CAR Management Briefing SeminarsFuel Economy and Greenhouse Gas Emissions:
Where does Policy go now? And, will the Market Follow?
Suppliers’ Perspective
Ann Wilson
MEMA
Senior Vice President, Government Affairs
August 1, 2017
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Original Equipment
Manufacturers Association
Automotive
Aftermarket Suppliers
Association
Heavy Duty Manufacturers
Association
Motor & Equipment
Remanufacturers
Association
MEMA Key Points on CAFE & GHG Standards
Suppliers Develop Innovative Technology Solutions to Help OEMs Meet the Standards
Suppliers Need Regulatory Certainty under the National Program to Preserve Long-Term Investments and Planning
Suppliers Support Further Program Flexibilities, Including More Opportunities for Off-Cycle Technologies to Be Recognized
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OEMs & Choice –Variety of Technology Strategies is Key
• Suppliers develop and produce a variety of technology strategies for OEMs that improve vehicle performance, fuel efficiency and emissions
• Extensive R&D; test and validate technologies on a range of OEM applications and scenarios to ensure compatibility
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The Off-Cycle Program is Important to Industry
“Suppliers have a major role in providing innovative technologies allowing OEMs to meet their targets, many of which are off-cycle
improvements. Therefore, suppliers have a vested interest in making sure these technologies are easily deployed and utilized by OEMs.”
“The off-cycle program is in a unique position to incentivize technologies that may not otherwise be developed.”
“[Off-cycle technology] credits represent real world GHG reductions and fuel savings, and can be used to encourage early action that benefits
both the environment and customers.”
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Why is the Off-Cycle Credit Program Important to Suppliers?
•Real-World Emissions-Reductions• Incentivizes OEM Adoption of
Technologies•Preserves Long-term Supplier
Investments
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Recommendations for the Current Off-Cycle Program
Expand Pre-Defined Credit Menu
Allow Supplier Role in Off-Cycle Process
Improve Off-Cycle Petition Process
Remove Credit Caps
MEMA:
“The improvements needed to meet the standards will require the utilization of a variety of technologies, many of which are off-cycle improvements.”
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Off-Cycle Technology Program – Current State3 Current Pathways
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• 95% of off-cycle credits granted (in 2015)
• Significantly less risk and process to obtain menu credit
• Has not been expanded, despite technology advances
Pre-Defined Technology Credit Menu:
• Not yet used5-Cycle Test Method:
• Suppliers excluded from the application process
• Onerous data requirements and long decision processAlternative Petition
Process:
MEMA SeeksSupplier Role in Off-Cycle Process
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Possibilities:• A supplier could petition for their
technologies to be eligible for a “provisional” credit
• OEM could choose technologies from this “provisional credit menu”
• Reduces risk and need for multiple OEM applications for same technologies
Flexibilities Allow U.S. Vehicle Industry To Be Global Leaders by
Advancing Vehicle
Fuel Efficiency & Emissions
Incentivizing
InvestingProviding Certainty
Innovating
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