Environmental Groups To Target Ford's Annual Meeting

Dow Jones Newswire
May 12, 2004
Sharon Silke Carty
DETROIT (Dow Jones)--Two environmental groups are planning to protest at Ford Motor Co.'s (F) annual meeting Thursday, asking the company to commit to drastically improve the fuel economy of its cars and trucks.

Global Exchange and Rainforest Action Network are asking the auto makers to increase the fuel economy of their fleets to 50 miles per gallon on average, by relying heavily on hybrid technology. The groups also want the auto makers to have zero emissions by 2020.

"We're trying to close the gap between rhetoric and reality," said Jason Mark, an activist with Global Exchange.

Environmental groups have applauded Ford's moves to bring hybrid technology - which improves the fuel efficiency of gas engines by relying on electricity for power at slower speeds - into its Ford Escape sport utility vehicle, due out this summer. But Mark said his group hopes a little "tough love" will persuade Ford to put hybrid technology into all of its vehicles across the board.

"I guess the question is, if you can build a clean car, why would you build anything but a clean car?" he said.

Mark said he hopes Ford will take a leadership position among the auto makers in improving fuel economy. His group plans to present board members with postcard-sized versions of two ads depicting Ford as "America's Oil Addict" at the annual meeting in Louisville.

Carolyn Brown, a spokeswoman for Ford, said the auto maker shares many of the same ideals as the environmental groups, but said reaching 50 mpg by 2010 is unrealistic.

"They target us because they know we care," Brown said. "We've been very articulate about our commitment to the environment."

Data from Edmunds.com show Ford hovers around the industry average for mileage per gallon for city driving - at 19 miles per gallon. The industry average for highway driving is 26 miles per gallon, and Ford cars and trucks average 25.7 mpg.

The Edmunds survey showed hybrid-powered cars got 60 miles to the gallon in city driving.

A survey by TNS Automotive recently showed that a growing number of younger consumers said they're willing to pay a $1,000 to $2,000 premium for alternative fuel engines.

The Ford Escape hybrid will be the first sport utility vehicle on the market later this year. Hybrid versions of General Motors Corp.'s (GM) Chevrolet Silverado and GMC Sierra, DaimlerChrysler AG's (DCX) Dodge Ram, Honda Motor Co's (HMC) Honda Accord, Toyota Motor Corp.'s (TM) Lexus RX 400h and Toyota Highlander are due out in the 2005 model year.

Industry watchers predict fuel economy will increasingly factor into consumers buying patterns as gas prices continue to rise. Edmunds.com says the average cost of gassing up a car annually is $1,178 for cars and $1,606 for trucks, SUVs and minivans, based on an estimated 15,000 miles driven.

"If the average price drivers are paying for gasoline continues to steadily climb, then the clean diesel engines and hybrid electric powertrains that auto makers are bringing to the market could be much more successful than skeptics, and even some proponents, expect," said Walter McManus, executive director of global forecasting for J.D. Power & Associates.