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Unbroken Reduction Trend Intermediate target achieved ahead of time 13% CO2 emission reduction by 2004 Unbroken Reduction Trend Intermediate target achieved ahead of time 13% CO2 emission reduction by 2004 Ford Turbo-Diesel with BISG Volvo Multi-Fuel Ford Edge with HySeries Drive? Ford Edge with HySeries Drive? Ford E-450 V10 Hydrogen Ford Focus Fuel Cell Vehicle Getrag-Ford Powershift Getrag-Ford Powershift Slide 14 Diesel will continue to benefit from further investment. At Ford… for example… we see considerable growth potential for small diesel engines. In fact, we plan to launch three advanced diesel engines in the next few years with further CO2 improvements of five to 10 percent… … possibly more with the addition of additional powertrain technologies, such as the Belt-Integrated Starter Generator system shown in this image. But the challenge for diesel remains how to control tail-pipe emissions without ever-more expensive after-treatments which would erode affordability. Failure to solve this challenge will lead to a decline in diesel’s market share. So far I’ve talked about diesel and petrol. But where do bio-fuels and hybrids fit into this picture? Slide 15 Bio-fuels are.. of course… complementary with all three of the powertrain technologies I have mentioned. As an aside, it’s interesting how the recent growth in bio-fuels is at last helping to fulfil the vision of some of the earliest pioneers of our industry. When… in 1898… Rudolph Diesel demonstrated his first engine at the Paris Exhibition, it ran on peanut oil. And let’s not forget that Henry Ford’s Model T was designed to run on ethanol from crop waste. So.. if you’ll forgive the pun… it looks as if we’re returning to our roots! Slide 15f However, it seems certain that in most markets bio-fuels will not entirely displace fossil fuels. Even if demand was sufficient, we don’t have the agricultural capacity to produce the necessary amounts of bio-fuel. At Ford we continue to