Aluminum Industry Requests Regulatory Certainty from EPA Regulators During Public Hearing

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DETROIT, September 6, 2017 – Today, Ganesh Panneer, chairman of the Aluminum Association Aluminum Transportation Group (ATG) and vice president and general manager of automotive at Novelis, testified on behalf of the aluminum industry before the Environmental Protection Agency (EPA) during a public hearing held in Washington, D.C.

In response to request for comments on the reconsideration of the final determination of the Midterm evaluation of greenhouse gas emissions standards for light-duty vehicles model years 2022-2025, Panneer emphasized the need for regulatory certainty for the automotive industry and its key suppliers, noting: “aluminum companies need predictability and consistency in the regulatory conditions under which they operate.”

Regulatory certainty is essential to the U.S. aluminum industry, which continues to make significant investments to meet growing demand for automotive aluminum. The industry supports more than 713,000 direct, indirect and induced jobs across the nation and since 2013 has invested more than $2.3 billion in domestic plant expansions to support growing demand in the auto market. Last year, demand for aluminum in automotive applications was greater than at any point in U.S. history.

During the hearing, Panneer also pointed to a recently released survey of automakers conducted by Ducker Worldwide, which concludes that to achieve greater efficiency and lower CO2 emissions automakers must reduce average vehicle weight by seven percent by 2025. In order to meet this target, automakers will continue to increase the adoption of high-strength, low weight aluminum in new car and truck construction at a faster pace than any time in history.

Panneer added: “Aluminum is a key enabler in helping automakers meet national fuel efficiency and emissions goals.”

He also cited a Department of Energy Oak Ridge National Laboratory (ORNL) study that recognizes aluminum’s environmental superiority, noting specifically “aluminum use in new vehicles offers the smallest total carbon footprint among competing materials.”

For a copy of Panneer’s remarks or supporting data and research, visit www.drivealuminum.org. Please also follow the ATG Twitter: @DriveAluminum.

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About the Aluminum Association

Through its Aluminum Transportation Group, the Aluminum Association communicates the benefits of aluminum in ground transportation applications to help accelerate its penetration through research programs and related outreach activities. The ATG’s mission is to serve member companies and act as a central resource for the automotive and commercial vehicle industries on aluminum issues. Members of the ATG include: Alcoa Inc., Aleris, Aluminum Precision Products Inc., Arconic, Constellium, Hydro, Kaiser Aluminum, Novelis Inc., Rio Tinto Alcan, Sapa Group and Tri-Arrows Aluminum. Visit us online at DriveAluminum.org, and follow us on Twitter @DriveAluminum.

Aluminum Transportation Group Grows with Addition of New Members

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Aluminum Transportation Group Grows with Addition of New Members
– Alcoa and Tri-Arrows join the Aluminum Transportation Group –

August 24, 2017 (DETROIT) — The Aluminum Association’s Aluminum Transportation Group (ATG) announced today the addition of two new member companies—Alcoa Corporation and Tri-Arrows. These additions bring total membership in the ATG to 11 companies. Both companies are leaders in producing aluminum alloys for automotive applications.

“The addition of Alcoa and Tri-Arrows reflects the impact of the growing automotive market and demonstrates the industry’s continued commitment to its customers in the automotive space,” said Heidi Brock, president and CEO of the Aluminum Association. “These new members come at an exciting time for automotive aluminum as we enter a time of unprecedented growth. By 2028, forecasts project total aluminum content will reach 565 pounds per vehicle. As automotive aluminum’s market share rises, so too does its impact on the nation’s manufacturing base and the U.S. economy.”

Alcoa’s roots date back to the discovery of aluminum about 130 years ago. Today, it is a global leader in bauxite, alumina and aluminum products, including patented foundry alloys that are utilized for specific automotive applications. With more than 14,000 employees at manufacturing locations across the globe, Alcoa supplies the transportation industry with a variety of other cast primary products, including rolling ingot and billet.

Headquartered in Louisville, Kentucky, Tri-Arrows produces rolled aluminum sheet products at its jointly-owned rolling mill, Logan Aluminum. With capabilities and experience in ingot casting, hot rolling, cold rolling and finishing operations, the company recently announced an investment of $290 million to expand manufacturing capabilities for the emerging North American automotive aluminum sheet market and to increase overall plant capacity, including a new aluminum recycling/ingot casting facility.

