2. The Global Automotive Industry Climate Change and CO2 Fuel Quality and Emissions
Good morning, Ladies and Gentlemen and thank you for coming.
Due to time constraints I will keep this very short, but I wanted to say a few words on the issues of climate change and of fuel quality

3. Transport CO2 emissions compared to TOTAL man made emissions
12.2%
18.2%
Fuel combustion
for other
uses
Manufacturing
& Construction
15.9%
Electricity Generation
& Heating
43.9%
Road Transport
(Cars, Trucks & Buses)
Road transport share of global CO2 emissions:
LESS THAN 16%
COST EFFICIENCY IS CRUCIAL !
Globally, road transport is responsible for up to 16% of man made CO2 emissions. Often cars and trucks are portrayed as the main source of CO2, forgetting about other contributors. This can be misleading.
This does not mean that the auto industry minimises its role. What it does mean is that, in view of these relatively low figures, we cannot solve the problem alone and that the most cost efficient approach must be used to meet the challenge of Global Warming.
When it comes to road transport, everybody has a role to play, from the vehicle manufacturer up to the final consumer.

4. CO2 emissions - EU-15 Sales weighted average – new passenger cars
-12.4 % since 1995
8 l/100km
190
7.2 l/100km
180
170
6.7 l/100km
grammes/km
160
Petrol
150
Diesel
5.8 l/100km
140
All fuels
130
Ladies and Gentlemen, as an example, the average fuel consumption of cars sold in Europe has decreased by more than 12% in less than 10 years. At the same time, vehicle weight increased by more than 16% due, among other things, to increased safety and other legal requirements.
Today's cars are also cleaner than ever and, with the replacement of older vehicles, air quality in many cities is improving. However, reduction of pollution may also lead to an increase in fuel consumption and therefore CO2!
This means we face a double challenge - a first engineering challenge to compensate for these contradictions, and a second one to actually reduce fuel consumption.
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Source: EU Commission communication – SEC(2006)1078

5. Research and Development
85 billion €/year in R&D
> cars/year in EU with <120 g/km CO2
Development of sophisticated technologies
New propulsion technologies / alternative fuels
Affordability
Time to bring to the market
Time to replace existing fleets
Vehicle manufacturers are world leaders in Research and Development and spend about 85 billion € per year on R&D.
Today, in the European Union alone, already more than a million vehicles emitting less than 120 g/km CO2 are sold every year, and the trend is accelerating.
Billions of Euros are invested every year to improve engine efficiency and to develop new technologies, including Hybrids or alternative fuel vehicles, such as natural gas, biofuels, or hydrogen.
But there is almost certainly not one, single technology that is THE global answer.
All these technologies of course entail additional costs and are therefore a big challenge to maintain affordability.
Whatever the technology, it takes considerable time to develop, refine and bring it to market and then again, a period of several years before all the existing fleet is replaced by new, more efficient vehicles.

6. The Integrated Approach to reduce Road Transport CO2
Vehicle technology and its penetration
Fuel infrastructure
Improved traffic management
Final consumer – ECO driving
Government policies:
Clear Coherent
Predictable Stable
Manufacturers want to be part of the solution.
But manufacturers alone cannot give all the answers.
The environment needs an intelligent, coherent and pragmatic integrated approach. In this respect, I would like to cite Japan as an example.
To make such an approach happen, Ladies and Gentlemen, governments have a vital steering role to play through their policies, including fiscal instruments. Because of the many challenges involved, we need government policies that are clear, internationally coherent, predictable and stable.

7. Fuel Quality Vehicle and fuel: one complete integrated system
Clean vehicles need clean fuels
UN ECE activities starting to define link emissions/vehicle/fuel
Strong support by auto industry
Ladies and Gentlemen,
Another very important issue is the recognition that vehicles and the fuel they use must be considered together, as a single, integrated system.
Even the cleanest engine, running on poor quality fuel, will not reach its potential. It may even be damaged and produce more pollution.
In the United Nations, activities have recently started to define, in a first step, the relationship between the allowed level of pollutant emissions and the corresponding fuel properties.
This could then provide essential guidance to governments, in developing their environmental policies.
The auto industry strongly supports these efforts and hopes that they will very soon lead to an improvement in fuel quality at the pump in many countries.
Ladies and Gentlemen, thank you very much for your attention.

