0P:/Strategic Planning/SBD 2006/Summary Report/SBD book 2006_6_8_Review_v2.ppt CD / S / C

Vehicle Transportation:Technology & Alternative Fuels

Reg ModlinDirector, Environmental Affairs

USAEE/IAEE North American ConferenceSeptember 25, 2006

1

Global Petroleum Perspective

•Global demand for petroleum is increasing

Consumption by emerging economies like China are projected to grow by 50% in the next 5-10 years

•Supply is constrained:Geopolitical unrest“Acts of God” such as Hurricane Katrina

•Political challenges exist to reduce greenhouse gas emissions while still fulfilling society’s mobility needs

•The transportation sector consumes more than one half of the worlds oil

The automobile represents a large portion of the transportation sector

World Oil Consumption By Sector, 2003

0

5

10

15

20

25

30

35

40

45

Commercial Electrical Residential Industrial TransportationSource: Energy Information Administration (EIA)

Mill

ions

of B

arre

ls p

er D

ay

0

20

40

60

80

100

120

140

'60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30

World Oil Consumption 1960-2030

Source: Energy Information Administration (EIA)

Mill

ion

Bar

rels

per

Day

2

Automobile Industry Contribution

•Our objective is to achieve a sustainable road transportation system by focusing on technological advances in energy sources, efficiency and innovation

• Industry continues to develop and implement advanced technologies and alternative fuels

Optimization of conventional technologiesHybrid technologyFuel cell technologyRenewable fuels

•Large scale changes, such as a renewable fuel infrastructure, require the commitment of many stakeholders

Automobile CompaniesFuel Manufacturers/DistributorsGovernmentInvestorsConsumers

Insert Picture Here

3

DaimlerChrysler Strategy

• DaimlerChrysler’s powertrain strategy:

• Invest in technologies focused on fuel efficiency and alternative fuels

• Provide multiple solutions tailored to a variety of customer needs

4

DaimlerChrysler’s Portfolio of Technologies

Vehicle Driveline Efficiencies

Diesel/Bio-Diesel Technology

Optimization of Combustion Engines

Ethanol/E85 FFV technology

Enabling Technologies

Hybrid Technology

Fuel Cell Technology

5

World Engine

• Inline 4 cylinder - three displacements• Dual-cam Variable Valve Timing (VVT)• Four valves per cylinder• Dual overhead camshafts• Electronic Throttle Control (ETC)• High compression• Manifold flow control valves

Up to 5% fuel-efficiency improvement over predecessor engine.

6

Continuously Variable Transmission (CVT)

• Offers improved driveability, fuel economy and performance.

• Allows engine to operate at optimum combination of speed and throttle opening and fuel economy for power requirement.

• Provides a wide ratio (6.0-to-1) spread of gears from first gear to overdrive for best performance over all vehicle speeds.

Up to 6% fuel-efficiency improvement over predecessor transmission.

7

The 2007 Dodge Caliber, Jeep Compass and Jeep Patriot feature the all new, more fuel-efficient World Engine and continuously variable transmission (CVT).

World Engine/CVT Technology Applications

Jeep Compass - Concept Jeep Patriot - Concept

Dodge Caliber

8

Multiple Displacement System (MDS)

Oil control valves open

Valves deactivated, no combustion occurs

V4 Mode - Four cylinders deactivated

Oil control valves closed

Valves operating, combustion occurs

V8 Mode - No cylinders deactivated• The engine seamlessly

transitions from V8 mode to V4 mode in 40 milliseconds.

• The MDS systems improves fuel economy by up to 20% under certain driving conditions.

9

MDS Technology Applications

• DaimlerChrysler currently has Eight models that feature the Multiple Displacement System (or MDS) fuel saving technology.

• The Chrysler 300, Dodge Magnum, Dodge Charger, Jeep Grand Cherokee, Dodge Durango, Dodge Ram, Jeep Commander, and Chrysler Aspen all feature MDS.

• By 2007, MDS is estimated to save over 60 million gallons of gasoline per year.

10

Advanced Diesel Technology

• Advanced diesel technology is available today and can help reduce our nation's dependency on foreign oil.

• Diesel can improve fuel economy by an average of 30% and lower CO2emissions when compared to equivalent gasoline engine.

• According to a J. D. Power and Associates study, light duty diesels could grow from a 3% market share in 2004 to 12% in 2012.

