Study: Automotive Suppliers 2017 | Page 4

4 A) Tightening CO 2 targets require investments in electrification and use of lightweight construction OUTLOOK GOVERNMENTS AND CUSTOMERS EXPECT REDUCTIONS IN CO 2 EMISSIONS The three largest economies in the world have passed strong regulations with regard to CO 2 emissions. Europe, as a leading regulator, aims to reduce CO 2 emissions by 27% by 2021. CO 2 targets can be achieved through: Investments in engine efficiency – traditional combustion engines are optimized while alternative technologies such as electrical engines are developed. 2015 ∅ 161 [g CO 2 /km] 2015 ∅ 130 2015 ∅ 146 2020 ∅ 117 [g CO 2 /km] 2021 ∅ 95 2021 ∅ 107 Reduction in overall car weight – every car weight reduction of 100 kg results in a decrease of ~6-7g CO₂/km. Depending on costs and target customer groups, different degrees of weight optimization are pursued. HEAVY INVESTMENTS IN ENGINE EFFICIENCY • CO 2 targets are difficult to meet solely through engine efficiency or lightweight materials • Investments in alternative powertrains (e.g. hybrid or electrified) will become necessary CO 2 REDUCTIONS THROUGH WEIGHT OPTIMIZATION • Lightweight materials are hard to process but allow for new designs and product differentiation • Electrified powertrains increase vehicle weight and trigger need for weight optimization Source: EC 443/2009; Umwelt Bundesamt; Center for Climate and Energy Solutions; goetzpartners analysis