8. Reducing CO2 emissions The situation in Europe
Xavier Fels
President CCFA (French Automotive Manufacturers Association) Vice-President OICA
Geneva Motor Show 5 March 2008

9. The “engine” of Europe
18.6 million vehicles produced per year, 1/3 of global production
2.3 million direct jobs, indirect employment for another 10 million families
€ 20 billion in R&D spending, largest private investor
€ 41.6 billion of net trade contribution
€ 360 billion of tax revenues

10. The automotive industry is committed
Automotive industry is strongly involved and committed
13% reduction CO2 emissions through vehicle performance only ( )
Car industry is building on significant technological investments and progress to date
All manufacturers are making considerable efforts:
Need for global, consistent and cost-effective action.
Engine and transmission Light weight materials
Improved aerodynamics Alternative fuel technologies
Friction reduction Hybrid, plug-in
… and many more

11. EU Commission only focus on car technology
December 19, : European Commission’s legislative proposal on CO2 reduction from cars :
120g/km in 2012:
130g/km through technologies (e.g. engine)
5g/km through bio fuels
5g/km through complementary vehicle technology measures (Gear shift indicator, Energy-efficient air-conditioning, Low rolling resistance tyres, Tyre pressure monitoring systems,…)
Narrow focus only on new car technology instead of an integrated approach involving all relevant stakeholders
Contrary to holistic approach adopted in Commission’s Energy Efficiency Action Plan
Contrary to better regulation principles

12. Reducing CO2 emissions – An integrated approach
Delivering majority of new car CO2 reductions
Influencing demand in a harmonised way
Sustainable production
Reducing congestion

13. Unrealistic lead time (1)
2012 for reaching 130g/km for new car fleet is unrealistic:
Typical product cycle for a car is ~6-7 years; development phase is ~5 years from concept definition until start of production
Of new cars sold in 2012…
Nearly 2/3 are already in execution or production phase
The remaining 1/3 are already in concept phase 

14. Unrealistic lead time (2)

15. The European auto industry needs:
Engagement of the consumers through a CO2 oriented labelling and tax policy
Fair and cost-effective rules it can comply with, in particular:
Level of compensation payments that should be no higher than for other sectors (the proposed level of penalty is equivalent to €475 per ton while the current CO2 price on the market is €5 per ton !)
Better reward and encouragement for “eco innovations” such as:
Energy-saving car lights, tools to personalise engine and transmission management, tailored on-board computers and navigation systems…

16.  The European auto industry needs to maintain diversity and affordability of cars to customers.
Thank
you

17. How the United States Is Meeting the CO2 Challenge
March 5, 2008
PRESENTATION BY Dave McCurdy President & CEO Alliance of Automobile Manufacturers 17

18. Higher MPG, Lower CO2
The historic 2007 U.S. Energy Bill will produce dramatic results by 2020:
Raises mileage standards to 35 MPG, a 40% increase;
Reduces carbon dioxide (CO2) from autos by 30%;
Avoids 206 million metric tons of greenhouse gases annually;
Lowers oil consumption by 1.1 million barrels a day;
Saves 18 billion gallons of gasoline per year; and
Requires 36 billion gallons of renewable fuels annually. 18 18 18

19. Automakers Represent the First Industry to Make Dramatic CO2 Reductions
America needs a more CO2-efficient society, and a new fleet of CO2-efficient autos will be dominating the marketplace.d produce less CO2.
By reducing CO2 by 30%, automakers will lead all industries in setting a clear path to meeting the recent United Nations Bali Climate Change Summit’s goal of a 50% reduction in CO2 emissions by 2050. 19 19 19

20. A Multi-Sector Approach to Climate Change
EFFECTIVE POLICY NEEDS TO:
Foster more alternative fuel choices, especially more low-carbon, renewable fuels;
Implement an aggressive program to enhance America’s fuels infrastructure, so our advanced technology autos have the fuels needed to power them;
Empower the research and development community to move us closer to technology breakthroughs like batteries for plug-in hybrids and fuel cells;
Encourage the U.S. investment community to stimulate economic investments in our future fuels and technologies;
Involve all levels of government.
Consumers
Policy should encourage consumers to conserve fuel and to consider purchasing one of the many fuel-efficient autos on sale today. 20 20

21. A Multi-Sector Approach to Climate Change
UTILITIES & MANUFACTURING
CONSUMERS
An effective climate change policy must be built upon a multi-sector approach that involves all stakeholders.
FUEL PROVIDERS
AIRPLANES
LOW-CARBON FUELS
AUTOS
BOATS
TRAINS 21 21

22. Japan’s Approach to CO2 Reduction
Yoshiyasu Nao
President
Japan Automobile Manufacturers Association, Inc.
5 March 2008

