Automotive Fuel Economy Program; Report to Congress

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Automotive Fuel Economy Program; Report to Congress

The appended document, Automotive Fuel Economy Program, Eighteenth

Annual Report to the Congress, was prepared pursuant to section

502(a)(2) of the Motor Vehicle Information and Cost Savings Act (Pub.L.

92-513), as amended by the Energy Policy and Conservation Act (Pub.L.

94-163) which requires in pertinent part that each year beginning 1977,

the Secretary shall transmit to each House of Congress, and publish in

the Federal Register, a review of average fuel economy standards under

this part.

Issued: February 23, 1994.

Barry Felrice,

Associate Administrator for Rulemaking.

U.S. Department of Transportation

Automotive Fuel Economy Program

National Highway Traffic Safety Administration

Eighteenth Annual Report To The Congress

AUTOMOTIVE FUEL ECONOMY PROGRAM

EIGHTEENTH ANNUAL REPORT TO THE CONGRESS

Table of Contents

SECTION I: INTRODUCTION

SECTION II: FUEL ECONOMY IMPROVEMENT BY MANUFACTURERS

SECTION III: 1993 ACTIVITIES

A. Passenger Car CAFE Standards

B. Light Truck CAFE Standards

C. Low Volume Petitions

D. Enforcement

SECTION IV: USE OF ADVANCED TECHNOLOGY

A. New Models

I. Passenger Cars

a. Domestic

b. Imports

II. Light Trucks

a. Domestic

b. Imports

B. Engine and Transmission Technology

C. Electronics

D. Materials

E. Summary

Section I: Introduction

This Eighteenth Annual Report to Congress summarizes the 1993

activities of the National Highway Traffic Safety Administration

(NHTSA) regarding implementation of applicable Sections of Title V:

``Improving Automotive Fuel Efficiency,'' of the Motor Vehicle

Information and Cost Savings Act of 1972 (15 U.S.C. 1901 et seg.), as

amended (the Act). Section 502(a)(2) of the Act requires submission of

a report each year. Included in this report are sections summarizing

rulemaking activities during 1993 and a discussion of the use of

advanced automotive technology by the industry as required by section

305, Title III, of the Department of Energy Act of 1978 (Pub. L. 95-

238).

Title V of the Act requires the Secretary of Transportation to

administer a program for regulating the fuel economy of new passenger

cars and light trucks in the United States. The authority to administer

the program was delegated by the Secretary to the Administrator of

NHTSA, 49 CFR 1.50(f).

NHTSA's responsibilities in the fuel economy area include:

(1) Establishing and amending average fuel economy standards for

manufacturers of passenger cars and light trucks, as necessary;

(2) Promulgating regulations concerning procedures, definitions,

and reports necessary to support the fuel economy standards;

(3) Considering petitions for exemption from established fuel

economy standards by low volume manufacturers (those producing fewer

than 10,000 passenger cars annually worldwide) and establishing

alternative standards for them;

(4) Preparing annual reports to Congress on the fuel economy

program;

(5) Enforcing fuel economy standards and regulations; and

(6) Responding to petitions concerning domestic production by

foreign manufacturers and other matters.

Passenger car fuel economy standards were established by Congress

for Model Year (MY) 1985 and thereafter at a level of 27.5 miles per

gallon (mpg). NHTSA is authorized to amend the standard above or below

that level. Standards for light trucks were established by NHTSA for

MYs 1979 through 1995. NHTSA set a combined standard of 20.6 mpg for

light truck fuel economy standard for MY 1995. All current standards

are listed in Table I-1.

Table I-1.--Fuel Economy Standards for Passenger Cars and Light Trucks

Model Years 1978 Through 1995

[In MPG]

------------------------------------------------------------------------

Light Trucks\1\

Passenger --------------------------------------

Model year cars Two-wheel Four-wheel

drive drive Combined2,3

------------------------------------------------------------------------

1978................ \4\18.0 ........... ........... ...........

1979................ \4\19.0 17.2 15.8 ...........

1980................ \4\20.0 16.0 14.0 (\5\)

1981................ 22.0 \6\16.7 15.0 (\5\)

1982................ 24.0 18.0 16.0 17.5

1983................ 26.0 19.5 17.5 19.0

1984................ 27.0 20.3 18.5 20.0

1985................ \4\27.5 \7\19.7 \7\18.9 \7\19.5

1986................ \8\26.0 20.5 19.5 20.0

1987................ \9\26.0 21.0 19.5 20.5

1988................ \9\26.0 21.0 19.5 20.5

1989................ \10\26.5 21.5 19.0 20.5

1990................ \4\27.5 20.5 19.0 20.0

1991................ \4\27.5 20.7 19.1 20.2

1992................ \4\27.5 ........... ........... 20.2

1993................ \4\27.5 ........... ........... 20.4

1994................ \4\27.5 ........... ........... 20.5

1995................ \4\27.5 ........... ........... 20.6

------------------------------------------------------------------------

\1\Standards for MY 1979 light trucks were established for vehicles with

a gross vehicle weight rating (GVWR) of 6,000 pounds or less.

Standards for MY 1980 and beyond are for light trucks with a GVWR of

8,500 pounds or less.

\2\For MY 1979, light truck manufacturers could comply separately with

standards for four-wheel drive, general utility vehicles and all other

light trucks, or combine their trucks into a single fleet and comply

with the 17.2 mpg standard.

\3\For MYs 1982-1991, manufacturers could comply with the two-wheel and

four-wheel drive standards or could combine all light trucks and

comply with the combined standard.

\4\Established by Congress in Title V of the Act.

\5\A manufacturer whose light truck fleet was powered exclusively by

basic engines which were not also used in passenger cars could meet

standards of 14 mpg and 14.5 mpg in MYs 1980 and 1981, respectively.

\6\Revised in June 1979 from 18.0 mpg.

\7\Revised in October 1984 from 21.6 mpg for two-wheel drive, 19.0 mpg

for four-wheel drive, and 21.0 mpg for combined.

\8\Revised in October 1985 from 27.5 mpg.

\9\Revised in October 1986 from 27.5 mpg.

\10\Revised in September 1988 from 27.5 mpg.

The Alternative Motor Fuels Act of 1988 (AMFA) (Pub. L. 100-494,

October 14, 1988), amended the Motor Vehicle Information and Cost

Savings Act under Section 513--Manufacturing Incentives for

Automobiles. AMFA promotes the use of methanol, ethanol, and natural

gas as transportation fuels, and it provides corporate average fuel

economy (CAFE) incentives for the vehicles that can use alternative

fuels. AMFA provides CAFE benefits for manufacturers who produce both

dedicated and dual energy alternative fuel vehicles in MYs 1993 through

2004, and the benefits may be extended through MY 2008. Dual energy

automobiles are capable of operating on alcohol and either gasoline or

diesel fuel. Natural gas dual energy automobiles are capable of

operating on natural gas and either gasoline or diesel fuel. A fleet

including dual energy automobiles which meets the applicable range or

dedicated alternative fuel automobiles qualify to have their CAFE

calculated using a special procedure that considers the petroleum

content of the alternative fuel. Under that procedure, a relatively

high fuel economy figure is assigned the vehicles capable of operating

on alternative fuels. Section 513 of the Motor Vehicle Information and

Cost Savings Act of 1972, was revised by the Energy Policy Act of 1992,

to expand the definition of manufacturing incentives for automobiles by

including gaseous alternative fuels.

The Environmental Protection Agency (EPA) administers the fuel

economy calculations for passenger vehicles, including alternative fuel

vehicles. EPA will publish the final rules for alternative fuel

vehicles which contain the special CAFE adjustments for these vehicles.

The majority of the manufacturers of these alternative fuel vehicles

described below are awaiting guidance from EPA to receive special CAFE

credits.

