[Federal Register Volume 59, Number 42 (Thursday, March 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4571]


[[Page Unknown]]

[Federal Register: March 3, 1994]


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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.

BILLING CODE 4910-59-M

TN03MR94.002


TN03MR94.003

BILLING CODE 4910-59-C

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


BILLING CODE 4910-59-M

TN03MR94.004


BILLING CODE 4910-59-C
    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.

BILLING CODE 4910-59-M

TN03MR94.005


BILLING CODE 4910-59-C

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