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J.D. Power: Manufacturing Challenges to Meet Emission Regulations

13 August 1998

J.D. Power and Associates Assesses Automotive Manufacturer Challenges in Meeting Future Vehicle Emission Regulations
        Internal Combustion Engine May Provide Most Practical Solution

    AGOURA HILLS, Calif., Aug. 13 -- Recent technological
advancements applied to conventional gasoline engines may soon allow
manufacturers to produce automobiles with exhaust that is cleaner than the air
in some major U.S. cities, according to J.D. Power and Associates first
assessment of alternative vehicles.
    The report, entitled Alternative Delivery Systems -- A New Generation of
Vehicles, examines the technology race among domestic and international
automobile manufacturers to develop a new generation of low-and zero-emission
vehicles to meet stringent U.S. and international standards being phased in
over the next several years.  Zero-emission requirements in California are set
for 2003.
    "Vehicle emission standards adopted during the 1990s have presented the
industry with the most challenging research and development undertaking since
the invention of the automobile," said Thad Malesh, senior consultant at J.D.
Power and Associates.  "Consumers expect the quality and dependability of
alternative vehicles to be at least equal to those offered by conventional
systems," he said.
    Although today's electric vehicles meet zero-emission requirements, their
limited range coupled with high material and component costs, have led several
manufactures to invest in more cost-effective alternatives, according to the
report.  Hybrid-electric vehicles, using combinations of battery technologies
and internal combustion engines, may be the interim solution for vehicles
offering lower emissions and higher fuel economy than today's conventional
vehicles.  Hybrids also offer a perceived advantage of added reliability over
pure electric vehicles, where reliance on a single source of propulsion could
leave consumers stranded due to battery anomalies.
    Yet conventional internal combustion engines are emerging as potentially
the most attractive alternative due to recent technology breakthroughs by some
manufacturers.  The study reports that Honda has developed an experimental
conventional combustion engine that produces virtually no harmful emissions.
These engines, known as zero-level equivalents, may be installed in some Honda
models within a couple of years.
    To date, Toyota is the first manufacturer to sell a production
hybrid-electric vehicle in Japan, while Nissan is first to offer an electric
vehicle that uses lithium-ion batteries.  Nissan's alternative vehicle is
scheduled to be available in the United States in 1999.
    Although Chrysler, Ford and General Motors currently offer electric
vehicles, the Big Three are working on hybrid-electric vehicles to meet
near-term, low-emission requirements and are investing in fuel cell
technologies for longer-term, zero-emission solutions.  A fuel cell can be
thought of as a large "refillable liquid battery" that converts hydrogen into
electricity and a by-product, water vapor.
    Industry leaders also are teaming to produce low-and zero-emission
vehicles.  A Ford-Ballard-Daimler Benz consortium is expected to offer the
world's first production fuel cell-powered car around 2004.  Other
manufacturers, including BMW, Volkswagen, Audi and Volvo, have alternative
vehicle development programs in various stages of planning or development.
    Gasoline direct-injection engines are also showing promising results,
according to the report.  These differ from conventional systems in that
gasoline is injected directly into the cylinder instead of through the intake
valve.  Mitsubishi is leading the industry in this technology area.
"The market for alternative systems is likely to develop slowly, with initial
sales going to fleets," said Malesh.  "Sales of approximately 400,000
zero-emission units annually beginning in 2003 are required by California and
the Ozone Transportation Region, which is comprised of eleven Northeastern
states plus the District of Columbia.  The real potential for widespread use
of alternative vehicles is beyond 2010, with penetration into general consumer
markets," he said.
    The J.D. Power and Associates report was based in part on the firm's
syndicated study of  new vehicle buyers and through information gathered from
automotive manufacturers.
    J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction.  The firm's quality and
satisfaction measurements are based on actual customer responses from more
than one million consumers annually.  Headquartered in Agoura Hills, Calif.,
the firm also has U.S. offices in Torrance, Calif., Michigan and Connecticut.
International locations include Japan, Korea, the United Kingdom, Canada and
Brazil.
    J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com.  Media e-mail contact: john.pepitone@jdpower.com.
    This press release is provided for editorial use only.  No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.