Partnership for a New Generation of Vehicles.
The centerpiece of the current federal effort in advanced automotive R&D is PNGV, a joint
initiative of the Clinton Administration together with the Big Three automakers,^74 announced in
September 1993. PNGV is conceived as a joint government-industry R&D program aimed at the
following three goals:
. Reduce manufacturing production costs and product development times for all car and truck production.
. Pursue near-term advances that increase fuel efficiency and reduce emissions of conventional vehicles.
. Develop a manufacturable prototype mid-size vehicle by 2004 that provides as much as three times the
fuel efficiency of today’s comparable vehicle, without sacrificing safety, affordability, comfort, or
convenience.
In fiscal year (FY) 1995, program managers in the participating federal agencies estimated that
the federal government spent about $270 million for R&D that is relevant to achieving these
goals,^75 with a requested increase t. $386 million in FY 1996 (see table 1-4).^76 PNGV is actually
a “virtual” program, in the sense that it coordinates and refocuses the various existing agency
programs and resources toward the PNGV goals. The effort involves numerous participants,
including eight government agencies, the national laboratories, universities, the Big Three, and
their suppliers and subcontractors. In FY 1995, about 41 percent of government finding for
PNGV went to the Big Three or their suppliers, 23 percent to federal research labs, and 36
percent to other R&D performers.^77
The Department of Energy (DOE) provides about 60 percent of federal finding for PNGV-
related research (about $159 million in FY 1995), but may account for 90 percent of the federal
finding for advanced vehicle development. Other agencies’ contributions tend to be oriented
toward improved components or materials processing technologies, or toward collateral areas,
such as safety research. Within DOE, the Office of Transportation Technology’s 20-year-old
Electric and Hybrid Vehicle Program is the core of PNGV.
U.S. COMPETITIVE POSITIONThe advanced automotive technologies considered in this report range from “advanced
conventional” to “leapfrog” technologies. Broadly, these are distinguished by their relationship to(^74) General Motors, Ford, and Chrysler are represented by their R&D consortium, the U.S. Council for Automotive Research(USCAR).
75 An exact estimate of federal funding is difficult to obtain, due to the lack of commonly accepted criteria for judging what is part of PNGV, and
what is not. The $270 million figure is based on the estimates of program managers in federal agencies, which the industry participants feel is far too
high. According to industry sources contacted by OTA, the total R&D expenditure of government plus industry may approach $270 million.
76 The National Institute of Standards and Technology'sAdvanced Technology Program anticipates about $30 million in new awards in
FY 1996 that are not counted in current totals.
77 According to information supplied to OTA by the PNGV Secretariat.