00-16922. Automotive Fuel Economy Program; Report to Congress

The attached document, 24th Annual Report to Congress on the Automotive Fuel Economy Program, was prepared pursuant to 49 U.S.C. 32916 et seq. which requires that “the Secretary shall transmit to each House of Congress, and publish in the Federal Register, a review of the average fuel economy standards under this part.”

The 24th Annual Report to Congress on the Automotive Fuel Economy Program summarizes the fuel economy performance of the vehicle fleet and the activities of the National Highway Traffic Safety Administration (NHTSA) during 1999. Included in this report is a section summarizing rulemaking activities during 1999. This report is available on the Internet at: http://www.nhtsa.dot.gov/​cars/​problems/​studies/​fuelecon/​index.html. To obtain paper copies of this document, you may contact NHTSA's Publications Ordering and Distribution Services on [phone].

Issued on: June 28, 2000.

Stephen R. Kratzke,

Acting Associate Administrator for Safety Performance Standards.

Automotive Fuel Economy Program; Twenty-Fourth Annual Report to Congress, Calendar Year 1999

Table of Contents

Section I: Introduction

Section II: Vehicle Fuel Economy Performance and Characterisitics

A. Fuel Economy Performance by Manufacturer

B. Characteristics of the MY 1999 Passenger Car Fleet

C. Characteristics of the MY 1999 Light Truck Fleet

D. Passenger Car and Light Truck Fleet Economy Averages

E. Domestic and Import Fleet Fuel Economy Averages

Section III: 1999 Activities

A. Light Truck CAFE Standards

B. Enforcement

Section I: Introduction

The Twenty-fourth Annual Report to Congress on the Automotive Fuel Economy Program summarizes the fuel economy performance of the vehicle fleet and the activities of the National Highway Traffic Safety Administration (NHTSA) during 1999, in accordance with 49 U.S.C. 32916 et seq., which requires the submission of a report each year. Included in this report is a section summarizing rulemaking activities during 1999.

The Secretary of Transportation is required to administer a program for regulating the fuel economy of new passenger cars and light trucks in the United States market. The authority to administer the program was delegated by the Secretary to the Administrator of NHTSA, 49 CFR 1.50(f).

NHTSA's responsibilities in the fuel economy area include:

(1) Establishing and amending average fuel economy standards for manufacturers of passenger cars and light trucks, as necessary;

(2) Promulgating regulations concerning procedures, definitions, and reports necessary to support the fuel economy standards;

(3) Considering petitions for exemption from established fuel economy standards by low volume manufacturers (those producing fewer than 10,000 passenger cars annually worldwide) and establishing alternative standards for them;

(4) Preparing reports to Congress annually on the fuel economy program;

(5) Enforcing fuel economy standards and regulations; and

(6) Responding to petitions concerning domestic production by foreign manufacturers, and other matters.

Passenger car fuel economy standards were established by Congress for Model Year (MY) 1985 and thereafter at a level of 27.5 miles per gallon (mpg). NHTSA is authorized to amend the standard above or below that level. The agency has established light truck standards each year, but Congress has mandated through the DOT Appropriations Acts for fiscal years 1996 through 2000, no increase from the MY 1996 value of 20.7 mpg for MYs 1998 through 2002. All current standards are listed in Table I-1.

Table I- 1.—Fuel Economy Standards for Passenger Cars and Light Trucks Model Years 1978 Through 2001

[In mpg]

