American Road: The Opportunity for Clean Light Duty Diesel Vehicles

Against the backdrop of sharply higher CAFE standards, CO2 emissions controls and the drive for energy security, The Martec Group has completed the most comprehensive study to-date measuring the opportunity for clean diesel engines in the North American light duty vehicle market.

In partnership with HART Energy Consulting and Harris Interactive, Martec has conducted a study examining a wide range of commercial and technical issues that will impact the business case for light duty diesels in North American, including:

• Consumer state-of-readiness and perceptions on the diesel value proposition
• Detailed comparisons of diesel vs. gasoline hybrid electric powertrains by vehicle segment and purchase decision/performance attribute
• Stakeholder views on NOx emissions control technology and urea SCR in-use compliance measures required by EPA
• Industry’s assessment of the variable cost penalties associated with ULEV diesels vs. gasoline HEV at high volume
• Urea economics and infrastructure build-out
• The refining industry’s perception of diesel fuel supply expansion in light of forecast demand
• Synthesis of well-to-tank emissions comparisons for ULSD vs. RFG and biodiesel vs. ethanol according to California Energy Commission
• Analysis of the residual value performance of diesel powered vehicles vs. HEVs based onManheim Auction results
• Wall Street’s assessment of the LDD business case
• Diesel and hybrid electric gasoline demand forecasts in car vs. light truck segments through 2020

Respondents

This study measures and assesses the input of all principal stakeholders who will shape the near and long term potential for LDD engines in North America, including:

• Consumers/new vehicle purchase intenders
• Light duty fleets
• New vehicle dealers
• Vehicle manufacturers
• Engine manufacturers
• Technology suppliers
• Automotive media
• Wall Street
• Fuels and refining

Methodology

More than 2,400 detailed internet-basedinterviews were conducted in this analysis. In addition to an in-depth measurement of California and 49-state consumer perceptions on a range of powertrainchoice issues, the study captures important perspectives from subject matter experts within the global auto industry, fuels/refining, automotive press and Wall Street.

Please review the prospectus for further details...