AUTO EXECS 5-10 YEAR VIEW

"Design News" C Murray, Sr Editor,

source: KMPG Global Automotive Executive Survey 2013
source: David Cole, chairman emeritus of the Center for Automotive Research (CAR)

85%: IC Engine Is the Best Chance for Fuel Efficiency and Emissions Gain Over the Next Decade
- Relying on downsizing the Internal Combustion engine.
[example: Ford introducing one-liter engine targeted at the worldwide market]

Cole concurred that the internal combustion engine is still considered the best bet for reaching the CAFE mandate of 54.5 mpg by 2025. "We won't be writing the epitaph for the internal combustion engine for a really long time. It could be around for 50 more years."

KPMG: ..increasing realization that the electric vehicle is not quite the savior ..hoped for."

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Plug-In Hybrids Will Soar, Pure EVs Decline (5 year view)

ELECTRIC VEHICLE TECHNOLOGY THAT WILL ATTRACT THE MOST CONSUMER DEMAND:,
36%: plug-in hybrids; 11% battery-electric vehicles (BEVs)

DIRECTIONS FOR INVESTMENTS:
24% large investments in plug-in hybrids,
8% large investment in battery technology..

Cole: "There's a consensus developing that the plug-in hybrid is probably the best long-term way to go," "Plug-ins offer stop-start and regenerative braking. They also get their power from the grid and don't have the range issues [of] pure electrics