[Federal Register Volume 62, Number 107 (Wednesday, June 4, 1997)]
[Notices]
[Pages 30656-30666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14558]


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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Automotive Fuel Economy Program Report to Congress

    The attached document, Automotive Fuel Economy Program, Twenty-
first Annual Report to the Congress, was prepared pursuant to 49 U.S.C. 
32916 et seq. which requires that ``the Secretary

[[Page 30657]]

shall transmit to each House of Congress, and publish in the Federal 
Register, a review of the average fuel economy standards under this 
part.''

    Issued: May 29, 1997.
L. Robert Shelton,
Associate Administrator for Safety Performance Standards.

Automotive Fuel Economy Program

Twenty-First Annual Report to Congress

Calendar Year 1996

Table of Contents

Section I: Introduction
Section II: Fuel Economy Improvement by Manufacturers
    A. Fuel Economy Performance by Manufacturer
    B. Characteristics of the MY 1996 Passenger Car Fleet
    C. Characteristics of the MY 1996 Light Truck Fleet
    D. Passenger Car and Light Truck Fleet Economy Averages
    E. Domestic and Import Fleet Fuel Economy Averages
Section III: 1996 Activities
    A. Light Truck CAFE Standards
    B. Low Volume Petitions
    C. Enforcement
    D. Contract Activities

Section I: Introduction

    The Twenty-first Annual Report to Congress on the Automotive Fuel 
Economy Program summarizes the activities of the National Highway 
Traffic Safety Administration (NHTSA) during 1996, in accordance with 
49 U.S.C. 32916 et seq., which requires the submission of a report each 
year. Included in this report is a section summarizing rulemaking 
activities during 1996. The Federal Reports Elimination Act of 1995 
(Pub. L. 104-66) repealed Section 305, Title III, of the Department of 
Energy Act of 1978 (P.L. 95-238), ``a discussion of the use of advanced 
automotive technology by the industry.'' Accordingly, the advanced 
automotive technology section is permanently eliminated from these 
annual reports beginning with this edition.
    The Secretary of Transportation is required to administer a program 
for regulating the fuel economy of new passenger cars and light trucks 
in the United States market. 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 reports to Congress annually 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 1998. NHTSA set a combined standard of 20.7 mpg for 
light truck fleets for MY 1998. 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 1998 (in MPG) 
----------------------------------------------------------------------------------------------------------------
                                                                                    Light trucks \1\            
                                                            Passenger  -----------------------------------------
                        Model year                             cars      Two-wheel    Four-wheel                
                                                                           drive        drive      Combined \2\ 
--------------------------------------------------------------------------------------------------------\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 
1996.....................................................     \4\ 27.5  ...........  ...........           20.7 
1997.....................................................     \4\ 27.5  ...........  ...........           20.7 
1998.....................................................     \4\ 27.5  ...........  ...........           20.7 
----------------------------------------------------------------------------------------------------------------
\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  
  standard of 17.2 mpg.                                                                                         
\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.                

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\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.                                                                   

Section II: Fuel Economy Improvement by Manufacturers

A. Fuel Economy Performance by Manufacturer

    The fuel economy achievements for domestic and foreign-based 
manufacturers in MY 1995 were updated to include final Environmental 
Protection Agency (EPA) calculations, where available, since the 
publication of the Twentieth Annual Report to the Congress. These fuel 
economy achievements and current projected data for MY 1996 are listed 
in Tables II-1 and II-2.
    Overall fleet fuel economy for passenger cars was 28.7 mpg in MY 
1996, an increase of 0.1 mpg from the MY 1995 level. For MY 1996, 
Corporate Average Fuel Economy (CAFE) values increased above MY 1995 
levels for seven of 23 passenger car manufacturers' fleets. (See Table 
II-1.) These seven companies accounted for more than 42 percent of the 
total MY 1996 production. Manufacturers continued to introduce new 
technologies and more fuel-efficient models, and some larger, less 
fuel-efficient models. For MY 1996, the overall domestic manufacturers' 
fleet average fuel economy was 28.3 mpg. For MY 1996, General Motors 
domestic passenger car CAFE value rose 0.9 mpg from its 1995 level, 
while Chrysler, Ford, Mazda, and Toyota fell 0.8 mpg, 0.9 mpg, 0.5 mpg, 
and 0.2 mpg, respectively, from their MY 1995 levels. Overall, the 
domestic manufacturers' combined CAFE increased 0.6 mpg above MY 1995 
level.

