousine & Livery Manager

Airport Ground Transportation Association Doug Walczak Limousine & Livery Manager Ford North American Fleet, Lease, & Remarketing Operations 4/8/08

External Factors have Triggered Increased Environmental Focus …CO is down 62%, SO2 is down 52% and NOx is down 24% in gas powered vehicles Why High Oil prices Haven't Cut Demand Energy Bill won’t wean US off of oil imports Bush Seeks to “Break Addiction” to Foreign Oil What is the impact on your company?

Questions for You • What is your company’s environmental objective? • If alternative fuels are the focus….. Is it to meet regulatory requirements or to modify your existing fuel policy? • If emissions compliance is the focus……. is it a reduction in Greenhouse Gas (CO2)? • Is it to promote a corporate environmental image? • How does your vehicle fleet play a role in achieving your company’s objective?

Becoming Environmentally Friendly b d c c a A) Hybrid with PZEV operation (AT-PZEV) B) Improves as you move from “corn” based to cellulosic C) Improves with long term move to bio-diesel D Coupled with PZEV emissions operation

Leverage a flexible array of technology options including Hybrids, Clean Diesels, Bio-diesel and Ethanol • Advance research on Lithium battery hybrids, H2ICE and Fuel Cell technology • Customers will decide what technology best suits their needs for the future

Powertrain Technologies – Timeline Today 100x Cost Fuel Cell FE % 90 - 5x Cost Hydrogen I.C.E. FE % 20 - 25 3x Cost Hybrid Powertrain FE % 5 - 45 Specific Benefit 1.5x Cost Diesel I.C.E. FE % 25 – 35 1.01x Cost Flexible Fuel Engines FE % (15) – (25) / >500% 1.2x Cost Advanced Gasoline I.C.E. FE % 15 - 20 Near Term Mid Term Long Term Deployment Timeframe

Pathway to the Future: Advanced Technology Fuel Cells Fuel Cell: Impact in 20 Fuel Cell: Impact in 20 - - 30 yrs 30 yrs • • Endgame for the hydrogen economy Endgame for the hydrogen economy • • Environmentally neutral powertrain Environmentally neutral powertrain Hydrogen Powered Internal Combustion Engines Hydrogen Internal Combustion Engines: Hydrogen Internal Combustion Engines: Bridging technology Bridging technology • • Bridging action / enabler for H Bridging action / enabler for H Economy Economy 2 2 • • H H emissions benefits realized in near term emissions benefits realized in near term 2 2 Hybrid Powertrains (Including Plug-Ins) 15% Market Hybrid Powertrain: 10 Hybrid Powertrain: 10 - - • • Market driven niche solution Market driven niche solution • • Benefits realized in urban driving conditions Benefits realized in urban driving conditions Modern Clean Diesels (Including Biodiesel Modern Clean Diesel: Core for next 40+ yrs Modern Clean Diesel: Core for next 40+ yrs • • Challenges Challenges – – fuel quality, Tailpipe Emissions fuel quality, Tailpipe Emissions standards standards Gasoline Engine Efficiency: Core for 30+ yrs Gasoline Engine Efficiency: Core for 30+ yrs Advanced Gasoline Internal Combustion Engines (ICE) (Including Biofuels) • • Low cost, reliable, familiar Low cost, reliable, familiar • • Existing capital & refueling infrastructure Existing capital & refueling infrastructure Mid Term Long Term Near Term

Advanced Gasoline Engines Challenges Key Facts Benefits • Incremental improvements in efficiency are being achieved via: Six Speed Transmissions, Variable Displacement Engines, Direct Injection, Variable Cam Timing, Variable Compression Ratios • Reliable and familiar to consumers • Compatible with ethanol fuel blends up to 10% • U.S. gas prices relatively low compared to other markets • Approaching near-zero emissions • Fuel economy tradeoffs required to comply with increasingly stringent emissions and safety standards • Cost effectiveness of incremental technologies

EcoBoost Engine Technology • EcoBoost – Ford Motor Company’s new high-volume engine technology: • uses gasoline turbocharged direct-injection for up to 20% better fuel economy and 15% fewer CO2 emissions • Available in half a million vehicles during the next five years beginning with the new Lincoln MKS sedan in 2009 • 3.5L twin-turbocharged V-6 delivering power (340 hp) and torque (340 lb. ft.) of a V-8 with the fuel efficiency of a V-6 • Real-world fuel economy benefit is achieved in all drive cycles – city and highway

Ethanol has been a transportation alternative fuel choice for more than 10 years About 4.9 billion gallons of ethanol were produced for transportation purposes in 2006 Most U.S. ethanol is currently derived from corn Ethanol produced from cellulosic feedstocks planned for the future A Pathway for Today:Ethanol (E85)

