[Federal Register Volume 65, Number 133 (Tuesday, July 11, 2000)]
[Notices]
[Pages 42752-42763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16922]


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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Automotive Fuel Economy Program; Report to Congress

    The attached document, 24th Annual Report to Congress on the 
Automotive Fuel Economy Program, was prepared pursuant to 49 U.S.C. 
32916 et seq. which requires that ``the Secretary shall transmit to 
each House of Congress, and publish in the Federal Register, a review 
of the average fuel economy standards under this part.''
    The 24th Annual Report to Congress on the Automotive Fuel Economy 
Program summarizes the fuel economy performance of the vehicle fleet 
and the activities of the National Highway Traffic Safety 
Administration (NHTSA) during 1999. Included in this report is a 
section summarizing rulemaking activities during 1999. This report is 
available on the Internet at: http://www.nhtsa.dot.gov/cars/problems/studies/fuelecon/index.html. To obtain paper copies of this document, 
you may

[[Page 42753]]

contact NHTSA's Publications Ordering and Distribution Services on 
(202) 366-1566.

    Issued on: June 28, 2000.
Stephen R. Kratzke,
Acting Associate Administrator for Safety Performance Standards.

Automotive Fuel Economy Program; Twenty-Fourth Annual Report to 
Congress, Calendar Year 1999

Table of Contents

Section I: Introduction
Section II: Vehicle Fuel Economy Performance and Characterisitics
    A. Fuel Economy Performance by Manufacturer
    B. Characteristics of the MY 1999 Passenger Car Fleet
    C. Characteristics of the MY 1999 Light Truck Fleet
    D. Passenger Car and Light Truck Fleet Economy Averages
    E. Domestic and Import Fleet Fuel Economy Averages
Section III: 1999 Activities
    A. Light Truck CAFE Standards
    B. Enforcement

Section I: Introduction

    The Twenty-fourth Annual Report to Congress on the Automotive Fuel 
Economy Program summarizes the fuel economy performance of the vehicle 
fleet and the activities of the National Highway Traffic Safety 
Administration (NHTSA) during 1999, 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 
1999.
    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. The agency has established light truck standards each year, 
but Congress has mandated through the DOT Appropriations Acts for 
fiscal years 1996 through 2000, no increase from the MY 1996 value of 
20.7 mpg for MYs 1998 through 2002. 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 2001
                                                    [In mpg]
----------------------------------------------------------------------------------------------------------------
                                                                              Light Trucks (\1\)
                                                             ---------------------------------------------------
                 Model year                   Passenger 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
1999........................................      (\4\) 27.5  ..............  ..............              20.7
2000........................................      (\4\) 27.5  ..............  ..............              20.7
2001........................................      (\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 Motor Vehicle Information and Cost Savings Act.

[[Page 42754]]

 
\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.

Section II: Vehicle Fuel Economy Performance and Characteristics

A. Fuel Economy Performance by Manufacturer

    The fuel economy achievements for domestic and foreign-based 
manufacturers in MY 1999 were updated to include final EPA 
calculations, where available, since the publication of the Twenty-
third Annual Report to the Congress. These fuel economy achievements 
and current projected data for MY 1999 are listed in Tables II-1 and 
II-2.
    Overall fleet fuel economy for passenger cars was 28.3 mpg in MY 
1999, a decrease of 0.4 mpg from the MY 1998 level. For MY 1999, CAFE 
values increased above MY 1998 levels for six of 17 passenger car 
manufacturers' fleets. (See Table II-1.) These six companies accounted 
for more than 12 percent of the total MY 1999 production. Manufacturers 
continued to introduce new technologies and more fuel-efficient models, 
and some larger, less fuel-efficient models. For MY 1999, the overall 
domestic manufacturers' fleet average fuel economy was 28.2 mpg. For MY 
1999, Honda and Toyota domestic passenger car CAFE values rose 4.9 mpg 
and 4.7 mpg from their 1998 levels, while Ford/Mazda and General Motors 
fell 0.4 mpg and 0.2 mpg, respectively, from their MY 1998 levels. 
Nissan remained at its MY 1998 level of 29.9 mpg. Overall, the domestic 
manufacturers' combined CAFE increased 0.1 mpg above the MY 1998 level.