Model year	Passenger cars	Light Trucks (1)
		Two-wheel drive	Four-wheel drive	Combined (2) (3)
1978	(4)18.0
1979	(4)19.0	17.2	15.8
1980	(4) 20.0	16.0	14.0	(5)
1981	22.0	(6)16.7	15.0	(5)
1982	24.0	18.0	16.0	17.5
1983	26.0	19.5	17.5	19.0
1984	27.0	20.3	18.5	20.0
1985	(4) 27.5	(7)19.7	(7)18.9	(7)19.5
1986	(8) 26.0	20.5	19.5	20.0
1987	(9) 26.0	21.0	19.5	20.5
1988	(9) 26.0	21.0	19.5	20.5
1989	(\10\) 26.5	21.5	19.0	20.5
1990	(4) 27.5	20.5	19.0	20.0
1991	(4) 27.5	20.7	19.1	20.2
1992	(4) 27.5			20.2
1993	(4) 27.5			20.4
1994	(4) 27.5			20.5
1995	(4) 27.5			20.6
1996	(4) 27.5			20.7
1997	(4) 27.5			20.7
1998	(4) 27.5			20.7
1999	(4) 27.5			20.7
2000	(4) 27.5			20.7
2001	(4) 27.5			20.7
1 Standards for MY 1979 light trucks were established for vehicles with a gross vehicle weight rating (GVWR) of 6,000 pounds or less. Standards for MY 1980 and beyond are for light trucks with a GVWR of 8,500 pounds or less.
2 For MY 1979, light truck manufacturers could comply separately with standards for four-wheel drive, general utility vehicles and all other light trucks, or combine their trucks into a single fleet and comply with the standard of 17.2 mpg.
3 For MYs 1982-1991, manufacturers could comply with the two-wheel and four-wheel drive standards or could combine all light trucks and comply with the combined standard.
4 Established by Congress in Title V of the Motor Vehicle Information and Cost Savings Act.
5 A manufacturer whose light truck fleet was powered exclusively by basic engines which were not also used in passenger cars could meet standards of 14 mpg and 14.5 mpg in MYs 1980 and 1981, respectively.
6 Revised in June 1979 from 18.0 mpg.
7 Revised in October 1984 from 21.6 mpg for two-wheel drive, 19.0 mpg for four-wheel drive, and 21.0 mpg for combined.
8 Revised in October 1985 from 27.5 mpg.
9 Revised in October 1986 from 27.5 mpg.
10 Revised in September 1988 from 27.5 mpg.

Section II: Vehicle Fuel Economy Performance and Characteristics

A. Fuel Economy Performance by Manufacturer

The fuel economy achievements for domestic and foreign-based manufacturers in MY 1999 were updated to include final EPA calculations, where available, since the publication of the Twenty-third Annual Report to the Congress. These fuel economy achievements and current projected data for MY 1999 are listed in Tables II-1 and II-2.

Overall fleet fuel economy for passenger cars was 28.3 mpg in MY 1999, a decrease of 0.4 mpg from the MY 1998 level. For MY 1999, CAFE values increased above MY 1998 levels for six of 17 passenger car manufacturers' fleets. (See Table II-1.) These six companies accounted for more than 12 percent of the total MY 1999 production. Manufacturers continued to introduce new technologies and more fuel-efficient models, and some larger, less fuel-efficient models. For MY 1999, the overall domestic manufacturers' fleet average fuel economy was 28.2 mpg. For MY 1999, Honda and Toyota domestic passenger car CAFE values rose 4.9 mpg and 4.7 mpg from their 1998 levels, while Ford/Mazda and General Motors fell 0.4 mpg and 0.2 mpg, respectively, from their MY 1998 levels. Nissan remained at its MY 1998 level of 29.9 mpg. Overall, the domestic manufacturers' combined CAFE increased 0.1 mpg above the MY 1998 level.

Table II-1.—Passenger Car Fuel Economy Performance by Manufacturer* Model Years 1998 and 1999