In MY 1993, several manufacturers demonstrated the capability of

producing alternative fuel vehicles. Although production of these

passenger vehicles was not large, alternative fuels are advantageous in

reducing hydrocarbon, carbon monoxide, and oxides of nitrogen emissions

at a relatively low cost and providing higher octane ratings.

Ford is the only manufacturer that reported a special CAFE

calculation for its flexible fuel passenger automobiles. A flexible

fuel vehicle is capable of operating on alcohol, gasoline, or any

combination of these fuels from the same tank and without the driver

taking any additional actions. The following alternative fuel vehicles

were produced in MY 1993:

GM manufactured two alternative fuel vehicles: methanol

(M85) and ethanol (E85) Luminas. GM projected producing a total of

500 of these flexible fuel vehicles. The M85 fuel has a content of

85 percent methanol fuel and 15 percent gasoline. The E85 fuel

consists of 85 percent ethanol fuel and 15 percent gasoline. These

vehicles have the flexibility to run either on the alternative fuels

or gasoline.

Ford included an alcohol flexible fuel passenger

automobile in its MY 1993 fleet, which was reported in its midmodel

year report. The Taurus, a midsize passenger car, achieved a fuel

economy of 42.4 mpg when adjusted for the alternative fuel. Ford

projected producing 2,000 of these flexible fuel passenger vehicles.

Chrysler included two flexible fuel passenger vehicles,

Spirit and Acclaim, in its MY 1993 fleet. Chrysler projected

manufacturing a total of 5,427 of these vehicles. The fuel economy

for both these flexible fuel passenger vehicles is 28.2 mpg, when

operating on gasoline.

After Chrysler and GM receive special CAFE calculations for their

alternative fuel vehicles, the current fuel economies of these

companies will increase slightly. The relatively low volumes of these

vehicles in the GM and Chrysler fleets will preclude any significant

CAFE adjustment.

Section II: Fuel Economy Improvement by Manufacturers

The fuel economy achievements for domestic and foreign

manufacturers in MY 1992 were updated to include final EPA

calculations, where available, since the publication of the Seventeenth

annual Report to the Congress. These fuel economy achievements and

current projected data for MY 1993 are listed in Tables II-1 and II-2.

Overall fleet fuel economy for passenger cars was 28.3 mpg in MY

1993. For MY 1993, CAFE values increased over MY 1992 levels for 15 of

21 passenger car manufacturers' fleets. (See Table II-1.) These 15

companies accounted for over 74 percent of the total MY 1993

production. Manufacturers continued to introduce new technologies, more

fuel efficient models, and less fuel-efficient larger models. For MY

1993, the overall domestic manufacturers' fleet average fuel economy

was the highest it has ever been with 27.7 mpg, exceeding the CAFE

standard by 0.2 mpg. The overall domestic manufacturers' fleet average

fuel economy is the closest it has been to that of the import

manufacturers, differing by only 1.8 mpg. For MY 1993, Ford and GM

raised their domestic passenger car CAFE 0.7 and 0.6 mpg, respectively,

from their 1992 levels, while Chrysler fell 0.3 mpg below its MY 1992

level.

Table II-1.--Passenger Car Fuel Economy Performance by Manufacturer*

[Model Years 1992 and 1993]

------------------------------------------------------------------------

Model year

CAFE (MPG)

Manufacturer -------------

1992 1993

------------------------------------------------------------------------

Domestic:

Chrysler................................................ 27.8 27.5

Ford.................................................... 27.4 28.1

GM...................................................... 26.8 27.4

Mazda................................................... ..... 29.2

-------------

Sales Weighted Average (Domestic)......................... 27.1 27.7

-------------

Imported:

BMW..................................................... 24.0 25.2

Chrysler Imports........................................ 28.9 30.8

Daihatsu................................................ 41.3 .....

Fiat.................................................... 22.5 23.7

Ford Imports............................................ 25.4 27.0

GM Imports.............................................. 31.1 29.7

Honda................................................... 31.3 32.0

Hyundai................................................. 31.3 31.0

Isuzu................................................... 32.5 33.0

Kia..................................................... ..... 31.7

Mazda................................................... 30.7 30.8

Mercedes-Benz........................................... 21.8 22.9

Mitsubishi.............................................. 28.2 29.1

Nissan.................................................. 29.4 29.0

Peugeot................................................. 25.0 .....

Porsche................................................. 22.4 22.5

Subaru.................................................. 27.8 29.3

Suzuki.................................................. 44.7 46.4

Toyota.................................................. 28.8 28.8

Volvo................................................... 25.6 25.9

VW...................................................... 29.2 27.0

-------------

Sales Weighted Average (Imported)......................... 29.0 29.5

-------------

Total Fleet Average................................... 27.9 28.3

-------------

Fuel Economy Standards.................................... 27.5 27.5

------------------------------------------------------------------------

*Manufacturers or importers of fewer than 1,000 passenger cars annually

are not listed.

Note: Some MY 1992 CAFE values differ from those used in the Seventeenth

Annual Report to the Congress due to the use of final EPA

calculations.

Table II-2.--Light Truck Fuel Economy Performance by Manufacturer

[Model years 1992 and 1993]

------------------------------------------------------------------------

Model year CAFE(MPG)

---------------------

Manufacturer Combined

---------------------

1992 1993

------------------------------------------------------------------------

Captive Import:

Chrysler Imports................................ 21.0 24.4

---------------------

Others:

Chrysler........................................ 21.2 21.0

Daihatsu........................................ 26.7 .........

Ford............................................ 20.3 20.7

GM.............................................. 20.2 19.8

Isuzu........................................... 20.8 21.8

Mazda........................................... 23.4 23.6

Mitsubishi...................................... 22.2 21.2

Nissan.......................................... 23.9 23.8

PAS............................................. 18.6 18.5

Range Rover..................................... 16.3 15.4

Surbaru......................................... 28.6 29.1

Suzuki.......................................... 30.1 28.9

Toyota.......................................... 21.9 21.8

UMC............................................. 19.0 18.8

VW.............................................. ......... 21.0

---------------------

Total Fleet Average........................... 20.8 20.8

---------------------

Fuel Economy Standard......................... 20.2 20.4

------------------------------------------------------------------------

Note: Some MY 1992 CAFE values differ from those used in the Seventeenth

Annual Report to the Congress due to the use of final EPA

calculations.

Mazda achieved 75 percent domestic content for its United States-

built passenger cars to become the first foreign-based manufacturer

with a domestic fleet. Overall, the domestic manufacturers increased

their combined CAFE by 0.6 mpg over MY 1992 levels.

In MY 1993, the fleet average fuel economy for imported passenger

cars increased by 0.5 mpg from the MY 1992 CAFE level. Import CAFE was

29.5 mpg in MY 1993. Thirteen of the 18 imported car manufacturers

increased their CAFE values between MYs 1992 and 1993, including 6 of

the 9 Asian importers. Figure II-1 illustrates the changes in total new

passenger car fleet CAFE from MY 1978 to MY 1993.

The total light truck fleet CAFE remained constant at the MY 1992

CAFE level of 20.8 mpg. Figure II-2 illustrates the progress in total

fleet CAFE from MY 1979 to MY 1993 for light trucks.

A number of passenger car and a few light truck manufacturers are

projected not to achieve the levels of the MY 1993 CAFE standards.

NHTSA is not yet able to determine which of these manufacturers may be

liable for civil penalties for noncompliance. Some MY 1993 CAFE values

may change when final figures are provided to NHTSA by EPA, in mid-

1994. In addition, several manufacturers are not expected to pay civil

penalties because the credits they earned by exceeding the fuel economy

standards in earlier years offset later shortfalls. Other manufacturers

may file carryback plans to demonstrate that they anticipate earning

credits in future model years to offset current deficits.

