Ricardo-AEA - European CommissionSujith Kollamthodi (Ricardo-AEA) Improving the understanding of the...

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© Ricardo-AEA Ltd www.ricardo-aea.com Ricardo-AEA Brussels, 9 th December 2014 Sujith Kollamthodi (Ricardo-AEA) Improving the understanding of the potential for weight reduction in cars and vans

Transcript of Ricardo-AEA - European CommissionSujith Kollamthodi (Ricardo-AEA) Improving the understanding of the...

Page 1: Ricardo-AEA - European CommissionSujith Kollamthodi (Ricardo-AEA) Improving the understanding of the potential for weight reduction in cars and vans. ... •2013 data indicates shift

© Ricardo-AEA Ltd

www.ricardo-aea.com

Ricardo-AEA

Brussels, 9th December 2014

Sujith Kollamthodi (Ricardo-AEA)

Improving the understanding of the potential for weight

reduction in cars and vans

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© Ricardo-AEA LtdRicardo-AEA in Confidence2 ED59621 9 December 2014

Overview

• Different views are held on the optimal utility parameter

• Previous work has shown that mass and footprint are the most credible options

• However, critics argue that mass disincentivises vehicle weight reduction

• For post-2020/21 time period, important to understand the relative attractiveness of weight

reduction

• Will help inform discussions on the stringency of future CO2 targets and choice of utility

parameter

• Main topics covered by the study

– Analysis of recent EU trends in the mass of cars and vans

– Impacts of weight reduction on manufacturer targets under the current Regulations

– Potential for applying weight reduction measures to light duty vehicles

– Review of key US studies on vehicle weight reduction

– Exploring the impact of footprint versus mass-based utility parameters

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© Ricardo-AEA LtdRicardo-AEA in Confidence3 ED59621 9 December 2014

• Long term increase in average sales weighted mass for cars

• For cars. trend is observed across all brands, all segments and for individual models

• However, 2013 EEA monitoring data indicates reduction in average mass (to 2011

levels)

• Data for LCVs is less robust - and there have been shifts in sales between LCV

classes over time

• 2013 data indicates shift in sales towards Class I LCVs, although Class III vehicles still

dominate sales (57% of the total)

Recent trends in vehicle mass

Cars LCVs

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Scenario analysis: impacts of weight reduction on

manufacturer targets under the current Regulations

• For all scenarios, three versions were explored, where “Manufacturer A” (i.e. the one

taking the action to reduce the weight of its cars in most scenarios) was:

– an ‘average’ manufacturer

– a ‘heavier’ manufacturer; and

– a ‘lighter’ manufacturer.

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© Ricardo-AEA LtdRicardo-AEA in Confidence5 ED59621 9 December 2014

Original

distance

to target:

38.1 g

Distance to target after mass reduction,

but before M0 adjustment:

34.1 g

Distance to target

after mass reduction

and M0 adjustment:

37.7 g

Direction of

slope move

Mass reduction: 139 kg

Emissions reduction: 8.7 g

Increase in

stringency of

target from

M0 adjustment:

3.7 g

Impacts of mass reduction on manufacturer targets under

the current Regulations

• Where ‘mass’ is the utility parameter, distance to target for any manufacturer will

depend to some extent on the action of its competitors, as a result of potential M0

adjustment

Figure: Representation of results for an ‘average’ manufacturer in Scenario 2

Man A: -10%

Others: +10%

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Impacts of mass reduction on manufacturer targets under

the current Regulations

• Scenarios illustrate that:

– Weight reduction always brings a manufacturer closer to its target – but M0

adjustment may reduce the benefit of cutting mass

– Example from previous slide indicates that 10% reduction in mass would mean that a

manufacturer is only 1% closer to its target after the M0 adjustment

– Using mass as utility parameter increases the cost and risk for first movers

– Mass as utility parameter increases the likelihood that a manufacturer benefits from

reductions in weight made by rival manufacturers

– Mass reduction is more attractive for OEMs that sell heavier vehicles when the

average mass of the market is increasing

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Aim: To assess the impact of footprint versus mass based utility parameters for a

hypothetical 2025 target value under the WLTP

• Existing 2012 EC Car CO2 monitoring database was ‘translated’ to WLTP figures.

• Results were compared to a hypothetical 2025 mass-based target with the target slope

line adjusted using the same ‘equal effort’ approach as has been applied between 2015

and 2020.

• Results were also compared to a footprint based target for 2025 calculated to achieve

the same overall CO2 reduction.

• The effort required by each manufacturer to reach the two alternative target lines was

calculated.

Exploring the impact of footprint versus mass-based utility

parameters

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© Ricardo-AEA LtdRicardo-AEA in Confidence8 ED59621 9 December 2014

• Using footprint as the utility parameter:

– Overall effort is identical – but distribution amongst OEM poolings changes

– Total costs for meeting the target are more than 16% lower

– Only one manufacturer would incur higher costs

– Costs for all other manufacturers would be between 8% and 20% lower

Exploring the impact of footprint versus mass-based utility

parameters for passenger carsV

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Cost Associated with CO2 reduction (Mass system)

Cost Associated with CO2 reduction (Footprint system)

Costs associated with CO2 reduction (mass-based

system)

Costs associated with CO2 reduction (footprint-based

system)

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© Ricardo-AEA LtdRicardo-AEA in Confidence9 ED59621 9 December 2014

• Wide range of mass reduction options available or coming to market

• Analysis carried out for this study indicates that costs are lower than previously

anticipated for the EU market

• Based on the analysis carried out in this study, the following new cost estimates have

been developed for mass reduction

Estimated costs for mass reduction

Small cars Medium

cars

Large cars

10% reduction in vehicle mass €30 €40 €50

20% reduction in vehicle mass €200 €250 €300

30% reduction in vehicle mass €740 €925 €1,110

Small

LCVs

Medium

LCVs

Large

LCVs

10% reduction in vehicle mass €40 €45 €85

20% reduction in vehicle mass €410 €475 €810

30% reduction in vehicle mass €2,045 €2,385 €4,430

Page 10: Ricardo-AEA - European CommissionSujith Kollamthodi (Ricardo-AEA) Improving the understanding of the potential for weight reduction in cars and vans. ... •2013 data indicates shift

© Ricardo-AEA LtdRicardo-AEA in Confidence10 ED59621 9 December 2014

• Long term increase in average sales-weighted mass for cars

• Less data available on LCVs and trends are less clear – although available data

indicate mass increased between 2009 and 2012

• For passenger cars, using mass a the utility parameter increases the cost and risk

for first movers and increases the likelihood that a manufacturer benefits from

reductions in weight made by rival manufacturers

• For passenger cars, using footprint as the utility parameter would reduce the total

costs for meeting possible future targets by more than 16%

• Wide range of mass reduction measures available or coming to market

• Costs of applying mass reduction measures are lower than previously anticipated –

although very high percentage reductions in mass may be costly to achieve

• Mass reduction has become a key CO2 reduction strategy for many OEMs and greater

focus on this area expected in future

Summary

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© Ricardo-AEA LtdRicardo-AEA in Confidence11 ED59621 9 December 2014

QUESTIONS?

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© Ricardo-AEA Ltd

www.ricardo-aea.com

T:

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W:

Ricardo-AEA Ltd

Gemini Building,

Fermi Avenue,

Harwell, Didcot,

Oxfordshire,

OX11 0QR

United Kingdom

Sujith Kollamthodi

Practice Director – Sustainable Transport

+44 (0)1235 753526

[email protected]

www.ricardo-aea.com