  Table II-1.--Passenger Car Fuel Economy Performance by Manufacturer*
                        Model Years 1998 and 1999
------------------------------------------------------------------------
                                                            Model year
                                                            CAFE  (mpg)
                      Manufacturer                       ---------------
                                                           1998    1999
------------------------------------------------------------------------
Domestic:
    Chrysler............................................    28.7  ......
    DaimlerChrysler.....................................  ......    27.5
    Ford/Mazda..........................................    27.6    27.2
    General Motors......................................    27.8    27.6
    Honda...............................................    29.5    34.4
    Mitsubishi..........................................  ......    28.8
    Nissan..............................................    29.9    29.9
    Toyota..............................................    28.6    33.3
Sales weighted average (domestic).......................    28.1    28.2
Import:
    BMW.................................................    25.4    25.4
    Chrysler............................................    25.8  ......
    DaimlerChrysler.....................................  ......    26.3
    Fiat................................................    13.5    13.6
    Ford/Mazda..........................................    28.9    30.1
    General Motors......................................    28.9    27.9
    Honda...............................................    34.6    29.4
    Hyundai.............................................    31.5    31.4
    Kia.................................................    30.9    31.2
    Mercedes-Benz.......................................    27.2  ......
    Mitsubishi..........................................    29.7    29.6
    Nissan..............................................    30.7    29.5
    Porsche.............................................    24.5    24.2
    Subaru..............................................    27.6    27.5
    Suzuki..............................................    35.9    35.4
    Toyota..............................................    30.7    28.0
    Volvo...............................................    25.6    26.2
    Volkswagen..........................................    28.7    28.2
Sales weighted average (import).........................    30.0    28.4
Total fleet average.....................................    28.7    28.3
Fuel economy standards..................................    27.5    27.5
------------------------------------------------------------------------


 Table II-2.--Light Truck Fuel Economy Performance by Manufacturer Model
                           Years 1998 and 1999
------------------------------------------------------------------------
                                                            Model year
                                                            CAFE (mpg)
                      Manufacturer                           combined
                                                         ---------------
                                                           1998    1999
------------------------------------------------------------------------
Chrysler................................................    20.5  ......
DaimlerChrysler.........................................  ......    20.7
Ford/Mazda..............................................    20.1    20.4
General Motors..........................................    21.1    20.0
Honda...................................................    27.1    24.2
Isuzu...................................................    21.4    21.5
Kia.....................................................    24.4    24.2
Land Rover..............................................    17.2    17.0
Mercedes-Benz...........................................    21.3  ......
Mitsubishi..............................................    22.5    22.3
Nissan..................................................    22.2    21.1
Suzuki..................................................    27.4    24.3
Toyota..................................................    23.5    22.6
Volkswagen..............................................  ......    19.1
Total fleet average.....................................    20.9    20.7
Fuel economy standards..................................    20.7    20.7
------------------------------------------------------------------------

    In MY 1999, the fleet average fuel economy for import passenger 
cars decreased by 1.6 mpg from the MY 1998 CAFE level to 28.4 mpg. Five 
of the 16 import car manufacturers increased their CAFE values between 
MYs 1998 and 1999. Figure II-1 illustrates the changes in total new 
passenger car fleet CAFE from MY 1978 to MY 1999.
    The total light truck fleet CAFE decreased 0.2 mpg below the MY 
1998 CAFE level of 20.9 mpg (see Table II-2). Figure II-2 illustrates 
the trends in total light truck fleet CAFE from MY 1979 to MY 1999.
    Six passenger cars (BMW, DaimlerChrysler import, Fiat, Ford/Mazda 
domestic, Porsche and Volvo) and four light truck manufacturers (Ford/
Mazda, General Motors, Land Rover and Volkswagen) are projected to fail 
to achieve the levels of the MY 1999 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 1999 CAFE values may 
change when final figures are provided to NHTSA by EPA in mid-2000. 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.
    Mitsubishi achieved 75 percent domestic content for its United 
States built passenger cars to become the fourth foreign-based 
manufacturer with a domestic fleet. These domestic-built vehicles do 
not appreciably affect the domestic fleet CAFE.
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[GRAPHIC] [TIFF OMITTED] TN11JY00.022

    In November 1998, a domestic manufacturer, Chrysler Corporation, 
merged with an import manufacturer, Daimler-Benz AG, to form a new 
company, DaimlerChrysler, making it the fifth-largest automaker in the 
world.