Why Ethanol Now?Opportunity for Immediate Impact • Ford has placed over 2 million E85 FFVs on America’s roads • As a whole, U.S. automakers have produced more than 6 million E85 flexible fuel vehicles • If all of these vehicles were operated on E85, over 3.6 billion gallons of gasoline a year could be displaced. • That’s like saving a full year of gasoline consumption in a state like Missouri or Tennessee. • Ford, GM and DaimlerChrysler voluntarily committed to doubling our production of FFVs by 2010. • We expanded that commitment to include half our vehicles each year by 2012, provided sufficient infrastructure is in place

E85 Flex Fuel Challenges Key Facts Benefits • Over 6 million E85 FFVs on the road today in the U.S. • About 1,100 E85 stations in the U.S. • The 5.4L F-Series is Ford’s latest FFV • Limited fuel infrastructure • Fuel cost vs. gasoline – 20% price differential needed • Customer acceptance of fuel • Fuel system components more expensive than gasoline • Promotes U.S. energy security and fuel diversity • Agricultural-based renewable fuel • Offers fuel flexibility for customers • Incremental cost absorbed by Ford

What Is Needed?More E85 Stations Will Solve The “Chicken & Egg” Problem E85 Availability Primarily in the Midwest (presently about 1,100 stations – out of about 170,000 retail gasoline stations nationwide)

Ethanol Vehicle Availability (E85) • Three new products - Crown Victoria Police, Taxi and E-Series • 50 State Certification on F-150, Crown Victoria, Grand Marquis • New Yellow Gas Cap highlighting E-85 capability

Advanced Technology Diesel Challenges Key Facts Benefits • All Ford diesel applications can use 5% biodiesel blends • Low Nitrous Oxides (NOx) levels may be achieved with urea co-fueling • Lingering public perception • Meeting stringent U.S. emission standards • Fuel quality improvements (low sulfur, cetane) • Higher incremental cost for vehicle and fuel • Significant increase in fuel economy (20-30%) • Higher performance, less noise, less odor • Improved emissions • Ample refueling infrastructure

B-20 Applications • All New 6.4L Diesel launched with the 2008 MY Super Duty • Ford Powertrain Engineering presently developing B-20 capabilities • Working with Fuel partners on development of B-20 specification • Pilot Demonstrator Program is in development

Hybrid Electric Challenges Key Facts Benefits • Wide variety of hybrid technologies exist across the industry (mild to full) • Ford delivered 20 HEV-FFV demo vehicles this spring • Significant increasesin fuel economy(full hybrids) • Uses existing fueling infrastructure • Can achieve near zero emission levels • Full-hybrid technology is most effective in city and stop-and-go driving • Incremental cost for hybrid option • Limited U.S. supply base for battery technology • Applications to broader vehicle segments (i.e. trucks, larger SUVs, etc.) • Customer acceptance/ value

Ford’s “Family of Hybrids” Ford Escape & Mercury Mariner • Available now Ford Fusion & Mercury Milan Production beginning in 2008 CY

Escape Hybrid Taxi • Ford Escape Hybrid Taxi has received overwhelming positive press and awareness as a result of its successful fleet application • USA Today – San Francisco Taxi • CNN – New York Escape Hybrid Taxi

Current Fleet – 328 vehicles Taxi Locations San Francisco Feb 2005 (40) New York City Nov 2005 (288) Annual Vehicle Environmental Benefits* Savings of 1,666 gallons of gasoline Removal of 32,000 lbs of carbon emissions Vehicle Durability Up to 200,000 miles, San Francisco Driver Benefits Taxi Drivers save up to $30 / shift or more than $6,000 annually in fuel Hybrid Taxi Fleet FWD Escape rated at 36mpg in city driving & provides 500 miles to a tank Ford holds more than 150 patents on the Hybrid Escape * Annual savings based upon San Francisco experience of 100,000 miles per year.

Escape Hybrid E-85 Demonstration Fleet • Demonstration program marrying two petroleum-saving technologies – hybrid electric and flex fuel • 20 vehicles delivered for real world testing and engineering evaluation • Helps reduce dependence on imported oil • Produces about 25% less carbon dioxide than a gasoline-fueled Escape Hybrid

Hybrid E-Series Commercial Chassis • E-Series strip chassis • Parallel Hybrid design using the 5.4L 5R110 Powertrain • All development and integration done by Azure Dynamics • Electric motor in drive train providing regenerative braking plus additional start up power. Engine off capability and limited full electric mode operation also provided.