 Table II-1.--Passenger Car Fuel Economy Performance by Manufacturer \1\
                        Model Years 1995 and 1996                       
------------------------------------------------------------------------
                                                         Model year CAFE
                                                              (MPG)     
                     Manufacturer                      -----------------
                                                          1995     1996 
------------------------------------------------------------------------
Domestic:                                                               
  Chrysler............................................     28.4     27.6
  Ford................................................     27.7     26.8
  General Motors......................................     27.4     28.3
  Honda...............................................    (\2\)     33.2
  Mazda...............................................     30.3     29.8
  Toyota..............................................     28.5     28.3
Sales Weighted Average (Domestic).....................     27.7     28.3
Import:                                                                 
  BMW.................................................     25.3     27.3
  Chrysler Imports....................................     28.6     28.2
  Fiat................................................     15.7     13.8
  Ford Imports........................................     34.0     31.5
  GM Imports..........................................     36.7     35.8
  Honda...............................................     32.7     27.8
  Hyundai.............................................     31.2     32.9
  Kia.................................................     31.2     29.0
  Mazda...............................................     31.4     32.7
  Mercedes-Benz.......................................     24.7     25.1
  Mitsubishi..........................................     29.9     29.9
  Nissan..............................................     29.5     30.4
  Porsche.............................................     22.7     21.5
  Subaru..............................................     28.9     27.7
  Suzuki..............................................     40.8     34.0
  Toyota..............................................     30.4     29.8
  Volvo...............................................     26.0     26.1
  Volkswagen..........................................     29.0     28.2
Sales Weighted Average (Import).......................     30.3     29.7
    Total Fleet Average...............................     28.6     28.7
    Fuel Economy Standards............................     27.5    27.5 
------------------------------------------------------------------------
\1\ Manufacturers or importers of fewer than 1,000 passenger cars       
  annually are not listed.                                              
\2\ In MY 1996 Honda achieved 75 percent domestic content for its United
  States built passenger cars to become the third foreign-based         
  manufacturer with a domestic fleet.                                   
                                                                        
Note: Some MY 1995 CAFE values differ from those used in the Twentieth  
  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 1995 and 1996]                      
------------------------------------------------------------------------
                                                         Model year CAFE
                                                              (MPG)     
                                                       -----------------
                     Manufacturer                           Combined    
                                                       -----------------
                                                          1995     1996 
------------------------------------------------------------------------
Domestic:                                                               
  Chrysler............................................     20.1     20.3
  Ford................................................     20.8     20.6
  General Motors......................................     20.1     20.7
Sales Weighted Average (Domestic).....................     20.3     20.5
Import:                                                                 
  Isuzu...............................................     20.3     19.5
  Land Rover..........................................     16.3     17.2
  Mazda...............................................     20.9     20.7
  Mitsubishi..........................................     20.2     19.1
  Nissan..............................................     22.4     23.0
  Suzuki..............................................     28.1     27.5
  Toyota..............................................     21.2     23.2
  Volkswagen..........................................     19.6    (\1\)
Sales Weighted Average (Import).......................     21.5     22.1
  Total Fleet Average.................................     20.5     20.7
  Fuel Economy Standards..............................     20.6    20.7 
------------------------------------------------------------------------
\1\ Volkswagen did not produce light trucks for MY 1996.                
                                                                        
