As new government efficiency mandates around the world begin to take effect, automakers are responding. The global financial crisis coupled with revised fuel efficiency standards has promoted North American manufacturers to become even more globalized. Top producers are now using fewer, flexible platforms to create smaller, lighter vehicles using various technologies and fuels. North American producers are expected to begin increasing production of nine speed transmissions over the currently favored five-speeds, to gain fuel efficiency; European manufacturers already produce nine-speeds. While most major players now have the technology available to meet the 35-miles-per-gallon mandate that will become effective in 2016, challenges remain to meet the 54 miles-per-gallon mandate that will be effective in 2025. Despite this, combustible engines are still expected to lead the market, with electric vehicles not exceeding 1% of global production through 2017. This projection is largely reliant on how quickly battery technology develops. Seeing makes and models looking more and more similar is predicted as efficiency begins to dictate design.
For more information regarding commodity trends, market intelligence and sourcing best practices, please contact:
Jill Dobbs, Director of Membership Services: email@example.com; (530) 386-6679