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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (144)	6/6/2001 9:33:38 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Steel In the face of intense competition from aluminum and plastics/composites, the steel industry is making a major effort to retain its automotive markets by developing new lighter weight component products. While the cast iron and zinc content of the average vehicle has dropped substantially, the contribution of steel -- in its many forms, including galvanized, forged, hot-rolled, bar, tubing, rod, stainless and wire -- has diminished only slightly. Continuing product improvements, along with its low-cost, strength, formability and recyclability, are keeping steel a primary material for automotive production. Advances such as high-strength, low-alloy steels, hydro-formed tubing, laser welding, steel-faced honeycombs, bake-hardenable steel and others promise to maintain steel as a viable competitor for major automotive components for some time to come. The International Iron and Steel Institute has initiated a worldwide consortium to develop the "lightest-possible" steel-bodied passenger car, and the steel industry has indicated its intentions to the PNGV program to make advanced developments with steel consistent with the program's objectives. Aluminum Aluminum, which has one-half the density of steel, has seen a major increase in its automotive applications in recent years and appears likely to see expanded usage. Major current production vehicle applications of aluminum are in the engine compartment, with numerous models now incorporating aluminum engine blocks and/or cylinder heads, along with aluminum pistons, which have become increasingly common. Other applications where aluminum is making major automotive inroads are replacing steel in wheels, and as a substitute for copper in radiators. New applications of aluminum as a body material are also emerging, with some U.S. production models using hoods, deck lids and other individual body parts made of aluminum. The first all-aluminum body vehicles (in recent times) have been introduced by Japanese and German companies in the form of two limited production models, the Acura NSX in 1990 and the Audi A8 in 1994, which also use aluminum as the frame material. The first U.S. produced all-aluminum body vehicle is Chrysler's Plymouth Prowler, a limited production roadster being introduced for the 1997 model year, and a test bed for lightweight material applications. Almost one-third of the Prowler's weight will be comprised of aluminum components, including its frame, bumpers, brake rotors and certain suspension parts. GM's electric EV-1 also incorporates major aluminum components. Ford, which has been a pioneer in the use of aluminum components, is conducting a field test in Canada with a fleet of aluminum-bodied Tauruses, which weigh 400 pounds less than the standard steel model. While new applications of aluminum as a component material continue to be explored, and more limited production aluminum-intensive vehicles are anticipated, mass produced all-aluminum vehicles are not currently planned because of remaining cost, manufacturing and repair issues with this material.