Note: Some MY 1995 CAFE values differ from those used in the Twentieth  
  Annual Report to the Congress due to the use of final EPA             
  calculations.                                                         

    In MY 1996, the fleet average fuel economy for import passenger 
cars decreased by 0.6 mpg from the MY 1995 CAFE level to 29.7 mpg. Six 
of the 18 import car manufacturers increased their CAFE values between 
MYs 1995 and 1996, including three of the nine Asian manufacturers.
    Fleet average fuel economy for all MY 1996 passenger cars combined 
exceeded the level of the MY 1996 standard by 1.2 mpg. Figure II-1 
illustrates the changes in total new passenger car fleet CAFE from MY 
1978 to MY 1996.
    The total light truck fleet CAFE increased 0.2 mpg above the MY 
1995 CAFE level of 20.5 mpg (see Table II-2). Figure II-2 illustrates 
the trends in total light truck fleet CAFE from MY 1979 to MY 1996.
    Several passenger cars and a few light truck manufacturers are 
projected to fail to achieve the levels of the MY 1996 CAFE standards. 
However, NHTSA is not yet able to determine which of these 
manufacturers may be liable for civil penalties for non-compliance. 
Some MY 1996 CAFE values may change when final figures are provided to 
NHTSA by EPA, in mid-1997. In addition, several manufacturers are not 
expected to pay civil penalties because the credits they earned by 
exceeding the fuel economy standards in earlier years offset later 
shortfalls. Other manufacturers may file carryback plans to demonstrate 
that they anticipate earning credits in future model years to offset 
current deficits.

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B. Characteristics of the MY 1996 Passenger Car Fleet

    The characteristics of the MY 1996 passenger car fleet reflect a 
continuing trend toward satisfying consumer demand for higher 
performance cars. (See Table II-3.) From MY 1995 to MY 1996, 
horsepower/100 pounds, a measure of vehicle performance, increased from 
4.93 to 5.00 for domestic passenger cars. However, it decreased 
slightly from 4.77 to 4.76 for import passenger cars. The total fleet 
average for passenger cars increased from 4.87 horsepower/100 pounds in 
MY 1995 to 4.92 in MY 1996. Compared with MY 1995, the average curb 
weight for MY 1996 decreased by 35 pounds for the domestic fleet and 
increased 25 pounds for the import fleet. The total new passenger car 
fleet weight remained constant at 3,047 pounds, as in MY 1995. Average 
engine displacement decreased from 188 to 178 cubic inches for domestic 
passenger cars, and increased from 131 to 134 cubic inches for import 
passenger cars, from MY 1995 to MY 1996.
    The 0.6 mpg fuel economy improvement for the MY 1996 domestic 
passenger car fleet may be attributed in part to weight reduction, mix 
shifts, and an increase in the use of more automatic transmissions with 
four speeds and front-wheel drive.
    The size/class breakdown shows an increased trend primarily toward 
compact passenger cars with the reduction of subcompact passenger cars 
for the overall fleet. The size/class mix in the domestic fleet shifted 
from mid-size and large passenger cars to minicompact, subcompact and 
compact passenger cars. The size/class mix in the import fleet shifted 
from minicompact, subcompact, and compact passenger cars to two-seater, 
mid-size and large passenger cars. The import share of the passenger 
car market declined in MY 1996, as more foreign-based manufacturers 
achieved 75 percent domestic content for their U.S. and Canadian-
assembled passenger cars.

