TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION x
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
World Economic Outlook 5
Recent Economic Performance 5
Macroeconomic Outlook 8
World Fixed Investment Outlook 10
World Demographic Outlook 13
World Motor Vehicle Production Outlook 15
World Construction Machinery Outlook 18
World Agricultural Equipment Outlook 21
Competing & Related Technologies 24
Light Vehicles 24
Heavy Vehicles 27
Diesel Engine Pricing Trends 28
Environmental Regulations 29
US Environmental Regulations 31
EU Environmental Regulations 33
Technological Trends 35
Emission Control 37
Combustion Chamber Modifications 39
Fuel Systems 40
Turbochargers & Aftercoolers 42
After-Treatment Emission Control Technologies 43
Fuel Technology 46
Alternative Fuels Engine Technologies 48
III. SUPPLY & DEMAND 52
General 52
World Diesel Engine Markets 53
Regional Markets 53
Applications 55
Motor Vehicles 57
Off-Highway Equipment 59
Stationary Equipment 60
Fixed Investment & Diesel Engine Demand 62
World Diesel Engine Shipments 64
International Trade 66
IV. NORTH AMERICA 68
General 68
Supply & Demand 69
United States 72
Canada 77
Mexico 80
V. WESTERN EUROPE 85
General 85
Supply & Demand 87
Germany 90
France 94
Spain 98
Italy 103
United Kingdom 106
Belgium 110
The Netherlands 114
Sweden 118
Other Western Europe 122
VI. ASIA/PACIFIC 127
General 127
Supply & Demand 129
Japan 132
China 136
South Korea 141
India 146
Indonesia 149
Thailand 153
Taiwan 157
Australia 161
Other Asia/Pacific 165
VII. OTHER REGIONS 170
Latin America 170
Brazil 174
Argentina 179
Other Latin America 183
Eastern Europe 187
Russia 192
Poland 196
Other Eastern Europe 200
Africa/Mideast 205
Turkey 209
Iran 214
South Africa 218
Other Africa/Mideast 221
VIII. INDUSTRY STRUCTURE 226
General 226
Industry Composition & Market Share 228
Caterpillar 233
Volkswagen 233
Peugeot 234
Renault 234
Cummins 234
Bosch 235
Isuzu 235
Daimler 236
Product Development & Manufacturing 236
Marketing & Distribution 238
Marketing 238
Distribution 239
Mergers & Acquisitions 240
Cooperative Agreements 243
Company Profiles 254
Blue Diamond Truck Company, see Ford Motor Company
and Navistar International
Bosch (Robert) GmbH 255
Briggs & Stratton Daihatsu, see Toyota Motor Corporation
Caterpillar Incorporated 257
Consolidated Diesel Company, see Cummins
Continental AG 262
Cummins Incorporated 264
Daihatsu Motor Company, see Toyota Motor Corporation
Daimler AG 271
Deere & Company 275
Delphi Corporation 276
DENSO Corporation 278
Detroit Diesel, see Daimler AG
DEUTZ AG 280
DMAX, see General Motors and Isuzu Motors
Dongfeng Cummins Engine Company, see Cummins
Doosan Infracore Company Limited 282
European Engine Alliance, see Fiat SpA
Fiat SpA 283
Ford Motor Company 288
Freightliner, see Daimler AG
General Motors Corporation 290
Hino Motors, see Toyota Motor Corporation
Isuzu Motors Limited 293
Katolight, see Tognum AG
Komatsu Limited 296
Kubota Corporation 298
L'Orange GmbH, see Tognum AG
Magneti Marelli SpA, see Fiat SpA
MAN AG 300
MHI-VST Diesel Engines, see Mitsubishi Heavy Industries
Mitsubishi Fuso Truck and Bus, see Daimler AG
Mitsubishi Heavy Industries Limited 303
MTU Friedrichshafen GmbH, see Tognum AG
MWM International Industria de Motores da America do Sul Limitada, see Navistar
International
Navistar International Corporation 306
Nissan Diesel Motor Company, see Volvo AB
Perkins Engines Company, see Caterpillar
Peugeot SA 310
Qingling Motors Company, see Isuzu Motors
ReGen Technologies LLC, see Deere & Company
Renault SA 312
Siam Toyota Manufacturing, see Toyota Motor Corporation
Siemens AG 313
Siemens VDO Automotive AG, see Continental AG
Stanadyne Corporation 314
Tata Cummins Limited, see Cummins
Teksid SpA, see Fiat SpA
Tognum AG 316
Toyota Motor Corporation 318
VDO Automotive AG, see Continental AG
VM Motori SpA, see General Motors
Volkswagen AG 323
Volvo AB 325
Yanmar Company Limited 329
ZAO Cummins Kama, see Cummins
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 World Gross Domestic Product by Region 10
2 World Gross Fixed Investment by Region 13
3 World Population by Region 15
4 World Motor Vehicle Production by Region 18
5 World Construction Equipment Shipments by Region 21
6 World Agricultural Equipment Shipments by Region 23
SECTION III -- SUPPLY & DEMAND
1 World Diesel Engine Demand by Region 55
2 World Diesel Engine Demand by Application 56
