Ford Brings Accessible Innovation to China; Changing the Way the World Moves Again

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1 FORD MEDIA CENTER Ford Brings Accessible Innovation to China; Changing the Way the World Moves Again Ford announces RMB 11.4 billion investment in China research and development to deliver accessible innovation driven by the needs of Chinese consumers Innovations for the car, including improved connectivity, semi-autonomous vehicle features and autonomous vehicle development Innovations for the city, including Ford Smart Mobility projects and an improved customer experience Innovations for a better world, including advanced manufacturing techniques, new, more efficient powertrains, new energy solutions and a plan to invest RMB 50 million in Ford s China community programs FOR MORE NEWS VISIT THE FORD CHINA PAGE SHANGHAI, China, Oct. 12, 2015 More than a century after Henry Ford changed the way the world moved, Ford Motor Company is once again working on new accessible innovations this time to change the way China moves. The company today highlighted greener, smarter and more-accessible product and mobility innovations that will reshape how consumers in China and around the world move on an increasingly urbanized and congested planet in the next five years. It also announced plans to invest RMB 11.4 billion in research and development in China as Chinese consumers increasingly drive global innovation. At Ford Motor Company, our goal is to make people s lives better, said Mark Fields, president and CEO, Ford Motor Company. As both a product and mobility company, we are driving innovation in every part of our business. The result here in China will be positive change for consumers in the way people move, the way they drive, the cities they live in and the communities in which we operate. Innovation for your car China s consumers are some of the most connected in the world, with nearly 600 million active smartphone users across the country and they like to stay in touch on the road. A survey commissioned by Ford found that 45 percent of Chinese drivers have used their phones, and 31 percent have sent text messages, while stuck in traffic. As cars have become extensions of their owners, much like smartphones, Ford has delivered a smarter, safer solution to keep drivers connected SYNC, an in-car free connectivity system offering hands-free control of phones, entertainment, climate control and navigation. Today, the company announced that there will be more than 1 million SYNC-equipped vehicles on the road in China by the end of This will be quickly followed with the 2016 introduction of SYNC 3.

2 The next generation of Ford vehicles is being completely designed around our customers, said John Lawler, chairman and CEO of Ford Motor China. Ford is constantly going further to improve the innovative technologies that keep drivers safer and connected to their world. SYNC 3 is faster, more intuitive and even easier to use. Enhanced voice recognition technology, a more smartphone-like interface and easier-to-read graphics help to deliver an easier way to stay connected. In China, SYNC also will be the first in-car connectivity solution to feature support for Tencent s new in-vehicle app, Chelian. Chelian enables drivers to access popular Tencent services such as the QQ messaging app, as well as music, real-time traffic conditions and streaming radio. Drivers will be able to control the app with SYNC through Ford s in-car connectivity system, AppLink. QQ is China s largest social-media platform, with more than 840 million active user accounts. As the first in-car system compatible with Tencent s Chelian app, SYNC is uniquely positioned to become part of the lives of Chinese consumers who want to stay in touch while on the road, said Lawler. Responding to the needs of drivers on China s roads, who contend daily with traffic, pollution and difficult parking situations, Ford also will continue to implement advanced eyes and ears in its vehicles cameras and sensors that help drivers steer through traffic, monitor traffic signs and stay safely in their lane. Features such as Active City Stop, Active Park Assist, Adaptive Cruise Control and Lane Keeping System on existing vehicles like the Focus, Everest and Mondeo already help to relieve some of the stress of city driving. Next-generation versions of these systems will make use of advanced sensors to make driving even safer and more convenient. As it implements more driver-assistance technologies, Ford is working on the global development of fully autonomous vehicles, with the ultimate goal of creating an accessible and affordable solution for consumers in China and around the world. Innovation for your city Rapid urbanization and severe congestion are a fact of life in China: according to the United Nations, China had six cities with populations of over 10 million people in 2014, out of 28 such megacities worldwide. Together with changing consumer demographics and preferences, this makes China an ideal place to introduce innovations aimed at improving urban mobility part of Ford s global Smart Mobility plan to deliver the next level in connectivity, mobility, autonomous vehicles, the customer experience and big data. These innovations go beyond vehicles. Ford s partnerships with leading-edge companies like a recently completed project with Dida, China s leading carpooling service are a key element of the company s efforts to change the way the world moves with comprehensive transportation solutions. Through the Dida CityRide project, drivers of Ford vehicles in the pilot cities of Beijing and Shanghai registered as users of Dida Pinche, a carpooling app, offering to carpool with passengers on their morning and evening commutes. During the month-long campaign, Ford and Dida offered 170,000 rides to people in the two pilot cities, with the rides adding up to a total of 2.56 million kilometers traveled enough distance to circle the globe 64 times. Through the CityRide project, by carpooling, drivers and riders also helped cut carbon dioxide emissions by 700 metric tons. For owners of vehicles, the challenges of navigating a megacity are not confined to the daily commute. Recognizing the challenge of finding conveniently located dealerships and service centers in large cities, Ford is launching a new, convenient and flexible way to provide quick vehicle service

