Prepared by the Joint Government-Industry Greenhouse Gas (GHG) Memorandum of Understanding(MOU) Committee.

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© Her Majesty the Queen in Right of Canada, 2007

Canadian Vehicle Manufacturers' AssociationL'Association canadienne

des constructeurs de véhicules

www.cvma.ca

Association of International Automobile Manufacturers of Canada L'Association des fabricants internationaux d'automobile du Canada

www.aiamc.com

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1. Introduction ……………………………………………………………………….. 1 2. Achievements and Progress to Date …………………………………………. 3 2.1 Joint Government-Industry GHG MOU Committee Activities …….… 3 2.2 Advanced Technology Introductions ………………………………..… 4 2.3 Outreach Activities ..…………………………………………………….. 5 3. The Path Forward ……………………………………………………………….. 7 Appendix A Operational Plan and Key Deliverables –

Updated December 2006 ………………………………………………… 8 Key Milestones Under the Operational Plan ……………………………... 9

Appendix B Advanced Technology Introductions by the Automotive Industry ……… 10

Table of Contents

1

On April 5, 2005, the Government of Canada and the automotive industry reached a landmark voluntary agreement to reduce annual greenhouse gas (GHG) emissions from Canada’s vehicle fleet by 5.3 megatonnes (Mt) in 2010. The voluntary nature of this agreement provides greater GHG reductions in an earlier time frame than otherwise possible and is supported by both Parties to the agreement. The memorandum of understanding (MOU) sets out a comprehensive approach to reduce GHG emissions and is founded on a framework of key principles that are outlined in the MOU. The MOU has several key components, which are as follows: • The MOU voluntarily commits the

Canadian automotive industry to achieve a 5.3 Mt reduction in GHG emissions from passenger cars and light-duty trucks in 2010, relative to the reference case.

• It is comprehensive in that it includes

all the GHGs under the United Nations Framework Convention on Climate Change that apply to the use of motor vehicles. This includes carbon dioxide (CO2), nitrous oxide, methane, hydrofluorocarbons and other Kyoto gases that are equated to a CO2 equivalent (CO2e) value in Mt.

• It clearly outlines interim GHG emission reduction goals that the Canadian automotive industry has committed to meet. The interim reduction goals are 2.4 Mt in 2007, 3.0 Mt in 2008 and 3.9 Mt in 2009.

• It focuses efforts on the introduction

into the Canadian marketplace of advanced emission technologies, advanced diesel technology, alternative fuel vehicles, hybrids, and technologies that promote fuel savings such as on-board diagnostics and tire pressure monitoring systems, as well as other emerging technologies.

• It encourages the appropriate use of a

variety of new fuels such as ethanol, clean diesel and biodiesel by working with the government and fuel providers in this regard to support new vehicle technologies.

• It indicates that the automotive industry

will support automotive research and development in Canada.

• It provides for a joint government-

industry committee to monitor progress and industry performance against interim GHG reduction goals as a means of ensuring accountability for the MOU.

1. Introduction

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The Joint Government-Industry GHG MOU Committee recognizes the importance of sharing early information on its activities. Consequently, the Committee is providing periodic progress updates. These progress updates are not a requirement under the terms of the MOU, and are, in fact, above and beyond the reporting requirements. The First Progress Update in June 2006 provides details on the MOU, its approach and benefits, as well as the 5.3 Mt reduction goal. It also outlines the mandate and terms of reference for the Joint Government-Industry GHG MOU Committee, which serves as the accountability mechanism to track progress and report on the MOU. The First Progress Update can be obtained from the following Web sites: www.cvma.ca, www.aiamc.com and oee.nrcan.gc.ca/transportation/ghg-memorandum. This is the second progress update since the MOU was signed. It provides information on the activities and progress under the MOU through the fourth quarter of 2006. The Government and the automotive industry remain committed to delivering on the MOU and its goal to reduce GHGs. In October 2006, the Government announced its intention to regulate vehicle

fuel consumption. The Government’s Notice of Intent states that the: “Government intends to regulate the fuel consumption of road motor vehicles after the expiry of the Memorandum of Understanding between the auto industry and the Government of Canada. The Minister of Transport, with the Minister of Natural Resources, will develop regulations that will build on the voluntary commitment the auto industry made collectively in 2005 that calls for a reduction of 5.3 Mt of GHGs by 2010, through ongoing improvements in fuel consumption performance. These new regulations will be developed and implemented under the Motor Vehicle Fuel Consumption Standards Act, as amended by the proposed Canada's Clean Air Act, to take effect for the 2011 model year.”

