---

Aluminum Usage Up 40% in North America

19 November 1998

Aluminum Usage Up 40% in North America's Fastest Growing Automotive Market

    WASHINGTON, Nov. 18 -- Motivated by increasingly stringent
environmental regulatory requirements and strong customer demand for cars and
light trucks that do not trade size and safety for fuel economy, auto-makers
are increasingly turning to aluminum as the material of choice, a trend
accounting for a 102 percent increase in aluminum content this decade, The
Aluminum Association announced today.
    According to Richard B. Evans, president of Alcan Aluminum Corporation and
chairman of The Aluminum Association, "There is a revolution going on in
automotive design, but it's happening under the paint. Increasingly, aluminum
parts can be found in cars and light trucks because of the solutions aluminum
provides to today's automotive design, engineering and marketing challenges. A
perfect example of this revolution is the three-fold increase since 1991 in
the application of aluminum in North America's light trucks, SUVs and
minivans. We have seen a 40% increase ... to 1.9 billion pounds in just three
years in this, the fastest growing segment of our customer's product mix."
    In a speech to the Washington Automotive Press Association, Evans said,
"The use of lightweight high strength aluminum components enables the design
of full-sized vehicles that meet the family and business transportation needs
of Americans. It provides the highest safety performance and permits
significantly improved fuel economy, thereby reducing CO2 emissions. These are
the attributes that are likely to be in demand in the new vehicle showroom."
    He released these figures from a new study by the Ducker Research Company
on increasing automotive aluminum use:

    * 1999 light trucks, sport utility vehicles and minivans will contain more
      aluminum on average than passenger cars -- 256 pounds versus 241 pounds
      for cars. Average aluminum content in a 1999 vehicle will be 248 pounds,
      an 8.8 percent increase over 228 pounds as recently as 1996.
    * Total aluminum content in 1999 vehicles is forecast to be 3.8 billion
      pounds, based on 15.3 million production vehicles -- a 102 percent
      increase over the 1990 level.
    * Recycled aluminum will represent 63 percent of the 3.8 billion pounds
      used.
    * Although virtually all cars and light trucks contain some aluminum
      content, there are several production vehicles on the road today that
      are highly aluminum-intensive, including the Audi A8, Plymouth Prowler
      and GM's electric vehicle, the EV1.

    Evans also released a new Aluminum Association report produced to support
the auto industry's effort to design the next generation of cars. The Life
Cycle Inventory Report for the North American Aluminum Industry confirmed the
progress that the aluminum industry is making to promote energy efficiency and
product recycling, as well as reducing emissions of greenhouse gases that are
thought to contribute to global warming.
    The report was commissioned by the aluminum industry as part of a larger
life cycle study by Chrysler, Ford and General Motors on a generic mid-sized
vehicle. The report provides a detailed examination of the environmental
benefits of producing and recycling aluminum.
    Evans noted that "Each ton of automotive aluminum replacing iron or steel
can save 20 tons of carbon dioxide (CO2) equivalents due mainly to the
efficiencies of lightweighting."
    "Over the life of a car, aluminum content can actually save more energy
than was needed to produce it in the first place," he added. "In addition, the
use of aluminum permits significant weight reductions without a safety
tradeoff, allowing auto companies to continue to produce larger, family-size
vehicles," he said.
    "Just as aluminum is the chosen material for commercial aircraft
structures for critical engineering reasons -- because of its light weight and
ability to withstand the punishing stresses of repeated takeoffs and landings
and the intense pressure at high altitude, automotive aluminum use can result
in vehicles with enhanced safety performance and long-term durability and
value for consumers," Evans added.
    In a recent National Highway Traffic Safety Administration (NHTSA) 35 mph
crash test -- a speed that was about 37 percent more severe than required by
the federal safety standard -- the aluminum-intensive Audi A8 scored five
stars for protecting both the driver and passenger, the agency's highest
rating for crash performance.
    The Aluminum Association says that the strong pro-aluminum trend in the
auto industry will continue. A recent General Motors public announcement
stated an expected 7 percent per year growth.
    Evans said that "no other metal product is more associated with recycling
and recycled with more value. In fact, approximately 90 percent of
post-consumer automotive aluminum scrap is recovered and recycled."
    The Aluminum Association, based in Washington, DC, represents U.S.
producers of primary and secondary aluminum, as well as semi-fabricated
products. Member companies operate approximately 200 plants in 35 states.