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US electric car industry poised to overtake Europe

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Published 17 September 2012, updated 19 September 2012

SPECIAL REPORT / A new US fuel efficiency standard finalised by the Obama administration last month will jolt America’s nascent electric car industry to life, but could leave European auto manufacturers racing to catch up, analysts and industry sources say.

From 2025, American cars and light trucks will have to achieve a standard of at least 54.5 miles per gallon (mpg) under the new regulation, higher than can be achieved by any existing fuel-powered cars, according to the US Department of Energy.

The only cars on the US market which exceed the 54.5 mpg target (measured as mpg equivalent) are at least partly powered by plug-in electricity, the US Environmental Protection Agency says.

This could spell trouble for Europe's electric car industry as a ‘thought experiment’ by the International Council on Clean Transportation (ICCT) has found that the US target surpasses its EU equivalent by some distance.

A 54.5mpg standard would be roughly equal to a 70 grams of CO2 per km (g/km) measurement, the ICCT believes, with air conditioning credits exemptions potentially taking the figure up to a maximum of 83 g/km.

The EU has only set a fuel savings target of 95 g/km for 2020, with the promise of a communication about consultations on a future 2025 targets later this year.

Matthias Abend, a clean energy executive for the German carmaker BMW, told EurActiv it was “absolutely true” that European auto exports would not be able to compete with the US, if the fuel economy gap remained so wide.

Hard target

“But 70 grams is a very hard target,” he added. “E-mobility will play an important role in this and in the electrifying of the drive frame but reaching those targets will depend on a mixture of the whole fleet – e-mobility, hybrid cars and a downsizing of the current combustion targets.”

The European Automobile Manufacturers Association (ACEA) says that meeting a target of 95 g/km will require some electric vehicles in an automobile fleet, while there will be few alternatives to full electrification for targets beyond 65 g/km.

“The US companies have understood that if they want to sell their cars domestically and globally they have to pay attention to fuel economy and they have apparently accelerated the pace at which they’re developing and deploying those technologies,” Peter Mock, the author of the ICCT paper, told EurActiv.

“It is more and more a competition issue,” he added. “Most people still think that the US has very bad fuel economy and high emissions and the Europeans are much better - and that used to be the case - but it is changing.”

Mock is a former environmental protection officer for the Daimler car company.

The new US rule – which could yet be junked if Republican Mitt Romney wins this year’s presidential election – requires companies to make 5% year-on-year fuel savings, and has been broadly welcomed by the US auto industry.

As competition hots up in the global car market, the US also has put in place a fuel standard of 35 mpg for 2016. 

The EU's proposal for a 95 g/km standard in 2020 includes a commitment to conduct an impact assessment and, if appropriate, set new targets for 2025 and 2030 by the end of December 2014.

Next steps: 
  • By end of 2012: DG Move to publish clean transport communication
  • 2013: Review of 2020 target expected to wrap up
  • 31 Dec. 2014: EU expected to complete review of targets for 2020 and 2025
  • 1 Jan. 2015: 130 grams of CO2 per km target to be enforced across Europe
  • 2016: US to introduce 35 mpg standard for all new passenger cars
  • 2020: 95 grams of CO2 per km target expected to enter force across Europe
  • 2025: European Commission could impose another milestone on the road to decarbonsiation by 2050
  • 2025: US to introduce 54.5 mpg standard for all new passenger cars
  • 2030: European Commission could impose another milestone on the road to decarbonsiation by 2050
Arthur Neslen

COMMENTS

  • No wonder that "The new US rule... has been broadly welcomed by the US auto industry." since all these projections are based for small vehicles and light trucks.

    This is not the specialty of American car makers which are heavy producers of SUVs and trucks...

    So the pressure is put on foreign manufacturers and this will not help the Americans to transform their industries...

    Each country does the same: France is aiming to favor small cars (a national specialty) and German footprint rule is so biased that some people calculated that a Panzer would not be charged with a surplus fuel tax!

    By :
    Rouget
    - Posted on :
    17/09/2012
  • The US target announced by President Obama in 2011 is an average 54.5 miles per US gallon (mpg) for cars and light-duty trucks by Model Year 2025. This is the same as 23.2 km per litre of petrol, which means carbon dioxide emissions of 100g per km.

    By :
    Ben Carlin
    - Posted on :
    18/09/2012
  • It is unfortunate that the only *current* cars available in the US that achieve 54MPG are plug-ins. It gives a false sense that high fuel economy is not possible otherwise. I drive a 2000 Honda Insight, a self-contained hybrid that never plugs in. I bought it new in 2001, and I have averaged 63.9 MPG for over 154,000 miles of driving. I have not replaced the hybrid battery - it still charges and works fine. Also, I live in New England, and have variable temperatures and road conditions to contend with.

    My Insight is only a two-passenger vehicle, but if technology from 1999 can achieve 63 MPG, I am confident that 25 years of technical developments can yield a 4-passenger car that does the same.

    By :
    Richard Legault
    - Posted on :
    18/09/2012
  • "My Insight is only a two-passenger vehicle, but if technology from 1999 can achieve 63 MPG, I am confident that 25 years of technical developments can yield a 4-passenger car that does the same."

    The laws of physics are the same as they were in 1999. The only significant technological improvement since then is Li replacing NiMH for batteries. The Li battery is lighter, but for the tiny battery packs used in non-plug hybrids the weight savings is too small to compensate for doubling the payload to four passengers. It will take plug-in cars to improve on the first generation Insight.

    By :
    Warren
    - Posted on :
    18/09/2012
  • Hi

    Important is batteries age. We have to come with a solution for capacity and life of battery.

    K H Malik
    Oakcray Group
    Jade Energy

    By :
    Khalid H Malik
    - Posted on :
    19/09/2012
Background: 

Passenger cars alone are responsible for around 12% of total EU emissions of carbon dioxide (CO2), the main greenhouse gas.

In 2007, the EU proposed legislation setting emission performance standards for new cars, which was adopted in 2009 by the European Parliament and the EU Council of Ministers. Today's EU targets ensure that average emissions from new passenger cars do not exceed 130 grams of CO2 per km (g/km) by 2015.

The much-anticipated White Paper on Transport, presented by the Commission in February 2011, flagged measures to raise the €1.8 trillion which the EU says is needed for infrastructure investment in the next 20 years.

Proposals published earlier this year have set a further targets of 95g for new passenger cars by 2020, and 147 g/km for vans. By the end of 2014, new targets could be announced for 2025 and 2030

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