The Committee has continued its work to deliver results as outlined in the MOU, and this second progress update reports on these efforts.

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2.1 Joint Government-Industry GHG MOU Committee Activities a. Data aspects and analytical framework The Joint Government-Industry GHG MOU Committee serves as the accountability mechanism under the MOU and its work is primarily technical in nature. Since the first progress update, the Committee has continued its work regarding the data aspects and analytical framework to monitor the goals of the MOU. Refinement of the analytical framework, or model, is important because the 5.3-Mt reduction goal in the MOU, as described in the First Progress Update, will be based on updating the work completed in 1999 by the Transportation Table in the federal climate change process and on Natural Resources Canada’s Canada’s Emissions Outlook: An Update, published in December 1999. To measure performance under the MOU, the model will calculate reference case emissions and compare them to actual levels. Not only must the model be updated, it must also be refined to enable it to track GHG emissions annually – a feature for which the original model was not designed. Of particular importance is the need to use a methodology that is consistent with the approach taken by the 1999 Transportation Table, as this is the basis upon which it was agreed in the MOU to measure progress. This work is well underway.

For instance, reference case emissions are being updated to account for changes in those factors that are outside of industry’s control, to ensure that the calculated impact of industry’s efforts to meet the reduction target fairly reflect industry’s effort. Progress has also been made on establishing the CO2 emission factors and global warming potential of GHGs (in CO2e), the test cycle fuel consumption for vehicles and the on-road fuel consumption adjustment factors that will serve as inputs to the refined model. b. Office of the Auditor General – Commissioner of the Environment and Sustainable Development Report On September 28, 2006, the Office of the Auditor General of Canada released the 2006 Report of the Commissioner of the Environment and Sustainable Development (CESD). The CESD report acknowledges that the MOU with the automotive industry meets many of the requirements recommended by the Office of the Auditor General for voluntary agreements. The CESD has recommended an improvement with regard to third-party verification of data and results. The Committee will consider how to address this recommendation before the release of its first formal report. It is important to note that the Committee is responsible for monitoring and reporting progress and ensuring accountability for the MOU.

2. Achievements and Progress to Date

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c. Operational Plan Review The Committee has committed to review its Operational Plan and the associated deliverables on a regular basis. The Committee has concluded that the elements are appropriate for the current reporting period. A copy of the Operational Plan and the associated deliverables are outlined in Appendix A. 2.2 Advanced Technology Introductions The various types of potential fuel-saving technologies from the automotive industry that would contribute to a reduction in GHG emissions from vehicles are listed in the GHG MOU. The GHG MOU can be found in Annex 2 of the First Progress Update (oee.nrcan.gc.ca/transportation/ ghg-memorandum/documents/MOU-legal-signed-copy.pdf). Most of the technologies have related effects requiring re-engineering of associated systems, increased computer power and software sophistication, as well as changes to assembly procedures and supplier systems. Some technologies require further research, development and engineering work and in certain applications may not be appropriate, feasible or cost-effective. The industry continues to introduce many new models that incorporate technologies that can reduce GHGs since the signing of the MOU. Technologies available in the

Canadian market for the 2007 and 2008 model year include:

Transmission Improvements • 6-speed transmissions • continuously variable transmissions Engine Improvements • cylinder deactivation • variable valve timing Other Vehicle Improvements • lightweight materials (aluminum,

magnesium) • tire pressure monitoring systems • low rolling resistance tires • new engine technologies that use a

diversity of fuels – ethanol, diesel, biodiesel, etc.

