Green Auto Makers: Honda Leads-Ford Improves-Daimler Chrysler Worst

WASHINGTON, Dec. 4, 2002 - The Union Of Concerned Scientists published this summary:

In the first quantitative sign that Ford Motor is making environmental progress under William Clay Ford Jr., the company is the only vehicle manufacturer to rise in the Union of Concerned Scientists’ biennial ranking of the environmental performance of car companies. Honda remains the cleanest automaker by a large margin, although its lead has slipped, while DaimlerChrysler continues as the biggest polluter.

“Bill Ford has touted his green thumb, but until now only his speeches have merited a thumbs up,” said Jason Mark, author of the new study and Director of the Clean Vehicles Program at UCS. “Ford deserves credit for going beyond federal requirements to clean up smog-forming emissions from its trucks.”

The new report - UCS’s second installment of the only comprehensive automaker ranking of environmental performance - analyzes the largest six automakers in the US market, which together account for nearly nine out of every 10 vehicles sold in this country. To rank the automakers, UCS analyzed the two main environmental problems related to vehicles - smog-forming pollution and carbon dioxide (CO2) emissions that contribute to global warming - using sales data and certification standards. Because profits are the goal for every automaker, the ranking does not punish an automaker for high sales volume, but rather rates the pollution performance of the average vehicle produced by each company.

Honda again heads the pack as the least polluting automaker, followed by Toyota, Nissan, Ford, General Motors, and DaimlerChrysler. Ford’s commitment to offer trucks with lower smog-forming emissions boosted its ranking above GM’s since the last ranking, even though Ford’s vehicles emit 5 percent more CO2 than GM’s vehicles. In model year 2000, Ford’s cleaner-truck commitment would have earned it a third place, but new tailpipe standards forced Nissan to clean up its trucks in model year 2001 and overtake Ford. In contrast, Ford has made no progress in addressing global warming.

“Ford is on track to meet its commitment to boost its SUV fuel economy by 25 percent from model year 2000 to 2005,” Mark said. “However, Ford’s SUV gains are swamped by fuel economy declines elsewhere in its vehicle lineup.”

Vehicles from the six largest automakers account for 93 percent of all smog-forming pollution and 92 percent of all CO2 emissions. Current environmental regulations permit trucks to pollute more than cars. As a result, the average 2001 truck emitted 2.4 times more smog-forming pollution and 1.4 times more CO2 than the average 2001 car. Companies whose sales are dominated by trucks are generally dirtier. However, both Nissan and Ford are ranked above GM, despite the fact they sell more trucks than cars. The analysis also includes a comparison of specific vehicle classes and models, which demonstrates important differences among automakers in key market segments. For example, Honda’s compact cars are on average 10 miles per gallon more efficient than those from DaimlerChrysler.

Other key findings from the report: Toyota is the only automaker to reduce its fleet average CO2 emissions from model year 2000 to 2001, despite a continued shift to trucks, especially large trucks. Honda’s lead in the rankings, while still large, has slipped as new tailpipe standards have forced competitors to catch up on smog-forming emissions. Nissan’s most popular cars and trucks are consistently among the least fuel-efficient vehicles in many size classes. DaimlerChrysler’s CO2 emissions increased more than any other automaker from model year 2000 to 2001, despite the fact that DaimlerChrysler was the only company to reduce its reliance on trucks. When Ford made its commitment to boost SUV fuel economy by 25 percent, GM vowed to retain its lead in overall truck fuel economy. GM now trails Ford by 0.1 mpg. The National Highway Traffic Safety Administration recently recommended boosting the fuel economy of SUVs and other light trucks by 1.5 mpg between 2005 and 2007. However, as the new UCS report confirms, the agency’s proposal is so small that most automakers are already on pace to exceed it.

“Environmental progress is attainable when companies make commitments to improve the pollution performance of their vehicles,” said Mark. “But when automakers don’t act voluntarily, or aggressively enough, policymakers need to step in. Our study proves that tougher smog standards worked. Now policymakers need push the automakers on fuel economy.”

As nearly all automakers have shown in specific models, ample technology exists to cost-effectively reduce smog emissions and global warming gases. New catalysts and better engine controls could help automakers meet 2009 smog standards years sooner. All trucks can and should be built to today’s tougher car tailpipe standards. And even though CO2 emissions from motor vehicles have climbed steadily over the last 10 years, off-the shelf technologies exist that could reduce global warming emissions by 40 percent within a decade.

"The Japanese automakers are green in more ways than one,” said Laura L. Huskins, a financial analyst at Trillium Asset Management. “Not only do they sell clean cars, they consistently make money. As foreign automakers continue to capture market share, they prove out a business model that suggests environmental protection and financial health can go hand in hand."