Can Ford’s NEW Engine DISRUPT U.S. Fuel Standards?

Ford Motor (NYSE:F) is set to change fuel economy standards of current hybrid cars in the U.S. with a smaller engine that it plans to bring over from Europe next summer. The one-liter, three-cylinder turbocharged engine is about half the size of the motor in Ford’s Focus sold in the U.S. The EcoBoost engine currently powers the European version of the Focus.

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It will be used in at least one of the company’s small cars, the company’s vice president of powertrain engineering, Joseph Bakaj, told Associated Press. Ford sells two small cars in the U.S.: the Focus compact and the Fiesta subcompact.

The engine will give about 125 horsepower, five horsepower more than the current 1.6-liter engine in the U.S. Fiesta. While the engine will compete with hybrid and electric cars on mileage, it will carry a far smaller price tag compared to engines used in those, Bakaj said, but wouldn’t go into details of either measure.

EcoBoost gets the equivalent of 49 miles per U.S. gallon in combined city and highway driving. The top-mileage U.S. Focus gets an estimated 33 miles per gallon. However, Bakaj did say that the engine will fall short of Toyota’s (NYSE:TM) Prius c gas-electric hybrid. The Prius c gets an estimated 50 mpg.

Oil companies such as Exxon Mobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDS-A) and Chevron (NYSE:CVX) each operate gas stations in the U.S. and could see less need for their gas supply as more fuel efficient cars come to U.S. roads. Each of the big 3 stocks ticked lower at the end of trading this past week.

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