Ricardo Report Predicts Vastly Expanded U.S. Light Duty Diesel Market

VAN BUREN TWP., Mich., June 29 -- Published today, the 2005 Ricardo diesel report predicts a momentous rise in U.S. light duty diesel market penetration over the coming decade. Sales in the light duty vehicle segment (up to 8,500 pounds gross vehicle weight) are projected to grow from a mere 43,000 units in 2004, to exceed one million units annually by 2012, rising to 1.5 million by 2015.

This dramatic conclusion is just part of the annual review of selected international light duty diesel markets published by Ricardo, a global automotive technology provider that draws upon its unparalleled international expertise in automotive diesel technology and extensive knowledge of automotive markets.

In examining the U.S. market, the research team has incorporated an in- depth analysis of current market trends together with an assessment of future consumer tastes, legislative fuel quality and emissions standards, and the probable commercial implementation of new and emerging technologies.

While diesel already enjoys a market penetration of over 56 percent in the U.S. premium light truck sector (between 3/4 and 1 ton capacity), cost remains a major issue for passenger cars, light trucks and sport utility vehicles. Significant efforts are currently underway by Ricardo and others to reduce engine-out emissions, as well as in the development of more effective after- treatment devices.

With the implementation timing of practical and cost-effective solutions likely to be one of the principal drivers for further diesel penetration, Ricardo predicts that a rapid increase in diesel sales will follow as such devices become both readily available and affordable to the consumer from 2009 onwards.

Elsewhere, the global growth of light duty diesel sales continues to gain momentum, with 2004 posting the largest volume increase for a decade. The sales ratio of diesel to gasoline vehicles for the larger manufacturers continues to grow, led by Volkswagen which now reports over 60 percent of its car sales as diesels.

In Western Europe, diesel car sales in 2004 continued to flourish in all of the major national markets, with overall penetration reaching a record level of over 48 percent and with no immediate sign of a slow down. In the context of a marginally strengthening passenger car market in Western Europe compared with that of 2003, a 5.4 percent decrease in gasoline sales was more than offset by an 11.9 percent increase in diesel sales.

Now in its thirteenth year, the annual Ricardo diesel report "Diesel Passenger Car & Light Commercial Vehicle Markets in Western Europe" has become a valuable reference resource for automakers, tier 1 suppliers and others interested in the highly dynamic and rapidly developing market for diesel vehicles.

The publication is packed with information on trends in sales by country and by manufacturer, as well as production within the region. Detailed market analyses are provided for each of the major Western European nations, together with profiles of the diesel product offerings of each of the major automakers.

The report provides valuable insights into future trends for the diesel markets of Western Europe and for the 2005 issue, two additional supplements are available covering respectively the markets of Central and Eastern Europe, and the U.S. The 2005 Ricardo diesel report can be purchased either directly from Ricardo Information Services at +44 (0) 1273 794230 or online at http://www.ricardo.com/ricardostore .

With its North American headquarters in Van Buren Twp., Mich., Ricardo has been a world-leading vehicle system and powertrain technology provider for automotive manufacturers, heavy-duty manufacturers and tier one suppliers since 1915.

The company provides expertise ranging from designing and developing engines, transmissions and drivelines, to integrating vehicle systems and creating software solutions, to developing gasoline, diesel, hybrid and fuel cell technology.

Ricardo is committed to excellence and industry leadership in people, technology and knowledge. A public company based in the U.K., Ricardo plc posted sales of $274 million in fiscal year 2004 and is a part of the FTSE techMark 100 index -- a group of innovative technology companies listed on the London Stock Exchange.