Light Duty Technology Cost Analysis, Power - US Environmental ...
Light Duty Technology Cost Analysis, Power - US Environmental ...
Light Duty Technology Cost Analysis, Power - US Environmental ...
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� All manufacturing process and operations are based on standard/mainstream<br />
industrial practices.<br />
� All material, labor and manufacturing overhead costs are based on 2009/2010<br />
economics.<br />
� All OEM mark-up will be applied using indirect cost (IC) multipliers. These are<br />
not within the scope of this analysis, but should be separately determined and<br />
applied to the results of this analysis to obtain the total (direct + indirect)<br />
manufacturing costs.<br />
Since the manufacturing costs presented in this report are based on current automotive<br />
and/or surrogate industry manufacturing operations and processes, it is acknowledged that<br />
a reduction to the costs presented is very likely based on both product and manufacturing<br />
learning. Projected technology cost reductions, as a result of learning, are not covered as<br />
part of this analysis.<br />
In addition, no attempt was made in the analyses to forecast the impact of material, labor,<br />
and/or manufacturing overhead rate changes. However, a sensitivity analysis has been<br />
added to predict the impact of changes in any of the costs.<br />
The report begins by providing an overview of the costing methodology used to conduct<br />
the various analyses contained within this report. Additional details on the costing<br />
methodology can be found in EPA published report EPA-420-R-09-020 “<strong>Light</strong>-<strong>Duty</strong><br />
<strong>Technology</strong> <strong>Cost</strong> <strong>Analysis</strong> Pilot Study” (http://www.epa.gov/OMS/climate/420r09020.<br />
pdf).<br />
Following the costing methodology overview, the incremental cost impact of adding<br />
power-split hybrid electric vehicle (HEV) technology to a conventional baseline vehicle is<br />
discussed. The analysis is based on the detail teardown and costing of the hardware<br />
difference, applicable to the adaptation of power-split HEV technology found between<br />
the 2010 Ford Fusion HEV and an equivalent equipped 2010 Ford Fusion conventional<br />
powertrain vehicle. A description of the hardware required to create the power-split<br />
technology is highlighted and details on the costs are captured at various levels. Figure<br />
A-1 is a simple illustration of the power-split technology analyzed highlighting key<br />
components within the power-split system boundary as well as those systems which<br />
impacted the net incremental direct manufacturing cost. Components within other vehicle<br />
systems (e.g., suspension, driveline, electrical feature) were also modified, however their<br />
differences were assessed to have no significant cost impact.<br />
2