Conventional Approach
Fuel Economy vs. Cost Technology:
The conventional method to making decisions about fuel economy improvement technology is an analysis of one technology at a time, using one drive cycle to define the benefits, comparing that technology to an average vehicle, and taking only variable costs into consideration. This can often lead to inaccurate conclusions on costs and benefits, which can lead to bad decisions.
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The alternative is a two-part, total systems approach:
• A total cost analysis that includes material, investment, facilities, warranty impact, cost of ownership, and real production volumes.
• A total benefit analysis that includes looking at technology systems and a detailed simulation to identify all benefits (large and small) and their impact on all attributes, such as performance and emissions. This also requires utilizing a model built on the proper drive cycle(s).
Without a total systems approach, fuel economy achievements will be below expectations or at uncompetitive costs.
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