Strategic Analysis of European Advanced Automotive Gasoline Engine Technologies - Frost & Sullivan Press Release
PRESS RELEASE Maximising Reliability and Minimising Cost, Complexity and Weight to Determine the Success of Advanced Gasoline Engine Technologies in Europe London, UK – 21 February, 2006 - The advanced gasoline engine-related technologies can help achieve varied targets such as meeting regulatory agency emissions goals, vehicle buyers’ desire for performance such as power and torque with reasonable noise, vibration, harshness as well as enhanced fuel economy and also provide high reliability. However, such advanced technologies would involve increased cost, complexity and weight. So in order to overcome these conflicting demands, automakers in Europe have to determine optimal technology to deploy these advanced gasoline engine technologies. The European Union (EU) is responsible for around 24 per cent of industrialised countries’ man-made emissions of greenhouse gases. Following the Kyoto Protocol, the European automotive industry-represented by the European Automobile Manufacturers Association (ACEA) - signed a voluntary agreement with the EU in 1998 to reduce CO2 emissions from passenger cars by 25 per cent by 2008. Apart from meeting such emission regulations, which are non-negotiable, automakers are also needed to tackle issues such as reducing fuel consumption; decreasing manufacturing costs; controlling warranty and maintenance costs; maximising reliability and durability; increasing horsepower and torque; and diminishing noise, vibration and harshness. Advanced engine technologies help manufacturers meet these targets. For instance, certain valvetrain technologies can reduce emissions and fuel consumption even while boosting performance. Meanwhile, turbochargers and superchargers can increase or maintain power output while decreasing fuel use through downsized engines. “Electronic engine management technologies control engine parameters for best emissions control, fuel consumption, and performance, while air/fuel systems optimise an engine’s ‘breathing’” says Frost & Sullivan (http://transportation.frost.com) Research Manager Mr. Veerender Kaul. “Gasoline-electric hybrid technologies can save fuel in urban driving cycles, making gasoline engine-powered vehicles more competitive than diesel-powered vehicles in terms of efficiency.” However, diesel engines for light vehicles have a more acceptable market in Europe. Reasons could be greater display of fuel economy of diesel engines versus gasoline engines, and the fact that tax policies keeps diesel price cheaper than gasoline in most European countries. Accordingly, around half of the light vehicles sold in Europe in 2005 ran on diesel fuel. The headstart that diesel engines have is limiting interest in hybrids. However, advanced technologies should help gasoline engines meet the challenge of diesel engines in Europe. At present, vehicle manufacturers face tradeoffs in their choices of technology, as they have several contradictory factors to consider. The aim is to minimise costs and maximise reliability, as well as satisfy the customer’s performance expectations. However, technologies that reduce emissions lead to increased fuel consumption and also add to the complexity and weight of engines, which could often harm performance. Therefore, vehicle makers are trying to evaluate the most effective and market-attractive technologies in terms of their benefit/cost trade-offs. “Till date, it has been cheaper for most automakers to increase sale of diesel engines than to offer more fuel-efficient gasoline engines,” notes Mr. Kaul. ”However, if diesel engines become more expensive due to emissions equipment, as diesel engines emit less carbon dioxide, and greenhouse gas, gasoline engines may become more competitive, especially in smaller vehicles, as they are less able to take the incremental costs of advanced diesels.” Gasoline engines accounted for over 53 per cent of European new passenger car sales in 2004, but Frost & Sullivan forecasts it to decline to 37.1 per cent by 2015. Despite the ability of diesels engines to lower CO2 emissions, advanced gasoline engine technologies have the advantage, as they are rated to be cleaner than diesel engines in terms of other undesired emissions, such as NOx and particulate matter. Euro V regulations that is likely to come into force by 2009, may cloud the outlook for diesels if stringent limits are imposed on particulate matter and NOx emissions. European automakers BMW and Mercedes-Benz have been at the forefront of implementing gasoline engine technologies in Europe. Japanese automakers – Honda, Toyota and Nissan to a lesser extent – have also been aggressive in incorporating advanced technologies in production engines. With some exceptions, the Chrysler Group, Ford Motor Co. and General Motors Corp. have largely been slow in adopting the most advanced engine technologies. Other, lower-volume vehicle makers have generally positioned themselves as followers rather than leaders. If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Strategic Analysis of European Advanced Automotive Gasoline Engine Technologies, then send an e-mail to Magdalena Oberland, Corporate Communications, at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, fax number, e-mail address and source of information. Upon receipt of the above information, an overview will be sent to you through e-mail. Background Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. 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Media Contacts: Europe: Magdalena Oberland Corporate Communications P: +44 (0) 20 7915 7876 E: magdalena.oberland@frost.com Americas: Tolu Babalola Corporate Communications P: 210.477.8427 E: tolu.babalola@frost.com Asia Pacific Donna Jeremiah Corporate Communications P: +603 6304 5832 E: djeremiah@frost.com India: Surbhi Dedhia Corporate Communications P: +91 22 2832 4705 Ext: 131 E: sdedhia@frost.com Australia: Sharmin Jassal Corporate Communications P: + 61 2 8247 8900 E: sjassal@frost.com List of keywords in this press release: Advanced Automotive Gasoline Engine Technologies, Europe, Japan, North America, European Union, EU, CO2 emission, greenhouse gas, European Automobile Manufacturers Association, ACEA, fuel, manufacturing costs, warranty, maintenance costs, horsepower, torque, noise, vibration, tax policy, BMW, Mercedes-Benz, Honda, Toyota, Nissan, Chrysler Group, Ford Motor Co., General Motors Corp., Euro V regulations, NOx, particulate matter research, information, market, trends, technology, service, forecast