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Fleet average fuel economy for all MY 1993 passenger cars combined

and for all light trucks combined exceeded the levels of the MY 1993

standards.

Daihatsu terminated sales of its passenger cars and light trucks in

the United States after MY 1992, the first major Asian manufacturer to

do so. This manufacturer accumulated substantial CAFE credits during

its 5-year marketing span in the United States, but the sales of this

company's products reached such a low level that it apparently decided

it was economically infeasible to remain.

While one Asian manufacturer exited the United States market,

another, Kia Motors, entered. Kia, a South Korean manufacturer,

produces the Sephia sedan. It planned to test market a few thousand in

MY 1993, with sales slated for October 1993 at 50 dealerships. Kia

Motors also builds the Festiva model for Ford.

Mazda reported a domestic passenger car fleet consisting of its 626

and MX6 model vehicles which are built in Flatrock, Michigan. These

domestic-built vehicles do not appreciably affect the domestic fleet

CAFE.

The characteristics of the MY 1993 passenger car fleet reflect a

continuing trend toward increased consumer demand for higher

performance cars. (See Table II-3.) Compared to MY 1992, the average

curb weight for MY 1993 decreased 62 pounds for the domestic fleet and

decreased 14 pounds for the imported fleet. The total new car fleet is

36 pounds lighter than it was in MY 1992, primarily because of the

larger share held by the domestic fleet. From MY 1992 to MY 1993,

horsepower per/100 pounds, a measure of vehicle performance, increased

from 4.48 to 4.56 for domestic passenger cars and from 4.66 to 4.72 for

imported passenger cars. The total fleet average for passenger cars

increased from 4.56 in MY 1992 to 4.62 horsepower/100 pounds in MY

1993, the highest level in the 38 years for which the agency has data.

Average engine displacement decreased from 192 to 184 cubic inches for

domestic passenger cars and 139 to 136 cubic inches for imported

passenger cars.

The size class breakdown shows an increased trend towards compact

and midsize passenger cars and a decrease in subcompact and large

passenger cars for the overall fleet. The domestic fleet shift is

almost exclusively from subcompact and large passenger cars to compact

and midsize passenger cars. The shift of imported cars to both the

midsize and compact sizes is particularly pronounced. The imported

share of the passenger car market declined slightly in MY 1993, but

imported compact cars increased to 36.6 percent of the imported fleet

in MY 1993 from just 32.0 percent in MY 1992 and now make up nearly 15

percent of the total new passenger car fleet.

Table II-3.--Passenger Car Fleet Characteristics for MYs 1992 and 1993

----------------------------------------------------------------------------------------------------------------

Total fleet Domestic fleet Imported fleet

Characteristics -----------------------------------------------------------------------------

1992 1993 1992 1993 1992 1993

----------------------------------------------------------------------------------------------------------------

Fleet Average Fuel Economy, mpg... 27.9 28.3 27.1 27.7 29.0 29.5

Fleet Average Curb Weight, lbs.... 3007 2971 3108 3046 2875 2861

Fleet Average Engine Displacement,

cu. in........................... 169 164 192 184 139 136

Fleet Average Horsepower/Weight

ratio, HP/100 lbs................ 4.56 4.62 4.48 4.56 4.66 4.72

Percent of Fleet.............. 100 100 56.5 59.4 43.5 40.6

Segmentation by EPA Size Class,

percent:

Two-Seater........................ 1.0 1.4 0.4 0.5 1.6 2.8

Minicompact....................... 1.3 1.0 0.0 0.0 3.1 2.4

Subcompact*....................... 25.9 23.0 15.3 14.4 39.6 35.4

Compact*.......................... 29.6 33.7 27.7 31.7 32.0 36.6

Midsize*.......................... 27.0 29.4 35.8 37.8 15.6 17.2

Large*............................ 15.2 11.5 20.8 15.6 8.0 5.6

Percent Diesel Engines............ 0.06 0.04 0.0 0.0 0.14 0.09

Percent Turbo or Supercharged

Engines.......................... 2.4 1.1 2.9 0.5 1.9 1.9

Percent Fuel Injection............ 100 100 100 100 99.8 100

Percent Front-Wheel Drive......... 84.4 84.4 87.7 86.0 80.1 82.1

Percent Automatic Transmissions... 81.6 79.9 91.8 87.4 68.3 69.1

Percent Automatic Transmissions

with Lockup Clutches............. 92.6 93.1 92.8 93.3 92.3 92.6

Percent Automatic Transmissions

with Four or more Forward Speeds. 70.2 77.2 60.9 69.2 86.3 91.9

----------------------------------------------------------------------------------------------------------------

*Includes associated station wagons.

The 0.6 mpg fuel economy improvement for the MY 1993 domestic

passenger car fleet may be attributed to mix shifts and technology

changes in the following: significant changes in engine design,

decrease in average curb weight, and automatic transmissions with

lockup torque converters and four forward speeds.

The 0.5 mpg increase average fuel economy for the MY 1993 imported

passenger car fleet may be attributed to the same reasons as the

domestic fleet improvements.

The domestic fleet had a dramatic decrease in share of turbocharged

and supercharged engines. Diesel engines declined in share after a

small increase in MY 1992. Diesel engines were offered only on certain

Mercedes Benz models during MY 1993.

Passenger car fleet average characteristics have changed

significantly since the first year, MY 1978, of fuel economy standards.

After substantial initial weight loss from MY 1978 to MY 1982, the

average passenger car fleet curb weight decreased from 3,349 to 2,808

pounds; the passenger car fleet average curb weight stabilized at 2,800

to 3,000 pounds. Table II-4 shows that the MY 1993 passenger car fleet

has nearly equal interior volume, higher performance, but over 40

percent fuel economy improvement compared to the MY 1978 fleet (see

Figure II-3).

Table II-4.--New Passenger Car Fleet Average Characteristics

[Model Years 1978-1993]

----------------------------------------------------------------------------------------------------------------

Horsepower/

Model year Fuel economy Curb weight Interior space Engine size Weight (hp/100

(mpg) (lb.) (cu. ft.) (cu. in.) lb.)

----------------------------------------------------------------------------------------------------------------

1978............................ 19.9 3349 112 260 3.68

1979............................ 20.3 3180 110 238 3.72

1980............................ 24.3 2867 105 187 3.51

1981............................ 25.9 2883 108 182 3.43

1982............................ 26.6 2808 107 173 3.47

1983............................ 26.4 2908 109 182 3.57

1984............................ 26.9 2878 108 178 3.66

1985............................ 27.6 2867 108 177 3.84

1986............................ 28.2 2821 106 169 3.89

1987............................ 28.5 2805 109 162 3.98

1988............................ 28.8 2831 107 161 4.11

1989............................ 28.4 2879 109 163 4.24

1990............................ 28.0 2908 108 163 4.53

1991............................ 28.3 2934 108 164 4.42

1992............................ 27.9 3007 108 169 4.56

1993............................ 28.3 2971 109 164 4.62

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The passenger car fleet in MY 1993 averaged the highest horsepower-

to-weight ratio recorded since 1955, the earliest year for which NHTSA

has data.

The characteristics of the MY 1993 light truck fleet are shown in

Table II-5. Since light truck manufacturers are not required to divide

their fleets into domestic and import fleets based on the 75 percent

domestic content threshold used for passenger car fleets (except for

United States-based manufacturers with captive import fleets), the

domestic and imported fleet characteristics in Table II-5 are

estimated. NHTSA assumed foreign-based manufacturer's products would

not meet the domestic content threshold, whether they were assembled in

the United States, Canada, or another country. The exception is the

assumption that the import-badged products of a domestic manufacturer's

assembled plant were ``domestic'' (Mazda Navajo and Nissan Quest).