3 World Motor Vehicle Diesel Engine Demand by Region 58
4 World Off-Highway Diesel Engine Demand by Region 60
5 World Stationary Diesel Engine Demand by Region 61
6 World Diesel Engine Shipments by Region 65
7 Diesel Engine Net Exports by Region 67
SECTION IV -- NORTH AMERICA
1 North America - Macroeconomic Indicators 69
2 North America - Diesel Engine Supply & Demand 72
3 United States - Macroeconomic Indicators 74
4 United States - Diesel Engine Supply & Demand 76
5 Canada - Macroeconomic Indicators 78
6 Canada - Diesel Engine Supply & Demand 80
7 Mexico - Macroeconomic Indicators 82
8 Mexico - Diesel Engine Supply & Demand 84
SECTION V -- WESTERN EUROPE
1 Western Europe - Macroeconomic Indicators 86
2 Western Europe - Diesel Engine Supply & Demand 89
3 Penetration of Diesel Passenger Car Sales in Selected West
European Markets 90
4 Germany - Macroeconomic Indicators 92
5 Germany - Diesel Engine Supply & Demand 94
6 France - Macroeconomic Indicators 96
7 France - Diesel Engine Supply & Demand 98
8 Spain - Macroeconomic Indicators 100
9 Spain - Diesel Engine Supply & Demand 102
10 Italy - Macroeconomic Indicators 104
11 Italy - Diesel Engine Supply & Demand 106
12 United Kingdom - Macroeconomic Indicators 108
13 United Kingdom - Diesel Engine Supply & Demand 110
14 Belgium - Macroeconomic Indicators 112
15 Belgium - Diesel Engine Supply & Demand 114
16 The Netherlands - Macroeconomic Indicators 116
17 The Netherlands - Diesel Engine Supply & Demand 118
18 Sweden - Macroeconomic Indicators 120
19 Sweden - Diesel Engine Supply & Demand 122
20 Other Western Europe - Macroeconomic Indicators 124
21 Other Western Europe - Diesel Engine Supply & Demand 126
SECTION VI -- ASIA/PACIFIC
1 Asia/Pacific - Macroeconomic Indicators 129
2 Asia/Pacific - Diesel Engine Supply & Demand 132
3 Japan - Macroeconomic Indicators 134
4 Japan - Diesel Engine Supply & Demand 136
5 China - Macroeconomic Indicators 138
6 China - Diesel Engine Supply & Demand 141
7 South Korea - Macroeconomic Indicators 143
8 South Korea - Diesel Engine Supply & Demand 145
9 India - Macroeconomic Indicators 147
10 India - Diesel Engine Supply & Demand 149
11 Indonesia - Macroeconomic Indicators 151
12 Indonesia - Diesel Engine Supply & Demand 153
13 Thailand - Macroeconomic Indicators 155
14 Thailand - Diesel Engine Supply & Demand 157
15 Taiwan - Macroeconomic Indicators 159
16 Taiwan - Diesel Engine Supply & Demand 161
17 Australia - Macroeconomic Indicators 163
18 Australia - Diesel Engine Supply & Demand 165
19 Other Asia/Pacific - Macroeconomic Indicators 167
20 Other Asia/Pacific - Diesel Engine Supply & Demand 169
SECTION VII -- OTHER REGIONS
1 Latin America - Macroeconomic Indicators 171
2 Latin America - Diesel Engine Supply & Demand 174
3 Brazil - Macroeconomic Indicators 176
4 Brazil - Diesel Engine Supply & Demand 179
5 Argentina - Macroeconomic Indicators 181
6 Argentina - Diesel Engine Supply & Demand 183
7 Other Latin America - Macroeconomic Indicators 185
8 Other Latin America - Diesel Engine Supply & Demand 187
9 Eastern Europe - Macroeconomic Indicators 189
10 Eastern Europe - Diesel Engine Supply & Demand 192
11 Russia - Macroeconomic Indicators 194
12 Russia - Diesel Engine Supply & Demand 196
13 Poland - Macroeconomic Indicators 198
14 Poland - Diesel Engine Supply & Demand 200
15 Other Eastern Europe - Macroeconomic Indicators 202
16 Other Eastern Europe - Diesel Engine Supply & Demand 204
17 Africa/Mideast - Macroeconomic Indicators 206
18 Africa/Mideast - Diesel Engine Supply & Demand 209
19 Turkey - Macroeconomic Indicators 211
20 Turkey - Diesel Engine Supply & Demand 213
21 Iran - Macroeconomic Indicators 215
22 Iran - Diesel Engine Supply & Demand 217
23 South Africa - Macroeconomic Indicators 219
24 South Africa - Diesel Engine Supply & Demand 221
25 Other Africa/Mideast - Macroeconomic Indicators 223
26 Other Africa/Mideast - Diesel Engine Supply & Demand 225
SECTION VIII -- INDUSTRY STRUCTURE
1 Diesel Engine & Parts Sales for Selected Manufacturers, 2007 232
2 Selected Acquisitions & Divestitures 241
3 Selected Cooperative Agreements 245
LIST OF CHARTS
CHART NUMBER PAGE
SECTION III -- SUPPLY & DEMAND
1 World Diesel Engine Demand by Application, 2007 57
2 Relationship Between Per Capita Diesel Engine Demand
& Per Capita Fixed Investment, 2007 63
SECTION VIII -- INDUSTRY STRUCTURE
1 World Diesel Engine Market Share, 2007 233