                     Table II-3.--Passenger Car Fleet Characteristics for MYs 1995 and 1996                     
----------------------------------------------------------------------------------------------------------------
                                                     Total fleet         Domestic fleet         Import fleet    
                Characteristics                -----------------------------------------------------------------
                                                   1995       1996       1995       1996       1995       1996  
----------------------------------------------------------------------------------------------------------------
Fleet Average Fuel Economy, mpg...............       28.6       28.7       27.7       28.3       30.2       29.7
Fleet Average Curb Weight, lbs................       3047       3047       3146       3111       2881       2906
Fleet Average Engine Displacement, cu. in.....        166        164        188        178        131        134
Fleet Average Horsepower/Weight ratio, HP/100                                                                   
 lbs..........................................       4.87       4.92       4.93       5.00       4.77       4.76

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Percent of Fleet..............................        100        100       62.7       68.6       37.3       31.4
                                                                                                                
    Segmentation by EPA Size Class, Percent                                                                     
                                                                                                                
Two-Seater....................................        0.8        1.1        0.4        0.5        1.5        2.3
Minicompact...................................        0.7        0.5        0.0        0.0        1.9        1.5
Subcompact \1\................................       17.1       15.5        8.9       10.9       30.9       25.6
Compact \1\...................................       39.3       41.3       36.1       40.5       44.7       43.0
Mid-Size \1\..................................       28.5       28.3       33.5       29.2       20.2       26.1
Large \1\.....................................       13.6       13.4       21.1       18.9        0.9        1.5
Diesel Engines................................       0.06       0.09        0.0        0.0        0.2        0.3
Turbo or Supercharged Engines.................        0.7        0.8        0.0        0.0        1.8        2.5
Fuel Injection................................        100        100        100        100        100        100
Front-Wheel Drive.............................       84.8       85.6       84.6       86.8       85.1       83.0
Automatic Transmissions.......................       83.2       84.1       89.8       87.9       72.1       75.7
Automatic Transmissions with Lockup Clutches..       98.0       97.9        100        100       93.7       92.4
Automatic Transmissions with Four or more                                                                       
 Forward Speeds...............................       87.9       88.8       85.5       89.0       92.7       88.2
----------------------------------------------------------------------------------------------------------------
\1\ Includes associated station wagons.                                                                         

    The import fleet rose above its MY 1996 level in the share of 
turbocharged and supercharged engines. Diesel engine share increased 
slightly in MY 1996, and diesels were offered by two import 
manufacturers.
    Passenger car fleet average characteristics have changed 
significantly since MY 1978 (the first year of fuel economy standards). 
(See Table II-4.) 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 curb weight stabilized between 2,800 and 
3,050 pounds. Table II-4 shows that the MY 1996 passenger car fleet has 
nearly equal interior volume and higher performance, but with more than 
40 percent better fuel economy, than the MY 1978 fleet. (See Figure II-
3.)

C. Characteristics of the MY 1996 Light Truck Fleet

    The characteristics of the MY 1996 light truck fleet are shown in 
Table II-5. 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. Therefore, beginning 
with this report, the light truck fleet is subdivided in this table 
according to drive wheels: two-wheel drive or four-wheel drive.

                          Table II-4.--New Passenger Car Fleet Average Characteristics                          
                                             [Model Years 1978-1996]                                            
----------------------------------------------------------------------------------------------------------------
                                                            Fuel       Curb     Interior    Engine   Horsepower/
                       Model year                         economy     weight     space       size    weight  (hp/
                                                           (mpg)      (lb.)    (cu. ft.)  (cu. in.)    100 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...................................................       28.4       2934        108        164        4.42 
1992...................................................       27.9       3007        108        169        4.56 
1993...................................................       28.4       2971        109        164        4.62 
1994...................................................       28.3       3011        109        169        4.79 
1995...................................................       28.6       3047        109        166        4.87 
1996...................................................       28.7       3047        109        164        4.92 
----------------------------------------------------------------------------------------------------------------


