ŁEPA United States Environmental Protection Agency Office of Transportation EPA420-S-05-001 and Air Quality July 2005 Light-Duty Automotive Technology and Fuel Economy Trends: 1975 through 2005 Executive Summary ------- EPA420-S-05-001 July 2005 Light-Duty Automotive Technology and Fuel Economy Trends: 1975 Through 2005 Executive Summary Robert M. Heavenrich Advanced Technology Division Office of Transportation and Air Quality U. S. Environmental Protection Agency NOTICE This Technical Report does not necessarily represent final EPA decisions or positions. It is intended to present technical analysis of issues using data that are currently available. The purpose in the release of such reports is to facilitate an exchange of technical information and to inform the public of technical developments. ------- Executive Summary Introduction This report summarizes key fuel economy and technology usage trends related to model year 1975 through 2005 light-duty vehicles sold in the United States. Light-duty vehicles are those vehicles that EPA classifies as cars or light-duty trucks (sport utility vehicles, vans, and pickup trucks with less than 8,500 pounds gross vehicle weight ratings). Since 1975, the fuel economy of the combined car and light truck fleet has moved through four phases: 1. a rapid increase from 1975 continuing to the mid-1980s 2. a slow increase extending into the late 1980s 3. a gradual decline until the mid-1990s 4. a period of relatively constant fuel economy since then Model year 2005 light-duty vehicles are estimated to average 21.0 miles per gallon (mpg). The MY2005 average is the highest since 1996 and at the midpoint of the 20.6 to 21.4 mpg range that has occurred for the past dozen years, and five percent below the 1987-88 peak of 22.1 mpg. The fuel economy values in this report are based on 'real world' estimates provided by the Federal government to consumers and are about 15 percent lower than the fuel economy values used by manufacturers and the Department of Transportation (DOT) for compliance with the Corporate Average Fuel Economy (CAFE) program. Since MY 1990, the CAFE standards for cars has been the value set by Congress, i.e., 27.5 mpg. In 1996, DOT, as authorized by Congress, set a standard of 20.7 for light trucks and this standard remained the same until March 31, 2003, when DOT issued new light truck fuel economy standards increasing the standard from 20.7 to 21.0 mpg for MY2005, to 21.6 mpg for MY2006, and to 22.2 mpg for MY2007. For model year 2005, light trucks are projected to account for 50 percent of all light-duty vehicles. After over two decades of steady growth, the market share for light trucks has been about half of the overall light-duty vehicle market since 2002. Most of this growth in the light truck market has been led by the increase in the popularity of sport utility vehicles (SUVs), which now account for more than one-fourth of all new light-duty vehicles. Model year 2005 light-duty vehicles are estimated to be heavier, faster and more powerful than in 2004. This continues a twenty-plus year trend of increasing weight and power, and faster acceleration. ------- Importance of Fuel Economy Fuel economy continues to be a major area of public and policy interest for several reasons, including: 1. DFuel economy is directly related to energy security because light-duty vehicles account for approximately 40 percent of all U.S. oil consumption, and much of this oil is imported. 2. DFuel economy is directly related to the cost of fueling a vehicle and is of great interest when crude oil and gasoline prices rise. 3. DFuel economy is directly related to emissions of greenhouse gases such as carbon dioxide. Light-duty vehicles contribute about 20 percent of all U.S. carbon dioxide emissions. Characteristics of Light-Duty Vehicles for Three Model Years Adjusted Fuel Economy (mpg) Weight (pounds) Horsepower O-to-60 Time (seconds) Percent Truck Sales 1975 13.1 4060 137 14.1 19% 1987 22.1 3220 118 13.1 28% 2005 21.0 4089 212 9.9 50% 11 ------- Highlight #1: Fuel Economy Has Been Relatively Constant For Many Years. After a decline from 22.1 mpg in 1988 to 21.0 mpg in 1994, fuel economy has been relatively constant for a decade. The average fuel economy for all model year 2005 light- duty vehicles is estimated to be 21.0 mpg, the same value as achieved in 1994 and the highest since 1996, but five percent lower than the peak value achieved in 1987-88. Average model year 2005 fuel economy is 24.7 mpg for cars and 18.2 mpg for light trucks. Since 1975, the fuel economy of the combined car and light truck fleet has moved through several phases: (1) a rapid increase from 1975 to the mid-1980s, (2) a slow increase extending into the late 1980s, (3) a decline from the peak in the late 1980s until the mid-1990s, and (4) since then a period of relatively constant overall fleet fuel economy. Viewing new cars and trucks separately, since 1996, the three-year moving average fuel economy for cars has ranged from 24.2 to 24.7 mpg, while that for trucks has ranged from 17.6 to 18.0 mpg, and that for all light- duty vehicles from 20.7 to 21.1 mpg. Adjusted Fuel Economy by Model Year (Three-Year Moving Average) MPG 30 25 20 15 10 Cars Trucks 1975 1980 1985 1990 1995 2000 2005 Model Year ill ------- Highlight #2: Trucks Represent About Half of New Vehicle Sales. Sales of light trucks, which include sport utility vehicles (SUVs), vans, and pickup trucks, are now projected to make up about 50 percent of the U.S. light-duty vehicle market — nearly twice their market share in 1985. Growth in the light truck