Drive Connected - Hughes Telematics, Inc

New technology improves mileage and lowers green house gases

Background

Headquartered in Atlanta, HUGHES Telematics is a leader in developing the next generation of vehicle communications solutions bringing advanced entertainment, safety and security, traffic and navigation services, and wireless emissions management to the general public. HUGHES Telematics is currently deploying its technology throughout the industry with the first manufacturers to begin roll out in 2009. By 2012 it is anticipated that the annual North American production of vehicles with this, or similar, technology will exceed seven million vehicles.

A wholly owned subsidiary of HUGHES Telematics, Networkfleet, also offers a high value fleet management tool for the 20 million commercial and government vehicles currently operating in local markets. Using wireless technology, Networkfleet collects and delivers comprehensive, real time diagnostic data and satellite-based location services to fleet operators to improve the management of their vehicles. In addition, Networkfleet is certified to provide wireless emissions monitoring in the state of California.

Introduction

HUGHES Telematics is leading the industry in “Connected Car” technology, which will have a positive environmental impact. The many benefits of this capability include dramatically improved emissions performance. This innovative technology has the potential to eliminate tons of green house gas pollutants, reduce millions of barrels of US oil consumption, and provide diagnostic feedback to significantly enhance vehicle miles per gallon (MPG).

Quick Facts

32 states and the District of Columbia require emissions inspections, roughly 95 million vehicles.
EPA estimates that 6-10% vehicles tested are out of compliance.
With remote inspections, 6 billion gallons of gasoline can be saved through timely repairs – a 4% US consumption reduction.
With timely repairs, 10 million tons of green house gases and pollutants can be eliminated – a 10% reduction in overall U.S. pollutants.
A pilot program of 2500 vehicles in California reduced 1.2 million pounds of green house gases including carbon dioxide, nitrous oxide, and methane – in one year.
Timely diagnostic feedback on vehicle issues leading to repairs can improve fuel economy by up to four MPG – yielding an average of 40 gallons saved per vehicle each year.
Connected vehicle technology will support the national management of electric car charging frequency and locations – leveling the demands on the electrical grid.

Benefits Summary

Significant emissions reduction through continuous monitoring.
Significant fuel savings through early detection and preventive maintenance.
Elimination of remote inspections, saving time, money, and fuel consumption.

Emissions Monitoring

Currently 32 states and the District of Columbia require some form of emissions compliance verification, but today’s practice of annual and biennial emissions testing means a vehicle may actually operate as a

polluter for extensive periods of time prior to testing. EPA data indicates that at any one time, between 6-10% of the vehicles tested at these intervals are out of compliance with emissions standards. A vehicle out of compliance will experience a loss in fuel economy averaging four MPG.

Wireless data transfer is a proven means of improved emissions monitoring. HUGHES Telematics’ “Connected Car” remote vehicle monitoring technology is able to communicate with the vehicle's onboard computer, interpret the emissions data and in real time transmit important information back to the vehicle owner, service provider or fleet managers. No additional time or effort is required of the driver as this process happens seamlessly and automatically. This immediate feedback enables early identification and correction of emissions issues, thus providing significant reduction in overall emission pollutants.

Benefits

Our vision for continuous emissions testing when deployed nationwide in all cars and light-weight trucks will result in significant benefits in the form of reduced emissions and improved fuel economy. According to EPA and DOE figures, 100% compliance for continuous emissions testing could result in annual savings of up to six billion gallons of gasoline, or the equivalent of 300 million barrels of oil. At current levels of consumption, this single technology has the promise to reduce our consumption of oil by as much as 4%, a cost savings of $20 billion per year against our international trade deficit. While these savings alone are dramatic, we will at the same time eliminate over ten million tons of green-house gasses and pollutants, including deadly ground-level ozone, which represents up to 10% of today’s North American pollution emissions. HUGHES Telematics is committed to work with the industry to provide the technology for both new and existing vehicles to wirelessly transmit this diagnostic emissions data.

What it Means

It is important that policymakers in Washington know and understand the benefits of this technology. Current annual and biennial testing provides only a snapshot of a vehicle’s emissions function; Our vision for continuous testing by telematics devices allows for a more panoramic narration of the vehicle’s emissions function. Properly functioning vehicles result in optimum fuel economy, saving the vehicle owner money and reducing dependency on oil imports.

The monetary savings generated from replacing roadside tests with telematics monitoring are numerous and significant.

No in-vehicle cost to the government.
No additional infrastructure costs or requirements given that telematics devices communicate using existing cellular or PCS wide-area wireless networks.
No additional IT costs since telematics devices aggregate data on commercial Websites and submit results via a simple file transfer.
Overall system cost savings as telematics devices eliminate the need for road-side OBD emissions testing infrastructure.

It is crucial to highlight the advantages this technology brings, so that remote emissions monitoring capability can be utilized in a manner that will lead to considerable benefits to both the public and the environment. We are committed to providing our customers the safest most reliable products built, but the opportunity described here allows us to go far beyond that and address issues that are important to each of us individually and the nation as a whole. We look forward to the opportunity to implement this vision for a clean world using our engineering and manufacturing capabilities to greatly clean our air and at the same time reduce our dependence on foreign oil.