According to the recently released N.A. Commercial Vehicle On-Highway Engine OUTLOOK, published by ACT Research and Rhein Associates, the commercial vehicle (CV) industry continues to invest in new powertrain initiatives and lower carbon emissions from CV fleets despite an unfavorable economic outlook.

When asked about the US economic outlook, Kenny Vieth, president and senior analyst, ACT Research, commented, “Since March, the Fed has increased the federal funds rate by 375 basis points (bps). Monetary tightening by the Fed has pushed up borrowing costs for consumers, businesses, and the government to levels not seen in more than two decades. Based on commentary from November’s Federal Open Market Committee (FOMC) meeting, there are more interest rate increases to come. As the Fed increases the cost of borrowing to banks, banks, in turn, are passing those higher costs to consumers and businesses.”

Regarding legislation, Andrew Wrobel, Senior Powertrain Analyst at Rhein Associates, said, “EPA is developing a new phase of greenhouse gas (GHG) requirements for heavy-duty (HD) engines and trucks that would apply beginning in model year 2030. This Phase 3 proposal would revise the GHG emission limits for HD vehicles while relying on the same basic certification and compliance structure already in place.”

He added, “Phase 3 is expected to include more stringent vehicle emission standards with enabled vehicle and engine emission-reduction technologies, and EPA will consider how zero-emission vehicle technologies play an important role in reducing air pollution from the HD sector.”