market has been led recently by the increase in the market share of SUVs. The SUV market share increased by more than a factor often, from less than two percent of the overall new light-duty vehicle market in 1975 to over 25 percent of the market since 2002. Over the same period, the market share for vans increased by about five percent, while that for pickups remained relatively constant. Between 1975 and 2005, market share for new passenger cars and station wagons decreased by over 30 percent. For model year 2005, cars are estimated to average 24.7 mpg, vans 20.4 mpg, SUVs 18.1 mpg, and pickups 17.1 mpg. The increased market share of light trucks, which in recent years have averaged more than six mpg less than cars, accounted for much of the decline in fuel economy of the overall new light-duty vehicle fleet from the peak that occurred in 1987-88. Sales Fraction by Vehicle Type (Three-Year Moving Average) 100% 80% 60% Market Share 40% 20% 1976 1980 1984 1988 1992 1996 2000 2004 Model Year IV ------- Highlight #3: As a Result of Technological Innovation, Vehicle Weight Has Increased and Performance Has Improved, While Fuel Economy Has Remained Constant. Automotive manufacturers continue to apply technological innovations to the new light- duty vehicle fleet to increase light-duty vehicle weight and acceleration performance. EPA estimates that had the new 2005 light-duty vehicle fleet had the same distribution of performance and the same distribution of weight as in 1987, it could have achieved about 24 percent higher fuel economy. Improved engine, transmission and powertrain technologies continue to penetrate the new light- duty vehicle fleet. The trend has clearly been to apply these innovative technologies to accommodate increases in average new vehicle weight, power, and performance while maintaining a constant level of fuel economy. This is reflected by heavier average vehicle weight, rising average horsepower, and faster average 0 to 60 mile-per-hour acceleration time. Weight and Performance (Three Year Moving Average) Weight (Ibs.) 0 to 60 Time (sec.) 4500 T r 15 4000 -14 3500 3000 1975 1980 1985 1990 1995 2000 2005 Model Year ------- Important Notes With Respect to the Data Used in This Report Unless otherwise indicated, the fuel economy values in this report are based on laboratory data and have been adjusted downward by about 15 percent, so that this data is equivalent to the real world estimates provided to consumers on new vehicle labels, in the EPA/DOE Fuel Economy Guide, and in EPA's Green Vehicle Guide. These adjusted fuel economy values are significantly lower than those used for compliance with CAFE standards as, in addition to the 15 percent downward adjustment for real world driving, they also exclude credits for alternative fuel capability and test procedure changes that are included in the CAFE data reported by the DOT. The data presented in this report were tabulated on a model year basis, but several of the figures in this report use three-year moving averages which effectively smooth the trends, and these three-year moving averages are tabulated at their midpoint. For example, the midpoint for model years 2002, 2003, and 2004 is model year 2003. All average fuel economy values were calculated using harmonic, rather than arithmetic, averaging. The source database used to generate the tables and graphs in this report for all years was frozen in November 2004. When comparing data in this report with those in previous reports in this series, please note that revisions are made in the data for some recent model years for which more complete and accurate sales and fuel economy data have become available. Through model year 2003, the fuel economy, vehicle characteristics, and sales data used for this report were obtained from the most complete databases used for CAFE and "gas guzzler" tax on cars compliance purposes. For model year 2004, EPA used data that included confidential sales projections submitted to the Agency by the automotive manufacturers, but updated the sales data to take into account information reported in trade publications. For model year 2005, EPA has exclusively used confidential projected sales data that the auto companies are required to submit to the Agency. Over the last five years, the final fuel economy values have varied from 0.1 mpg lower to 0.3 mpg higher compared to the original estimates based exclusively on projected sales. VI ------- For More Information Light-Duty Automotive Technology and Fuel Economy Trends: 1975 through 2005 (EPA420-R-05-001) is available on the Office of Transportation and Air Quality's (OTAQ) Web site at: www. epa. gov/otaq/fetrends.htm Printed copies are available from the OTAQ library at: U.S. Environmental Protection Agency D Office of Transportation and Air Quality Library D 2000 Traverwood Drive D Ann Arbor, MI 48105 D (734) 214-431 ID A copy of the Fuel Economy Guide giving city and highway fuel economy data for individual models is available at: www. fueleconomy. gov or by calling the U.S. Department of Energy at (800) 423-1363. EPA's Green Vehicle Guide providing information about the air pollution emissions and fuel economy performance of individual models is available on EPA's Web site at: www. epa. gov/greenvehicles For information about the Department of Transportation (DOT) Corporate Average Fuel Economy (CAFE) program, including a program overview, related rulemaking activities, research, and summaries of individual manufacturer's fuel economy performance since 1978, see: www.nhtsa.dot.gov/cars/rules/cafe/index.htm vn ------- |