23. CO2 emissions in Japan’s transport sector are decreasing.
In line with the Kyoto Protocol, the Japanese government formulated a target achievement plan which established CO2 reduction targets for all major sectors including the transport sector.
Since peaking in 2001, CO2 emissions in Japan’s transport sector have been on a downward trend, dropping to 254 million tons in Through greater automotive fuel efficiency, improved traffic flow, the wider use of alternative-energy vehicles and other measures including the adoption of eco-driving practices, the transport sector’s target for 2010 is achievable.
Greater
fuel
efficiency
21.0
CO2 Emission Volumes in Japan’s Transport Sector
5.6
Other:
An estimated 54.9 million tons of CO2 will not be emitted (through greater fuel efficiency: 21 million tons; through improved traffic flow: 28.3 million tons; through wider use of alternative-energy vehicles and other measures : 5.6 million tons) in order to meet Japan’s Kyoto Protocol-related transport-sector target.
Improved
traffic
flow:
28.3
million
tons
2010
Source: Ministry of Environment data
Source: JAMA

24. Average fuel efficiency performance
Achieving Greater Fuel Efficiency
★The average fuel efficiency of new cars sold in Japan is increasing every year, making a significant contribution to CO2 reduction.
★Japan’s 2010 fuel efficiency standard for passenger cars has already been met (and in fact exceeded), as a result of intensive efforts and considerable financial investment by Japan’s automakers.
★Reducing CO2 emissions in the transport sector by 21 million tons through greater fuel efficiency, as per Japan’s Kyoto Protocol Target Achievement Plan, is achievable.
★JAMA member companies are now working hard towards compliance with Japan’s very stringent 2015 fuel efficiency standard for passenger cars.
Trend in the Average Fuel-Efficiency Performance of Gasoline-Powered Passenger Cars
2015 fuel efficiency target
Average fuel efficiency for new cars sold in Japan reached 16.0 km/l in 2006, exceeding the 2010 target of 15.1 km/l.
Average fuel efficiency performance
(new vehicles)
Despite the achievements in fuel efficiency performance to date, meeting the 2015 target remains a major challenge.

25. Improving Traffic Flow
Improved traffic flow contributes to CO2 reduction by enabling increased vehicle speed, which in turn contributes to greater automotive fuel efficiency.
CO2 emissions
Improved traffic flow is achieved through:
　○Improvements to road infrastructure
　○Greater efficiency in goods distribution
　○Wider application of ITS
　○Use of advanced signal-control systems　
Etc.
CO2 emission levels
Source: Japan Automobile Research Institute data

26. Supply of Alternative Fuels
Adopting an Integrated Sectoral Approach
to CO2 Reduction
Improving automotive fuel efficiency and traffic flow is not enough to reduce CO2 emissions in the road transport sector. An integrated approach is required, which includes the development and supply of alternative fuels and a more efficient use of vehicles. The adoption of these measures will ultimately make CO2 reduction efforts compatible with economic growth.
All stakeholders concerned should identify their individual responsibilities and make their best efforts to carry them out, in a framework of mutual cooperation.
Government/
Fuel suppliers/ Automakers
[biofuels, etc.]
Automakers/
Government
[fuel efficiency standards]
Supply of Alternative Fuels
Greater
Fuel Efficiency
Vehicle users
(with the cooperation of fleet operators & government promotion)
[eco-driving, vehicle sharing, more efficient goods distribution, shift to rail transport, etc.]
Government
[road infrastructure upgrades, ITS, enforce- ment of parking bans, etc.]
More Efficient Use of
Motor Vehicles
Improved
Traffic Flow

27. Summary
★CO2 reductions in the transport sector can be achieved through
comprehensive measures including greater automotive fuel efficiency (through improved vehicle technologies), improved traffic flow (through road infrastructure improvements including better traffic management), and the more efficient use of vehicles.
★Under Japan’s Kyoto Protocol Target Achievement Plan, an integrated, sectoral approach to reducing road transport CO2 emissions is steadily proving successful.
★The sectoral approach can be adopted globally on a country-by-country basis. JAMA hopes that many countries will decide to adopt this approach and take action accordingly, so that CO2 reductions can be achieved worldwide.

28. Thank you!
Read our annual environment report @

29. Overview of Current Fuel consumption targets
in EU, US and Japan
Corporate Average Fuel Economy (Uniform Target)
Present target: 27,5 mpg
= ~ 204 gCO2/km (US Cycle)
Penalties: 5,5 $ per 0,1 mpg
= ~ 5 € per gCO2/km x vol. cars
Future Target: 35 mpg by 2020
= ~ 160 gCO2/km (US Cycle)
Parametric approach:
Weight (segmentation)
Future Target: km/l by 2015
= 138 g CO2/km (Japan Cycle)
Penalties: ~ €/manufacturer
Integrated Approach: Approximately 50% CO2 reduction by infrastructure
Parametric approach: Weight (segmentation)
Target: 120 gCO2/km by (130 g through Vehicle Technology g through Complementary measures & biofuels)
Penalties: / 2013 / 2014 / 2015
20 / / / € / g CO2/km x vol. cars
Integrated Approach : 5 gr CO2 reduction by biofuels –
NO reduction by Infrastructure
Commission proposal - under discussion