The size/class breakdown shows an increased trend primarily toward two-seater, compact, and large passenger cars, and a reduced trend in minicompact, subcompact, and mid-size passenger cars for the overall fleet. The size/class mix in the domestic fleet showed a decrease in minicompact, compact, and mid-size passenger cars and an increase in two-seater, subcompact, and large passenger cars. The size/class mix in the import fleet showed a decrease in two-seater, minicompact, subcompact, and mid-size passenger cars and an increase in compact and large passenger cars. The import share of the passenger car market increased in MY 2000.

The domestic and import fleets rose above their MY 1999 level in the share of turbocharged and supercharged engines. Diesel engines were only offered on certain Mercedes and Volkswagen models during MY 2000.

Passenger car fleet characteristics have changed significantly since MY 1978 (the first year of fuel economy standards). (See Table II-4.) After substantial initial weight loss (from MY 1978 to MY 1982, the average passenger car fleet curb weight decreased from 3,349 to 2,808 pounds), the average curb weight rose to 3,126 pounds. Table II-4 shows that the MY 2000 passenger car fleet has nearly equal interior volume and higher performance, but more than 43 percent better fuel economy, than the MY 1978 fleet. (See Figure II-3.)

Figure II-3
PASSENGER CAR FLEET AVERAGE
Characteristics

C. Characteristics of the MY 2000 Light Truck Fleet

The characteristics of the MY 2000 light truck fleet are shown in Table II-5. Light truck manufacturers are not required to divide their fleets into domestic and import fleets based on the 75-percent domestic content threshold used for passenger car fleets. The light truck fleet is subdivided into two-wheel drive and four-wheel drive classifications.

The MY 2000 average test weight of the total light truck fleet decreased by 20 pounds over that for MY 1999. The average fuel economy of the fleet increased by 0.3 mpg to 21.2 mpg. Turbo/supercharged engine usage tripled in light trucks to 1.5 percent in MY 2000 from 0.52 percent in MY 1999. Diesel engine usage increased slightly in light trucks to 0.06 percent in MY 2000 from 0.05 percent in MY 1999. The share of the MY 2000 two-wheel drive fleet increased by 3.6 percent from the MY 1999 level of 55.5 percent.

CAFE levels for light trucks in the 0-8,500 pounds gross vehicle weight (GVW) class increased from 18.5 mpg in MY 1980 to 21.7 mpg in MY 1987, before declining to 21.2 mpg in MY 2000, influenced by an increase in performance. Light truck production increased from 1.9 million units in MY 1980 to 7.2 million units in MY 2000. Light trucks comprised 45 percent of the total light duty vehicle fleet production in MY 2000, nearly 3.8 times more than the share in MY 1980.

D. Passenger Car and Light Truck Fleet Economy Averages

Figure II-4 illustrates an increase in the light duty fleet (combined passenger cars and light trucks) average fuel economy through MY 1987, followed by a gradual decline. (Also, see Table II-6.) Passenger car average fuel economy remained relatively constant for MYs 1987-2000. The overall increase in fuel economy illustrates a larger increase in passenger car fuel economy compared to light truck fuel economy.

Figure II-4
CAFE PERFORMANCE
Total Fleet

While passenger car and light truck fleet fuel economy increased from MY 1999 to MY 2000 by 0.2 mpg and 0.3 mpg, respectively, the total fleet fuel economy for MY 2000 increased to 24.7 mpg from 24.5 mpg. The shift to light trucks for general transportation has had a significant effect on fuel consumption.

E. Domestic and Import Fleet Fuel Economy Averages

Domestic and import passenger car fleet average fuel economies have improved since MY 1978, although the increase is far more dramatic for the domestic fleet. In MY 2000, the domestic passenger car fleet average fuel economy was 28.5 mpg and the import passenger car fleet average fuel economy was 28.3 mpg. Compared with MY 1978, this reflects an increase of 9.8 mpg for domestic cars and 1.0 mpg for import cars.

The disparity between the average CAFEs of the import and domestic manufacturers has declined in recent years as domestic manufacturers have maintained relatively stable CAFE values while the import manufacturers moved to more four-wheel drive light trucks.

SECTION III: 2000 ACTIVITIES

A. Light Truck CAFE Standards

On April 5, 2000, NHTSA published a final rule establishing a combined standard of 20.7 mpg for light trucks for MY 2002. The Department of Transportation and Related Agencies Appropriations Act for Fiscal Year 2000, Pub. L. 106-69, precluded the agency from setting the MY 2002 standard at a level other than the level established for MYs 1996-2001.

B. Low Volume Petitions

49 U.S.C. 32902(d) provides that a low volume manufacturer of passenger cars may be exempted from the generally applicable passenger car fuel economy standards if these standards are more stringent than the maximum feasible average fuel economy for that manufacturer and if NHTSA establishes an alternative standard for that manufacturer at its maximum feasible level. A low volume manufacturer is one that manufactured fewer than 10,000 passenger cars worldwide, in the model year for which the exemption is sought (the affected model year) and in the second model year preceding that model year.

In 2000, NHTSA acted on two low volume petitions filed by DeTomaso Automobiles Ltd., now operating as Qvale Automotive Group, Ltd. (QAG). QAG filed a low volume petition for its high performance exotic vehicle, Mangusta. QAG requested alternative standards for its passenger cars for MYs 2000 and 2001. NHTSA issued a final decision to grant alternative standards of 22.0 mpg for MYs 2000 and 2001 (65 FR 58483, September 29, 2000). The manufacturer has also requested alternative standards for its passenger cars for MYs 2002 and 2003. NHTSA is reviewing this petition and will respond in mid-2001.

C. Enforcement

49 U.S.C. 32912(b) imposes a civil penalty of $5.50 for each tenth of a mpg by which a manufacturer's CAFE level falls short of the standard, multiplied by the total number of passenger automobiles or light trucks produced by the manufacturer in that model year. Credits earned for exceeding the standard in any of the three model years immediately prior to or subsequent to the model years in question can be used to offset the penalty.

Table III-1 shows CAFE fines paid by manufacturers in calendar year 2000. In calendar year 2000, manufacturers paid civil penalties totaling $31,857,936 for failing to comply with the fuel economy standards of 27.5 mpg for passenger cars and 20.7 mpg for light trucks in MYs 1997, 1998, and 1999.

D. Carryback Plans

49 U.S.C. 32903 allows an automobile manufacturer to earn fuel economy credits during any model year in which the manufacturer's fleet exceeds the established CAFE standard. The amount of credits a manufacturer earns is determined by multiplying the number of tenths of a mile per gallon by which the average fuel economy of the manufacturer's fleet in the model year exceeds the standard by the total number of vehicles in the manufacturer's fleet for the model year.

Already earned fuel economy credits are carried forward by the agency, (with affected manufacturers given an opportunity to comment on the agency's allocation of credits) and distributed to any of the three succeeding model years in which the manufacturer's fleet falls below the CAFE standard. For example, credits earned in MY 1997 may be used to offset deficiencies in MYs 1998, 1999, and/or 2000. A manufacturer may also submit to the agency a carryback plan, which demonstrates that it will earn sufficient credits within the following three model years which when allocated could offset penalties for the model year affected.

DaimlerChrysler and General Motors submitted carryback plans dated May 21, 1999 and June 29, 1999, respectively, to the agency for MYs 1997 light truck CAFE compliance. Both DaimlerChrysler's and General Motor's carryback plans were approved July 21, 2000 and July 3, 2000, respectively.