[[Page 42757]]

B. Characteristics of the MY 1999 Passenger Car Fleet

    The characteristics of the MY 1999 passenger car fleet reflect a 
continuing trend toward satisfying consumer demand for higher 
performance cars. (See Table II-3.) From MY 1998 to MY 1999, 
horsepower/100 pounds, a measure of vehicle performance, increased from 
5.11 to 5.30 for domestic passenger cars and from 4.93 to 5.03 for 
import passenger cars. The total fleet average for passenger cars 
increased from 5.05 horsepower/100 pounds in MY 1998 to 5.21 in MY 
1999, the highest level in the 43 years for which the agency has data. 
Compared with MY 1998, the average curb weight for MY 1999 increased by 
five pounds for the domestic fleet and increased by 108 pounds for the 
import fleet. The average curb weight for the total fleet of passenger 
cars increased from 3,075 pounds in MY 1998 to 3,116 pounds in MY 1999, 
primarily because of the average curb weight increase for the import 
fleet. Average engine displacement increased from 174 to 176 cubic 
inches for domestic passenger cars and increased from 137 to 146 cubic 
inches for import passenger cars from MY 1998 to MY 1999.
    The 0.1 mpg fuel economy improvement for the MY 1999 domestic 
passenger car fleet may be attributed in part to mix shifts (in the 
segmentation by EPA size class), improved engine technology and the use 
of more automatic four-speed transmissions and automatic transmissions 
with lockup clutches.

                     Table II-3.--Passenger Car Fleet Characteristics for MYs 1998 and 1999
----------------------------------------------------------------------------------------------------------------
                                                               Total fleet     Domestic fleet     Import fleet
                      Characteristics                      -----------------------------------------------------
                                                              1998     1999     1998     1999     1998     1999
----------------------------------------------------------------------------------------------------------------
Fleet Average Fuel Economy, mpg...........................     28.7     28.3     28.1     28.2     30.0     28.4
Fleet Average Curb Weight, lbs............................     3075     3116     3119     3124     2992     3100
Fleet Average Equivalent Test Weight, lbs.................     3372     3418     3421     3432     3278     3392
Fleet Average Engine Displacement, cu. in.................      161      166      174      176      137      146
Fleet Average Horsepower/Weight ratio, HP/100 lbs.........     5.05     5.21     5.11     5.30     4.93     5.03
% of Fleet................................................      100      100     65.7     66.2     34.3     33.8
----------------------------------------------------------------------------------------------------------------
                                        Segmentation by EPA Size Class, %
----------------------------------------------------------------------------------------------------------------
Two-Seater................................................      0.7      1.4      0.2      0.6      1.7      2.8
Minicompact...............................................      0.4      0.6      0.0      0.3      1.2      1.2
Subcompact*...............................................     16.7     15.6     10.4     14.7     28.7     17.4
Compact*..................................................     35.8     31.7     35.8     35.1     35.8     25.1
Mid-Size*.................................................     34.1     38.2     35.4     30.8     31.6     52.9
Large*....................................................     12.3     12.5     18.2     18.6      1.0      0.6
Diesel Engines............................................     0.19     0.16      0.0      0.0      0.6      0.5
Turbo or Supercharged Engines.............................      2.0      4.4      1.2      3.9      3.6      5.4
Fuel Injection............................................      100      100      100      100      100      100
Front-Wheel Drive.........................................     87.0     86.0     90.9     90.9     79.5     76.4
Automatic Transmissions...................................     86.4     86.0     90.4     90.8     78.9     76.6
Automatic Transmissions with Lockup Clutches..............     99.2     99.8     99.0     99.8     99.8     99.8
Automatic Transmissions with Four or more Forward Speeds..     92.0     95.1     90.8     94.0     94.8     98.1
% Electric................................................      0.0    0.002      0.0    0.003      0.0     0.0
----------------------------------------------------------------------------------------------------------------
*Includes associated station wagons.