Manufacturer	Model year CAFE (mpg)
	1998	1999
Domestic:
Chrysler	28.7
DaimlerChrysler		27.5
Ford/Mazda	27.6	27.2
General Motors	27.8	27.6
Honda	29.5	34.4
Mitsubishi		28.8
Nissan	29.9	29.9
Toyota	28.6	33.3
Sales weighted average (domestic)	28.1	28.2
Import:
BMW	25.4	25.4
Chrysler	25.8
DaimlerChrysler		26.3
Fiat	13.5	13.6
Ford/Mazda	28.9	30.1
General Motors	28.9	27.9
Honda	34.6	29.4
Hyundai	31.5	31.4
Kia	30.9	31.2
Mercedes-Benz	27.2
Mitsubishi	29.7	29.6
Nissan	30.7	29.5
Porsche	24.5	24.2
Subaru	27.6	27.5
Suzuki	35.9	35.4
Toyota	30.7	28.0
Volvo	25.6	26.2
Volkswagen	28.7	28.2
Sales weighted average (import)	30.0	28.4
Total fleet average	28.7	28.3
Fuel economy standards	27.5	27.5

Table II-2.—Light Truck Fuel Economy Performance by Manufacturer Model Years 1998 and 1999

Manufacturer	Model year CAFE (mpg) combined
	1998	1999
Chrysler	20.5
DaimlerChrysler		20.7
Ford/Mazda	20.1	20.4
General Motors	21.1	20.0
Honda	27.1	24.2
Isuzu	21.4	21.5
Kia	24.4	24.2
Land Rover	17.2	17.0
Mercedes-Benz	21.3
Mitsubishi	22.5	22.3
Nissan	22.2	21.1
Suzuki	27.4	24.3
Toyota	23.5	22.6
Volkswagen		19.1
Total fleet average	20.9	20.7
Fuel economy standards	20.7	20.7

In MY 1999, the fleet average fuel economy for import passenger cars decreased by 1.6 mpg from the MY 1998 CAFE level to 28.4 mpg. Five of the 16 import car manufacturers increased their CAFE values between MYs 1998 and 1999. Figure II-1 illustrates the changes in total new passenger car fleet CAFE from MY 1978 to MY 1999.

The total light truck fleet CAFE decreased 0.2 mpg below the MY 1998 CAFE level of 20.9 mpg (see Table II-2). Figure II-2 illustrates the trends in total light truck fleet CAFE from MY 1979 to MY 1999.

Six passenger cars (BMW, DaimlerChrysler import, Fiat, Ford/Mazda domestic, Porsche and Volvo) and four light truck manufacturers (Ford/Mazda, General Motors, Land Rover and Volkswagen) are projected to fail to achieve the levels of the MY 1999 CAFE standards. However, NHTSA is not yet able to determine which of these manufacturers may be liable for civil penalties for non-compliance. Some MY 1999 CAFE values may change when final figures are provided to NHTSA by EPA in mid-2000. In addition, several manufacturers are not expected to pay civil penalties because the credits they earned by exceeding the fuel economy standards in earlier years offset later shortfalls. Other manufacturers may file carryback plans to demonstrate that they anticipate earning credits in future model years to offset current deficits.

Mitsubishi achieved 75 percent domestic content for its United States built passenger cars to become the fourth foreign-based manufacturer with a domestic fleet. These domestic-built vehicles do not appreciably affect the domestic fleet CAFE.

In November 1998, a domestic manufacturer, Chrysler Corporation, merged with an import manufacturer, Daimler-Benz AG, to form a new company, DaimlerChrysler, making it the fifth-largest automaker in the world.

B. Characteristics of the MY 1999 Passenger Car Fleet

The characteristics of the MY 1999 passenger car fleet reflect a continuing trend toward satisfying consumer demand for higher performance cars. (See Table II-3.) From MY 1998 to MY 1999, horsepower/100 pounds, a measure of vehicle performance, increased from 5.11 to 5.30 for domestic passenger cars and from 4.93 to 5.03 for import passenger cars. The total fleet average for passenger cars increased from 5.05 horsepower/100 pounds in MY 1998 to 5.21 in MY 1999, the highest level in the 43 years for which the agency has data. Compared with MY 1998, the average curb weight for MY 1999 increased by five pounds for the domestic fleet and increased by 108 pounds for the import fleet. The average curb weight for the total fleet of passenger cars increased from 3,075 pounds in MY 1998 to 3,116 pounds in MY 1999, primarily because of the average curb weight increase for the import fleet. Average engine displacement increased from 174 to 176 cubic inches for domestic passenger cars and increased from 137 to 146 cubic inches for import passenger cars from MY 1998 to MY 1999.