Table II-5.--Light Truck Fleet Characteristics for MYs 1992 and 1993

----------------------------------------------------------------------------------------------------------------

Total fleet Domestic fleet Imported fleet

Characteristics -----------------------------------------------------------------------------

1992 1993 1992 1993 1992 1993

----------------------------------------------------------------------------------------------------------------

Fleet Average Fuel Economy, mpg... 20.8 20.8 20.5 20.5 22.5 22.8

Fleet Average Equivalent Test

Weight, lbs...................... 4169 4201 4260 4284 3733 3727

Fleet average Engine Displacement,

cu. in........................... 235 237 251 249 160 167

Fleet Average Horsepower/Weight

Ratio, HP/100 lbs................ 3.92 3.89 4.02 3.97 3.46 3.47

Percent of Fleet.............. 100 100 82.7 85.1 17.3 14.9

Segmentation by Type, percent:

Passenger Van:

Compact................... 21.4 23.6 23.1 25.8 12.9 11.1

Large..................... 0.6 0.3 0.7 0.4 ........... ...........

Cargo Van:

Compact................... 1.7 1.4 2.1 1.6 ........... ...........

Large..................... 5.4 4.7 6.5 5.6 ........... ...........

Small Pickup*................. 14.2 7.9 13.8 6.6 16.6 15.7

Large Pickup*................. 31.3 34.2 30.5 33.4 35.3 39.2

Special Purpose............... 25.4 27.8 23.4 26.7 35.3 33.9

Percent Diesel Engines........ 0.09 0.07 0.11 0.09 ........... ...........

Percent Fuel Injection........ 98.9 99.0 100 100 93.5 93.0

Percent Automatic

Transmissions................ 72.2 76.2 78.9 82.5 40.3 39.9

Percent Automatic

Transmissions with Lockup

Clutches..................... 98.1 98.6 98.8 99.1 91.2 92.3

Percent Automatic

Transmissions with Four

Forward Speeds............... 88.6 90.5 87.8 89.9 96.5 97.1

Percent 4-Wheel Drive......... 32.8 33.7 29.9 32.3 47.1 41.2

----------------------------------------------------------------------------------------------------------------

*Including Cab Chassis.

The average test weight of the total light truck fleet increased by

32 pounds over that for MY 1992. The stability of the 20.8 mpg CAFE

level between MYs 1992 and 1993 may be attributed to the small increase

in shares of compact vans and special purpose vehicles and the small

increase in the use of lockup converter clutches and four forward speed

automatic transmissions, offsetting the increased popularity of large

pickups and heavier trucks. Diesel engine usage declined in light

trucks to 0.07 percent in MY 1993 from 0.09 percent in MY 1992. The

imported share of the MY 1993 light truck fleet decreased to 14.9

percent, 2.4 percent lower than MY 1992 and the lowest share since

light truck fuel economy standards were established.

During MYs 1980 through 1993, CAFE levels for light trucks in the

0-8,500 pounds gross vehicle weight (GVW) class increased, beginning at

18.5 mpg in MY 1980 and reaching 21.7 mpg in MY 1987 before dropping to

lower values in MY 1988 through MY 1993, as average weight, engine

size, and performance increased. During these years, light truck

production increased from 1.9 million in MY 1980 to 4.6 million in MY

1993. Light trucks comprised nearly a third of the total light duty

vehicle fleet production in MY 1993, almost double its share in MY

1980.

Figure II-4 illustrates that the light duty fleet (passenger cars

and light trucks together) average fuel economy steadily increased in

MY 1987, but subsequently has been below the MY 1987 level (see Table

II-6). Light truck average fuel economy also declined, but the

passenger car average fuel economy remained relatively constant for MYs

1987-1993. The overall decline illustrates the emergence of light

trucks in the light duty fleet.

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Table II-6.--Domestic and Imported Passenger Car and Light Truck Fuel Economy Averages For Model Years 1978-1993

[In MPG]

----------------------------------------------------------------------------------------------------------------

Domestic Imported

------------------------------------------------------------------------------ Total fleet

Model year Light truck

Car Combined Car Light truck Combined

----------------------------------------------------------------------------------------------------------------

1978................. 18.7 ........... ........... 27.3 ........... ........... ...........

1979................. 19.3 17.7 19.1 26.1 20.8 25.5 20.1

1980................. 22.6 16.8 21.4 29.6 24.3 28.6 23.1

1981................. 24.2 18.3 22.9 31.5 27.4 30.7 24.6

1982................. 25.0 19.2 23.5 31.1 27.0 30.4 25.0

1983................. 24.4 19.6 23.0 32.4 27.1 31.5 24.8

1984................. 25.5 19.3 23.6 32.0 26.7 30.6 25.0

1985................. 26.3 19.6 24.0 31.5 26.5 30.3 25.4

1986................. 26.9 20.0 24.4 31.6 25.9 29.8 25.9

1987................. 27.0 20.5 24.6 31.2 25.2 29.6 26.2

1988................. 27.4 20.6 24.5 31.5 24.6 30.0 26.0

1989................. 27.2 20.4 24.2 30.8 23.5 29.2 25.6

1990................. 26.9 20.3 23.9 29.9 23.0 28.5 25.4

1991................. 27.3 20.9 24.4 30.0 23.0 28.3 25.6

1992................. 27.1 20.5 23.9 29.0 22.5 27.6 25.0

1993................. 27.7 20.5 23.8 29.5 22.8 28.0 25.1

----------------------------------------------------------------------------------------------------------------

While the passenger car fleet fuel economy improved by 0.4 mpg from

MY 1992 to MY 1993 and the light truck fleet was unchanged, the total

fleet fuel economy for MY 1993 increased only 0.1 mpg over the MY 1992

level (25.0 mpg for MY 1992 and 25.1 mpg for MY 1993). This is

attributed to increased sales of light trucks which have a total fleet

fuel economy far less than passenger cars. The shift to light trucks

for general transportation is an important trend in consumers'

preference and has a significant fleet fuel consumption effect.

Domestic and imported passenger car fleet average fuel economies

improved since MY 1978. In MY 1993, the domestic and imported passenger

car fleet average fuel economies increased to 27.7 mpg and 29.5 mpg,

respectively. This reflects an increase of 9.0 mpg since MY 1978 for

domestic cars. For imported cars, the MY 1993 average fuel economy is

only 2.2 mpg higher than that of MY 1978.

Domestic and imported light truck fleet average fuel economies

improved since MY 1980. The domestic manufacturers continued to

dominate the light truck market. Domestic light trucks comprised 85.1

percent of the total light truck fleet. For MY 1993, the domestic light

truck fleet has an average fuel economy of 2.3 mpg lower than the

imported light truck fleet. The imported light truck fleet fuel economy

improved rapidly between MYs 1980 and 1981, but has been lower since

then. For MY 1993, the imported light truck fleet fuel economy

increased 0.3 mpg over MY 1992 to 22.8 mpg. A comparison of MYs 1993 to

1980 was done to avoid comparing the performance of the 0-6,000 pounds

GVWR light truck fleet covered by the MY 1979 fuel economy standard to

the performance of the 0-8,500 pounds GVWR fleets to which the

standards apply for MY 1980 and beyond.

The gap between the average CAFEs of the imported and domestic

manufacturers is smaller than in earlier years as domestic

manufacturers maintain relatively stable CAFE values while the import

manufacturers move to larger, higher performance vehicles and more

four-wheel drive light trucks.