    The size/class breakdown shows an increased trend primarily toward 
two-seater, minicompact, mid-size passenger and large cars with the 
reduction of subcompact and compact passenger cars for the overall 
fleet. The size/class mix in the domestic fleet showed a decrease in 
compact and mid-size passenger cars and an increase in two-seater, 
minicompact, subcompact and large passenger cars. The size/class mix in 
the import fleet showed a decrease in subcompact, compact and large 
passenger cars and an increase in two-seater and mid-size passenger 
cars. The import share of the passenger car market declined in MY 1999, 
as more foreign-based manufacturers achieved 75 percent domestic 
content for their U.S. and Canadian-assembled passenger cars.
    The domestic fleet rose above its MY 1998 level in the share of 
turbocharged and supercharged engines. Diesel engines were only offered 
on certain Mercedes and Volkswagen models during MY 1999. Consequently, 
diesel engine shares decreased in MY 1999.
    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 
3,120 pounds. Table II-4 shows that the MY 1999 passenger car fleet has 
nearly equal interior volume and higher performance, but with more than 
42 percent better fuel economy, than the MY 1978 fleet. (See Figure II-
3.)

                                   Table II-4.--New Passenger Car Fleet Average Characteristics Model Years 1978-1999
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Fuel economy       Curb weight      Equivalent test     Interior space    Engine size (cu.  Horsepower/weight
              Model year                      (mpg)              (lbs.)         weight (lbs.)        (cu. ft.)             in.)           (hp/100 lb.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1978..................................               19.9               3349               3627                112                260               3.68
1979..................................               20.3               3180               3481                110                238               3.72
1980..................................               24.3               2867               3162                105                187               3.51
1981..................................               25.9               2883               3154                108                182               3.43

[[Page 42758]]

 
1982..................................               26.6               2808               3098                107                173               3.47
1983..................................               26.4               2908               3204                109                182               3.57
1984..................................               26.9               2878               3170                108                178               3.66
1985..................................               27.6               2867               3177                108                177               3.84
1986..................................               28.2               2821               3127                106                169               3.89
1987..................................               28.5               2805               3100                109                162               3.98
1988..................................               28.8               2831               3100                107                161               4.11
1989..................................               28.4               2879               3181                109                163               4.24
1990..................................               28.0               2908               3192                108                163               4.53
1991..................................               28.4               2934               3228                108                164               4.42
1992..................................               27.9               3007               3307                108                169               4.56
1993..................................               28.4               2971               3328                109                164               4.62
1994..................................               28.3               3011               3317                109                169               4.79
1995..................................               28.6               3047               3335                109                166               4.87
1996..................................               28.5               3047               3352                109                164               4.92
1997..................................               28.7               3071               3364                109                164               4.95
1998..................................               28.7               3075               3372                109                161               5.05
1999..................................               28.3               3116               3418                110                166               5.21
--------------------------------------------------------------------------------------------------------------------------------------------------------


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[GRAPHIC] [TIFF OMITTED] TN11JY00.023


[[Page 42760]]

C. Characteristics of the MY 1999 Light Truck Fleet

    The characteristics of the MY 1999 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. The light truck fleet 
is subdivided into two-wheel drive or four-wheel drive classifications.
    The MY 1999 average test weight of the total light truck fleet 
increased by 95 pounds over that for MY 1998. The average fuel economy 
of the fleet decreased by 0.2 mpg to 20.7 mpg. Diesel engine usage 
increased slightly in light trucks to 0.05 percent in MY 1999 from 0.02 
percent in MY 1998. The share of the MY 1999 two-wheel drive fleet 
decreased by 1.9 percent from the MY 1998 level of 57.4 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 1999, influenced by an 
increase in performance. Light truck production increased from 1.9 
million units in MY 1980 to 6.4 million units in MY 1999. Light trucks 
comprised 43 percent of the total light duty vehicle fleet production 
in MY 1999, nearly 2.5 times more than 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. (Also, see Table II-6.) 
Passenger car average fuel economy remained relatively constant for MYs 
1987-1999. The overall decline in fuel economy illustrates a larger 
decrease in car fuel economy compared to light truck fuel economy.