3 to its customers in China through its global Quick Lane service model. Ford s commercial vehicle investment Jiangling Motor Corporation opened its first Quick Lane outlet in Changsha, the capital of Hunan Province, earlier this month. JMC will open 20 Quick Lane outlets across China by the end of next year. Ford s joint venture partner Changan Ford is currently working on adapting the service for its customers as well. When launched, these new conveniently-located outlets will provide basic vehicle servicing such as oil changes and other routine maintenance, making vehicle ownership even easier for customers. Ford also is making it easier for customers to experience the Ford brand and purchase a Ford vehicle by making it possible to buy a vehicle online. Through its store presence on Tmall.com, a leading online business-to-consumer sales platform, customers can learn more about Ford and order vehicles like the exciting Mustang GT and extraordinarily capable Ford Everest with a click. Between April and September this year, Ford s Tmall store has already attracted 4.8 million hits. We believe the customer experience should be as stress-free as possible, said Joseph Liu, vice president, Marketing, Sales & Service, Ford Motor China. That s why we re experimenting with new ways of interacting with customers in a digital age that gives you easier access to the best services available. Our partnerships with both our ever-expanding dealer networks and pioneering Internet and service companies are helping us deliver a smarter customer experience. Innovation for a better world At the core of Ford s plan to provide accessible innovation to change the way the world moves is Henry Ford s belief that while a good business must make great products and a healthy return, a great business must do all this while creating a better world. In China, one way Ford s is building a better world is through the introduction of advanced new energy vehicles, or NEVs. Starting in 2016, Ford will expand consumers choice of fuel efficient vehicles in China with two new NEVs: the Ford C-MAX Energi plug-in hybrid electric vehicle and the Ford Mondeo hybrid electric vehicle. Leveraging Ford s global experience and expertise in NEV development, the two vehicles will help to reduce consumers fuel bills while reducing emissions in China s crowded cities. The C-MAX Energi plug-in hybrid and Mondeo hybrid will complement Ford s growing range of vehicles powered by Ford s efficient EcoBoost petrol engines, which provide customers with the fuel economy they need and the power they want. More than 80 percent of Ford passenger cars in China are available with EcoBoost engines, up from 20 percent just five years ago. Introducing a range of advanced technologies from gas to hybrid to plug-in hybrids by 2020, alongside our growing EcoBoost lineup shows how we will deliver on our promise to provide customers in China with the power of choice, said Lawler. This range is completely designed around our customers, giving them the fuel economy they need and the performance they want. With the introduction of these advanced vehicles and technologies, by 2020 the average Ford customer is expected to reduce annual fuel consumption by more than 200 liters each year compared with That adds up to a saving of about RMB 1,400 every year for each customer, and a reduction of more than 500 metric tons of carbon dioxide emissions annually across China. These new vehicles and powertrains will be manufactured in facilities that are among the greenest, safest and most advanced in the industry. By utilizing pioneering technologies to reduce emissions, energy consumption, and water usage, Ford is delivering on its commitment to make this world better for generations to come. Thanks in part to advanced treatment and reuse technology, Ford s multiple assembly plants in Chongqing reused 250,000 cubic meters of water in 2014 enough to fill 100 Olympic-sized

