1. Auto Regulatory and Technology Trends IM Solutions | May 7, 2013 | Schaumburg, IL John Cabaniss Director, Environment & Energy Association of Global Automakers

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3. Regulatory Activities – Greenhouse Gases/Fuel Economy 2012-2016 – 35.5 mpg fleet average 2017-2025 – 54.5 mpg fleet average CA ZEV program (includes 9 §177 States) – Criteria Emissions CARB LEV III; 2015+ MY – SULEV fleet average for NMOG+NOx – Near zero evaporative standards – Lower PM standards – 150,000 mile durability

4. Regulatory Activities cont. EPA Tier 3; 2017+ – Aligning with CARB as noted above – Increased harmonization of certification – Some remaining differences – Onboard Diagnostics CARB Regulatory Plan for 2017 – Update – Expand for hybrids and EVs – Add GHG relevant systems, as appropriate EPA will continue to accept CA OBD certification

5. Automotive Technology Trends – GHG/FE Standards Forcing Technologies Gasoline Direct Injection Turbocharging/Downsized Engines Improved AC Systems Improved Transmissions: CVT, 6-7+ speed transmissions, etc Hybrids Plug-in HEVs Electric Vehicles Fuel Cell EVs

6. Automotive Technology Trends cont. – Criteria Emission Technology Forcing Improved engines require cleaner Gasoline – Ultra Low Sulfur – No metallic additives – Higher octane – Other parameters Improved Catalysts Lower PM could require PM traps on some models More HEVs, PHEVs, EVs, etc.

7. EPA Technology, GHG Emissions, and Fuel Economy Trends 2012; Findings CO2 emission rates and fuel economy values reflect a very favorable multi-year trend, beginning in MY 2005.

8. Advanced Gasoline Technologies Are Gaining Market Share

9. More High Fuel Economy Vehicle Choices

10. Many Current Models Meet Future CO 2 Targets (by class, assumes improvements in A/C systems)

11. Many Current Models Meet Future CO 2 Targets (by technology, assumes improvements in A/C systems)

12. % 2012 Fleet That Meets Future CO 2 Targets (assumes improvements in A/C systems)

13. Thank You National Academy of Sciences | March 1, 2012 | Washington, D.C.