Ford Exec Promotes Government R and D Help, Tax Breaks For PHEVs

Mark Fields, President of the Americas at the Ford Motor Company, suggested that Washington, DC should subsidize the accelerated development of plug-in hybrid electric vehicles. Fields also expressed the need for a domestic battery supply for electric vehicles and PHEVs manufactured in the US.

Fields suggested that the government should provide tax breaks and other incentives for consumers who wish to purchase these vehicles, to help offset their higher sticker price. He also indicated that the infrastructure to support electric vehicles would need to be modified to support widespread use. In a speech delivered at a PHEV conference sponsored by the Brookings Institute and Google, Fields said that PHEVs can only succeed in the open market through a "shared commitment to innovation and collaboration" among automakers, electric utilities and legislators.

Ford is currently developing a PHEV and is testing the vehicle in a cooperative partnership with Southern California Edison. Ford has not indicated when it plans to bring the PHEV into production, but will introduce two additional hybrid models - the Mercury Milan Hybrid and the Ford Fusion Hybrid, bringing Ford's hybrid line to five. Additionally, Ford will offer EcoBoost, a turbo-charged, direct-injection engine that promises to deliver a fuel economy increase of up to 20% and a 15% reduction in carbon emissions.

Earlier this year, Chrysler President and Vice Chairman Jim Press touched off a firestorm of controversy by suggesting that the Japanese government had subsidized the development cost of Toyota's Prius hybrid model. Press, who worked in Toyota's upper echelon for thirty years, later issued a clarification of his statement, indicating that the Japanese automaker "worked closely" with the Japanese government, and that the US auto industry would benefit from such cooperation.