2012 may amm_scheps_pres

AluminumInTransportation.org

Randall SchepsChairman, The Aluminum Association’s

Aluminum Transportation Group

AluminumInTransportation.org

40 Years of Uninterrupted Growth

0

100

200

300

400

500

600

1975 1985 1995 2005 2015 2025

Po

un

ds

pe

r V

eh

icle

2025: 550 lbs

2012: 343 lbs

The trend line continues to be supported by new aluminum applications

Source: Ducker Worldwide 2011

AluminumInTransportation.org

Powertrain & Wheels Led Past Growth

125

14

23

24

49

60

69

70

88

89

112

115

126

130

371

516

588

636

785

790

All Other Compnents

Drive Shafts & Yokes

IP Structure

Cradles & Crossmembers

Engine Mounts

Other Steering

Differential Carriers

Bumpers

Transfer Cases

Control Arms & Links

Intake Manifolds

Steering Knuckles

Closures

Brake Parts

Other Engine

Heat Transfer

Cylinder Heads

Cylinder Blocks

Transmissions

Wheels

Millions of Pounds

Source: Ducker Worldwide 2011

AluminumInTransportation.org

Aluminum Hoods, Trunks, Doors and Bumpers are Next

1210

6

3 2 3

58

10 11 121

4

8

11

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Po

un

ds

pe

r V

eh

icle

Pounds per Vehicle New Applications(Primarily body, bumper & closure components)

Source: Ducker Worldwide 2011

AluminumInTransportation.org

Europe on a Similar Path

Source: Ducker Worldwide 2012

AluminumInTransportation.org

Aluminum Helps Automakers

Aluminum is the one material that automotive industry professionals

rated as most helpful in meeting the new CAFE fuel economy

standards…

2011 WardsAuto/DuPont Survey

of Auto Industry Challenges

Based on our current understanding, we

believe we’re approaching the practical limits of the application of high-strength steels [in vehicle bodies]…

Frank Paluch, Senior Vice President,Honda R&D Americas

Plans to use more aluminum to cut vehicle weight.

BMW, Reuters

Audi relies on aluminum… to achieve benefits of down

weighting as seen in the 2011 A8, such as a 25% increase in body stiffness, while reducing

weight by up to 20%.

Audi/ATG joint press release

AluminumInTransportation.org

Concern over Rising U.S. Gas Prices

Aluminum Helps Consumers

AluminumInTransportation.org

Aluminum Is Fuel Efficient

Vehicles downweightedwith aluminum can save

fuel, thus saving consumers money

at the pump

Matching smart design with powertrain advances and intensive use of aluminum reduces weight to use less fuel or battery power.

A 5 to 7 percent fuel savings can be realized for every 10 percent weight reduction by substituting lightweight aluminum for a heavier material.

AluminumInTransportation.org

Aluminum has

lower life cycle CO2 emissions than steel or high

strength steel

Aluminum Is Sustainable

Source: Magnesium Front End Research and Development Project

AluminumInTransportation.org

Adding crush space without adding weight improves safety 27%

Source: Dynamic Research, Inc. (DRI)

ELU Scenarios

0

20

40

60

80

100

Baseline Added Length Baseline Weight

Reduced Weight Baseline Length

ELU Other Car

Driver

85.9

63.0 61.8

27%28%

Downweighting is necessary to meet

demands without sacrificing safety

or functionality

Aluminum Is Safe & DurableSafety Increased with Weight Reduction

AluminumInTransportation.org

Aluminum Is Safe & Durable

AluminumInTransportation.org

Aluminum Is High Performing

Cars made lighter with aluminum can

accelerate faster and brake quicker

than their heavier counterparts

Mercedes Benz SL

Audi A8

Jaguar XJ

Acura NSX

AluminumInTransportation.org

Aluminum Is Cost EffectiveSecondary Weight Savings Adds Value

(Mass and Cost Savings by Component)

Secondary

Source: IBIS Associates

Lighter vehicles

are less expensive for consumers to own and operate

AluminumInTransportation.org

Downweighting: Cost Benefit of Fuel Saving Technologies

Source: EPA/NHTSA Joint Technical Support Document – Final Rulemaking; Mass + Secondary – Alum. Association/IBIS

Better

Improved Auto TransVVT-ICP

Engine Friction ReductionCylinder Deact. On OHV

VVT - CCP on OHV

Cylinder Deact on SOHC

Aero Drag Dred.

EGR Boost Combustion Restart

Belt Mounted BMISG

6/7/8 speed Auto Trans

Electric Power Steering

DVVL on DOHC

Mass Reduction

Low Drag Brakes Electric Power SteeringEngine Friction Reduction

Mass+Secondary

Turbo

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

$- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00

Aluminum Is Cost Effective

AluminumInTransportation.org

Conclusions

• Incredible growth for aluminum in cars

• Passenger vehicle bodies will no longer be dominated by a single material

• The aluminum industry can and will increase capacity to support an aluminum intensive fleet in 2017-2025

• High volume aluminum-intensive vehicles will be in showrooms in the next 5 years

The aluminum revolution in cars continues to roll!