The 0.1 mpg fuel economy improvement for the MY 1999 domestic passenger car fleet may be attributed in part to mix shifts (in the segmentation by EPA size class), improved engine technology and the use of more automatic four-speed transmissions and automatic transmissions with lockup clutches.

Table II-3.—Passenger Car Fleet Characteristics for MYs 1998 and 1999

Characteristics	Total fleet		Domestic fleet		Import fleet
	1998	1999	1998	1999	1998	1999
Fleet Average Fuel Economy, mpg	28.7	28.3	28.1	28.2	30.0	28.4
Fleet Average Curb Weight, lbs	3075	3116	3119	3124	2992	3100
Fleet Average Equivalent Test Weight, lbs	3372	3418	3421	3432	3278	3392
Fleet Average Engine Displacement, cu. in	161	166	174	176	137	146
Fleet Average Horsepower/Weight ratio, HP/100 lbs	5.05	5.21	5.11	5.30	4.93	5.03
% of Fleet	100	100	65.7	66.2	34.3	33.8
Segmentation by EPA Size Class, %
Two-Seater	0.7	1.4	0.2	0.6	1.7	2.8
Minicompact	0.4	0.6	0.0	0.3	1.2	1.2
Subcompact*	16.7	15.6	10.4	14.7	28.7	17.4
Compact*	35.8	31.7	35.8	35.1	35.8	25.1
Mid-Size*	34.1	38.2	35.4	30.8	31.6	52.9
Large*	12.3	12.5	18.2	18.6	1.0	0.6
Diesel Engines	0.19	0.16	0.0	0.0	0.6	0.5
Turbo or Supercharged Engines	2.0	4.4	1.2	3.9	3.6	5.4
Fuel Injection	100	100	100	100	100	100
Front-Wheel Drive	87.0	86.0	90.9	90.9	79.5	76.4
Automatic Transmissions	86.4	86.0	90.4	90.8	78.9	76.6
Automatic Transmissions with Lockup Clutches	99.2	99.8	99.0	99.8	99.8	99.8
Automatic Transmissions with Four or more Forward Speeds	92.0	95.1	90.8	94.0	94.8	98.1
% Electric	0.0	0.002	0.0	0.003	0.0	0.0
*Includes associated station wagons.

The size/class breakdown shows an increased trend primarily toward two-seater, minicompact, mid-size passenger and large cars with the reduction of subcompact and compact passenger cars for the overall fleet. The size/class mix in the domestic fleet showed a decrease in compact and mid-size passenger cars and an increase in two-seater, minicompact, subcompact and large passenger cars. The size/class mix in the import fleet showed a decrease in subcompact, compact and large passenger cars and an increase in two-seater and mid-size passenger cars. The import share of the passenger car market declined in MY 1999, as more foreign-based manufacturers achieved 75 percent domestic content for their U.S. and Canadian-assembled passenger cars.

The domestic fleet rose above its MY 1998 level in the share of turbocharged and supercharged engines. Diesel engines were only offered on certain Mercedes and Volkswagen models during MY 1999. Consequently, diesel engine shares decreased in MY 1999.

Passenger car fleet average characteristics have changed significantly since MY 1978 (the first year of fuel economy standards). (See Table II-4.) After substantial initial weight loss (from MY 1978 to MY 1982, the average passenger car fleet curb weight decreased from 3,349 to 2,808 pounds), the curb weight stabilized between 2,800 and 3,120 pounds. Table II-4 shows that the MY 1999 passenger car fleet has nearly equal interior volume and higher performance, but with more than 42 percent better fuel economy, than the MY 1978 fleet. (See Figure II-3.)

