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.

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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.

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