11

DaimlerChrysler BLUETEC Diesel Technology

• The worlds cleanest diesel• Capable of achieving 50-state emissions

12

Hybrid Technology

DC-GM-BMW MoU, 12.09.2005

Hybrid Cooperation:• Sets standards with a family of

products• Increases technical expertise• Shares elements of cost, risk, and

benefits• Pools volume leading to economies of

scale• “Leap frog” existing technology

Technology Application:• Delivers up to 25% better fuel economy

while retaining towing capacity• Engine technology Improvements to

optimize performance and fuel economy:Variable Cam Timing Increased MDS OperationEGR (Exhaust Gas Recirculation)Rapid Heat up cooling system

13

DaimlerChrysler: A History of Leading Fuel Cell Development

Timeline of DaimlerChrysler Fuel Cell Vehicles

Fit für den AlltagsbetriebMachbarkeitsstudien und Markt -Vorbereitung

Phase 2Phase 1

CitaroNeBus

SprinterNecar 1

JeepCommander

Necar 5

Necar 3

F-CellChryslerNatrium

Necar 4Advanced

Necar 4Necar 2

Future200420032002200120001999199819971996

Hydrogen Heavy -Duty Vehicles

Hydrogen Light -Duty Vehicles

Methanol Passenger Cars

Hydrogen Passenger Cars

19951994

fit for daily usefeasibility studies and market preparation-

Phase 2Phase 1

CitaroNeBus

SprinterNecar 1

JeepCommander

Necar 5

Necar 3

F-CellChryslerNatrium

Necar 4Advanced

Necar 4Necar 2

Future200420032002200120001999199819971996

Hydrogen Heavy -Duty Vehicles

Hydrogen Light -Duty Vehicles

Methanol Passenger Cars

Hydrogen Passenger Cars

19951994

14

DaimlerChrysler Hydrogen Fuel Cell Activities

60 F-Cell vehicles incustomer hands (since 2004)

36 Buses (Citaro)Europe, Australia, China

3 Sprinters at UPSEurope, USA

~ 495.000 miles* ~ 837.000 miles* ~ 37.000 miles*

• DaimlerChrysler as pioneer of Fuel Cell Vehicle• Daily operation of more than 100 FCV’s all over the

world• Long experience with FCV’s (first FCV in 1994)• Broad portfolio of FCV’s: passenger cars, buses, vans• Operation of FCV’s by customers in different climate

zones with varying ambient temperatures

Basis for technology validation and market

development (customer acceptance, infrastructure build-up,

Codes & Standards)

Worldwide leading Experiences with DaimlerChrysler Fuel Cell Vehicles

15

Bio-Fuels: Three Major Benefits

Environment

Reduce criteria emissions at local, urban, metro, and national levelsReduce greenhouse gas emissions

Agriculture

Create new markets for agricultural crops

Energy

Energy securityReduce dependency on petroleum-based energy sourcesDiversify energy sources

16

E85 Bio-Ethanol: Flexible Fuel Technology

• Since 1998, the Chrysler Group has sold 1.5 Million E-85 Flexible Fuel cars, trucks, and minivans without cost to the customer

• DaimlerChrysler’s is planning to grow its E85 FFV volume to 500,000 FFVs per year by 2008 with dramatic increase for 2007

Ethanol Challenges:• Low concentration ethanol blends (E10, E6) present emission challenges• Infrastructure – limited availability of high concentration ethanol blends

(E85)• Volumetric fuel economy is reduced due to lower energy content• Ethanol from corn is not currently cost competitive on an energy content

basis with petroleum-based fuels

17

Development of More Efficient Ethanol Processes

• Ethanol can be produced from cellulosic material such as switch grass or wood chips

• Cellulosic ethanol promises greater greenhouse gas reductions, and greater yields per acre

• Government/Industry research into cellulosic ethanol production will yield a more cost effective solution

18

E85 Flex-Fuel Technology Applications

Dodge Ram

Chrysler Sebring

Dodge Grand Caravan

Chrysler AspenChrysler Town and Country

Jeep Commander

Jeep Grand Cherokee

Dodge DakotaDodge Caravan

Dodge Durango

19

Bio-Diesel

• The 2007 Jeep Grand Cherokee and Dodge Ram diesel vehicles are both approved for B5 use

• The Jeep Grand Cherokee is shipped to customers with B5 fuel in the tank

• The key to the success of bio-diesel is the generation of a high quality fuel specification

20

Next Energy B20 Specification Project

•DaimlerChrysler is partnering with Next Energy, Bosch, Delphi, Biodiesel Industries, DoE, DoD, Michigan State University, and Wayne State University to develop a consensus specification for B20

•A consensus specification is needed to support the use of B20 in retail applications, which can be used in diesel vehicles that are currently on the road

•Parameters and limits which are not yet clearly understood include:

StabilityDensityViscosityCold OperabilityEmissions impacts

21

B20 Biodiesel Technology Application

• Dodge Ram Trucks are successfully operating on B20 in EPACT fleets nationwide

• Proves that B20 CAN be used, if proper quality controls are in place

• For 2007 MY, B20 that meets Mil Spec is approved for use in fleet vehicles

22

Conclusion

• Everyday, the auto industry works on a broad portfolio of technologies to improve the energy efficiency of transportation

• For the near-term, improving gasoline and diesel internal combustion engine (ICE) technology will be the focus for volume production

• For the mid-term, hybrid vehicles utilizing electric drive systems, integrated power modules and advanced batteries are being developed

• In the long term, fuel cell vehicles with on-board hydrogen storage from a national hydrogen infrastructure will emerge

• Ethanol from cellulose and biodiesel from multiple feedstocks will emerge as important transportation fuels