California Industry Poised to Provide World-Leading Technologies, Jobs for Cleaner, More Efficient Vehicles

PASADENA, Calif.--Sept. 16, 2004--

New CALSTART Industry Study Finds More Than 100 California Firms in High-Tech Transportation "Cluster" Capable of Making Technologies to Reduce Global Warming Pollution

A new report on California's transportation industry finds that the state is a leader in the core skills needed to design and produce technologies that can reduce global warming pollution from vehicles. Moreover, as requirements to reduce this pollution grow, the companies producing these technologies stand to substantially increase their California jobs and investments.

The report, "California's Clean Vehicle Industry," was released today by CALSTART, the Pasadena-based non-profit advanced transportation organization which performed the study.

The report takes a snapshot of companies currently involved in or capable of producing technologies that can reduce global warming pollution in vehicles. It outlines the potential size of the market for products that reduce such emissions, and then surveys a cross section of those companies to find what impact increased requirements to reduce the emissions in vehicles will have on their operations. The overwhelming response was that California high-tech companies have the needed skills to respond to such requirements, and projected that their jobs and investments would grow as a result.

"The study clearly shows that California's expertise in high technology can be used to prevent global warming. California has unique advantages in high-tech that can provide the products to improve the environment and grow the economy," said CALSTART's President and CEO John Boesel. "Climate-friendly cars would tap the core skills of the state in what could be a $20-billion domestic business, and can lead to more high-quality jobs in engineering, electronics and software design."

The key findings of the report are:

-- California is a leader in advanced technology and has core advantages in the clean vehicle technologies needed to reduce global warming pollution, including electronics and power electronics, advanced propulsion systems, alternative fuels, energy storage and light-weight materials;

-- California already has more than 100 advanced technology firms headquartered or with major operations in the state, together with over 20 key research and supporting organizations, that have the skills and technologies to be involved in or contribute to reducing vehicle tailpipe emissions;

-- This "cluster" of companies is poised to grow and expand as requirements increase for advanced technologies that can reduce global warming pollution, with an overwhelming majority of companies surveyed projecting growth both in jobs and investment in the state;

-- In a survey of these companies, more than 60 percent that anticipated job growth thought that growth would be large to very large.

-- Surveyed companies said if significant reductions in vehicle global warming pollution were required, they would increase employment by a range of 37-to-56 percent over current forecasts, and increase investments by 40-to-59 percent over current predictions.

-- When asked about possible requirements such as California's global warming reduction regulation, AB 1493, 74 percent of respondents also thought it would be positive for their businesses.

"It's important to see that California companies will not only make money helping to solve our environmental challenges, but can also be global suppliers of such technologies," noted Boesel. "This study shows that reducing global warming gases from cars can result in more exports of California technology, while creating more high-value jobs here."

The report was independently researched and produced by CALSTART and is available by contacting Matt Peak, principal investigator at mpeak@calstart.org, or Bill Van Amburg at bvanamburg@calstart.org, or by visiting the Web site at www.calstart.org and downloading a copy. Primary funding for the study was provided through a grant from the Energy Foundation, with additional funding assistance also provided by the Natural Resources Defense Council.

CALSTART is the California operating division of WestStart-CALSTART, North America's leading advanced transportation technologies industry catalyst organization. It is a fuel neutral, participant-supported organization of more than 115 companies and agencies, dedicated to expanding and supporting a high-tech transportation industry that cleans the air, creates jobs and improves energy efficiency. Visit www.weststart.org for more information.