Table II-4.—New Passenger Car Fleet Average Characteristics Model Years 1978-1999

Model year	Fuel economy (mpg)	Curb weight (lbs.)	Equivalent test weight (lbs.)	Interior space (cu. ft.)	Engine size (cu. in.)	Horsepower/weight (hp/100 lb.)
1978	19.9	3349	3627	112	260	3.68
1979	20.3	3180	3481	110	238	3.72
1980	24.3	2867	3162	105	187	3.51
1981	25.9	2883	3154	108	182	3.43
1982	26.6	2808	3098	107	173	3.47
1983	26.4	2908	3204	109	182	3.57
1984	26.9	2878	3170	108	178	3.66
1985	27.6	2867	3177	108	177	3.84
1986	28.2	2821	3127	106	169	3.89
1987	28.5	2805	3100	109	162	3.98
1988	28.8	2831	3100	107	161	4.11
1989	28.4	2879	3181	109	163	4.24
1990	28.0	2908	3192	108	163	4.53
1991	28.4	2934	3228	108	164	4.42
1992	27.9	3007	3307	108	169	4.56
1993	28.4	2971	3328	109	164	4.62
1994	28.3	3011	3317	109	169	4.79
1995	28.6	3047	3335	109	166	4.87
1996	28.5	3047	3352	109	164	4.92
1997	28.7	3071	3364	109	164	4.95
1998	28.7	3075	3372	109	161	5.05
1999	28.3	3116	3418	110	166	5.21

C. Characteristics of the MY 1999 Light Truck Fleet

The characteristics of the MY 1999 light truck fleet are shown in Table II-5. Light truck manufacturers are not required to divide their fleets into domestic and import fleets based on the 75-percent domestic content threshold used for passenger car fleets. The light truck fleet is subdivided into two-wheel drive or four-wheel drive classifications.

The MY 1999 average test weight of the total light truck fleet increased by 95 pounds over that for MY 1998. The average fuel economy of the fleet decreased by 0.2 mpg to 20.7 mpg. Diesel engine usage increased slightly in light trucks to 0.05 percent in MY 1999 from 0.02 percent in MY 1998. The share of the MY 1999 two-wheel drive fleet decreased by 1.9 percent from the MY 1998 level of 57.4 percent.

CAFE levels for light trucks in the 0-8,500 pounds gross vehicle weight (GVW) class increased from 18.5 mpg in MY 1980 to 21.7 mpg in MY 1987, before declining to 20.7 mpg in MY 1999, influenced by an increase in performance. Light truck production increased from 1.9 million units in MY 1980 to 6.4 million units in MY 1999. Light trucks comprised 43 percent of the total light duty vehicle fleet production in MY 1999, nearly 2.5 times more than the share in MY 1980.

D. Passenger Car and Light Truck Fleet Economy Averages

Figure II-4 illustrates an increase in the light duty fleet (combined passenger cars and light trucks) average fuel economy through MY 1987, followed by a gradual decline. (Also, see Table II-6.) Passenger car average fuel economy remained relatively constant for MYs 1987-1999. The overall decline in fuel economy illustrates a larger decrease in car fuel economy compared to light truck fuel economy.