Advanced Technology Vehicles • hybrid electric vehicles • advanced diesel vehicles

The above mentioned technologies have penetrated the market. For example, in 2004, there were slightly more than 2100 hybrid vehicles on the roads in Canada; and in 2006, there were more than 9000 hybrids on the road. Similarly in 2004, there were 8500 vehicles with continuously variable transmissions on the road; today, there are more than 70 000 vehicles with this technology on Canadian roads.

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Technology: Cylinder deactivation

Appendix B provides a detailed list of models or technologies that have been introduced. This is by no means comprehensive. It is intended to show that new models are incorporating many advances in new vehicle technology.

2.3 Outreach Activities Since the signing of the MOU, the Government of Canada and the automotive industry have participated in outreach activities to discuss and share information on the MOU and its intent.

Active Fuel Management TTMM

6

• Windsor Workshop – Presentation on Canada’s MOU on Greenhouse Gas Reductions for Vehicles, June 2006

• Windsor Workshop – Two Technology

Presentations – “General Motors Active Fuel Management” and “T3 Diesel Engines and Bluetech®,” June 2006

• National Advisory Committee on

Energy Efficiency, Québec City, June 2006

• Seventh Annual Global Conference on

Environmental Taxation, Ottawa, October 2006

• National Advisory Committee on

Energy Efficiency, Montréal, November 2006

• Ontario’s Call for Action on Climate

Change and Clean Air, Toronto, December 2006

The Committee also published the First Progress Update in June 2006. This first report on progress under the MOU that is in addition to the required reporting was made publicly available on government and industry Web sites: oee.nrcan.gc.ca/transportation/ghg-memorandum, www.cvma.ca and www.aiamc.com. Copies have been distributed to government, industry, non-governmental organizations, the academic community and the general public.

Technology: Continuously variable

transmission

Technology: Advanced diesel (common rail technology)

7

The Joint GHG MOU Committee has moved forward with its work under the MOU. The agreement between the automotive industry and the government on reducing GHG emissions from light-duty vehicles is on a positive track forward, and some of the key basic technical data aspects and foundations are being put in place. New vehicle technologies and models continue to be introduced to the market, and companies in the automotive industry are making progress in their vehicle fleets that will contribute to the overall industry GHG reductions over the period of the agreement. The Committee is committed to sharing information on its activities and progress and will continue to meet its responsibilities as defined by, and for the duration of, the MOU. It should be noted that the government has stated its intent to regulate the industry after the MOU has ended. The Committee will report on its activities again after the second quarter of 2007 in its third progress update.

3. The Path Forward

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Appendix A. Operational Plan and Key Deliverables – Updated December 2006

Operational Plan for the Joint GHG MOU Committee

TASK DATE

MEETINGS OF THE GHG MOU COMMITTEE Inaugural meeting and confirmation of joint government-

industry members June 10, 2005 Meetings to be scheduled semi-annually, or more

frequently at the call of the co-chairs TBD TERMS OF REFERENCE Committee adoption October 2, 2005

PROCESS FOR RESOLUTION OF TECHNICAL ISSUES In process COMMUNICATIONS PLAN Develop plan for outreach and communications First quarter 2006

OPERATIONAL PLAN Committee adoption October 2, 2005 Plan implementation Ongoing

• Data collection • Reference case updates • Monitoring and forecasting • Diagnosis

REVIEW AND ASSESSMENT OF OPERATIONAL PLAN As required

Appendix A

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COMMITTEE REPORTS PERIOD ENDING Committee progress update – First First quarter 2006 Committee progress update – Second Fourth quarter 2006 Committee progress update – Third Second quarter 2007 Report on 2007 Interim Goal May 2008 Report on 2008 Interim Goal May 2009 Report on 2009 Interim Goal May 2010 Report on 2010 Target May 2011

Key Milestones Under the Operational Plan

COMMITTEE REPORTS PERIOD ENDING

Committee progress update – First – Completed First quarter 2006 Committee progress update – Second – Completed Fourth quarter 2006 Committee progress update – Third Second quarter 2007 Report on 2007 Interim Goal May 2008 Report on 2008 Interim Goal May 2009 Report on 2009 Interim Goal May 2010 Report on 2010 Target May 2011

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Appendix B. Advanced Technology Introductions by the Automotive Industry

