EPA420-S-01-001
                                        September 2001
Light-Duty Automotive Technology and
         Fuel Economy Trends

           1975 Through 2001

           Executive Summary
           Advanced Technology Division
         Office of Transportation and Air Quality
         U.S. Environmental Protection Agency

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Introduction

       This report summarizes key fuel economy and technology usage trends related to model
year 1975 through 2001 light vehicles sold in the United States.  Light vehicles are those vehicles
that EPA and the U.S. Department of Transportation (DOT) classify as cars or light-duty trucks
(sport utility vehicles, vans, and pickup trucks with less than 8,500 pounds gross vehicle weight
ratings).

       Average new light vehicle fuel economy continues to decline.   Since  peaking at 22.1
mpg in 1987 and 1988, average light vehicle fuel economy has declined nearly eight percent to
20.4 mpg, and for 2001 is lower than it has been at any time since 1980.  The primary reasons
for this decline are the increasing market share of less efficient light trucks, increased vehicle
weight and  increased vehicle performance.

       The fuel economy values in this report are based on laboratory data, but for most tables
and analyses in the report have been adjusted downward, by about 15 percent, so that this data is
equivalent to the real world estimates used on new vehicle labels, in the EPA/DOE Fuel
Economy Guide and in EPA's  Green Vehicle Guide.  These adjusted fuel economy values,
therefore, are significantly lower than those used by the DOT for compliance with fuel economy
standards. In addition, the values in this report exclude Corporate Average Fuel Economy
(CAFE) credits for alternative  fuel capability and corrections for test procedure adjustments, that
are included in the fuel economy data reported by DOT.
Importance of Fuel Economy

        Fuel economy continues to be a major area of public and policy interest for several
reasons, including:

       (1) Light vehicles account for approximately 40 percent of all U.S. oil consumption.
          Crude oil, from which nearly all light vehicle fuels are made, is considered to be a
          finite natural resource.

       (2) Fuel economy is directly related to the cost of fueling a vehicle and is of greater
          interest when oil and gasoline prices rise, as has been the case in 2000 and 2001.

       (3) Fuel economy is directly related to carbon dioxide emissions from light vehicles
          which contribute about 20 percent of all U.S. carbon dioxide emissions. Carbon
          dioxide is the most prevalent emission that many scientists associate with global
          warming.

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Highlight #1:   Fuel Economy Is at a 21 Year Low
   There has been an overall declining trend in new light vehicle fuel economy
   since 1988. The average fuel economy for all model year 2001 light vehicles is
   20.4 mpg and is lower than it has been at any time since 1980.  This value is 1.7
   mpg (almost eight percent) lower than the peak value of 22.1 mpg achieved in
   1987 and 1988. Within the light vehicle category for model year 2001, average
   fuel economy is 24.2 mpg for cars and 17.3 mpg for light trucks.
      New light vehicle fuel economy improved fleet-wide from the middle 1970s through the
late 1980s, but it has been consistently falling since then. Viewed separately, the average fuel
economy for new cars has been essentially flat over the last 16 years, varying only from 23.6 mpg
to 24.4 mpg.  Similarly, the average fuel economy for new light trucks has been largely
unchanged for the past 20 years, ranging from  17.3 mpg to 18.4 mpg. The increasing market
share of light trucks, which have lower average fuel economy than cars, accounts for much of the
decline in fuel economy of the overall new light vehicle fleet.
                           Fuel Economy by Model Year
              30
                 Average MPG
              25 -
              20
              15 -
              10
               1970
1975
1980
1985    1990

 Model Year
1995
2000
* Note the fuel economy data in this report have been revised since the previous paper in this
series was issued and adjusted downward by about 15 percent to be equivalent to the real world
estimates used on new vehicle labels, in the Fuel Economy Guide and the Green Vehicle Guide.
                                        11