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                      Table II-5.--Light Truck Fleet Characteristics for MYs 1995 and 1996                      
----------------------------------------------------------------------------------------------------------------
                                                     Total fleet         Two-wheel drive      Four-wheel drive  
                Characteristics                -----------------------------------------------------------------
                                                   1995       1996       1995       1996       1995       1996  
----------------------------------------------------------------------------------------------------------------
Fleet Average Fuel Economy, mpg...............       20.5       20.7       21.6       21.9       18.9       19.3
Fleet Average Equivalent Test Weight, lbs.....       4339       4355       4192       4201       4575       4602
Fleet Average Engine Displacement, cu. in.....        245        244        235        231        261        265
Fleet Average Horsepower/Weight ratio, HP/100                                                                   
 lbs..........................................       3.88       4.07       3.83       4.00       3.96       4.19
Percent of Fleet..............................        100        100       61.7       61.6       38.3       38.4
Percent of Fleet from Foreign-Based                                                                             
 Manufacturers................................       14.7       12.2       10.9        8.9       20.8       17.6
                                                                                                                
         Segmentation by Type, Percent                                                                          
                                                                                                                
Passenger Van.................................       22.3       22.7       34.7       36.1        2.3        1.3
Cargo Van.....................................        6.4        3.7       10.1        5.9        0.5        0.2
Small Pickup..................................                                                                  
Two-Wheel Drive...............................        7.7        7.0       12.5       11.3  .........  .........
Four-Wheel Drive..............................  .........  .........  .........  .........  .........  .........
Large Pickup..................................                                                                  
Two-Wheel Drive...............................       19.0       19.4       30.8       31.5  .........  .........
Four-Wheel Drive..............................       12.9       10.8  .........  .........       33.8       28.2
Special Purpose...............................                                                                  
Two-Wheel Drive...............................        7.3        9.3       11.9       15.1  .........  .........
Four-Wheel Drive..............................       24.3       27.0  .........  .........       63.4       70.3
Diesel Engines................................       0.20       0.07       0.11       0.04       0.34       0.12
Turbo/Supercharged Engines....................       0.20       0.07       0.09       0.04       0.34       0.12
Fuel Injection................................        100        100        100        100        100        100
Automatic Transmissions.......................       79.5       84.3       78.7       82.2       80.8       87.6
Automatic Transmissions with Lockup Clutches..       98.9       98.9       98.3       98.1        100        100

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Automatic Transmissions with Four or More                                                                       
 Forward Speeds...............................       93.4       93.8       90.5       90.0       97.9       99.4
----------------------------------------------------------------------------------------------------------------

    The MY 1996 average test weight of the total light truck fleet 
increased by 16 pounds over that for MY 1995. The average fuel economy 
of the fleet increased by 0.2 mpg to 20.7 mpg. Diesel engine usage 
decreased in light trucks to 0.07 percent in MY 1996 from 0.20 percent 
in MY 1995. The share of the MY 1996 two-wheel drive fleet remained 
near the MY 1995 level of 61.7 percent.
    CAFE levels for light trucks in the 0-8,500 pounds gross vehicle 
weight (GVW) class increased from 18.5 mpg in MY 1980 to 21.7 mpg in MY 
1987, before declining to 20.7 mpg in MY 1996, influenced by an 
increase in average weight, engine size, and performance. Light truck 
production increased from 1.9 million in MY 1980 to 5.2 million in MY 
1996. Light trucks comprised 40 percent of the total light duty vehicle 
fleet production in MY 1996, more than triple the share in MY 1980.

D. Passenger Car and Light Truck Fleet Economy Averages

    Figure II-4 illustrates an increase in the light duty fleet 
(combined passenger cars and light trucks) average fuel economy through 
MY 1987, followed by a gradual decline. (See also Table II-6.) 
Passenger car average fuel economy remained relatively constant for MYs 
1987-1996. The overall decline in fuel economy illustrates the growing 
influence of light trucks and their significant impact on the light 
duty fleet.
    While passenger car and light truck fleet fuel economies increased 
from MY 1995 to MY 1996 by 1.2 mpg and 0.2 mpg, respectively, the total 
fleet fuel economy for MY 1996 remains at the MY 1995 level of 24.9 
mpg. The shift to light trucks for general transportation is an 
important trend in consumers' preference and has a significant fleet 
fuel consumption effect.