BMW Canada Inc. • 2007 3 Series Coupe and Cabriolet:

introduction of valvetronic technology on all model variants – incorporates both variable valve timing and variable valve lift

• 2007 3 Series Coupe and Cabriolet: introduction of new 6-speed manual and 6-speed automatic transmissions on all model variants (formerly 6-speed manual only on 330Ci variants)

• 2007 X3: introduction of valvetronic technology on 6-cylinder engines

• 2007 X3: introduction of new 6-speed automatic transmission (formerly 5-speed)

• 2007 X5: introduction of valvetronic technology on 6-cylinder engine

• 2007 X5: introduction of new 6-speed automatic transmission on 6-cylinder variants (formerly 5-speed)

• 2007 MINI Cooper: new 1.6-L, 4-cylinder engine – 30% lighter aluminum engine block, new introduction of fully variable valve timing

• 2007 MINI Cooper: new 6-speed manual transmission (formerly 5-speed)

• 2007 MINI Cooper S: new 1.6-L, 4-cylinder engine – 30% lighter aluminum engine block, new direct injection

• 2007 MINI Cooper and Cooper S: new aluminum multi-link rear suspension components – reduced weight

DaimlerChrysler Canada Inc. • 2008 model year: new Dodge Avenger

offering of ethanol (E85) flexible fuel vehicle option

• 2008 model year: new 4.7-L, V8 incorporates two spark plugs per cylinder, increased compression ratio, improved cylinder-head port flow, a new combustion system, and is E85 capable

• 2007 model year: extended offering of ethanol (E85) flexible fuel vehicle (FFV) models – Chrysler Sebring, Dodge Caravan, Caravan C/V, Grand Caravan, Grand Caravan C/V, Dodge Ram 1500 4x2, Ram 1500 4x4, Dodge Durango, Dodge Dakota 4x2, Dakota 4x4, Jeep Commander, Jeep Grand Cherokee; 2007 FFVs have bright yellow fuel caps and vehicle badging to allow consumers to know if their vehicle is flex-fuel capable.

• 2007 model year: new Jeep Grand Cherokee CRD with new 3.0-L common rail turbo diesel engine and factory fuelled with 5% biodiesel blend (B5)

• 2007 model year: new 4.0-L, V6 in Chrysler Pacifica and Dodge Nitro

• 2007 model year: new 6-speed automatic transmissions in Chrysler Pacifica and Sebring

• 2007 model year: new Jeep Compass and Jeep Patriot sport utility vehicles with a second generation Continuously Variable Transmission (CVT2)

Appendix B

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• 2007 model year: new Compass and Jeep Patriot four-wheel drive system requires no front-to-rear slippage for activation. Electronically controlled coupling (ECC), attached to the rear differential, is the heart of the system. The system contributes to good fuel economy by operating only when needed, minimizing power-robbing friction and inertia

• Continuous design improvements, for example by optimizing fuel pump design, the amperage can be reduced by about 40%; and since fuel pumps run all the time, this results in about 0.1 mpg savings on high-flow applications such as flexible fuel vehicles

• 2007 model year: new Dodge Caliber compact car available with three new 4-cylinder World Engines with dual Variable Valve Timing (VVT) and intake manifold with flow control valves, improved fuel economy over the engines they replace

• 2007 model year: new Dodge Caliber compact car available with a second generation Continuously Variable Transmission (CVT2), improved fuel economy compared with a traditional 4-speed automatic

• Two-mode hybrid development with General Motors and BMW

Ford Motor Company of Canada, Limited • 2007 model year 4.6-L Explorer Sport-

Trac: 6-speed automatic transmission • 2007 model year 3.5-L Ford Edge and

Lincoln MKX: 6-speed automatic transmission and variable cam timing

• 2007 model year 5.4-L Expedition: 6-speed automatic transmission

• 2007 model year: Ford will offer ethanol (E85) flexible fuel vehicle (FFV) capability on F-Series trucks, Crown Victoria and Grand Marquis

• 2007 Focus, Explorer, Navigator: higher efficiency torque converters for automatic transmissions