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Highlight #2:  Trucks Represent Nearly Half of New Vehicle Sales
   Sales of light trucks, which include sport utility vehicles (SUVs), vans, and pickup
   trucks, have risen steadily for over 20 years and now make up nearly 47 percent
   of the U.S. light vehicle market—more than twice their market share in 1983.
      Growth in the light truck market has been led recently by the explosive popularity of
SUVs.  The SUV market share increased by more than a factor often, from less than 2 percent of
the overall new light vehicle market in 1975 to nearly 22 percent of the market in 2001.  Over
the same period,  the market share for vans more than doubled from 4.5 to 9.3 percent, and for
pickup trucks, grew from 13 to about 17 percent. Between 1975 and 2001, market share for new
passenger cars and station wagons decreased from 81 to 53 percent. For model year 2001, cars
average 24.2 mpg, vans 19.3 mpg, SUVs 17.2 mpg and pickups 16.5 mpg.
                               Sales Fraction by Vehicle Type
                 100%
                      Sales Fraction
                  75% -
                  50% -
                  25% -
                                                                   •Car
                    1975      1980
                                     1985     1990

                                        Model Year
                                                      1995
                                                              2000
                                        111

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Highlight #3:   Over the Past 20 Years, Fuel Economy is Relatively
Constant, While Vehicle Weight and Power are Increasing
   More efficient technologies continue to enter the new light vehicle fleet and are
   being used to increase light vehicle weight and acceleration while fuel economy
   is not being increased. Model year 2001 light vehicles will have about the same
   average fuel economy as those built twenty years ago in model year 1981.
   Based on accepted engineering relationships, however, had the new 2001 light
   vehicle fleet had the same average weight and performance as in 1981, it could
   have achieved more than 25 percent higher fuel economy.
      More efficient technologies — such as engines with more valves and more sophisticated
fuel injection systems, and transmissions with lockup torque converters and extra gears —
continue to penetrate the new light vehicle fleet.  The trend has clearly been to apply these new
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 (up 22 percent since  1981), rising average horsepower (up 84 percent since 1981), and
lower 0 to 60 mile-per-hour acceleration time (27 percent faster since 1981).
                        Percent Change from 1981 to 2001
                        in Average Vehicle Characteristics
            100%


             75%


             50%


             25%


              0%


            -25%
                  Fuel Economy    Weight (Ibs.)   Horsepower  O to 60 Time (sec)
                   0.5% Lower     22% Heavier    84% Higher    27% Faster
                                       IV

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Highlight #4: Vehicles with Highly Fuel Efficient Hybrid Propulsion
     Systems are Beginning to Penetrate the Automotive Fleet
   During the past 25 years, the most significant change to light vehicle fuel
   economy technologies may be the introduction of vehicles with hybrid propulsion
   systems.
      The model year 2001 light vehicle fleet includes two hybrid vehicles: the Honda Insight,
which was introduced in 2000, and the Toyota Prius, which was introduced in the U.S. market in
2001. Both of these hybrid vehicles are equipped with propulsion systems that include as key
components gasoline engines, motor/generators and batteries. The manual transmission
equipped, two-seater Insight has Fuel Economy GuideAabel ratings of 61 mpg city and 68 mpg
highway. The Prius, a compact car with Fuel Economy Guide/label ratings of 52 mpg city and 45
mpg highway, is the second highest fuel economy vehicle on the market in 2001.  The Insight's
combined  fuel economy value is about 12 percent higher than the most fuel efficient
conventionally powered vehicle sold in the United States since 1975, a model year 1986 Geo
Sprint mini-compact. The Insight's fuel economy is also more than 40 percent higher than that
for the model year 2001 Volkswagen Beetle/Golf/Jetta diesels and a gasoline-powered Suzuki
Swift. All of these conventionally powered vehicles are equipped with manual transmissions.
                      Comparison of the Hybrid Vehicles with
                         Other High Fuel Economy Vehicles
              MY2001 Average Small Car

                   MY2001 Suzuki Swift

                   MY2001 VW Diesels

                   MY1986 Geo Sprint

                   MY2001 Toyota Prius

                 MY2001 Honda Insight
                                      10   20  30   40   50   60  70   80
                                       Combined Miles per Gallon (mpg)