Working with its member companies, the ATG will continue to promote research and programs that highlight the benefits of aluminum use in automotive transportation, which include efficiency, safety, durability, performance and sustainability. According to a recent survey of automakers, Ducker Worldwide reaffirms the continued growth trajectory of automotive aluminum as automakers continue transitioning to a multi-material vehicle (MMV) design approach, choosing lightweight aluminum for closures, body-in-white components and crash managements parts over conventional materials.

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About the Aluminum Association’s Aluminum Transportation Group

Through its Aluminum Transportation Group, the Aluminum Association communicates the benefits of aluminum in ground transportation applications to help accelerate its penetration through research programs and related outreach activities. The ATG’s mission is to serve member companies and act as a central resource for the automotive and commercial vehicle industries on aluminum issues. Members of the ATG include: Alcoa Corporation, Aleris, Aluminum Precision Products, Arconic, Constellium, Hydro, Kaiser Aluminum Corporation, Novelis Inc., Rio Tinto, Sapa and Tri-Arrows. Visit us online at DriveAluminum.org and follow us on Twitter @DriveAluminum.

Unprecedented Growth Expected for Automotive Aluminum as Multi-Material Vehicles Ascend, New Survey of Automakers Says

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DETROIT, July 31, 2017 – Over the next decade, automakers will continue to increase the adoption of high-strength, low weight aluminum in new car and truck construction at a faster pace than any time in history. Total aluminum content is expected to grow from 397 pounds per vehicle (PPV) in 2015 to 565 PPV by 2028, representing 16 percent of total vehicle weight, according to a survey of automakers conducted by Ducker Worldwide reaffirming continued market share growth for aluminum into high-volume vehicles. This is consistent with the emerging trend of automakers transitioning to a multi-material vehicle (MMV) design approach, choosing aluminum for doors, hoods and trunk lids, body-in-white, bumpers and crash boxes.

“Aluminum remains the fastest growing automotive material over competing materials and is entering its most unprecedented growth phase since we’ve been tracking the shifting mix of automotive materials,” said Abey Abraham of Ducker Worldwide. “To further improve fuel economy, battery range,safety and overall driving performance, automakers no longer default to a single material and instead are pursuing a multi-material design approach where the best material is chosen for the best application. This design evolution is what’s driving aluminum’s increased market penetration in the auto sector.”

“As our automotive customers embrace a multi-material approach to new car and truck design, that directly translates to increased amounts of aluminum. On top of 40 years of uninterrupted growth, the aluminum industry is experiencing a level of sustained growth not seen before in any market or product sector. However, the true winners of this change are American consumers who can choose next-generation cars and trucks that are high performing, efficient, safe, sustainable and more fun to drive,”said Heidi Brock, president and CEO of the Aluminum Association. “A thriving aluminum sector is vital to automakers, the nation’s manufacturing base and a healthy U.S. economy. The aluminum industry invested or committed more than $2 billion to ensure increased capacity in the U.S. since 2013, and the industry is prepared to continue such investments in domestic manufacturing jobs as demand continues to grow.”

2020 Projections
The study finds that total aluminum content for North American lightweight vehicles will increase to nearly 9 billion pounds, averaging 466 PPV by 2020, an increase of 69 pounds from 2015. Aluminum parts will more than double with aluminum hoods expected to reach 71 percent penetration (up from 50% today). Fifty percent of total aluminum content growth from 2015 to 2020 will be driven by closures, crash management systems, steering knuckles and structural vacuum die cast parts. Aluminum vacuum die castings are expected to grow from less than three PPV today to 14 PPV by 2020. The average passenger car will contain 362 pounds of aluminum and the average light truck will contain 523 pounds of aluminum by 2020.

2020 to 2028
Ducker projects total aluminum content growing to 565 PPV (16% of curb mass) by 2028 with nearly 25 percent of vehicles having partial aluminum body-in-white. More than two million of those vehicles will be pickup trucks and 400,000 will have plug-in hybrid or zero-emissions powertrains. Forecasts for the 2020 to 2028 time period are based on EPA and NHTSA technology implementation pathways suggesting mass reduction from zero percent for some passenger cars and small SUVs to 20 percent for large trucks and SUVs to achieve an overall industry average mass reduction of 7 percent (270 pounds) by 2025. Empirical evidence from Ducker’s research suggests achieving 7 percent curb mass reductions is likely to be delayed to 2028 due, in part, to new model launch timing constraints with several vehicles expected to launch post-2024 with significant aluminum body content. Under either scenario, a multi-material approach is the expected pathway with aluminum contributing to more than 50 percent of total mass reduction.