Plug-in Hybrids Challenges Key Facts Benefits • Breakthrough fuel economy improvements for customers with 20-40 miles daily use • Off-peak electric charging provides low-cost power opportunity • Interconnectivity with home/business power system can offset peak load costs • High cost of battery storage systems (2-3x hybrid systems) requires new business model involving wind, utilities, renewable fuel providers and policy makers • Battery must complement stationary applications to ensure high residual value after vehicle use • Ford and Southern California Edison collaborating on industry first demo program • Ford to deliver small fleet of vehicles for testing • High-density lithium ion battery cost exceeds $15,000; long-life characteristics can support vehicle and post-vehicle energy storage applications

Hydrogen Powered Internal Combustion Engines (H2ICEs) • Key “Bridge” Technology • H2ICE Shuttle Bus Demonstration w/6.8L Supercharged H2 Triton V10 • Holds up to 12 passengers plus luggage • Worked with State of Florida, Dallas-Ft.Worth airport, Canadian government and others to launch a demo fleet

Fuel Cell Challenges Key Facts Benefits • DOE demonstration projects are under way • Significant volume applications are not expected before 2030+ • High cost of technology • On-board hydrogen fuel storage • Hydrogen infrastructure is in its infancy • Lack of uniform codes and standards • Zero Emission Vehicle (ZEV) • Breakthrough performance in energy efficiency • Hydrogen can be derived from multiple sources • Promotes long-term renewable fuel vision

Edge HySeries Drive Hybrid • First drivable fuel cell HEV with plug-in capability • Operates using a fuel cell, small gasoline or diesel engine connected to an electric generator • Powered by a 336-volt lithium-ion battery pack (refreshed by an on-board charger from a standard home outlet) • Drives first 25 miles on stored electricty, after which the fuel cell kicks in to keep battery charged (provide additional 200 miles range

Environmental Interiors • First U.S. automotive application of seating surfaces made from 100% post-industrial materials. Positive benefits include: • Estimated conservation of 600,000 gallons of water • 1.8 million pounds of carbon dioxide equivalents • More than 7 million kilowatt hours of electricity annually • Soy foam technology launched in the Mustang seat cushions and seat backs • Potential to replace up to 30 pounds of petroleum based foam used today

EasyFuel – Capless Fuel Fill Technology • Industry exclusive feature • Eliminates the need for a fuel cap speeding up the refueling process • Provides a better seal than a fuel cap which reduces the escape of smog-producing emissions • Eliminates annoying false “Check Engine” light

Eco-Friendly Paint • Industry-first paint technology that is better for the environment • Combines an advanced chemical formulation of high solids, solvent borne paint with innovative three-part wet application process • Reduces CO2 emissions by 15% & Volatile Organic Compounds (VOC) emissions by 10% • Ford won “Best Technical Prize” for the new paint technology at the International Conference on Automobile Body Finishing

Environmental Manufacturing Ford Rouge Manufacturing Plant • Worlds largest living roof • Controls storm water run-off • Cools the plant in the summer • Lasts longer than a conventional roof • Never needs to be mowed

2008 Mariner Hybrid Livery Package

Mariner Hybrid Livery Package: Heated front seats Premium leather seating surfaces Lumbar controls Energy Flow Navigation system Reverse Sensing System Roof rack with satin inserts & black cross bars Heated mirrors Body-color exterior mirrors Cargo area cover 110V AC power outlet 4-year/100,000 mile ExtraCare ESP for livery vehicles Livery PackageOption Code 47L

A full hybrid operates in four functional states: 1) Automatic gas engine start/stop 2) Full regenerative braking 3) Full electric launch and drive 4) Electric assist A full hybrid has a larger, more powerful battery pack and can be powered entirely by electric power. A mild hybrid is essentially gasoline-powered, using the electric motor only to assist the gas engine as needed. Full hybrids also take advantage of the efficiencies of hybrid technology by: Recharging the batteries during braking (full regenerative braking) Moving the vehicle solely by electric power Full hybrids are more efficient than mild hybrids, which do not employ full regenerative braking or electric-only operation Full Hybrid

Competitive System Overview Mild vs. Full Hybirds 1Saturn VUE HEV 20% FE benefit – approximately 5% is from BISG HEV, while approximately 15% are from other vehicle actions (aero, engine actions - 2.2 I4 to 2.4 VVT I4, DFSO, FDR, weight, others) 2 Toyota does not publish starter/generator motor values, therefore these numbers are estimates based upon battery and drive motor size. 3 Toyota Prius does not have an equivalent gasoline vehicle, so the fuel economy percent benefit cannot be determined. 4 Honda Accord electric motor provides starter, generator, and electric boost (supplemental torque) functions, but cannot operate alone without the gasoline engine.

Key Comparison Data

For 2008MY, Escape and Mariner Hybrid tax credits have increased due to improvements in real world fuel economy FWD: $2600 $3,000 4WD: $1950 $2,200 Tax Credits Mariner now has the highest Hybrid tax credit of ANY vehicle

Thank You!

Airport Ground Transportation Association Doug Walczak Limousine & Livery Manager