Based on a comparative analysis, since the enactment of CAFE

standards for passenger cars for MY 1978, the total annual fleet fuel

consumption, for both passenger cars and light trucks, has grown from

105.7 billion gallons (81.7 billion gallons for passenger cars + 24.1

billion gallons for 2-axle, 4-tire light trucks) in 1978 (Highway

Statistics Summary to 1985, Table VM-201A) to 107 billion gallons (73.9

billion gallons for passenger cars + 33.1 billion gallons for light

trucks) in 1992, the most current data (Highway Statistics Summary to

1992, Table VM-1). Over a 14-year period, total fuel consumption

increased only 1.2 percent. Improvements in fuel economy have offset

growth in the total number of light duty vehicles and in miles traveled

per vehicle.

Both vehicle registrations and vehicle miles traveled increased

from 1978 to 1992. The total fleet registration increased 27.7 percent

from 143,904,787 (118,428,730 for passenger cars + 25,476,057 for light

trucks) in 1978 to 183,746,571 (144,213,429 for passenger cars +

39,533,142 for light trucks) in MY 1992. Vehicle miles traveled

increased during this period. In 1978, vehicle miles traveled totaled

1.426 trillion (1.147 for passenger cars + 0.279 for light trucks). It

increased to 2.072 trillion for the total fleet (1.595 for passenger

cars + 0.477 for light trucks) in 1992. This is an increase of over

45.3 percent.

In conclusion, although more vehicles are traveling more miles,

fuel consumption by this total fleet (both passenger cars and light

trucks) has increased only slightly.

Section III: 1993 Activities

A. Passenger Car CAFE Standards

The following synopsis describes litigation challenging NHTSA

actions under the CAFE program.

Competitive Enterprise Institute (CEI) v. NHTSA, D.C. Circuit Court,

No. 89-1422

This case challenged NHTSA's May 1989 decision to terminate

rulemaking on whether to amend the MY 1990 passenger car CAFE standard.

On February 19, 1992, in a 2-1 decision, the D.C. Circuit Court held

that NHTSA failed to adequately evaluate the safety consequences of its

decision to retain the MY 1990 passenger car CAFE standard of 27.5 mpg

rather than proceeding with proposed rulemaking to reduce that model

year's standard. The Court remanded the matter to NHTSA for further

consideration. CEI filed a Motion for Attorney Fees which NHTSA

opposed. On August 6, 1992, the Court issued an order deferring

decision on CEI's fee motion until NHTSA acts on the Court's remand

order. NHTSA's subsequent action on this remand order is discussed

below.

Competitive Enterprise Institute v. NHTSA, D.C. Circuit Court, No. 93-

1210

This case challenges NHTSA's January 15, 1993, decision (D.C.

Circuit Court's remand in Case No. 89-1422) to again terminate the

rulemaking it commenced to consider amending the MY 1990 passenger car

CAFE standard. The petition for review was filed on March 15, 1993.

Both sides filed preliminary papers, but the Court has not yet issued a

briefing and argument schedule.

B. Light Truck CAFE Standards

NHTSA published a final rule establishing the MY 1995 light truck

fuel economy standard on April 7, 1993 (58 FR 18019). NHTSA set a

combined standard of 20.6 mpg for MY 1995, the highest CAFE standard

the agency has ever established for light trucks. The rule also

converted certain measurements into metric units, the agency's first

occurrence of using metric conversion for regulations relating to fuel

economy standards.

In the final rule for MY 1995 light trucks, NHTSA determined that

GM is the ``least capable'' manufacturer with a combined fuel economy

capability of 20.6 mpg.

NHTSA concluded upon balancing the relevant statutory factors, that

the relatively small and uncertain energy savings that would be

associated with setting a standard above GM's capability would not

justify the economic harm to the company and the economy as a whole.

NHTSA projected that GM could not achieve a combined fuel economy level

higher than 20.6 mpg for MY 1995. In contrast, NHTSA concluded that

Chrysler and Ford can achieve CAFE levels of at least 20.6 mpg.

NHTSA selected 20.6 mpg for MY 1995 as the final combined standard

to balance the potentially serious adverse economic consequences

associated with the realization of the above market and technological

risks against GM's opportunity as the ``least capable'' manufacturer

with a substantial share of sales. Since GM produces more than 38

percent of all light trucks that are subject to the fuel economy

standards, its capability significantly affects the level of the

industry's capability and, therefore, the standard level.

A final rule for light truck fuel economy standards for MYs 1996

and 1997 is pending.

C. Low Volume Petitions

Section 502(c) of the Act provides that a low volume manufacturer

of passenger cars may be exempted from the generally applicable

passenger car fuel economy standards if these standards are more

stringent than the maximum feasible average fuel economy for that

manufacturer and if NHTSA establishes an alternative standard for that

manufacturer at its maximum feasible level. Under the Act, a low volume

manufacturer is one that manufactured fewer than 10,000 passenger cars

worldwide, in the model year for which the exemption is sought (the

affected model year) and in the second model year preceding that model

year.

During 1993, NHTSA acted on one low volume petition that was filed

by Rolls-Royce. Rolls-Royce requested an alternative standard for its

passenger cars for MYs 1995 and 1996. NHTSA issued a proposed decision

to grant an alternative standard of 14.6 mpg for both model years (58

FR 41228 August 3, 1993).

D. Enforcement

Section 508(b)(1) of the Act imposes a civil penalty of $5 dollars

for each tenth of a mpg by which a manufacturer's CAFE level falls

short of the standard, multiplied by the total number of passenger

automobiles or light trucks produced by the manufacturer in that model

year. Credits that were earned for exceeding the standard in any of the

three model years immediately prior to or subsequent to the model years

in question can be used to offset the penalty.

With EPA completion of final CAFE computations for MY 1992 for most

passenger car fleets, NHTSA initiated enforcement actions for

manufacturers that did not meet the CAFE standard.

Table III-1 shows the most recent CAFE fines paid by manufacturers.

Table III-1.--CAFE Fines Collected During Fiscal Year 1993

------------------------------------------------------------------------

Amount

Model year Manufacturer fined Date paid

------------------------------------------------------------------------

1989...... Sterling.......................... $588,195 07/93

1990...... Fiat.............................. 705,220 05/93

Sterling.......................... 162,000 07/93

Fiat.............................. 796,575 05/93

Mercedes-Benz..................... 19,169,540 12/93

1991...... Peugeot........................... 192,660 12/92

Vector............................ 1,740 07/93

Volvo............................. 7,768,420 12/92

1992...... Fiat.............................. 466,750 05/93

Peugeot........................... 58,375 09/93

------------------------------------------------------------------------

The following synopsis describes an administrative adjudication

involving NHTSA action under the CAFE program that is pending.

Chrysler Corporation, Docket 47414

On January 8, 1992, an Administrative Law Judge issued an initial

decision and order recommending that NHTSA's complaint seeking a civil

penalty of $1,371,420 for Chrysler's failure to comply with the MY 1984

domestic light truck fuel economy standard be dismissed without

prejudice. He concluded that NHTSA could not interpret the extent to

which predecessors or successors are included in the term

``manufacturer'' without issuing rules pursuant to section 501(8) of

the Motor Vehicle Information and Cost Savings Act of 1972, but that

Chrysler could not claim credits earned by American Motor Corporation,

except under the terms of a properly adopted rule. Both parties filed

Notices of Intention to appeal the initial decision to NHTSA's

Administrator. On March 31, 1992, after a meeting to consider

settlement proposals, the Administrator set aside the initial decision

and terminated the enforcement proceeding, without prejudice, to permit

NHTSA to prescribe regulations pursuant to section 501(8) of the Act.

Section IV: Use of Advanced Technology

This section fulfills the statutory requirement of Title III of the

Department of Energy Act (15 U.S.C. 2704 et seq.) which directs the

Secretary of Transportation to submit an annual report to Congress on

the use of advanced technologies by the automotive industry to improve

motor vehicle fuel economy. This report focuses on the introduction of

new models, the application of materials to save weight, and the

advances in electronic technology which improved fuel economy in MY

1993.

