Car makers need diesel, bio-fuel-powered cars

Dublin, Ireland - A strategic research document suggests that European car makers will need to create a fleet in which over 40 percent of cars are diesel-powered and at least 10 percent powered by bio-fuels, if they are to meet new carbon dioxide emission targets.

The report, titled, A Strategic Assessment of the ACEA Agreement and its Implications on European OEMs was prepared by Frost and Sullivan researchers and first published in March 2007. The 118-page document is available from information broker Research and Markets for around €7000, depending on delivery options.

In the report summary, the researchers say, "European car manufacturers are under growing pressure to reduce CO₂ emissions from new passenger cars. In 1998, all European original equipment manufacturers (OEMs) voluntarily agreed to reduce fleet average CO₂ emissions to 140 g/km by 2008 and 120 g/km by 2012. However, with the 2008 target fast approaching and the EU Commission expecting the Association des Constructeurs Europens dAutomobiles (ACEA) to reduce the fleet average to 130 g/km by 2012."

The summary continues, "While some volume car makers, such as Fiat, PSA and Renault have fleet averages of 140 to 150 g/km of CO₂ and are well positioned to meet the ACEA target for 2008, premium car makers with a fleet average of 160-190 g/km of CO₂ are not likely to meet the said target. Thus, an integrated approach involving OEMs, investors, stakeholders, customers, local governments and fuel suppliers is important to reduce emissions below 140 g/km, particularly for premium car makers."

It continues, ""Over the next 3 to 5 years, as a medium-term strategy, OEMs are expected to introduce micro hybrids, mild hybrids, ethanol, bio fuels and liquefied petroleum gas (LPG) into their fleets to reduce CO₂ emissions," notes the analyst of this research service. "These technologies offer increased fuel efficiency and reduced emissions, which will help OEMs reduce their fleet average CO₂ emissions." In order to meet future CO₂ emission targets, an OEM will need to have 40 to 50 per cent of its fleet powered by diesel and 10 to 15 per cent of the fleet running on bio fuels or natural gas or on a hybrid powertrain.

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Summary of report on Research & Markets website