E. Domestic and Import Fleet Fuel Economy Averages

    Domestic and import passenger car fleet average fuel economies have 
improved since MY 1978, although the increase is far more dramatic for 
the domestic fleet. In MY 1996, the domestic passenger car fleet 
average fuel economy increased from the prior year to 28.3 mpg, the 
highest level since fuel economy standards were established. Import 
passenger car fleet average fuel economy decreased to 29.7 mpg. 
Compared to MY 1978, this reflects an increase of 9.6 mpg for domestic 
cars and 2.4 mpg for import cars.

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                     Table II-6.--Domestic and Import Passenger Car and Light Truck Fuel Economy Averages for Model Years 1978-1996                     
                                                                        [in MPG]                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Domestic                          Import                                             
                                                      ------------------------------------------------------------------            All light    Total  
                      Model Year                                    Light                            Light                All cars    trucks     fleet  
                                                          Car       Truck     Combined     Car     truck \1\   Combined                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
1978.................................................       18.7  .........  .........       27.3  .........  .........       19.9  .........  .........
1979.................................................       19.3       17.7       19.1       26.1       20.8       25.5       20.3       18.2       20.1
1980.................................................       22.6       16.8       21.4       29.6       24.3       28.6       24.3       18.5       23.1
1981.................................................       24.2       18.3       22.9       31.5       27.4       30.7       25.9       20.1       24.6
1982.................................................       25.0       19.2       23.5       31.1       27.0       30.4       26.6       20.5       25.1
1983.................................................       24.4       19.6       23.0       32.4       27.1       31.5       26.4       20.7       24.8
1984.................................................       25.5       19.3       23.6       32.0       26.7       30.6       26.9       20.6       25.0
1985.................................................       26.3       19.6       24.0       31.5       26.5       30.3       27.6       20.7       25.4
1986.................................................       26.9       20.0       24.4       31.6       25.9       29.8       28.2       21.5       25.9
1987.................................................       27.0       20.5       24.6       31.2       25.2       29.6       28.5       21.7       26.2
1988.................................................       27.4       20.6       24.5       31.5       24.6       30.0       28.8       21.3       26.0
1989.................................................       27.2       20.4       24.2       30.8       23.5       29.2       28.4       20.9       25.6
1990.................................................       26.9       20.3       23.9       29.9       23.0       28.5       28.0       20.8       25.4
1991.................................................       27.3       20.9       24.4       30.1       23.0       28.4       28.4       21.3       25.6
1992.................................................       27.0       20.5       23.8       29.2       22.7       27.9       27.9       20.8       25.1
1993.................................................       27.8       20.7       24.2       29.6       22.8       28.1       28.4       21.0       25.2
1994.................................................       27.5       20.5       23.5       29.6       22.0       27.8       28.3       20.7       24.7
1995.................................................       27.7       20.3       23.8       30.3       21.5       27.9       28.6       20.5       24.9
1996.................................................       28.3       20.5       24.1       29.7       22.1       27.7       28.7       20.7       24.9
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Light trucks from foreign-based manufacturers.                                                                                                      

    Since MY 1980, the total light truck fleet average fuel economy and 
the average for domestic light truck manufacturers have improved 
overall, but both have remained below the fuel economy level for the 
imported light truck fleet. The imported light truck average fuel 
economy has decreased significantly since its highest level of 27.4 mpg 
for MY 1981 to 22.1 mpg for MY 1996. For MY 1996, the domestic light 
truck fleet has an average fuel economy level of 20.5 mpg, which is 1.6 
mpg lower than the import light truck fleet. For MY 1996, the imported 
light truck fleet fuel economy increased 0.6 mpg above the MY 1995 
level to 22.1 mpg. The domestic manufacturers continued to dominate the 
light truck market, comprising 87 percent of the total light truck 
fleet.
    The disparity between the average CAFEs of the import and domestic 
manufacturers has declined in recent years as domestic manufacturers 
have maintained relatively stable CAFE values while the import 
manufacturers moved to larger vehicles, and more four-wheel drive light 
trucks, thus lowering their CAFE values.

