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FEV Inc., (FEV) a leading developer of advanced powertrain and vehicle technologies, announces that it has completed the first phase of a project under contract to the United States Environmental Protection Agency (EPA) to determine manufacturing costs in the development and operation of fuel efficient, greener powertrain technologies. The program involved determining the incremental direct manufacturing costs for a set of advanced light-duty vehicle technologies. The study was also done in conjunction with Munro & Associates, a predictive engineering firm that subcontracted to FEV on the project.

"A fair question is whether there is a true understanding of the cost implications for these green technologies," says Gary Rogers, president and CEO of FEV Inc. "Our work with the EPA will determine the realistic, long-term costs associated with these technologies based on specific, scientific costing methodology. It's the first step in determining whether these costs can be brought into line with what consumers will accept."

The technologies selected for cost analysis are on the leading edge for reducing emissions of greenhouse gases in the future, primarily in the form of CO2 emissions. Such emission reductions translate directly into fuel economy improvements.

For the project, FEV developed a methodology following EPA guidelines which would identify all cost elements such as material, labor, manufacturing burden, and mark-up, as well as allow for quick updates for sensitivity evaluations on key costing elements.