The economic consequences of powertrain innovations

When discussing breakthroughs in light vehicle powertrain technology, in the context of better fuel economy and emissions reduction, one crucial aspect to keep in mind is the economics involved in powertrain innovation. With the push for reductions in CO2 emissions, all stakeholders in the automotive industry will face economic consequences.

Thanks to limited oil resources and climate change, CO2 emissions have become central to environmental policy. These same factors will raise the importance of the role played by aspects such as fuel consumption and energy efficiency, both for the industry and consumers alike.