Cost, Effectiveness, and Deployment of Fuel Economy Technologies for Light-Duty Vehicles (2015) / Chapter Skim
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7 Cost and Manufacturing Considerations for Meeting Fuel Economy Standards
7 Cost and Manufacturing Considerations for Meeting Fuel Economy Standards
Pages 245-262
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From page 245... ...
Thus, if the part is made by the OEM, the DMC is typically considered to be 1 As discussed in Chapter 1, the committee defines total costs for a technology as direct manufacturing costs plus indirect costs. Total cost does not represent the cost of ownership to the consumer, which is discussed in Chapter 9 as the private cost of ownership.
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From page 246... ...
Direct manufacturing costs plus indirect costs equal studies and concluded that increasing the use of this apwhat economists call the long-run average cost of manufac proach would increase confidence in the accuracy of the turing, or, simply, total costs. In an ideal competitive market costs (NRC 2011)
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From page 247... ...
It is not clear that internal defini- consistency of the 1.5, or 50 percent, markup from manufactions of direct manufacturing costs always include all of turing costs to retail price is noteworthy and suggests that it is these components. reasonable to assume that the relative share of indirect costs FIGURE 7.2 Total costs as a ratio to direct manufacturing costs (RPE)
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From page 248... ...
The ICM method attempts to estimate the specific impacts This approach maintains the typical markup rate because of technologies and technology packages on indirect costs. fuel economy technologies add to the price of the vehicle.
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From page 249... ...
The committee notes that the specific values for the within a group have identical impacts on indirect costs. ICMs are critical since they may affect the overall estimates Expert judgment is also relied upon to estimate the impact of cost and benefits for the overall standards and the cost values for each technology and cost component.
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From page 250... ...
For example, if a = 0.074, learning curves to cost estimates for truly novel technologies the progress ratio is 0.95, which implies a 5 percent reduc- that did not reflect learning by doing. The Technical Suption in manufacturing costs for every doubling of cumulative port Document (TSD)
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From page 251... ...
calculated for each technology. As discussed in Chapter 8, The Agencies decided that learning should affect only the concept of negative learning is used for low-volume direct manufacturing costs and not indirect costs, except for technologies.
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From page 252... ...
. There are alternative approaches to using the engineering Technology Introduction in Vehicle Manufacturing costs of prospective technologies for estimating the costs of the standards.
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From page 253... ...
In the context of fuel economy, As an example, a body structure is shown in Figure 7.4, new products are likely to have more recently developed composed of conventional and ultra-high-strength steel technologies that reduce fuel consumption. Adopting new panels, both traditionally stamped and hot formed, as well technologies, however, must be considered in the broader as aluminum panels, extruded and rolled profiles, and die context of vehicle design and manufacturing.
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From page 254... ...
The static analythe next step from steel, vehicle design further into the sis principally looks at individual component forming future may yield vehicle bodies that use multiple materials and strength properties. Dynamic modeling attempts to achieve the fuel consumption and safety requirements of to evaluate a structure during a simulated crash.
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From page 255... ...
For vehicle designs ranging from more been driven by performance improvements, a recent focus basic and inexpensive to the more luxurious and sophistion fuel economy improvements, GHG emission reduction, cated, transmissions with six or more speeds have become and vehicle lightweighting has prompted radical changes the standard. As discussed in Chapter 5, transmissions with in system and component designs as well as more dynamic eight, nine, or ten speeds will become increasingly prevalent, and quicker-paced design implementation.
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From page 256... ...
Introducing technology faster redesigns will be needed to add technology across the fleet. than planned will lead to issues related to stranded capital, Table 7.5 summarizes the timing, cost, and integration which is discussed earlier in this chapter, and higher product into manufacturing of a variety of fuel economy technologies development costs.
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From page 257... ...
development, 4 to 5 years including emissions certification Electrification Stop-start Modifications to ICE Minor modification of existing Not significant, but best Not difficult to integrate into manufacturing line planned with new model existing facility launch Mild hybrid Modifications to ICE, Minor modification of existing Not significant, but best Not difficult to integrate into new batteries and power manufacturing line planned with new model existing facility- relatively high electronics launch development costs if volumes remain low P2 hybrid New chassis with Unique chassis, torque converter All new engine and New and unique hybrid existing or common body removed and electric motor/ powertrain assembly powertrain line operating architecture, new batteries generator installed in its place outside of standard PDP and power electronics without changing the engine or relatively high development transmission costs if volumes remain low PS hybrid New chassis and powertrain Unique chassis and powertrain All new engine and New and unique ICE and with existing or common system to be integrated with powertrain assembly hybrid powertrain line operating body architecture, including traditional body assembly outside of standard PDP batteries and power relatively high development electronics costs if volumes remain low PHEV 40 mi New chassis and powertrain Unique chassis and powertrain All new engine and New and unique electrified electric range with existing or common system to be integrated with powertrain assembly powertrain line, perhaps with body architecture, including traditional body assembly new ICEs, operating outside of batteries and power standard PDP - relatively high electronics development costs if volumes remain low EV 75 mi range New chassis and powertrain Unique chassis and powertrain All new engine and New and unique electrified with existing or common system to be integrated with powertrain assembly powertrain line operating body architecture, including traditional body assembly outside of standard PDPP batteries and power relatively high development electronics costs if volumes remain low Body – Lightweighting Steel to High- HSS substitution for HSS up to ~1000 MPa has minor Not a significant Generally, cost premium Strength Steel individual parts issues and minimal increase in time impact in most increases as the steel strength cost. Over ~1000 MPa requires cases.
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From page 258... ...
Growing Impact of Global Platforms on BMW, and Toyota are in the process of executing their own Vehicle Design Optimization versions of global platforms. Each manufacturer is develop ing its own methods and focusing on different areas of the The automotive industry is experiencing significant vehicle to standardize.
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From page 259... ...
generally assessed only the direct manufacturing costs for Vehicle manufacturers see global platforms as a way to each technology. Historically, many studies have concurred maximize efficiency and reduce cost over a wide range of on an average markup factor of 1.5.
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From page 260... ...
Presentavehicles, which may not reach 450,000 unit production vol tion to the National Research Council Committee on Assessment of umes in North America in the time frame of the standards, Technologies for Improving Light-Duty Vehicle Fuel Economy, Januthe Agencies should use an appropriate, lower production ary 25. volume to project direct manufacturing costs.
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From page 261... ...
2013. Ford Earns Top Marks in Polk Automotive oyalty L indirect cost multipliers to estimate the total cost of adding new tech Awards; Volkswagen Named Most Improved.
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