fox5

WASHINGTON -- The U.S. government will need to drastically increase spending on research into plug-in hybrid vehicles, as well as provide incentives to buyers, in order for them to become viable, Ford Motor Co.’s North American chief said today.

“It seems clear that a business case will not evolve, in the near term, without support from Washington,” Ford North American President Mark Fields said in remarks prepared for a plug-in hybrid conference here.

Ford has pledged to build a demonstration fleet of 20 plug-in hybrid Escape sport utility vehicles, and handed over a flex-fuel capable version to the U.S. Department of Energy for testing today. Ford said the first vehicles were achieving 120 miles per gallon when driven fully charged in urban areas.

But Fields said that the costs of such technologies, along with some technical and logistical challenges, would require government aid and policy changes. The battery packs alone in Ford’s Escape hybrid plug-ins likely cost about $6,000 each at today’s prices – more than double the typical cost of a traditional hybrid system.

Fields’ recommendations:

• New programs for battery research, something Congress has already committed to increasing in coming years.

• Federal funds to help pay for retooling factories to build plug-in hybrids.

• Tax credits for plug-in hybrid buyers

• A comprehensive control over greenhouse gases that would spur new technologies.

“We are doing our part to transform the industry and invest in new technologies,” Fields said, noting that two-thirds of Ford’s $7 billion annual development budget goes toward boosting fuel economy.

“However, in a global environment, a substantial government partnership is required.”

Detroit automakers have complained for years that foreign nations spend far more on research into the advanced batteries needed to make plug-in hybrids. While Congress has approved the idea of boosting funds, and the White House supports some increase as well, no extra money has been set aside.