Tier 1 Suppliers Back 2025 CAFE, CALSTART Survey Says

Half of the suppliers queried say the standards are pushing innovation, and 59% say they are spurring job growth. Three-quarters say additional targets should be set for beyond 2025.

David Zoia Editor, Executive Director-Content

September 14, 2016

1 Min Read
Suppliers surveyed split on how big role electrification will play
Suppliers surveyed split on how big role electrification will play.Getty Images

If automakers were expecting suppliers to have their backs in any campaign to pressure regulatory agencies to roll back 2025 U.S. fuel-economy targets, they might be disappointed.

A survey of automotive suppliers commissioned by CALSTART, an organization of 160 companies supporting clean transportation, indicates Tier 1 automotive suppliers want to see 2025 CAFE target of 54.5 mpg (4.3 L/100 km) remains intact.

The survey of 23 Tier 1 parts makers, conducted by global consultancy Ricardo Energy & Environment, shows 95% of respondents believe setting the targets for 2025 was the right thing to do and 70% of suppliers want no change in the requirements.

Half of the suppliers say the standards are pushing innovation, and 59% say they are spurring job growth. Three-quarters of those surveyed say additional targets should be set for beyond 2025.

Among technologies cited as keys to meeting the standards were turbocharging, engine down-sizing and higher-speed automatic transmissions led the list. Also considered important were hybrid technology, variable valve timing, gasoline direct injection and lightweighting.

The survey turned up no clear consensus on what it will cost to meet the 2025 CAFE targets or how big a role electrification will play.

There also were mixed views on the effect of low gasoline prices on sales of fuel-efficient vehicles. About 45% said they didn’t think there would be a noticeable impact, while another 45% believe demand will be reduced if pump prices remain low.

[email protected] @DavidZoia

About the Author(s)

David Zoia Editor

Executive Director-Content

Dave writes about autonomous vehicles, electrification and other advanced technology and industry trends.

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