• 2007 Focus, F-Series, select Explorers: low rolling resistance tires

• 2007 Navigator, Expedition, Escape, Explorer, Ranger: improved lubricants for lower engine parasitic losses

• 2007 Navigator, Expedition, Escape, F-Series, Explorer, Ranger: lower aerodynamic drag

• 2007 Expedition, Explorer, F-Series: reduced engine parasitic losses through improved accessory drives

• 2007 and 2008 model years: Tire Pressure Monitor System standard on Edge, MKX, Ranger, Escape, Escape Hybrid, Sport-Trac, Explorer, F150, Mark LT, Expedition, Navigator, Mustang and 2007 Freestar

• 2008 Lincoln MKZ: 3.5-L engine with variable intake valve timing and variable cam timing

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General Motors of Canada Limited • GM offers a range of 4-, 5-, 6- and

8-cylinder engines with variable valve timing (VVT). The 2006 model year Impala has the first cam-in-block VVT application in the industry

• Active Fuel Management (AFM) seamlessly deactivates 3 or 4 cylinders under light loads to provide fuel savings on a wide array of V6 or V8 engine applications: 2007 Trailblazer / Envoy, 2007 Trailblazer EXT / Envoy XL, 2007 Saab 9-7X, 2007 Rainier, 2007 Tahoe / Suburban, 2007 Yukon / Yukon XL, 2007 Grand Prix GXP, 2007 Monte Carlo and Impala SS, 2007 Impala LTZ, 2007 Avalanche / Silverado and Sierra

• Ethanol-blended (E85) fuel option available on 2007 Chevrolet Impala, GMC and Chevrolet full-size pickup trucks and SUVs, including the Tahoe, Suburban, Avalanche, Silverado, Yukon and Sierra and 2007 Chevrolet Monte Carlo, Uplander, Pontiac Montana SV6, Saturn Relay and Buick Terraza

• Improved power density through supercharging and turbocharging facilitates the use of smaller displacement engines: 2007 Chevrolet Cobalt SS, Saturn Ion Red-Line, Saab 9-3, Saab 9-5, 2007 Pontiac Solstice and Saturn Sky

• Spark Ignition Direct Injection (SIDI) gasoline engines on 2007 Pontiac Solstice and Saturn Sky provide improved power output while using less fuel

• GM-patented Regulated Voltage Control (RVC) technology optimizes battery charging for improved fuel efficiency: broad portfolio application

• GM’s hybrid propulsion system is currently offered on transit buses providing significantly better fuel economy than traditional transit buses and dramatically reduced emissions

• Hybrid pickup truck: 2006/7 GMC Sierra and Chevrolet Silverado models

• 2007 Saturn VUE, Aura Green Line and 2008 Malibu Hybrids –combination of price and reduced fuel consumption benefits are intended to make these the best value hybrid systems on the market

• 2008 Tahoe/Yukon Two Mode Hybrid: leverages GM’s leadership in automatic transmissions and electronic controls with integrated, powerful and compact electric motors to provide full hybrid capability and efficiency as well as superior acceleration and continuous power

• Fuel-saving 6-speed automatic transmissions offered on 2007 Cadillac STS, XLR, Chevrolet Corvette, Pontiac G6, Saturn Aura, GMC Acadia, Saturn Outlook

• Fuel-saving 6-speed Allison 1000 series automatic transmission applied to certain pickup trucks: 2007 Chevrolet Silverado and GMC Sierra

• GM’s Regional Engineering Centre in Oshawa, Ontario, continues to work on the development and application of hybrid technology for GM’s global vehicle portfolio and hydrogen fuel cell powered Chevrolet Equinox vehicles destined for public demonstrations

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Honda Canada Inc. • Variable cylinder management: 2007

Odyssey, Pilot (2WD), Accord hybrid, Civic hybrid

• DSI (Dual Spark Plug Ignition): 2007 Civic hybrid

• Hybrid air-conditioning system: 2007 Accord hybrid and Civic hybrid

• DBW (Drive by Wire): all 2007 models • TPMS (Tire Pressure Monitoring

System) – Standard: 2007 Acura TSX, TL, RL, RDX, MDX; 2007 Honda Pilot, Ridgeline, Odyssey, Element and CR-V

