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Meeting regulated tailpipe emission standards requires a full system approach by automotive engineers encompassing: engine design, combustion system metrics, exhaust heat management, aftertreatment design and exhaust system packaging. Engine and combustion system design targets define desired engine out exhaust constituents, exhaust gas temperatures and oil consumption rates. Protecting required catalytic converter volume in the engine bay for stricter tailpipe emission standards is becoming more difficult. Future fuel economy mandates are leading to vehicle downsizing which is affecting all aspects of vehicle component packaging. In this study, we set out to determine the potential palladium (Pd) cost penalty as a result of increased light-off time required as a catalyst is positioned further away from the engine. Two aged converter systems with different Pd loadings were considered, and EPA FTP-75 emission tested at six different catalyst positions.