Darko Milosevic, Dr.rer.nat./Dr.oec.

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Greenhouse Gas (GHG) Emission Standards for Light-Duty Vehicles: Manufacturer Performance Report

Greenhouse Gas (GHG) Emission Standards for Light-Duty Vehicles: Manufacturer Performance Report

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Overview

EPA and the National Highway Traffic Safety Administration (NHTSA) jointly established a National Program consisting of standards for light-duty vehicles that reduce greenhouse gas (GHG) emissions and improve fuel economy.
EPA’s GHG rules for light-duty vehicles require compliance with progressively more stringent GHG emission standards for the 2012 through 2025 model years.
The annual GHG Performance Report formally documents the status of auto company compliance with the GHG standards since the standards took effect in the 2012 model year.
This annual report provides substantial detail on manufacturers’ performance in meeting the standards.
  • All data are based on annual production volumes of passenger cars and light trucks reported to EPA.
  • The report includes detailed information on compliance, including the manufacturers’ use of credits and credit transactions.
  • The report maintains transparency, allowing the public to monitor implementation and progress.

Key Findings

1. For the fourth consecutive year, the auto industry outperformed the GHG standard by a substantial margin 

Overall industry performance in model year 2015 was 7 g/mi of GHG emissions better than required by the 2015 GHG emissions standard. This marks the fourth consecutive model year of industry outperforming the standards by a sizeable margin. This industry-wide performance means that manufacturers are offering and consumers continue to buy vehicles with lower GHG emissions than required by the EPA standards. See Section 3 for more detail on these values.* Manufacturers continued this level of performance against standards that increased dramatically in stringency in model year 2015. The standards increased in stringency by 13 g/mi; to put this in perspective, the total cumulative increase in stringency since the start of the program was 25 g/mi. Although the "compliance margin" narrowed to 7 g/mi, this remains notable in the face of a continuing increase in truck market share combined with the increased stringency.
Bar graph showing the difference between the actual industry compliance and the standard in grams per mile.
Note:
*  Although rounding of the values on the chart may produce some apparent inconsistencies, the numbers reported are correct.

2. Most manufacturers outperformed their individual 2015 standard 

Most large manufacturers achieved fleet GHG compliance values equal to or lower than required by their unique 2015 standard. Nine of the twelve manufacturers with sales greater than 150,000 vehicles reported meeting or beating their standard, with margins of compliance ranging from 23 g/mi (Nissan and Subaru) to exactly meeting their standard with no margin (BMW). Three manufacturers (FCA, Mercedes, and Kia) missed their unique 2015 standards by 3, 11, and 12 g/mi, respectively, thus generating net deficits in the 2015 model year. More detail about model year 2015 performance is provided in Section 3. The figure below does not include the impact of credit transfers (within a company) reported from prior model years or reported credit trades (transactions between companies), and thus does not necessarily portray whether or not a manufacturer has complied with 2015 model year standards. The manufacturers that did not outperform their 2015 standard in fact have reported sufficient credits from prior model years to be in compliance with their respective 2015 model year standards.
Compliance standards vs. actual values for 2015 are listed for every manufacturer, from highest to lowest greenhouse gas (GHG) standard in grams per mile.

3. All large manufacturers are in compliance with the 2012-2015 GHG standards

The majority of manufacturers, representing more than 99 percent of 2015 model year U.S. sales, have reported compliance with the standards for the 2012-2015 model years. In fact, 19 of 20 manufacturers are reporting a positive credit balance going into the 2016 model year, meaning that these manufacturers have met the standards in all of the 2012-2015 model years (credits cannot be carried forward if a deficit exists in a prior model year). Manufacturers are allowed to carry deficits forward for three model years. Thus, a manufacturer with a deficit from the 2012 model year must have offset that deficit by the end of the 2015 model year, or else be subject to possible enforcement action. All manufacturers that reported a deficit in the 2012 model year have successfully offset that deficit, thus no manufacturer is in a position of non-compliance at the end of the 2015 model year. The makeup of these credit and deficit balances is tracked by model year “vintage” as explained in Section 5.
Credit Balances at Conclusion of the 2015 Model Year (Mg)1
(including credit transfers & trades) 2
ManufacturerCredits Carried to 2016
Toyota82,996,367
Honda38,347,521
GM31,060,500
Ford30,604,147
Nissan24,561,976
FCA21,918,309
Hyundai20,338,163
Subaru13,281,040
Mazda8,180,592
Kia8,173,661
BMW3,558,682
Mitsubishi1,681,499
ManufacturerCredits Carried to 2016
Mercedes 3629,434
Suzuki 5428,242
Fisker 546,694
BYD Motors 54,824
Tesla576
Coda 50
Volvo 30
Jaguar Land Rover 3-288,555
Aston Martin 3,4N/A
Ferrari 3,4N/A
Lotus 3,4,5N/A
McLaren 3,4N/A
All Manufacturers285,523,672
Notes:
Volkswagen is not included in this table due to an ongoing investigation. Based on the original compliance data, Volkswagen has a credit balance of 4,224,082 Mg. Should the investigation and corrective actions yield different CO2 data, the revised data will be used in future reports.
1  The Megagram (Mg) is a unit of mass equal to 1000 kilograms. It is also referred to as the metric ton or tonne.
2  This table does not include unused credits from the 2009 model year, which expired at the end of the 2014 model year. See Section 2 for more information.
3  These companies are using a temporary program for limited-volume manufacturers that allows some vehicles to be subject to less stringent standards. See Section 3.B.
4  These companies are small volume manufacturers which have petitioned EPA for alternative standards that may be used starting in the 2015 model year. Credits or deficits for these companies will not be reported until that process is complete and final applicable standards are known.
5  Although these companies produced no vehicles for the U.S. market in the most recent model year, the credits generated in previous model years continue to exist.

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