• VTM-4 (Variable Torque Management System “On demand 4WD”) – Standard: 2007 Acura RDX (with Super Handling), Acura MDX (with Super Handling), Acura RL (with Super Handling), Honda Ridgeline. Optional on Honda Pilot

• Real Time 4WD (“On demand 4WD”) – Optional: 2007 Honda CR-V and Honda Element

• “Smart A/C”: 2007 MDX (air-conditioning [AC] system can monitor the cabin conditions and shut off the AC compressor and turn to partial re-circulation mode in order to reduce load on the engine and improve fuel economy when the heating, ventilation and air-conditioning [HVAC] system is set to AUTO mode)

• i-VTEC + VTC (Intelligent Variable Valve Timing & Lift Electronic Control + Variable Timing Control): 2007 Honda Civic, Acura RDX, Acura CSX, Acura TSX, Honda Accord and Honda CR-V

• i-VTEC + VCM (Intelligent Variable Valve Timing & Lift Electronic Control + Variable Cylinder Management): 2007 Honda Odyssey, Honda Accord Hybrid and Honda Pilot 2WD

• VTEC: 2007 Acura TL, Acura RL, Acura MDX, Honda Pilot, Honda S2000 and Honda Ridgeline

• Honda Integrated Motor Assist (IMA) system – third generation IMA: 2007 Accord Hybrid and first V6 Hybrid in Canada, launched December 2004

• Honda Integrated Motor Assist (IMA) system – fourth generation IMA: 2007 Civic Hybrid

Hyundai Auto Canada • Electronic throttle control for improved

volumetric efficiency: 2007 Entourage, Veracruz, Azera, Sonata and Santa Fe

• A 3-step variable intake system that optimizes efficiency at low, middle and high engine speeds: 2007 Entourage, Veracruz, Azera, Sonata, Santa Fe, Tiburon and Tucson

• Low-resistance intake manifolds: 2007 Accent, Elantra, Tiburon, Sonata, Veracruz, Santa Fe and Tucson

• Variable backpressure exhaust for improved volumetric efficiency: 2007 Veracruz

• Open type engine water jackets to improve thermal efficiency: 2007 Entourage, Veracruz, Azera, Sonata and Santa Fe

• Pulse Width Modulated engine cooling fan control for reduced power draw and improved engine temperature control: 2007 Sonata, Azera, Santa Fe, Entourage and Veracruz

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• Variable Force Solenoid controlled hydraulic pressure on Automatic Transaxles for reduced power loss and reduced fuel consumption: 2007 Elantra, Tiburon, Sonata, Entourage, Veracruz and Santa Fe

• Redesigned AWD system with variable torque control minimizes torque transfer at high speeds for improved fuel economy (ITCC – Intelligent Torque Controlled Coupling): 2007 Veracruz and Santa Fe

• 6-speed automatic transaxles: Entourage, Veracruz and Azera

• All 2007 engines equipped with Continuously Variable Valve Timing

• Variable angle air-conditioning compressors for reduced power draw and improved fuel economy: 2007 Accent, Elantra, Tiburon, Sonata, Veracruz, Santa Fe and Tucson

• Electric motor driven power steering for reduced power draw and improved fuel economy: 2007 Elantra

• Replacement of “traditional” materials with lighter weight alloys and composites: 2007 Elantra, Tiburon, Sonata, Veracruz, Santa Fe and Tucson

Kia Canada Inc. • CVVT (Continuously Variable Valve

Timing): 2007 Magentis, Amanti, Sorento, Rio, Spectra, Sportage (4-cylinder), Sedona and Rondo

• VFS (Variable Force Solenoid) eliminates unnecessarily high transmission pump loads: 2007 Magentis, Amanti, Sorento and Rondo

• ETC (Electronic Throttle Control) – computer finely controls throttle blade angle for optimum output and efficiency: 2007 Magentis, Amanti, Sorento and Rondo

• Bi-directional Fuel Injectors: 2007 Magentis, Amanti, Sorento and Rondo

• Aluminum engine block and cylinder heads: 2007 Magentis, Amanti, Sorento, Sedona, Sportage and Rondo