Brock added, “It is proven that vehicles made lighter with aluminum offer consumers better fuel economy, improved safety and enhanced performance. Furthermore, aluminum is the best choice for the environment when compared to both traditional and advanced steels, according to the U.S. Department of Energy’s Oakridge National Laboratory.”

Methodology
Since 1996, the Aluminum Association’s Aluminum Transportation Group (ATG) has commissioned global consulting and research firm Ducker Worldwide to conduct its triannual survey of automakers. This year’s “Aluminum Content in North American Light Vehicles 2016 To 2028” study is based on a top down analysis relying primarily on detailed in-person interviews with automotive original equipment manufacturers (OEMs) and their suppliers, as well as data obtained from the U.S. Environmental Protection Agency, National Highway Traffic Safety Administration and the Center for Automotive Research. With its top down analysis, Ducker Worldwide determined mass reduction and material mix forecasts and examined the effect of fuel prices, vehicle mix, secondary weight savings, electrification, vehicle design and vehicle launch cadence on the amount of weight that is expected to be shed by vehicle type. To view the study, visit www.drivealuminum.org where other facts and research can also be found. Please also follow the ATG Twitter: @DriveAluminum.

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About Ducker Worldwide
Ducker Worldwide, a premier consulting and research firm, is driven to help its clients achieve their most ambitious growth goals. Custom market intelligence, strategic consulting and financial advisory services are delivered by fully-engaged Ducker principals and a diverse team of global talent. With exclusive access to industry leaders and opportunities, Ducker applies robust analytics and critical thinking to every engagement, delivering unique, fact-based solutions for our clients – solutions which produce confident decisions to advance growth. Ducker is headquartered in Troy, Michigan, with offices around the world, including Paris, Berlin, London, Bangalore and Shanghai. Founded by William H. Ducker in 1961, Ducker celebrates more than 55 years in business.

About the Aluminum Association
Through its Aluminum Transportation Group, the Aluminum Association communicates the benefits of aluminum in ground transportation applications to help accelerate its penetration through research programs and related outreach activities. The ATG’s mission is to serve member companies and act as a central resource for the automotive and commercial vehicle industries on aluminum issues. Members of the ATG include: Alcoa Corporation, Aleris, Aluminum Precision Products Inc., Arconic, Constellium, Hydro, Kaiser Aluminum, Novelis Inc., Rio Tinto Alcan, Sapa Group and Tri-Arrows Aluminum. Visit us online at DriveAluminum.org, and follow us on Twitter @DriveAluminum.

The Aluminum Association Responds to Reopened Midterm Review on Light-Duty Vehicle Fuel Economy and Co2 Emissions

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ARLINGTON, VA (March 15, 2017) — The Aluminum Association looks forward to working with President Trump and his administration on the review of light-duty vehicle fuel economy and emissions regulations for model years 2022-2025. Aluminum is the second-most used material in vehicles today and a key technology for automakers looking to continue to improve vehicle fuel economy safely and affordably.

“Our members continue to see strong growth in the use of aluminum in cars and trucks as our customers increasingly see mass reduction as the best strategy to build the fleet of the future,” said Heidi Brock, president and CEO of the Aluminum Association. “Lighter, stronger vehicles create value for the customer in addition to savings at the pump, including improved performance and increased safety.”

For more than 40 years, the use of aluminum in automobiles has grown continuously and is expected to continue strong growth in coming years. Vital to the nation’s domestic manufacturing base, aluminum companies have invested or committed $2.8 billion in U.S. plant expansions since 2013, driving investments that help create American jobs and strengthen the U.S. economy.

We believe the review process should:

  • Embrace a Data-Driven Approach: Decision-making must be fact-based and driven by credible data.
  • Spur Competition and Innovation: A regulatory environment that accelerates the use of advanced technologies, like aluminum and other high-strength, low-weight materials is a victory for consumers.
  • Support Mass Reduction Without Downsizing: Vehicle size is proven to be a more important safety determinant than weight. Any revised rule should maintain the current call for mass reduction given benefits to consumers and the nation.
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