Chang'an to go green

Clean energy cars, such as the Ford Escape Hybrid Ford CEO Alan Mulally drove to US congressional hearings in December, may play a key role in the auto industry's future.

China's Chongqing municipality, the US city of Denver and Ford agreed on an electric and hybrid automobile project at the fifth China-US Strategic Economic Dialogue in Beijing in December.

Changan Ford Automobile Co Ltd, in Chongqing, will set up a special team to push the project forward.

"Producing new energy cars enabling zero-emission and fuel efficiency will definitely drive our business in the near future," said an anonymous Changan Ford official.

Ford pledged at the congressional hearings to accelerate its business by introducing more fuel-efficient vehicles including hybrid electric vehicles, advanced plug-in hybrids and full electric vehicles.

Hybrid vehicles get better mileage than petrol and their batteries recharge themselves. Technical difficulties, high costs and a relatively small market have so far prevented most automakers from developing plug-in hybrids and full electric vehicles.

But Japanese companies such as Toyota and Honda are staring to show that selling green cars is profitable and Ford is trying to follow suit.

The company showcased the world's first drivable fuel cell hybrid electric plug-in vehicle at the Kansas City Assembly Plant during a visit by US President George W. Bush in March 2007.

Changan Ford launched China's first domestic hybrid sedan, the Jiexun-HEV, in 2007. The Jiexun-HEV uses fuel-battery technology, which cuts fuel consumption by 20 percent.

"We hope Ford, Denver and Chongqing develop an advanced all-electric power vehicle and the related assembly facilities," said a Chongqing municipal development and reform commission official, adding that such cutting edge technology would ensure a bright future for all three parties in the international auto market.

China took steps toward stimulating domestic demand for alternative energy cars earlier this year.

Wan Gang, minister of science and technology, said at an August 2008 summit meeting focusing on electric cars that the ministry would develop a large-scale pilot project in 10 or more Chinese cities over three years to put 1,000 hybrid, fuel-cell and all-electric vehicles on the road and build the requisite infrastructure for the project.

China is helping Ford not just by jointly developing alternative energy cars with the company but also by buying many of its vehicles.

"Despite the financial crisis in its home market, Ford still see a bright beacon of hope in China, the second largest world auto market, and has no plan to change its marketing strategies in China," said Xu Guozhen, vice-president for Ford Motor (China) Ltd.

Chinese consumption and joint green technology innovation could buoy Ford, which saw its sales plummet 31 percent in November.

The company is seeking a $9 billion line of credit from the US government and an additional $5 billion from an Energy Department program.

(China Daily 01/05/2009 page3)