A. New Models

I. Passenger Cars

a. Domestic. The domestic manufacturers introduced and replaced

several cars, as well as updated several previous passenger cars.

Chrysler unveiled its new midsize LH models--the Chrysler Concorde,

Dodge Intrepid, and Eagle Vision. These models are built on the new

front-drive LH platform, the company's first new platform in 10 years.

The main features included advanced technology, roomy interior, ride

comfort, handling precision, safety, fuel economy, and power. The LH

models' longitudinally mounted engines include a 153 horsepower (hp)

overhead-valve (OHV) 3.3 liter (1) V-6 and a 214 hp single-overhead-cam

(SOHC) 3.5L 24-valve V-6 (standard on some models, optional on others)

developed especially for the LH line. Both engines are mated to only

one transaxle: the 42LE automatic, a fully adaptive electronically

controlled four-speed with torque converter lockup clutch. The low drag

coefficient (0.31 CD) of these models contributed to their fuel

efficiency which averaged 24 mpg for MY 1993.

Also new to the Chrysler Eagle Talon, is a smaller 1.8L I-4 engine

offered with either 5-speed manual or 4-speed automatic transmission

and delivering an average fuel economy of 27 mpg.

The Plymouth Division offered a redesigned Colt coupe and sedan and

Vista wagon with a new 1.8L 16 valve SOHC engine that produces 113 hp

and a 2.4L 16 valve SOHC engine on the Vista only that produces 136 hp.

The average fuel economy on the Colt's 1.5L 4-cylinder engine with a 5-

speed manual transmission increased by 3 mpg city and 5 mpg highway

over its MY 1992 counterpart.

Ford has two new models--the Lincoln Mark VIII sport luxury coupe

and the Mercury Villager minivan (the latter is discussed later with

the light trucks). The Mark VIII features an aerodynamic design style

powered by a new aluminum double-overhead-cam (DOHC) V-8 engine and a

new Ford ``4R70W'' 4-speed automatic transmission. The ``4R70W'' stands

for 4-speed, rear-drive, 700 pound-feet torque capacity and wide ratio.

The transmission's electronic and hydraulic controls work together to

provide smooth shifts and torque-converter lock-up in third and fourth

gear. This reduces the converter slippage and improves the fuel

economy. The average fuel economy on this model is nearly 24 mpg

compared with 22.3 mpg for the predecessor Mark VII model.

Ford redesigned the 2-door Probe for MY 1993 based on Mazda's

latest MX-6. The Probe has a cab forward design and is powered by

multivalve engines. The base model is equipped with a 115 hp 2L, 4-

cylinder engine and the GT is powered by a 165 hp 2.5L V-6 engine. The

average fuel economy on the 5-speed manual transmission has improved by

2 mpg over the MY 1992 model.

The limited-edition Ford Mustang Cobra specialty model featured a

230 hp version of the Mustang's 5L V-8 engine, a 5-speed manual

transmission, 17-inch aluminum wheels, a spoiler, and ground effects

trim. The average fuel economy improved by 1 mpg on the 4-speed

automatic transmission version over the MY 1992 counterpart.

General Motors (GM) redesigned the Chevrolet Camaro and Pontiac

Firebird. These two sport coupes received smoother lines and a more

gradual profile. The base engine for these models is a new 3.4L V-6

engine. Fuel economy improves by 1 mpg over the 1992 model.

b. Imports. The import manufacturers also introduced a variety of

new passenger cars and updates of their previous models for MY 1993.

Audi introduced a new 90 series luxury/sport sedans for MY 1993 in

front- and all-wheel drive. All models are powered by a 2.8L 172 hp

DOHC V-6 engine. The 90S and CS have an average fuel economy of 23 mpg.

BMW replaced the 735i and 735iL with the 740i and 740iL for MY

1993. the 740i and the long-wheelbase 740iL (111.5 inches) are powered

by a new 4.0L 32-valve V-8 and a new 5-speed automatic transmission

that replaces the 3.5L MY 1992 engine. The V-8 is BMW's first new

engine since MY 1985. The average fuel economy improved by 1 mpg over

the MY 1992 counterparts. BMW improved the low-end torque and gas

mileage for its 2.5L, inline six-cylinder engine used in the subcompact

3-series and the compact 5-series.

Honda introduced the Civic Del Sol which replaced the CRX. The

Civic Del Sol is a sporty 2-seater with a 1.5L SOHC 4-cylinder engine

mated to a 5-speed manual transmission with an average fuel economy of

43 mpg or a 4-speed automatic with an average of 39 mpg.

Hyundai's Scoupe gets a new Alpha engine, the first engine designed

by Hyundai. The Alpha engine is a 1.5L 12 valve, multiport-fuel-

injection (MFI) 4-cylinder engine. The engine has 14 percent more

horsepower and torque than the engine it replaced. The average fuel

economy improved by 1 mpg for the 5-speed manual transmission and 0.5

mpg for the 4-speed automatic transmission over its MY 1992

counterpart.

Jaguar, a Ford subsidiary, introduced two new models--the XJR-S and

XJ12. The XJR-S is a limited edition equipped with a 312 hp engine. The

MY 1993 XJS Jaguar coupe/convertible uses a 6-cylinder engine instead

of a V-12, for the first time in 22 years. The highway rating for the

convertible is 23 mpg, compared with 17 mpg for MY 1992. The XJ12 is a

301 hp model based on the XJ6 sedan with the engine compartment

modified to fit a 6.0L 24-value V-12 engine. It has a 4-speed automatic

transmission with both sport and normal shift modes.

Mercedes-Benz added a soft top, 4-seat convertible--the 300CE

Cabriolet--and replaced the 400SE with a long-wheelbase version, the

400SEL. Mercedes introduced 22 new models for MY 1993, the most ever

for the company, with emphasis on the 300 class, the Mercedes volume

leader.

Four 300-class models get a new 24-valve engine that is bigger and

more powerful than the old engine, yet gets better mileage. Better

mileage means that the 400E loses a $1,300 gas guzzler penalty and the

penalty on the 500E is cut in half to $1,300. both are powered by V-8

engines. The 300CE Cabriolet is based on the 300CE coupe and it is the

first Mercedes 4-seat convertible for United States sale since 1971.

The Cabriolet comes equipped with a 217 hp 3.2L 24 valve DOHC 6-

cylinder engine mated to a 4-speed automatic transmission. The average

fuel economy on this model is 20.5 mpg.

Mercedes-Benz also added a new 600 SEC coupe and 600 SL

convertible. Both are powered by a 389 hp, 6.0L DOHC V-12 engine mated

to a 4-speed automatic transmission with an average fuel economy of

15.7 mpg for the former and 17.1 mpg for the latter, both of which

exceed the fuel economy achieved by the Mercedes sedan using the same

engine.

Mitsubishi introduced a new wagon version of the Diamante, equipped

with a 3.0L SOHV V-6 engine producing 175 hp. This vehicle is imported

from Australia. Mitsubishi restyled the Mirage as a FWD, 2-door sporty

coupe or a 4-door family sedan. The coupes have a 92 hp 1.5L SOHC 4-

cylinder engine and the sedans have a 1.8L 4-cylinder engine. the

Mirage 1.5L 4-cylinder 5-speed transmission average fuel economy

improved by 4 mpg over its MY 1992 counterpart. Mitsubishi claims that

its ECI-Multipoint sequential fuel injection system and microprocessor-

controlled ignition maximize responsive performance, combustion

efficiency, and fuel economy (Automotive News, August 3, 1992).

