Is Ford Wasting $200 Million?
Consumer Reports magazine released a poor review of modern turbocharged engines, saying that they do not perform as well and are sometimes no more fuel-efficient than regular engines. The magazine’s auto-testing chief even contested the EPA fuel-economy estimates on the vehicles, saying the cars just didn’t match up.
In addition, more novel technologies may take the stage. The use of hybrid engines is spreading among automakers, and several manufacturers, including BMW, Toyota (NYSE:TM), and even Ford itself, are working on fuel-cell technologies that could poor high fuel-efficiency cars by the end of the decade.
So, while Ford may be prepared for the future if fuel-cell technology takes off in the marketplace, its $200 million investment in the small turbocharged engine may prove to be a poor move in the long run.