Table II-5.—Light Truck Fleet Characteristics for MYs 1998 and 1999

Characteristics	Total fleet		Two-wheel drive		Four-wheel drive
	1998	1999	1998	1999	1998	1999
Fleet Average Fuel Economy, mpg	20.9	20.7	22.4	22.2	19.1	19.1
Fleet Average Equivalent Test Weight, lbs	4435	4530	4255	4356	4679	4747
Fleet Average Engine Displacement, cu. in	243	251	228	239	263	267
Fleet Average Horsepower/Weight ratio, HP/100 lbs	4.23	4.24	4.20	4.29	4.26	4.17
% of Fleet	100	100	57.4	55.5	42.6	44.5
% of Fleet from Foreign-based Manufacturers	15.5	15.6	11.4	11.8	21.1	20.2
Segmentation by Type, %
Passenger Van	18.5	17.1	31.4	29.9	1.3	1.2
Cargo Van	3.3	3.5	5.6	6.2	0.2	0.2
Small Pickup	7.3	3.2	12.8	5.8	0.0	0.0
Large Pickup:
Two-Wheel Drive	17.1	17.9	29.7	32.3	0.0	0.0
Four-Wheel Drive	13.3	13.7	0.0	0.0	31.3	30.9
Special Purpose:
Two-Wheel Drive	11.8	14.3	20.6	25.8	0.0	0.0
Four-Wheel Drive	28.7	30.2	0.0	0.0	67.3	67.8
Diesel Engines	0.02	0.05	0.01	0.08	0.04	0.03
Turbo/Supercharged Engines	0.25	0.52	0.01	0.08	0.56	1.1
Fuel Injection	100	100	100	100	100	100
Automatic Transmissions	86.1	89.8	85.0	88.6	87.6	91.3
Automatic Transmissions with Lockup Clutches	99.3	99.6	99.1	99.3	100	100
Automatic Transmissions with Four or More Forward Speeds	95.1	98.1	92.2	97.5	94.6	98.9
% Electric	0.01	0.01	0.02	0.02	0.00	0.00

While passenger car and light truck fleet fuel economy decreased from MY 1998 to MY 1999 by 0.4 mpg and 0.2 mpg respectively, the total fleet fuel economy for MY 1999 decreased to 24.5 mpg from 24.6 mpg. The shift to light trucks for general transportation has had a significant effect on fuel consumption.

E. Domestic and Import Fleet Fuel Economy Averages

Domestic and import passenger car fleet average fuel economies have improved since MY 1978, although the increase is far more dramatic for the domestic fleet. In MY 1999, the domestic passenger car fleet average fuel economy was 28.2 mpg. The import passenger car fleet average fuel economy was 28.4 mpg. Compared with MY 1978, this reflects an increase of 9.5 mpg for domestic cars and 1.1 mpg for import cars.

Since MY 1980, the average fuel economy for the total light truck fleet and the domestic light truck manufacturers has shown overall improvement, however, both have remained below the fuel economy level for the imported light truck fleet. The import light truck average fuel economy has decreased significantly since its highest level of 27.4 mpg for MY 1981 to 22.2 mpg for MY 1996, the last year the agency divided the light truck fleet into domestic and import.

The disparity between the average CAFEs of the import and domestic manufacturers has declined in recent years as domestic manufacturers have maintained relatively stable CAFE values while the import manufacturers moved to larger vehicles, and more four-wheel drive light trucks, thus lowering their CAFE values.

Section III: 1999 Activities

A. Light Truck CAFE Standards

On April 7, 1999, NHTSA published a final rule establishing a combined standard of 20.7 mpg for light trucks for MY 2001. The Department of Transportation and Related Agencies Appropriations Act for Fiscal Year 1999, Pub. L. 105-66, precluded the agency from setting the MY 2001 standard at a level other than the level for MY 2000.

B. Enforcement

49 U.S.C. 32912(b) imposes a civil penalty of $5.50 for each tenth of a mpg by which a manufacturer's CAFE level falls short of the standard, multiplied by the total number of passenger automobiles or light trucks produced by the manufacturer in that model year. Credits earned for exceeding the standard in any of the three model years immediately prior to or subsequent to the model years in question can be used to offset the penalty.

Table III-1 shows CAFE fines paid by manufacturers in calendar year 1999. In calendar year 1999, manufacturers paid civil penalties totaling $16,275,722 for failing to comply with the fuel economy standards of 27.5 mpg for passenger cars and 20.7 mpg for light trucks in MYs 1997 and 1998.

Table III-1.—CAFE Fines Collected During Calendar Year 1999

Model year	Manufacturer	Amount fined	Date paid
1997	Land Rover	$68	01/99
	Volkswagen	176,220	04/99
	Lotus	36,890	05/99
1998	Fiat	527,450	04/99
	Mercedes-Benz	1,683,525	07/99
	BMW of North America	13,851,569	12/99