• Independent ignition coils on plugs increases fuel economy by ensuring a more complete burn of the intake charge of air to fuel: 2007 Magentis, Amanti, Sorento, Rio, Spectra, Sportage, Sedona and Rondo

• PWM (Pulse Width Modulated) cooling fans

Mazda Canada Inc. • Weight reduction through a

combination of lightweight materials and high tensile steel: 2007 RX-8 and MX-5

• Direct Injection Spark Ignition gasoline engine: 2007 Mazdaspeed3, Mazdaspeed6 and CX-7

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Mercedes Benz Canada Inc. • 2008 smart fortwo 2-seater compact

car • 2007 E320 BLUETEC: advanced

diesel technology engine, electronic 7-speed automatic transmission

• 2007 B-Class: M5 and M6 standard transmissions, CVT transmission, electric-electronically controlled power steering

• 2007 S & CL-Class: electronic 7-speed automatic transmission

• 2007 E, C-Class with rear wheel drive, CLK, SLK and SL 550: electronic 7-speed automatic transmission

• 2007 C230: flexible fuel vehicle (E85) with electronic 7-speed transmission

• 2007-New M-Class (sport utility vehicle [SUV]) with 7-speed automatic transmission

• 2007-ML320CDI (SUV), R320CDI (SUV), GL320CDI (SUV): advanced diesel technology engine, electronic 7-speed automatic transmission

• 2007 GL Class: V8 engine variable valve timing, aluminum block and cylinder heads with low friction silicon-aluminum cylinder liners with secondary internal exhaust gas recirculation

• 2007 all M-B Models: Tire Pressure Monitoring System (TPMS) and variable displacement air-conditioning compressor

Mitsubishi Motor Sales of Canada Inc. • TPMS (tire pressure monitoring

system): 2007 Endeavor, Outlander • 6-speed manual and 5-speed

automatic transmissions: 2007 Eclipse GT, Eclipse Spyder GT, Outlander

• Continuously Variable Transmission

(CVT): available in 2008 Lancer • Mitsubishi Innovative Variable Valve

Timing and Lift Electronic Control (MIVEC) technology: 2007 Eclipse 4 cylinder, Lancer Sportback 2.4 L 4 cylinder, Eclipse Spyder 4 cylinder, Outlander and 2008 Lancer

• Weight reduction through structural components: aluminum roof panel and aluminum engine block and oil pan: 2007 Outlander

• Weight reduction through engine components: 2008 Lancer

Nissan Canada Inc. • Continuously Variable Transmission

(CVT) offerings: 2007 Versa Hatchback, Sentra Sedan, Altima Sedan and Maxima Sedan; improvement in fuel economy versus 4-speed automatics

• Continuously Variable Transmission offering: 2008 Versa Sedan, Altima Coupe and Rogue (Small Crossover SUV)

• Introduction of full (two mode) hybrid: 2007 Altima Sedan

• 5-speed automatic: 2007 Quest 3.5S models

• Introduction of the new MR18DE and MR20DE engines: 2007 Versa and Sentra lineups. The new engines have a 30% reduction in mechanical friction that allows them to achieve improved thermal efficiency levels. Engine features include super-micro finished cam shaft lobes and bearings; super-micro finished crankshaft and connecting pin; new “fine atomizer” fuel injectors; electronic tumble control valve (in intake system) and double speed oil pump

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• Introduction of an all-new QR25DE engine: 2007 Sentra SE-R and SE-R Spec V models for 2007. The SE-R model is more fuel efficient than its predecessor

Porsche Cars Canada Ltd. • 2008: All Cayenne models equipped

with Direct Fuel Injection (DFI) engine technology

• 2008: All Cayenne models equipped with 6-speed automatic transmissions

• 2008: All Cayenne models rated for up to 25% Ethanol content of fuel (E25)

• 2008: All V8 Cayenne models equipped with variable valve timing and variable valve lift (VarioCam Plus)

• 2007: All sports car engines equipped with variable valve timing and variable valve lift (VarioCam Plus)

