SUMMARY
USCAR, a partnership of Ford, Chrysler, and General Motors, is pleased to join with the President on behalf of the federal government, in this Declaration of Intent to pursue a unique research and development effort. The goal is the development of commercially-viable vehicle technology that, over the long-term, can preserve personal mobility while further reducing the impact of cars and light trucks on the environment, and reducing dependence on imported petroleum. Such a vehicle, that meets applicable safety and emission standards, and provides the performance, affordability, and comfort the public has come to expect from American automobiles, can help assure world leadership for the U.S. industry.
SHARED VISION
On February 22, 1993, President Clinton announced a comprehensive new initiative "Technology for America's Economic Growth, A New Direction to Build Economic Strength," intended to move America forward to a stronger economy, a cleaner environment, more competitive business, more effective government, and technological leadership in critical fields. As part of his initiative, the President focused on the U.S. auto industry and he proposed linking the research efforts of the various government agencies with those of the U.S. auto manufacturers and working together to design programs to develop prototype vehicles which reach the goals described below.
The U.S. automobile industry has made a major commitment to research and innovation in the past, and the results are visible in the increasing productivity of its employees and plants, and in attractive products offered at competitive prices around the world. Looking to the future, the new challenges of international competition and the costs of meeting increasingly stringent environmental standards can best be met if government and industry work together to develop a new generation of automobiles.
We have made considerable progress in emissions and fuel economy, but rapid development of new technology is essential to pave the way for major further gains. Breakthroughs are possible in basic research in areas such as combustion, light-weight materials, and alternative sources of fuel.
This program represents a fundamental change in the way government and industry interact -- a shift to a new era of progress through partnership and cooperation to address the nation's goals, rather than through the confrontational and adversarial relationship of the past. This new public policy of partnership and cooperation will permit dedication of private and public resources to programs designed to achieve major technological breakthroughs that can make regulatory interventions irrelevant.
OVERVIEW
The automobile industry recognizes that its future depends on world-class productivity, and the production of affordable, high quality, safe, environmentally sensitive products. But this industry faces continued challenges in the years ahead. International competition is growing. The new Clean Air Act amendments and the California standards set ambitious new goals for reduced emissions. Reductions in greenhouse gas production and imported petroleum demand over the long term, may require a number of actions, in combination, to reduce fleet fuel consumption.
This program is designed to address key new technical options for vehicles, including: 1) development and introduction of substitutes for petroleum used in transportation -- particularly fuels from renewable resources, and 2) increased efficiency in automobiles and light trucks.
We expect the program will mark the beginning of a new era of progress through partnership. By this document, USCAR and the government declare their separate but coordinated plans toward the achievement of specific goals to meet the nation's need and desire for tomorrow's clean and efficient cars.
PROGRAM GOALS
The program strategy is designed to create a balanced research portfolio capable of pursuing a number of goals simultaneously. The program should:
Both industry and government leaders agree that cooperation and combining resources is the best way to make significant progress. Industry will provide leadership in identifying research opportunities that can meet the goals of this Initiative and in producing and marketing new vehicle technologies once their commercial viability has been demonstrated.
The federal government, working with fuel producers, will promote the accelerated development and production of alternative fuels. The vehicle manufacturers, to the extent practicable and appropriate, will ensure vehicle compatibility with new fuels.
RESEARCH GOALS
The goal of this program is embodied in three independent, but related, research initiatives. The first will explore technologies that improve the process of designing, manufacturing, and producing vehicles, and that permit greater flexibility in incorporating new production processes and products. The second will develop a range of technologies that improve fuel economy and performance and reduce the emissions associated with conventional vehicle designs. The third will pursue development of a revolutionary class of efficient, environmentally friendly, commercially viable vehicle.
The specific goals of these three initiatives are as follows:
As stated above, throughout the research program the industry commits to apply, as they become commercially viable, those technologies resulting from the research program that would be expected to significantly increase vehicle fuel efficiency. But it is recognized that reaching the goal of fuel efficiencies up to three times today's comparable vehicle may be dependent upon development of revolutionary new approaches, such as fuel cells, to replace the internal combustion engine.
The development of fuel cells, as well as new generation batteries, ultra-capacitors, and other technologies may be beyond what is reasonable and realistic to expect to be achieved and it is recognized that the more radical the technology necessary to reach this goal, the less certain its achievement and the timetable in which it can be achieved. Nevertheless, the goal is to develop a concept vehicle during the 1990's and a production prototype within approximately a decade. It is expected that government laboratories will make major contributions, concentrating on areas where technology is unproven, and there is presently limited consumer demand as a result of the low price of fuel.
These program and research goals are aggressive. The parties agree there is no certainty that these technologies can be developed while simultaneously achieving the other program goals of maintaining affordability, emissions reduction, utility, performance, and safety. The parties also recognize that significant concomitant infrastructure changes also may have to occur to enable the industry to commercialize this new class of vehicle. Nonetheless, the parties commit their best efforts to the achievement of the goals of this Declaration of Intent and to the rapid application of any developed commercially viable technology.
While the relative proportions of government and private funding will vary depending on the government program (if any) utilized to support a particular aspect of the Initiative, and on the specific project involved, it is envisioned that there will be significant cost sharing by industry and government. The proportion of federal funding will be higher for high-risk projects where the outcome is uncertain and that of industry funding will be higher for technologies with a clear, near-term market.
Focusing research and development activities around these objectives will help maintain the technical leadership and global competitiveness of the nation's automobile industry. It will secure and create U.S. jobs in this sector, which are a vital source of quality employment and tax revenues. The industry and government parties hereby signal their commitment to work together to design and carry out efficient, flexible research programs to achieve the goals of the Initiative. The federal government also hereby intends to use the power of federal vehicle procurement to support the goals of this Initiative, and to encourage state government and other groups to take similar actions to ensure the success of this Initiative.
NEXT STEPS
Several steps will be taken immediately:
As outlined by this Declaration of Intent, the parties expect many individual contracts, grants, CRADAs, and other project agreements to be undertaken by industry, or between industry and government, in support of the goals of the program. Similarly, the government expects and plans to utilize its resources, including its research and development programs, in a manner that will foster the goals of this program. However, neither this Declaration of Intent nor the program it is designed to initiate, is intended as a commitment of specific government or private funds or resources. Such contractual and decision making functions will continue to be carried out through contracts, agreements, and other arrangements made under and subject to, all applicable laws and regulations. It is intended and hoped that other relevant industries and groups will also declare their intent to work in partnership with the government and the automotive industry to help achieve the goals of this Initiative.