                      Table II-5.--Light Truck Fleet Characteristics for MYs 1998 and 1999
----------------------------------------------------------------------------------------------------------------
                                                     Total fleet         Two-wheel drive      Four-wheel drive
                Characteristics                -----------------------------------------------------------------
                                                   1998       1999       1998       1999       1998       1999
----------------------------------------------------------------------------------------------------------------
Fleet Average Fuel Economy, mpg...............      20.9       20.7       22.4       22.2       19.1       19.1
Fleet Average Equivalent Test Weight, lbs.....    4435       4530       4255       4356       4679       4747
Fleet Average Engine Displacement, cu. in.....     243        251        228        239        263        267
Fleet Average Horsepower/Weight ratio, HP/100        4.23       4.24       4.20       4.29       4.26       4.17
 lbs..........................................
% of Fleet....................................     100        100         57.4       55.5       42.6       44.5
% of Fleet from Foreign-based Manufacturers...      15.5       15.6       11.4       11.8       21.1       20.2
----------------------------------------------------------------------------------------------------------------
                                             Segmentation by Type, %
----------------------------------------------------------------------------------------------------------------
Passenger Van.................................      18.5       17.1       31.4       29.9        1.3        1.2
Cargo Van.....................................       3.3        3.5        5.6        6.2        0.2        0.2
Small Pickup..................................       7.3        3.2       12.8        5.8        0.0        0.0
Large Pickup:
    Two-Wheel Drive...........................      17.1       17.9       29.7       32.3        0.0        0.0
    Four-Wheel Drive..........................      13.3       13.7        0.0        0.0       31.3       30.9
Special Purpose:
    Two-Wheel Drive...........................      11.8       14.3       20.6       25.8        0.0        0.0
    Four-Wheel Drive..........................      28.7       30.2        0.0        0.0       67.3       67.8
Diesel Engines................................       0.02       0.05       0.01       0.08       0.04       0.03
Turbo/Supercharged Engines....................       0.25       0.52       0.01       0.08       0.56       1.1
Fuel Injection................................     100        100        100        100        100        100
Automatic Transmissions.......................      86.1       89.8       85.0       88.6       87.6       91.3
Automatic Transmissions with Lockup Clutches..      99.3       99.6       99.1       99.3      100        100
Automatic Transmissions with Four or More           95.1       98.1       92.2       97.5       94.6       98.9
 Forward Speeds...............................
% Electric....................................       0.01       0.01       0.02       0.02       0.00       0.00
----------------------------------------------------------------------------------------------------------------


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[[Page 42762]]

[GRAPHIC] [TIFF OMITTED] TN11JY00.025

    While passenger car and light truck fleet fuel economy decreased 
from MY 1998 to MY 1999 by 0.4 mpg and 0.2 mpg respectively, the total 
fleet fuel economy for MY 1999 decreased to 24.5 mpg from 24.6 mpg. The 
shift to light

[[Page 42763]]

trucks for general transportation has had a significant effect on fuel 
consumption.

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 1999, the domestic passenger car fleet 
average fuel economy was 28.2 mpg. The import passenger car fleet 
average fuel economy was 28.4 mpg. Compared with MY 1978, this reflects 
an increase of 9.5 mpg for domestic cars and 1.1 mpg for import cars.
    Since MY 1980, the average fuel economy for the total light truck 
fleet and the domestic light truck manufacturers has shown overall 
improvement, however, both have remained below the fuel economy level 
for the imported light truck fleet. The import light truck average fuel 
economy has decreased significantly since its highest level of 27.4 mpg 
for MY 1981 to 22.2 mpg for MY 1996, the last year the agency divided 
the light truck fleet into domestic and import.
    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: 1999 Activities

A. Light Truck CAFE Standards

    On April 7, 1999, NHTSA published a final rule establishing a 
combined standard of 20.7 mpg for light trucks for MY 2001. The 
Department of Transportation and Related Agencies Appropriations Act 
for Fiscal Year 1999, Pub. L. 105-66, precluded the agency from setting 
the MY 2001 standard at a level other than the level for MY 2000.

B. Enforcement

    49 U.S.C. 32912(b) imposes a civil penalty of $5.50 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 
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 
1999. In calendar year 1999, manufacturers paid civil penalties 
totaling $16,275,722 for failing to comply with the fuel economy 
standards of 27.5 mpg for passenger cars and 20.7 mpg for light trucks 
in MYs 1997 and 1998.

                          Table III-1.--CAFE Fines Collected During Calendar Year 1999
----------------------------------------------------------------------------------------------------------------
            Model year                             Manufacturer                     Amount fined      Date paid
----------------------------------------------------------------------------------------------------------------
1997.............................  Land Rover..................................                $68         01/99
                                   Volkswagen..................................            176,220         04/99
                                   Lotus.......................................             36,890         05/99
1998.............................  Fiat........................................            527,450         04/99
                                   Mercedes-Benz...............................          1,683,525         07/99
                                   BMW of North America........................         13,851,569         12/99
----------------------------------------------------------------------------------------------------------------

[FR Doc. 00-16922 Filed 7-5-00; 8:45 am]
BILLING CODE 4910-59-P