SOURCE: Five Star Equities
NEW YORK, NY--(Marketwire - Aug 31, 2012) - The alternative-fuel vehicles market will look to benefit from new fuel economy rules recently proposed by the Obama administration. The new fuel economy standards will require auto manufacturers to nearly double the average efficiency of cars and light trucks to 54.5 miles per gallon by 2025, and include incentives for the production of electric and hybrid vehicles. Five Star Equities examines the outlook for companies in the Alternative Auto Parts Industry and provides equity research on A123 Systems, Inc. (NASDAQ: AONE) and Westport Innovations Inc. (NASDAQ: WPRT) (TSX: WPT).
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The new standards, which are aimed to cut fuel consumption and greenhouse emissions, will increase pressure on manufacturers to produce more alternative-fuel and electric vehicles. The administration has said the new rules would see emissions slashed by 50 percent by 2025, and would save Americans approximately $1.7 trillion in fuel costs.
"These fuel standards represent the single most important step we've ever taken to reduce our dependence on foreign oil," President Obama said in a statement.
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A123 Systems is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. A123's advanced lithium ion energy storage solutions enable higher performance and increased efficiency in passenger and commercial electric vehicles (EVs), hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs).
Westport's extensive intellectual property portfolio gives the Westport group of companies a competitive advantage. Their expertise includes: injectors (combined gaseous fuel/pilot fuel injectors and monofuel injectors), combustion chamber geometry and control strategies, engine fuel systems, cryogenic storage and delivery (cryogenic tanks and cryogenic pumps), and compressors.
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