Monthly Fuel Efficiency in New Vehicles

One of the biggest changes to new vehicle development in recent years has been the regulation of social policy matters such as safety, pollution and greenhouse gas emissions. While strides have been made with regards to safety and Criteria Air Contaminants (CAC) in light duty vehicles, greenhouse gas emission, due to it being tied with the fuel efficiency of a vehicle, is a target that can continuously be improved upon.

By law, CAFE standards have to be achievable so the tracking of this progress towards a more fuel efficient fleet is crucial for both the industry and the government. With the aid of new data and a new methodology we have developed the DesRosiers Average Rated Fuel Consumption Index (DARFCI) to track the average rated fuel consumption of new light vehicles sold each month.

In this month’s Observations we will discuss the methodology of the DARFCI and analysis of the data used. Topics include fuel efficiency over the years, the seasonality of fuel efficiency and the change in fuel efficiency based on vehicle segments.

 

For more information on the DesRosiers Average Rated Fuel Consumption Index (DARFCI) please contact Martin Stanczak at 905-881-0400 ext. 27 (martin@desrosiers.ca)

Jobs, jobs, jobs! Employment in the Automotive Sector in 2015

In discussing jobs and the creation of jobs with regards to the automotive industry, one must first understand that the automotive sector consists of more than just manufacturing jobs. Automotive repair and maintenance and the retail side of vehicles (both car dealers and head office distributors) are two facets of the industry that also hire in large volumes.

In this month’s Observations we will look at the underlying factors and current status of employment in all categories of the automotive industry. Topics of discussion include employment statistics, size of the industry and why manufacturing has the highest visibility with regards to political and media attention when compared against the other sectors.

The Wrong Target

The Wrong Target

A brief review of the breakdown of the 1.9 million new vehicles purchased in Canada in 2015 shows the ultimate power of the consumer in the automotive market. While vehicle companies have improved the fuel efficiency of vehicles in recent years to meet new standards, Canadians have increasingly chosen larger, more powerful and relatively less fuel efficient vehicles.

In this month’s Observations we will discuss alternative solutions to reducing vehicle emissions including differing taxation policies, scrappage programs and incentives for certain vehicle purchases.

Some Thoughts On Segmentation

As new segments are created to accommodate the glut of new models entering the automotive marketplace the differentiation between our classical definitions of passenger car and light truck becomes less clear over time.

With companies continuing to consolidate their engineering platforms in favour of cost reduction the question of segmentations and what are the factors that define a segment become more and more important for the purposes of marketing and competitive analysis.

In this month’s Observations we examine the influx of new segments to the industry in recent years and look at how it came to be. Topics of discussion include 2015 segment sales results and suggestions for defining features in segments moving forwards.

TPP – Implications for the Canadian Auto sector

Free trade agreements have always been an area of controversy.  While such agreements may offer potential benefits, some individual sectors can suffer.  As the Trans-Pacific Partnership (TPP) agreement moves towards becoming a reality it is important to get a better understanding of the implications for the automotive sector in Canada.

In this month’s Observations we will break down the agreement into three sub categories: Original equipment parts, aftermarket parts and light vehicles.  Discussion will be focused on the potential impact of the agreement on these various sides of the industry, and on the uncertainties that remain.

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