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Burgess Energy Conservation Summit Overview of Alternative Fuel Technologies July 14, 2007 PRESENTATION BY Burgess Energy Conservation Summit Overview of Alternative Fuel Technologies July 14, 2007 PRESENTATION BY Clinton Blair Senior Director of Government Affairs Alliance of Automobile Manufacturers 1

Alliance Members Are Driving Innovation § 77 Percent of All U. S. Car and Alliance Members Are Driving Innovation § 77 Percent of All U. S. Car and Light Truck Sales § Leading Advocacy Group for the Auto Industry § More Than 238 Million Cars & Light Trucks on U. S. Roads 2

Driving Innovation § Automakers Comprised 3 out of 4 of the World’s Top R&D Driving Innovation § Automakers Comprised 3 out of 4 of the World’s Top R&D Investors in 2005 § 5 of the Largest Automakers Spent $33 Billion in R&D in 2005 3

The Automobile Industry Creates Jobs § 985, 300 in the Fuel Industry § 798, The Automobile Industry Creates Jobs § 985, 300 in the Fuel Industry § 798, 800 in the Automobile Dealership Industry § 289, 000 in Road Construction 4

Driving Sales of Alternative Fuel Autos § 60 models of AFAs on sale now, Driving Sales of Alternative Fuel Autos § 60 models of AFAs on sale now, up from 12 models in 2000 § 1. 5 million AFAs sold in 2006 alone § 10. 5 million on US roads 5

Alternative Fuel Autos Are Everywhere UNDER 50, 000100, 000150, 000 Alternative Fuel Over 150, Alternative Fuel Autos Are Everywhere UNDER 50, 000100, 000150, 000 Alternative Fuel Over 150, 000 6 Alternative Fuel

What We Need to Move Forward More Fuels § 170, 000 U. S. gas What We Need to Move Forward More Fuels § 170, 000 U. S. gas stations, only 1, 200 carry E 85 § Progress is being made § You can drive from Chicago to Kansas City and back — 1700 miles — fueled solely by E 85 7

Clean Diesel Lower Sulfur Content & High Mileage • Compared to their gasoline counterparts, Clean Diesel Lower Sulfur Content & High Mileage • Compared to their gasoline counterparts, the new generation of clean diesel vehicles offer much greater fuel economy while delivering better performance. Around the world, consumers are favoring advanced diesel technology. • Clean diesels power 40 percent of Europe’s new light duty motor vehicles. • Today’s clean diesel vehicles run more cleanly, thanks to new highpressure fuel injection, combustion and exhaust after-treatment technologies. • A key factor in determining the success of these aftertreatment technologies was EPA’s 2001 decision to require dramatic sulfur reductions in diesel fuel. • On average, clean diesel vehicles achieve 20 -40 percent better fuel economy than their gasoline-powered counterparts. 8

Diesels/Biodiesel on Sale Today: 13 Models Chevrolet Express Mercedes-Benz E 320 Bluetec Dodge Ram Diesels/Biodiesel on Sale Today: 13 Models Chevrolet Express Mercedes-Benz E 320 Bluetec Dodge Ram Mercedes-Benz R 320 CDI Ford E-Series Mercedes-Benz ML 320 CDI Ford F-Series Super Duty Mercedes-Benz GL 320 CDI GMC Savanna Volkswagen Touareg TDI GMC Sierra 2500 HD GMC Silverado 2500 HD Jeep Grand Cherokee 9

Ethanol (E-85) Homegrown & Renewable § Ethanol derived from corn, sugar cane – cellulosic Ethanol (E-85) Homegrown & Renewable § Ethanol derived from corn, sugar cane – cellulosic on the way § E-85 is 85% ethanol and 15% gasoline § All vehicles on the road today can use a blend of up to 10% ethanol with gasoline without voiding warranties. § Of the 170, 000 gas stations in America, about 1, 200 sell E-85 § Ethanol is renewable but contains less energy than gasoline § Because ethanol is more corrosive than gasoline, automakers need to use special materials for the gas line, gas tank, pumps, and injectors. 10

Ethanol (E-85) Vehicles on Sale: 29 Models Buick Terraza Ford Crown Victoria Chevrolet Avalanche Ethanol (E-85) Vehicles on Sale: 29 Models Buick Terraza Ford Crown Victoria Chevrolet Avalanche Ford F-150 Chevrolet Express GMC Savana Chevrolet Impala GMC Sierra Chevrolet Monte Carlo GMC Yukon Chevrolet Silverado GMC Yukon XL Chevrolet Suburban Jeep Grand Cherokee Chevrolet Tahoe Jeep Commander Chevrolet Uplander Lincoln Town Car Chrysler Aspen Mercedes-Benz C-Class Chrysler Sebring Mercury Grand Marquis Chrysler Town & Country Nissan Armada Dodge Caravan/Grand Caravan Nissan Titan Dodge Durango Dodge Dakota Dodge Ram 11

Hybrid Engines Advanced Batteries & Higher Mileage • Hybrid-electric vehicles refer to powertrains that Hybrid Engines Advanced Batteries & Higher Mileage • Hybrid-electric vehicles refer to powertrains that use a batterypowered electric motor, a gasoline internal combustion engine, and a concept known as regenerative braking to power the vehicle • Regenerative braking systems, which recover energy that is otherwise wasted, allow hybrids to be especially fuel-efficient in stop-and-go city driving • Utilizing these hybrid technologies, fuel economy can be improved by up to 25 percent over conventional automobiles • At the moment, hybrids are more expensive than traditional gasoline engines • Automakers working hard to continue battery development and advancements 12

Hybrid Vehicles On Sale Today: 16 Models Chevrolet Silverado Hybrid Mercury Mariner Hybrid Dodge Hybrid Vehicles On Sale Today: 16 Models Chevrolet Silverado Hybrid Mercury Mariner Hybrid Dodge Ram Hybrid Nissan Altima Hybrid Ford Escape Hybrid Saturn Aura Green Line Hybrid GMC Sierra Hybrid Saturn Vue Green Line Hybrid Honda Civic Hybrid Toyota Camry Hybrid Honda Insight Hybrid Toyota Highlander Hybrid Lexus GS 450 h Hybrid Toyota Prius Lexus LS 600 h. L Hybrid Lexus RX 400 h Hybrid 13

Looking Forward… New Technologies & More Models Coming to the Market § More Hybrids Looking Forward… New Technologies & More Models Coming to the Market § More Hybrids § More Clean Diesels § More E-85 vehicles § Hydrogen ICE § Fuel Cells § Plug-In Hybrids 14

Alliance Members, Part of the Solution 15 Alliance Members, Part of the Solution 15

Alliance Members, Part of the Solution 16 Alliance Members, Part of the Solution 16

We Must Look Forward… Beyond CAFE § Must Provide Consumers With the Cars They We Must Look Forward… Beyond CAFE § Must Provide Consumers With the Cars They Want While Reducing Oil Consumption § Encourage Even More Alternative Fuel Choices § Enhance Our Alternative Fuels Infrastructure and Empower the R&D Community § Stimulate Economic Investments in Fuels and Technologies § Involve All Levels of Government § Motivate Consumers to Conserve Fuel and Purchase Fuel-Efficient Autos 17

www. autoalliance. org 3/15/2018 www. autoalliance. org 3/15/2018