Bad Decision at Ford?

Implications: Volvo has shown a concept hybrid powertrain in a modified C30 vehicle, quite similar to the design that General Motors showed earlier this year at the North American Automotive show in Detroit. This technology when fully developed will be able to substantially improve fuel economy and drastically reduce vehicle emissions. However this appears to be a Volvo effort and is not part of a wider Ford Motor Car Company program.

Analysis:  

This article is a good news bad news story.

It good news that Volvo is developing a hybrid drive system for its vehicles. The market is swinging strongly to fuel efficient vehicles as well as environmentally friendly vehicles. Toyota has successfully capitalized on these market place trends with its popular Prius hybrid vehicles. However the term "hybrid" can and does encompass a wide range of possible powertrain configurations. In the Toyota design the engine is mechanically connected to the drive wheels. In normal operation the engine provides the power to the drive wheels. The battery supplements the gasoline engine if power demands exceed the capacity of the engine. When the power demands of the vehicle are less than the engine provides, the excess energy is stored in the batteries. From the scant details in the article, it appears that the Volvo hybrid system is very similar to the one General Motors is developing for the Chevrolet Volt program. The modified Volvo C30 shown at the Frankfort Auto show has a lithium ion battery pack that power the electric motors at the drive wheels. As with the General Motor’s design, there is no mechanical connection between the gasoline engine and the drive wheels. Electricity from the battery pack power the electric motors of the vehicle, for a claimed range of about 60 miles, almost exactly the same as the Chevrolet Volt. This battery pack is recharged when the vehicle is "plugged-in" while it is parked or by a gasoline engine while the vehicle is being driven beyond the range capacity of it battery system. Hence for daily commutes less than 60 miles, the gasoline engine is not operated and thus consumes no fuel. Thus the vehicle has the exceptional fuel economy and minimum CO2 emissions. That is a pretty good news story, but success for Volvo (and General Motors) heavily depends on battery capabilities and cost. This is the area in which technical improvements are needed and actively being sought by many manufacturers.

The bad news is that this hybrid drivetrain is a Volvo development program. Apparently it is not being done in cooperation with the parent company, Ford Motor Company. In spite of Ford’s announced plan to globalize its product lines, it apparently is not planning to incorporate the Volvo hybrid powertrain into its future vehicle lineup. As market pressures will surely drive Ford to eventually incorporate this advance technology, it is missing an opportunity to include this Volvo design into a broader product offering. Perhaps Ford has already made the decision to sell Volvo and is intentionally cutting its ties with that organization.