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Global Analysis of Weight Reduction Strategies of Major OEMs
Frost & Sullivan, July 2009, Pages: 131
Research Overview
This Frost & Sullivan research service titled Global Analysis of Weight Reduction Strategies of Major OEMs provides markets trends and developments, industry challenges, market drivers and restraints. This research service also gives an analysis of product and technology along with market size, and forecast assessment.
This analysis is available through the publisher's Automotive & Transportation Growth Partnership Services programme. With continuous access to intelligence and resources from all seven perspectives of the Complex Business Universe, the Growth Partnership Services programme ensures that you and your Growth Team™ are able to maintain a 360 Degree Perspective of the market. This comprehensive, objective information allows your company to mitigate risk, identify new opportunities, and drive effective strategies for growth.
Market Overview
Manufacturers Attempt to Reduce the Weight of Their Vehicles to Comply with Emission Standards
Now-a-days, vehicles have an increasing number of advanced features, making them heavier with higher fuel consumption. As customers have become progressively environmentally conscious, the shift from gas-guzzlers to fuel sippers has continued, despite plunging gasoline prices. This is evident from the 25 percent drop in the sales of sports utility and pickup vehicles in North America. It has become a challenge for original equipment manufacturers (OEMs) to manufacture more fuel-efficient vehicles without compromising on their performance while, at the same time, complying with stringent CO2 emission and fuel economy standards. The key challenge will be to maintain an optimum balance between cost, weight and performance.
'Carbon dioxide (CO2) emission regulations and fuel consumption improvement are the major factors impelling OEMs to reduce vehicle weight,' says the analyst of this research. 'The European Parliament has approved a stringent CO2 limit which mandates car manufacturers to cut car emissions from the current level of 160 g/km of CO2 to 120 g/km by 2012 to 2015.' At the same time, the U.S. Government is focusing on developing fuel-efficient vehicles. According to the U.S. President Obama’s administration plan for the 2016 model year, the new-vehicle fleet in the United States will average 35.5 miles per gallon (mpg).
OEMs to Develop Technologies for Long-term Sustainability of Fuel-Efficient Vehicles
Currently, the production of lightweight materials, especially carbon fibers, is very expensive. They have been slow to replace steel as the primary material used in new cars due to the energy needed to heat as well as the extensive capital equipment required to manufacture such materials. The economic slowdown coupled with expensive light weight materials used as a replacement for certain heavy materials is a major challenge for the market participants as the OEMs need to make investments. 'The biggest challenge facing the market currently is the recession which has tied the hands of OEMs with regard to investment,' cautions the analyst. 'Added to this is the high cost of certain light weight materials used as replacements for heavy materials.'
European and Asian OEMs have more experience in manufacturing fuel-efficient vehicles as they need to comply with fuel economy standards and emissions regulations. However, it will be more challenging for the U.S. OEMs, for whom stringent fuel economy standards have recently been introduced, to shift from larger gas-guzzlers to fuel sippers and to convince their customers to buy smaller cars. 'Although the Americans can adopt certain successful European and Asian OEM strategies in the short-term, it is important to develop technologies for long-term sustainability,' advises the analyst. 'While OEMs in the United States have resorted to introducing small car models, their European counterparts should focus on weight reduction in their small and mid-size vehicle models.'
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