Total Vehicular Energy Use Management Randall Scheps Marketing Director, Alcoa Ground Transportation Chairman, The Aluminum Association’s Auto & Light Truck Group www.autoaluminum.org
Total Vehicular Energy Use Management
Randall SchepsMarketing Director, Alcoa Ground Transportation
Chairman, The Aluminum Association’sAuto & Light Truck Group
www.autoaluminum.org
Aluminum Builds a Better Car
Reduced Emissions
Mass Reduction
Enhanced Performance
Improved Safety
Better Fuel Economy
Infinitely Recyclable
2
Aluminum Helps Reduce CO2
= Billions of Metric Tons• Aluminum already saving 300M metric tons of CO2 annually
• Bigger reductions possible
• Highly complimentary with advanced drivetrains
• Carbon neutral by 2025
12% of Global Emissions
200
250
300
350
400
450
500
550
600
650
700
2000 2005 2010 2015 2020 2025
Mt C
O2e
GHG Emissions
Transport Savings
CO2 emissions from aluminum industry
Savings from transport
3
Aluminum Delivers Life Cycle CO2 Savings
• Most CO2 emissions occur in the use phase
• Aluminum production represents only 5% of the life cycle energy
• Each pound of aluminum replacing steel saves 22.9 pounds of CO2 net
• Cradle to cradle sustainable
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1
3
5
7
9
11
13
15
0 5 10 15 20 25
% Weight Reduction
% F
ue
l E
co
no
my
Im
pro
ve
me
nt
Small Car - Resized Engine Mid Size Car - Resized Engine Small SUV - Resized Engine
Large SUV - Resized Engine Truck - Resized Engine Small Car - Baseline Engine
Mid Size Car - Baseline Engine Small SUV - Baseline Engine Large SUV - Baseline Engine
Truck - Baseline Engine
Weight reduction & resizing 10% 6-7%
Gasoline
Ricardo Study: Aluminum Provides Fuel Economy Benefits
Source: Ricardo 5
Secondary Weight Savings Add Value
Mass and Cost Savings by Component
Source: IBIS Associates
Secondary
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Source: IBIS Associates
IBIS Study: Aluminum Adds Value to Alternative Powertrains
$0
$50
$100
$150
$200
$250
$300
Baseline Diesel Hybrid
Steel Body Aluminum Body
Cost per 1 MPG Increase
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Baseline Diesel Hybrid
Steel Body Aluminum Body
Percent Increase in MPG
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Leading Experts Agree: Lightweighting “Very Important” to Reach CAFE Levels
• 25% – Fuel economy improvement to come from weight
savings, as predicted by material experts and body
engineers
• 50% – Fuel economy improvement to come from weight
savings, as predicted by powertrain experts
• Lightweighting is the only option that improves safety and
fuel economy simultaneously
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“We’ll need to spend more resources to develop lightweight structures to boost fuel mileage – but we won’t necessarily need expensive and exotic materials like carbon composites.”
-Gerhard Schmidt Chief Technical Officer & Vice President
Ford Motor Company
Aluminum vs. Other Materials
9
Strength-Constrained Areas of the Body
0
100
200
300
400
500
600
700
800
900
0 20 40 60 80 100
Pe
rfo
rman
ce v
s. C
ost
Weight Saved
Mild Steel Baseline
HSS
Aluminum 6xxx
Mg
Composite
Aluminum 7xxx
Strength Applications
0
20
40
60
80
100
120
0 20 40 60 80 100
Pe
rfo
rman
ce v
s. C
ost
Weight Saved
Mild Steel Baseline
CompositeHSS
Aluminum 6xxx
Mg
Aluminum 7xxx
Aluminum offers the highest weight save potential vs. other
metals
Stiffness Applications
Aluminum offers greater total weight save potential than
steel
Aluminum’s Economics Tell Positive Story
0
1
2
3
4
5
6
7
LME / Steel Ratio
Price DevelopmentAluminum vs. Steel
Source:
- Al: EAA LME 3 months
- Steel: MEPS
International 2008
Alu
min
um
vs. S
tee
l C
ost R
atio
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North American Light Vehicle Aluminum
Content Continues to Climb
10.4%9.6%
8.8%8.6%
7.8%
6.9%6.1%
5.1%4.5%
3.9%
2.1%2.0%
0%
2%
4%
6%
8%
10%
12%
1970 1975 1980 1985 1990 1995 2000 2005 2009 2010F 2015F 2020F
Aluminum Share as Percentage of Curb Weight
Auto Aluminum Use At All-Time High
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Component Aluminum Share» Heat exchangers 100%
» Pistons 100%
» Transmission cases > 98%
» Cylinder heads > 98%
» Wheels > 69%
» Engine blocks > 69%
» Drive shafts > 50%
» Knuckles > 39%
» Hoods > 22%
» Control Arms > 15%
» Bumper > 11%
» Cradles/sub-frames > 10%
» Body in White
» Wiring Harness
Aluminum Success Stories and Growth Opportunities
Growth Areas
Success Stories
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Aluminum Builds a Better Car
Audi TT
• Light
• Strong
• Safe
• Saves fuel and CO2
• Cradle to cradle sustainable
• Economic
• Part of the solution
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Total Vehicular Energy Use Management
Randall SchepsMarketing Director, Alcoa Ground Transportation
Chairman, The Aluminum Association’sAuto & Light Truck Group
www.autoaluminum.org