Nissan introduced the Altima, an all-new FWD midsize sedan

replacing the Stanza. It has a 150-hp 2.4L DOHC 4-cylinder engine

coupled with either a 5-speed manual or 4-speed automatic transmission.

Saab, a GM subsidiary, expanded its 9000 model line by introducing

the 9000CS 4-door hatchback and the 9000 aerodynamic hatchback. The

9000CS was powered by a naturally-aspirated 150 hp 2.3L I-4 or optional

turbocharged 200 hp engine. The 4-speed automatic and the 5-speed

manual each improved by 1 mpg over the MY 1992 model.

Subaru introduced the all-new Impreza, which comes in a choice of

4-door sedan and wagon models. The Impreza replaces the 8-year-old

Subaru Loyale compact, although the Loyale station wagon will remain in

the line. The Impreza is based on a shortened Legacy platform. The

United States models are powered by a 1.8L, 110 hp 4-cylinder engine,

essentially a smaller version of the 2.2L engine in the Legacy, and

sharing its horizontally opposed arrangement. The fuel economy has

improved by one tenth of a mile per gallon over the Loyale with

automatic transmission.

Toyota restyled the Corolla and moved it from the sub-compact to

compact EPA classification. The Corolla has a new 115 hp 1.8L 16 valve

DOHC 4-cylinder engine and a 5-speed manual transmission. The average

Corolla fuel economy improved by 1 mpg for MY 1993 over MY 1992. The

Toyota Lexus division introduced the all-new GS300 with a 220 hp 3.0L

24-valve DOHC I-6 engine and an average fuel economy of 20.5 mpg.

Volvo introduced the 850GLT, the new front-wheel drive (FWD), sport

sedan, powered by a transversely mounted 20-value 168 hp in-line 5-

cylinder engine coupled with an all-new 5-speed manual or optional 4-

speed automatic transmission designed to take up less space.

II. Light Trucks

a. Domestic. Chrysler's Ram passenger van/wagon was restyled in the

front and received a redesigned 5.2L engine, along with an increase in

horsepower to 230 from 190, improving the average fuel economy on the

4-speed automatic transmission by 1 mpg.

Ford introduced a new redesigned Ranger compact pickup for MY 1993.

The Ranger offers a 3.0L V-6 engine replacing the previously standard

2.9L engine. The average fuel economy with the 4-speed automatic

transmission improved by 0.1 mpg, and with the 5-speed manual

transmission it improved by 0.5 mpg. The Villager FWD minivan was

designed and engineered by Nissan Motor Company and produced at the

Ford Avon Lake, Ohio, assembly plant for both Mercury and Nissan. It is

the first minivan offered by the Lincoln-Mercury Division. The Villager

is powered by a 150-hp 3L SOHC V-6 engine with sequential electronic

fuel injection and a 4-speed automatic transmission. The Nissan version

of the minivan is called the Quest.

b. Imports. Toyota introduced the all-new T-100 full-sized pickup

truck for MY 1993. The all-wheel drive T-100 comes equipped with a 3.0L

SOHC V-6 engine producing 150 hp mated to a 5-speed manual transmission

with an average fuel economy of nearly 17 mpg. Compared to the Big 3

(GM, Ford, and Chrysler) pickups with 6-cylinder engines, Toyota's 6-

cylinder has better fuel economy than any of the Big 3. GM is its

closest competitor, being only one tenth of a mile per gallon behind.

Volkswagen, some 43 years after inventing the passenger van,

introduced in the United States its first front-drive van, the Eurovan.

The Eurovan has a box shape, as well as an optional ``pop top'' camper

version. The Eurovan is powered by a new in-line, transverse-mounted,

2.5L five-cylinder engine. The 109-hp engine provides 21 percent more

power and 20 percent more torque than its predecessor. The new design

improved the vehicle's aerodynamics, providing a drag coefficient of

0.37.

B. Engine and Transmission Technology

Some manufacturers made significant improvements in engine

technology for MY 1993. Chrysler's Dodge Intrepid, Chrysler Concorde,

and Eagle Vision offer a 3.5L, 24-valve V-6 engine combined with a new

42LE electronic 4-speed transaxle to propel the LH cars. Chrysler

claims that these are the most technologically advanced, responsive,

and reliable powertrains in its history. This SOHC engine delivers a

peak 214 hp at 5,800 revolutions per minute (rpm) and 221 foot-pounds

(ft.-lbs.) of torque at 2,800 rpm.

Instead of using the usual transverse position of front-wheel-drive

engines, Chrysler went longitudinal, or north-south, in part to allow

for later adaptation of future rear-to or 4-wheel-drive versions.

Ford improved its MY 1993 Mark VIII with a new DOHC 32-valve all-

aluminum version of its 4.6L modular V-8 engine. The engine is rated at

280 hp at 5,500 rpm, with a torque rating of 285 ft.-lbs. at 4,500 rpm,

about 33 percent more power than the 4.6L SOHC engine in its 210 hp

dual exhaust form. The new engine is the first DOHC, 4-valve V-8 engine

mass produced by Ford, and the first Ford all-aluminum V-8 production

engine. The engine features improved durability, quality and

reliability, improved fuel efficiency through reduced friction and

optimized combustion chamber design, and use of advanced technology in

design and manufacturing.

GM's powerful, 2-door sporty coupes, the Chevrolet Camaro and

Pontiac Firebird, were redesigned for MY 1993 with an OHV 3.4L 6-

cylinder engine, that develops 160 hp at 4,600 rpm and 200 ft.-lbs. of

torque at 3,600 rpm, an increase of 20 in both hp and ft.-lbs. of

torque compared to last year. The added power is the result of a 2

millimeter (mm) increase in bore to 91.9 mm, a rise in compression

ratio to 9:1 from 8.5:1 and the addition of sequential fuel injection

in place of multipoint fuel injection.

GM's Chevrolet and GMC truck divisions have a new electronically

controlled 4-speed automatic transmission in full-sized pickups. The

new 4L 60-E transmission replaces the nonelectronic 4-speed unit.

The Geo Prizm has a Toyota-built electronically controlled 4-speed

automatic with lockup torque converter. The new transmission is coupled

to a 1.8L DOHC 4-cylinder engine delivering 115 hp at 5,600 rpm and 115

ft.-lbs. of torque at 4,800 rpm.

Honda's Acura Legend introduced a new 3.2L 24-valve V-6 engine. The

difference in this engine over its predecessor is that the intake and

exhaust timing, valve lift, and valve diameter are changed to achieve a

30-hp increase to 230 hp at 6,200 rpm, but with peak torque reduced to

206 ft.-lbs. at 5,000 rpm. Fuel economy is virtually unchanged.

Toyota's Land Cruiser received a new 4.5L DOHC 24-valve 1FZ-FE in-

line 6-cylinder engine rated at 212 hp at 4,600 rpm and 275 ft.-lbs. of

torque at 3,200 rpm. This is a 37 percent increase in horsepower over

its MY 1992 counterpart, and the fuel economy improved by 0.5 mpg.

The Miller Cycle engine offers a 50-percent gain in torque over

conventional engines and gets 10 percent to 15 percent better fuel

economy. Mazda announced that it is ready to install a version of the

Miller-cycle engine in a near-future high-compression, lean-system

piston engine that combines lean burn and the M-Miller cycle. (The M

denotes Mazda.) Mazda says the engine, which has a compression ratio of

12:1, will produce 50 percent greater torque than a standard engine.

The M-Miller cycle uses a Lysholm compressor jointly developed by Mazda

and Ishikawajima-Harima Heavy Industries Co. Ltd. (IHI) to boost

initial intake pressure, but releases excess air as the piston begins

its compression stroke. Mazda plans to introduce this technology in the

United States on the Millenia model in the spring of 1994.

