Ricardo Inc. Launches the Total Vehicle Fuel Economy Solution

Release date: 20 December 2007

Ricardo Launches TVFE(tm), the Total Vehicle Fuel Economy Solution to Help Automakers Address Newly Mandated CAFE Fuel Economy Standards

VAN BUREN TWP., Mich., U.S.A. (DECEMBER 20, 2007) - Ricardo Inc., a leading independent engineering firm specializing in fuel economy and vehicle efficiency, today unveiled a new engineering service designed to help automakers address the 35-mile-per-gallon CAFE standard. TVFE(tm) (Total Vehicle Fuel Economy) is based on Ricardo's unique in-depth understanding of the design and control of complete powertrain and vehicle systems. It employs a systems approach that quickly identifies, validates and implements the most cost-effective strategies to achieve light-vehicle fuel economy and CO2 goals. TVFE also can be applied to commercial vehicle and military sectors.

"Manufacturers and Tier 1 suppliers must determine how to meet these very aggressive fuel economy targets in the most cost-effective manner. TVFE brings them a unique systems approach that optimizes the cost-benefit-ratio to deliver fuel economy improvements," said Dean Harlow, president, Ricardo Inc. "It addresses and resolves the difficult challenges created when individual fuel-saving technologies can actually work against each other if fuel economy is not approached from a total vehicle perspective.

"TVFE's in-depth, holistic approach brings an unbiased view of all alternatives and how they can best be integrated to work together," Harlow added. "This clears the way for faster decision-making so automakers can meet the new CAFE regulations. Plus, it's an appealing solution for OEMs and suppliers with limited resources who could benefit from an objective third-party perspective."

TVFE was developed to provide the industry with an independent, unbiased approach to maximize efficiencies, minimize energy losses and decrease loads on the vehicle. TVFE is based on comprehensive, system-level simulations, validated at the component level with a comprehensive set of metrics that provide an objective evaluation of all relevant data, enabling the development of sound business cases based on all available technologies. The TVFE process integrates vehicle systems so they work together in a complementary manner to achieve the highest possible efficiency.

Sandy Stojkovski, Ricardo Inc. Director of Vehicle Engineering, will lead the TVFE service offering. "Achieving maximum fuel efficiency is not necessarily a matter of developing more advanced technologies," Stojkovski said. "To a large extent the technologies to meet the demand for higher fuel economy without compromising the performance and comfort that consumers demand are available to automakers right now. It's really a question of cost and the relative commercial viability of these technologies, because consumers have not yet shown their willingness to pay the full price for them."

TVFE draws on Ricardo's almost 100 years of experience in maximizing fuel efficiency and performance. The company is deeply involved in research and development of advanced technologies in powertrains, controls and vehicle engineering including advanced gasoline and diesel engines, fuel cells, hybrid and electric propulsion systems, and dual-clutch transmissions.

Ricardo Inc., the Eco-Innovation Technology Company, is a leading independent provider of technology, product innovation, engineering solutions and strategic consulting to the world's automotive, transport and new energy industries. The company's skill base represents the state-of-the-art in low emissions and fuel-efficient powertrain technology, and can be best summarized: "Ricardo is Fuel Economy."

With technical centers and offices throughout Europe, the U.S. and Asia, Ricardo plc provides engineering expertise ranging from vehicle systems integration, controls & electronics, software and software development, to the latest driveline and transmission systems and gasoline, diesel, hybrid and fuel cell powertrain technologies. Its customers include the world's major automakers and suppliers as well as manufacturers in the military, commercial and off-highway sectors. Ricardo's U.S. operation, Ricardo, Inc., is headquartered in Van Buren Township, Michigan. Ricardo plc posted sales of $344 million in financial year 2007 and is a constituent of the FTSE techMark 100 index - a group of innovative technology companies listed on the London Stock Exchange. For more information, visit www.ricardo.com.