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Highlight #5:  Recent Pledges to Voluntarily Increase Fuel Economy
   On July 27, 2000, Jacques Nasser, Ford Motor Company's chief executive,
   pledged to increase the fuel economy of its entire line of sport utility vehicles by
   25 percent by the 2005 calendar year.  A few days later, on August 2, 2000,
   Harry Pearce, General Motors vice chairman, pledged GM would remain the light
   truck fuel economy leader. On April 7, 2001, Jurgen Schrempp chairman of
   DaimlerChrysler, stated that the fuel economy of  their "fleet will match or exceed
   those of other full-line manufacturers."

   If all manufacturers were to voluntarily increase the average fuel economy of
   their entire light vehicle fleets by 25 percent by 2005, average new light vehicle
   fuel economy would increase by five miles per gallon.
      Based on the data available to date, with model year 2000 as the base line the following
graphs show the initial progress the Ford (defined as Ford, Jaguar, Volvo, Land Rover and
Mazda), General Motors (i.e., GM, Suzuki, Saab, Isuzu and Subaru) and Daimler Chrysler (i.e.,
Chrysler, Mercedes, and Mitsubishi) marketing groups have made toward meeting their fuel
economy improvement pledges.
             30
             25
                      SUV Fuel Economy by Marketing Group

                Adjusted MPG
             20 -
             10
       2000  2001

n  GM   17.0  16.9

M  DC   16.8  16.6

•  Ford  16.1  16.5
Ford MY2000 SUV Average
Plus 25% = 20.1 MPG
                   2000      2001      2002      2003

                                      Model Year
                                    2004
                        2005
                                        VI

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       The figures below show the fuel economy (mpg) performance by marketing group for light
trucks (i.e., vans, SUVs and pickups) and personal use (car and light truck) fleets for model years
2000 and 2001 and a projection for model year 2005 that represents a 25% increase from the
model year 2000 fuel economy average.
              30
              25
              20
                     Light Truck Fuel Economy by Marketing Group

                 Adjusted MPG
        2000  2001
n GM  17.7  17.2
• DC  16.9  16.8
• Ford 17.0  17.0
      GM plus DC plus Ford
      MY 2000 Average
      Plus 25% = 21.5 MPG
              10
                    2000      2001
                    2002      2003

                       Model Year
                   2004
          2005
              30
                Personal Use Vehicle Fuel Economy by Marketing Group

                 Adjusted MPG
              25
              10
        2000  2001
n GM   20.8  20.2
• DC   18.6  18.8
• Ford  19.3  19.2
                                           GM Plus DC Plus Ford
                                           MY2000 Average
                                           Plus 25% = 24.6 MPG
                    2000
           2001
2002      2003

  Model Year
2004
2005
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For More Information

Light-Duty Automotive Technology and Fuel Economy Trends 1975 through 2001
(EPA420-x-x-xxx) is available electronically on the Office of Transportation and Air Quality's
(OTAQ) Web site at:

          http://www.epa.gov/otaq/fetrends.htm
Printed copies are available from:

      U.S. Environmental Protection Agency
      National Service Center for Environmental Publications
      P.O. Box 42419
      Cincinnati, OH 45242-2419
      (800)490-9198

You can also contact the OTAQ library for document information at:

      U.S. Environmental Protection Agency
      Office of Transportation and Air Quality Library
      2000 Traverwood Drive
      Ann Arbor, MI 48105
      (734)214-4311

A copy of the Fuel Economy Guide giving city and highway fuel economy data for individual
models is available at http://www.fueleconomy.gov or by calling the U.S. Department of Energy's
National Alternative Fuels Hotline at (800) 423-1363.

EPA's Green Vehicle Guide provides information about the air pollution emissions and fuel
economy performance of vehicles; it is available on EPA's web site at
http://www.epa.gov/greenvehicles/
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