Interest in the 2-stroke engine is declining while interest in

direct-injected (DI) gasoline 4-strokes is on the rise. With DI

engines, the fuel is injected directly into the combustion chamber

rather than the intake manifold, which is the general practice on fuel-

injected gasoline engines. Reports of poor performance in early 2-

stroke Ford Motor Company/Orbital field-test Fiesta models in Europe

(Ward's Engine and Vehicle Technology Update, December 15, 1991, p.6)

appear to be a factor.

Toyota indicates that the first DI gasoline engines--termed

``incylinder injection'' by Toyota--will reach the market in late 1993

and will account for over 25 percent of the Japanese manufacturer's

gasoline automobile engines by the year 2012. Hyundai developed the

company's first internally designed engine, a 1.5L 4-cylinder engine

delivering 92 hp at 5,500 rpm and 97 ft.-lbs. of torque at 4,000 rpm.

The compression ratio is 10:1. Hyundai's turbocharged version produces

115 hp at 5,500 rpm.

C . Electronics

Applications of electronics components in vehicles continues to

rise. Some of the applications include 4-wheel steering, tire-pressure

sensing, instrumentation, and in-car entertainment grouping, but the

main concentration is in engine management, powertrain managment,

antilock braking systems, air bags, air conditioning and, increasingly,

suspension control.

Electronically controlled automatic transmissions now account for

33.9 percent of United States cars produced. The automobile

manufacturers have advanced toward more sophisticated fuel injection

systems. Sequential fuel injection installation rates rose to 43.3

percent in MY 1992, from 28.2 percent in MY 1991. Traction control

systems are featured on 2.3 percent of United States-built passenger

cars (Ward's Automotive Reports, April 19, 1993).

The role of sensors and sensing systems is becoming increasingly

important in the automotive industry. Since the electronics market is

growing in the safety and the information fields, the object of sensing

will be expanding further in the future. Sensors and sensing

technologies for future automotive systems can be categorized into

three fields of applications--engine and powertrain control, safety and

suspension control, and information exchange.

In engine and powertrain systems, sensors are required for

combustion and engine output detection and control. Exhaust emissions

and fuel consumption will be reduced simultaneously over the next

decade. The primary objective of the sensors is to control engine and

transmission paramenters, but sensing technology improvements are

needed to determine limit conditions.

Combustion sensing will be an essential technology for engine

control. Emissions are strongly dependent on the air/fuel (A/F) ratio,

and the best fuel consumption is obtained when engine operation is in

the lean burn fuel range. Except for oxides of nitrogen reduction, the

lean fuel condition is best for both emissions and fuel consumption

reductions. Since the engine's output and emissions are the results of

combustion, direct monitoring of combustion is the key for controlling

them.

D. Materials

For MY 1993, manufacturers selected sheet molding compound (SMC),

plastics, aluminum, high-strength steel, powdered metal (P/M), and

magnesium for a number of significant new component applications in

their cars, vans, and pickup trucks. The reduced weight of these

components contributed to improved fuel economy of the models using

them.

SMC was once predicted to be headed for extinction, but continues

to have steady growth in usage despite numerous setbacks. The SMC

Automotive Alliance trade group forecasts an 18-percent gain in SMC use

in MY 1993, from 147 million pounds to 173 million pounds, on North

American-produced vehicles (Ward's Auto World, September 1992). New SMC

applications continue to grow, including roof, doors, and a rear hatch

on GM's Pontiac Firebird and Chevrolet Camaro sports cars, a unique

plastic-and-steel-body hybrid. Ford's new Mark VIII hood is made of SMC

for MY 1993.

Aluminum use in automobiles grew steadily, representing an

estimated average of 178 pounds of the content of United States cars

for MY 1993 (Ward's Auto World, September 1992). Most applications are

in engine blocks and heads, transmission casings, steering systems,

shock absorbers, bumper systems, and other non-structural components.

Aluminum is used more not only for body panels but for structural

components, as well.

Audi engineers say the body-in-white of the next generation V8

model (codenamed 300), which will feature an all-aluminum body and

spaceframe, is half the weight of a conventional steel unit.

For the first time, an aluminum-head version of GM's 5.7L V-8

engine is used on vehicles other than the Corvette. The new F-body cars

use castings from CMI International, Incorporated in Southfield,

Michigan, to help reduce weight. Aluminum heads also are offered for

the first time in the Oldsmobile Ciera and Buick Century 2.2L. The

aluminum 2.2L I-4 engine replaces the 2.5L 4-cylinder cast iron engine.

Ford is by far the most aggressive United States manufacturer in

its plans for aluminum usage, especially in body-panel applications. It

uses about 350,000 aluminum hoods per year on large cars such as the

Mercury Grand Marquis, Ford Crown Victoria, and Lincoln Town Car.

The cylinder heads for Chrysler's new 24-valve, 3.5L V-6 engine are

also aluminum. These applications are currently being used in LH cars--

Dodge Intrepid, Eagle Vision, Chrysler Concorde, New Yorker, and LHS--

which use about 200 pounds of aluminum, compared with an industry

average of less than 180 pounds.

Even as the use of plastics grew, steel continued as the primary

material in United States-built family vehicles, comprising well over

50 percent of the weight of the average passenger car according to

Ward's 1993 Automotive Yearbook. GM's Cadillac Division has a new

steel-intensive Fleetwood, and Fleetwood Broughams use stainless steel

on the lower side trim and plated stainless steel trim on all the wheel

openings. The Nissan Altima and the Chrysler LH cars, each, use more

than 1,500 pounds of steel per car (Ward's Auto World, September 1992).

Steel increases to 1,900 pounds per vehicle for the new Mercury

Villager and Nissan Quest minivans. Chrysler uses almost as much steel

on its new Jeep Grand Cherokee wagon.

Applications for P/M grew steadily in recent years, and several new

and expanded applications were introduced in MY 1993, including the

connecting rods used in GM's 5.7L V-8 engines. This marks the first

time GM used P/M connecting rods in any of its North American

powerplants. The new rods add 12 pounds of P/M per engine. The average

United States-built car contains about 25 pounds of P/M. Ford currently

is the industry leader in P/M applications; it has P/M connecting rods

in two of its engines, a V-8 and the 1.9L 4-cylinder (Ward's Automotive

Yearbook, 1993).

Magnesium use increased this model year when Chrysler added

magnesium engine-accessory mounting brackets on its Jeep Grand Cherokee

and LH cars. Ford, meanwhile, is expanding its use of magnesium

steering-column parts, and GM is employing 18 pounds of magnesium

components in its Northstar V-8 engines The average domestic vehicle

contains about 6 pounds of magnesium (Ward's Auto World, September

1992).

United States manufacturers formed a research partnership, under

the United States Council for Automotive Research (USCAR) direction,

that will explore the use of new materials. The consortium, called the

United States Automobile Materials Partnership (USAMP), will seek to

reduce vehicle mass for improved fuel economy, emissions, reliability,

safety, crashworthiness, and recyclability by expanding application of

new materials.

USAMP states that to improve fuel economy 8-10 mpg through mass

reduction in a 4,000-pound car, weight will have to be cut 1,000

pounds. USAMP targeted aluminum as the primary metal in its program to

reduce vehicle mass though ceramics, engineered plastics, magnesium/

titanium, and steel are also being studied.

E. Summary

Due to the stabilization of oil prices and supply, consumer demand

in MY 1993 shifted slightly to more powerful and roomier passenger cars

and light trucks. The auto industry, responding to this shift,

increased the horsepower of its engines and shifted production mix to

moderately larger cars. There were some considerable technical gains,

particularly in lightweight material usage, that contributed to

improved fuel economy for several models.

[FR Doc. 94-4571 Filed 3-2-94; 8:45 am]

BILLING CODE 4910-59-M