• 2007: 911 Turbo equipped with variable vane geometry turbochargers

• Hybrid Electric vehicle by Porsche in conjunction with Volkswagen

Suzuki Canada Inc. • All 2007 models: electric throttle,

improved combustion efficiency • 2007 XL-7: roller rockers, decreased

valve train friction • 2007 XL-7: variable intake and

exhaust valve timing, increased combustion efficiency

• 2007 XL-7: “Beehive” style valve springs, lower friction / improved valve seating and sealing

• 2007 XL-7: tuned intake runners, improved combustion efficiency at mid-range cruising

Toyota Canada Inc. • Hybrid (Toyota Hybrid Synergy Drive –

Full Series/Parallel System): 2007 Prius, 2007 Highlander Hybrid, 2007 Lexus RX 400h, 2007 Camry Hybrid, 2007 GS 450h Hybrid, Upcoming Lexus 2008 LS 600h

• VVT-I on all 2007 models: optimal valve timing is set to suit the engine conditions in various speed ranges.

• Dual VVT-i: in addition to the intake valve of the VVT-i, the new mechanism also controls the exhaust valve. According to engine rpm and accelerator opening, the computer continually adjusts the timing of the intake and exhaust openings to optimize air-fuel ratio: 2007 Avalon, Camry, Lexus IS 250/350, ES 350, LS 460, GS350/430; Select LDT (2007 RAV4, RX350)

• Direct Injection Gas Engine – directly injects highly pressurized fuel into the cylinders. This gives comprehensive control of the fuel injection timing, air-fuel ratio, throttle valve position, etc., to realize improved efficiency: 2007 Lexus IS250/350, GS300, SC430, LS460

• 5-speed automatics: 2007 Camry 4 cylinder; all V6/V8 applications

• 6-speed automatics: 2007 Camry V6, Tundra, Lexus IS 250/350, SC430, LS430, GS350/430

• 8-speed automatics: 2007 LS 460 • Electric power steering: 2007 Prius,

Yaris Sedan/Hatchback, Camry HV, RAV4, Highlander HV, Lexus IS250/350, GS350/430, RX400h, LS 460

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• Flex lock-up torque converters on all 2007 models. To obtain higher efficiencies, flex lock-up torque converters contain an additional clutch-like mechanism to mechanically lock the pump and motor portions together. The segments are locked when the transmission's computer elements determine that the vehicle is cruising at near constant speed

• ECT-i on all 2007 models: facilitates smooth gear change on top of improved response. This in turn leads to better fuel economy

• Super ECT-i: 2007 Yaris Sedan and H/B, RAV4, Sequoia, Avalon, Lexus IS 250/350, ES 350, GS 350/430, SC 430, LS 460, RX 350

• Weight reductions – aluminum engine blocks: all 2007 4-cylinder, V6 applications

• Weight reductions – aluminum body panels: 2007 Prius and Lexus SC 430

• Electronic throttle control: the vehicle’s on-board electronic systems are able to control all of the engine’s operation with the exception of incoming air. The use of throttle actuation ensures that the engine will only receive the correct amount of throttle opening for any given situation: 2007 Yaris Sedan, Corolla, Camry, Camry HV, Avalon, FJ Cruiser, Lexus IS 250/350, ES 350, GS 350/430, SC 430, LS 460

• Tire Pressure Monitoring System: selected 2007 Toyota cars, all trucks and all Lexus products

Volkswagen Canada Inc. • Direct injection gasoline engines:

Offered on all 2007 VW and Audi product lines

• Direct injected gasoline combined with turbocharging: 2007 GTI, Jetta, Eos, Passat, TT, A3, A4

• Diesel available: 2007 Touareg and 2008 Jetta

• 6-speed automatic transmissions: 2007 Passat

• CVT transmissions: 2007 Audi A4 and A6

• 6-speed manual transmissions: 2007 Rabbit, Jetta, Beetle, Passat

• 6-speed automatically shifted manual transmissions: 2007 Audi A3, TT, Jetta, GTI

• Extensive use of aluminum: 2007 Audi A8, Audi TT, suspension components on other vehicles