4 swimming pools. Compared with 2011, Ford used 36 percent less water per vehicle produced in China in In addition, for every car produced in China last year, the company sent 86 percent less waste to landfills compared to 2011, and used 19 percent less energy. In 2014 alone, Ford s China manufacturing operations saved 160 million kilowatt-hours of electricity, enough to power more than 187,000 Chinese homes for a year. Ford also is working on ways to help reduce customers environmental impact through cooperation with leaders in the home appliance, renewable energy and power management industries. The MyEnergi Lifestyle pilot program in Shanghai and Beijing is designed to demonstrate the real-world impact of energy-saving products by showing how combining renewable energy sources, efficient home appliances and a plug-in vehicle can significantly reduce families energy costs and carbon footprint. Creating more-efficient vehicles and greener manufacturing is a start, but reducing energy consumption isn t something that can be solved without cooperation with consumers and across industries, said Lawler. With MyEnergi lifestyle, we re working with experts like Haier, Trina Solar and Delta Electronics to develop a more energy efficient future for China and countries around the world. The MyEnergi Lifestyle model for China, created by Ford and researchers from The Georgia Institute of Technology, predicts approximate cumulative savings of 63 percent in energy costs a 40 percent and 69 percent drop in electric and gasoline bills, respectively, for estimated annual savings of RMB 9,400 and a 45 percent decrease in CO2 output, for a total reduction of 6,828 kilograms. The model also predicts a significant impact on reducing emissions that lead to pollution, including a decreased output of harmful PM2.5 and PM10 by approximately 32 percent and 35 percent, respectively, and a reduction of both nitrogen oxide and sulfur oxide emissions by 38 percent. The MyEnergi Lifstyle program complements Ford s long-standing efforts to give back to communities in China. For example, Ford has been supporting environmental leaders and nongovernmental organizations (NGOs) in China, awarding more than RMB 18 million in grants to more than 350 NGOs through its Conservation & Environmental Grants program for more than 15 years. Today, to the company announced it plans to invest an additional RMB 50 million over the next five years to continue growing its community programs in China. Investing in innovation for China and the world To help drive its next phase of development in China, Ford will invest RMB 11.4 billion in research and development in China by The investment will allow Ford to significantly build up its research and development capabilities in the country especially at its Nanjing Research and Engineering Center (REC) and will help Ford create more world-class vehicles in China, for China. With this investment in research and development, the next generation of Ford vehicles will be completely designed around our customers, said Fields. They will be even better for the environment, in sync with their connected lifestyles, and packed with innovative technologies to keep our customers safe, help them park, and avoid collisions. First established in 2007 as part of Ford s global product development network, Ford s REC features cutting-edge product development laboratories. These laboratories help the company develop new powertrains, test electronic systems, analyze the durability and safety of interior materials and improve vehicle manufacturing quality using the latest in 3-D scanning technologies.

5 Ford is currently building the Nanjing Test Center, a comprehensive vehicle-testing facility which features a full test track equipped with a constant-speed oval, special surfaces, steep grades and a precision steering road. The expansion of the facilities at REC will allow us to continue innovating in China for China, and ensure that China is a center for innovation globally, said Fields. As we move into the next five years, we will continue drawing on our heritage of innovation, to deliver accessible innovation to our customers and once again change the way the world moves. Editor s note: The fuel savings figures provided on page 4 are based on our expected fleet average fuel consumption for 2015 and 2020 as we continue to introduce advanced powertrain and electrification technologies that will result in lower fuel consumption for our customers. Of course, depending on product choices and driving behaviors, a customer s actual savings will be different than the average numbers identified. Key assumptions include an average annual distance traveled of 12,000 kilometers, 2,348 grams of carbon dioxide per liter of gasoline used, and a fuel price of 6.40 RMB per liter. About Ford Motor Company Ford Motor Company is a global company based in Dearborn, Michigan.The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions. Ford employs approximately 203,000 people worldwide.for more information regarding Ford,its productsand Ford Motor Credit Company,please visitwww.corporate.ford.com.

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