Section III: 1996 Activities

A. Light Truck CAFE Standards

    On April 3, 1996, NHTSA published a final rule establishing a 
combined standard of 20.7 mpg for light trucks for MY 1998. The 
Department of Transportation and Related Agencies Appropriations Act 
for Fiscal Year 1996, Pub. L. 104-50, precludes the agency from setting 
the MY 1998 standard at a level other than the level for MY 1997.

B. Low Volume Petitions

    49 U.S.C. 32902(d) 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. 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.
    NHTSA acted on four low volume petitions in 1996, which were filed 
by Lotus, Rolls-Royce (2), and Lamborghini. Lotus, once controlled by 
Bugatti International, submitted to the agency its low volume petition 
for MYs 1994, 1995, 1997, and 1998 separately from its previous owner, 
Bugatti, because of that automaker's financial instability. Lotus is 
now under new ownership. A Malaysian automaker, Perusahaan Otomobil 
Nasional Berhad (Proton), acquired controlling interest in Lotus. The 
agency is reviewing Lotus' petition and will respond in early 1997.
    Lamborghini filed a joint low volume petition for Lamborghini and 
Vector high performance vehicles since these two manufacturers are 
under common ownership by V-Power Corporation. Lamborghini requested 
alternative standards for its passenger cars for MYs 1995, 1996, and 
1997. NHTSA issued a proposed decision to grant alternative standards 
of 12.8 mpg for MY 1995, 12.6 mpg for MY 1996, and 12.5 mpg for MY 1997 
(61 FR 39429; July 29, 1996).
    Rolls-Royce requested an alternative standard for its passenger 
cars for MY 1997. NHTSA established an alternative standard of 15.1 mpg 
for MY 1997 (61 FR 4369; February 6, 1996). In December 1995, Rolls 
Royce also filed a low volume petition for MYs 1998 and 1999. NHTSA 
issued a proposed decision to grant an alternative standard of 16.3 mpg 
for MYs 1998 and 1999 (61 FR 46756; September 5, 1996).

C. Enforcement

    49 U.S.C. 32912(b) imposes a civil penalty of $5 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.
    Table III-1 shows CAFE fines paid by manufacturers in calendar year 
1996. In calendar year 1996, manufacturers paid penalties totaling 
$52,339,165 for failing to comply to the fuel economy standards of 27.5 
mpg for passenger

[[Page 30666]]

cars, 20.5 mpg and 20.6 mpg for light trucks in MYs 1994 and 1995, 
respectively.

      Table III-1.--Cafe Fines Collected During Calendar Year 1996      
------------------------------------------------------------------------
    Model year and manufacturer           Amount fined        Date paid 
------------------------------------------------------------------------
1994:                                                                   
  BMW.............................              $10,140,120        12/96
  Land Rover......................                1,734,915        12/96
  Porsche.........................                  804,600        12/96
  Volvo...........................                7,173,630        12/96
1995:                                                                   
  BMW.............................               13,136,530        12/96
  Land Rover......................                4,499,090        12/96
  Mercedes-Benz...................                6,525,085        12/96
  Porsche.........................                1,949,520        12/96
  Volvo...........................                6,375,675        12/96
------------------------------------------------------------------------

