In 1975, the Energy Policy and Conservation Law came into effect in the United States. Car companies began reducing the size of passenger cars, and were seeing turbochargers as a promising solution to the need to achieve both lower fuel consumption and better drivability. For this reason the rate of turbocharged vehicles in the U.S. market was the highest at that time, IHI established IHI Turbo America in the U.S. and started production to strive for excellence.