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Hybrid electric vehicles

In 2004, Ford and Toyota agreed a patent-sharing accord that granted Ford access to certain hybrid technology patented by Toyota; in exchange, Ford licensed some of its own patents to Toyota. In 2004, Ford introduced the Escape Hybrid. With this vehicle, Ford was third to the automotive market with a hybrid electric vehicle and the first hybrid electric SUV to market. This was also the first hybrid electric vehicle with a flexible fuel capability to run on E85. The Escape's platform mate Mercury Mariner was also available with the hybrid-electric system in the 2006 model year—a full year ahead of schedule. The similar Mazda Tribute will also receive a hybrid-electric powertrain option, along with many other vehicles in the Ford vehicle line.

In 2005, Ford announced a goal to make 250,000 hybrids a year by 2010, but by mid-2006 announced that it would not meet that goal, due to excessively high costs and the lack of sufficient supplies of the hybrid-electric batteries and drivetrain system components. Instead, Ford has committed to accelerating development of next-generation hybrid-electric power plants in Britain, in collaboration with Volvo. This engineering study is expected to yield more than 100 new hybrid-electric vehicle models and derivatives.

In September 2007, Ford announced a partnership with Southern California Edison (SCE) to examine how plug-in hybrids will work with the electrical grid. Under the multimillion-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to Ford.

On June 12, 2008, USDOE expanded its own fleet of alternative fuel and advanced technology vehicles with the addition of a Ford Escape Plug-In Hybrid Flex-Fuel Vehicle. The vehicle is equipped with a 10-kilowatt (13 hp) lithium-ion battery supplied by Johnson Controls-Saft that stores enough electric energy to drive up to 30 miles (48 km) at speeds of up to 40 mph (64 km/h). In March 2009, Ford launched hybrid versions of the Ford Fusion Hybrid and the Mercury Milan Hybrid in the United States, both as 2010 models.

As of November 2014, Ford has produced for retail sales the following hybrid electric vehicles: Ford Escape Hybrid (2004–2012), Mercury Mariner Hybrid (2005–2010), Mercury Milan Hybrid (2009–2010), Ford Fusion Hybrid (2009–present), Lincoln MKZ Hybrid (2010–present), Ford C-Max Hybrid (2012–present), and Ford Mondeo Hybrid (2014–present). By June 2012, Ford had sold 200,000 full hybrids in the U.S. since 2004, and, as of September 2014, the carmaker has sold over 344,000 hybrids in the United States. The top selling hybrids in the U.S. market are the Fusion Hybrid with 127,572 units, followed by Escape Hybrid with 117,997 units, and the C-Max Hybrid with 54,236. As of November 2014, Ford is the world's second-largest manufacturer of hybrids after Toyota Motor Corporation, with 400,000 hybrid electric vehicles produced since their introduction in 2004.