D. Contract Activities

     Database Maintenance: Products and Production Capabilities 
of North American Automobile Manufacturing Plants.
    During 1996, NHTSA continued to fund the maintenance of a database 
that details the products and production capacities of North American 
automobile manufacturing plants. This program is administered by the 
Volpe National Transportation Systems Center (the Volpe Center) with 
annual funding of $60,000.
     Published Report: Light Truck Capabilities, Utility 
Requirements and Uses: Implications for Fuel Economy.
    In FY 1995, the House Appropriations Committee funded NHTSA with 
$300,000 to prepare a report to identify the unique capabilities, 
utility requirements, and use of light trucks that result in design 
constraints for fuel economy improvements. The agency contracted with 
the Volpe Center to conduct this study. In April 1996, the Volpe Center 
concluded the study and the final results were published in a report 
titled, Light Truck Capabilities, Utility Requirements and Uses: 
Implications for Fuel Economy (DOT Report Number: HS 808 378). This 
report was forwarded to Congress on May 22, 1996.
    The report addresses two key questions:
    1. What are the unique capabilities, utility requirements, and uses 
of light trucks?
    2. Do these requirements and other regulatory requirements 
constrain the ability to improve light truck fuel economy?
    The capabilities of light trucks that are notably superior to those 
of passenger cars are referred to as enhanced capabilities of light 
trucks. Five enhanced capabilities are identified, qualified, and 
quantified: load carrying (passengers), load carrying (weight), load 
carrying (volume), towing and off-road operation. Utility requirements 
are treated as the functions and capabilities that truck buyers need. 
Public domain survey data are used to identify utility requirements for 
both personal and commercial uses. Two major surveys, the 1992 Truck 
Inventory and Use Survey and the 1990 Nationwide Personal 
Transportation Survey, are used to identify and quantify the actual 
uses of light trucks for both personal and commercial purposes.
    Observations on the relationships between light truck capabilities 
and fuel economy are based on manufacturer specifications and EPA fuel 
economy ratings for a sample of MY 1994 light trucks. Existing fuel 
economy studies are referenced to identify potential fuel economy 
technologies for MYs 1998-2006. The estimated fuel economy gain for 
implementation of each fuel economy technology is presented. Potential 
conflicts between the application of each fuel economy technology and 
light truck capabilities, future emissions and safety standards, and 
consumer choice attributes are also presented.
     Published Report: Updated Vehicle Survivability and Travel 
Mileage Schedules.
    In November 1995, NHTSA published a report titled, Updated Vehicle 
Survivability and Travel Mileage Schedules. This report authored by 
NHTSA staff member, Alan Berkowitz, discusses the development of 
revised survivability and vehicle miles traveled schedules for 
passenger cars and light trucks by using current registration data and 
government-sponsored vehicle mileage survey data. The registration data 
source used is the National Vehicle Population Profile compiled by R. 
L. Polk & Company. The recent government-sponsored mileage survey data 
sources used are the Nationwide Personal Transportation Survey 
conducted by the Bureau of the Census, U.S. Department of Commerce, for 
the Federal Highway Administration, U.S. Department of Transportation; 
the Truck Inventory and Use Survey developed by the Bureau of Census; 
and the Residential Transportation Energy Consumption Survey designed 
by the Energy Information Administration, U.S. Department of Energy.
    The amended projections confirmed that passenger vehicles, 
especially light trucks, have extended vehicle life and are driven 
farther than previous schedules have indicated. These new survivability 
and travel mileage schedules may be used to compute the total weighted 
travel mileage over the vehicle lifetime, which is used to estimate the 
impact of proposed fuel economy standards on future fuel consumption 
and operating costs. The survivability schedule will also be used to 
estimate the phase-in of new safety equipment into the vehicle fleet.
     Study Initiative: Fuel Economy Effects and Cost and 
Leadtime Impacts of Variable Valve Timing Engine Technology.
    A study was initiated with consultants to evaluate the fuel economy 
effects and cost and leadtime impacts of variable valve timing engine 
technology. The report of this effort, along with an in-house study of 
retail costs, will be published in early 1997.

[FR Doc. 97-14558 Filed 6-3-97; 8:45 am]
BILLING CODE 4910-59-P