Randall Scheps
Chairman, The Aluminum Association’s
  Aluminum Transportation Group




                                       AluminumInTransportation.org
40 Years of Uninterrupted Growth
                     600                                                                           2025: 550 lbs
Pounds per Vehicle




                     500                                                          2012: 343 lbs


                     400



                     300



                     200



                     100



                      0
                           1975          1985              1995            2005              2015                   2025


                                  The trend line continues to be
                                  supported by new aluminum applications
                                                                                                  Source: Ducker Worldwide 2011
                                                                                           AluminumInTransportation.org
Powertrain & Wheels Led Past Growth
                     Wheels                                                                 790
             Transmissions                                                                  785
            Cylinder Blocks                                                    636
            Cylinder Heads                                               588
              Heat Transfer                                        516
              Other Engine                                  371
                 Brake Parts                 130
                    Closures                 126
         Steering Knuckles                  115
          Intake Manifolds                 112
     Control Arms & Links                89
             Transfer Cases              88
                   Bumpers             70
       Differential Carriers           69
            Other Steering            60
            Engine Mounts            49
  Cradles & Crossmembers        24
                IP Structure    23
      Drive Shafts & Yokes     14
     All Other Compnents                    125




                                                  Millions of Pounds
                                                                                     Source: Ducker Worldwide 2011
                                                                                AluminumInTransportation.org
Aluminum Hoods, Trunks, Doors
                         and Bumpers are Next
                     25


                     20
Pounds per Vehicle




                                                                                                               11
                                  Pounds per Vehicle          New Applications                          8
                     15                                       (Primarily body, bumper
                                                              & closure components)
                                                                                             4
                     10
                          12                                                            1             11      12
                                 10                                                          10
                     5                 6                                                8
                                                                           5
                                              3         2         3
                     0
                      2005     2006   2007   2008      2009    2010      2011      2012     2013     2014       2015


                                                                                                 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
                                           Audi relies on aluminum…
                                             to achieve benefits of down
  automotive industry professionals
                                            weighting as seen in the 2011
rated as most helpful in meeting            A8, such as a 25% increase in
 the new CAFE fuel economy                  body stiffness, while reducing
        standards…                               weight by up to 20%.

  2011 WardsAuto/DuPont Survey               Audi/ATG joint press release
    of Auto Industry Challenges

                                       Based on our current understanding, we
                                      believe we’re approaching the practical
 Plans to use more aluminum
                                        limits of the application of high-
      to cut vehicle weight.
                                        strength steels [in vehicle bodies]…
          BMW, Reuters                   Frank Paluch, Senior Vice President,
                                                Honda R&D Americas


                                                            AluminumInTransportation.org
Aluminum Helps Consumers
    Concern over Rising U.S. Gas Prices




                                          AluminumInTransportation.org
Aluminum Is Fuel Efficient
                         Matching smart design with
                         powertrain advances and
                         intensive use of aluminum
Vehicles downweighted
                         reduces weight to use less fuel
with aluminum can save   or battery power.
   fuel, thus saving
consumers money
   at the pump           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 Is Sustainable


Aluminum has
lower life cycle
 CO2 emissions
than steel or high
  strength steel




                     Source: Magnesium Front End Research and Development Project
                                              AluminumInTransportation.org
Aluminum Is Safe & Durable
             Safety Increased with Weight Reduction

                                                  ELU Scenarios

                               100                      27%
                                                                        28%
                                        85.9
 Downweighting is               80
necessary to meet                                    63.0             61.8
demands without                 60
                                                                                    Other Car

                         ELU
sacrificing safety              40
                                                                                    Driver

 or functionality
                                20

                                 0
                                       Baseline    Added Length Reduced Weight
                                                  Baseline Weight Baseline Length

                                     Adding crush space without adding
                                       weight improves safety 27%

                                                               Source: Dynamic Research, Inc. (DRI)
                                                                 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
                            Acura NSX       Mercedes Benz SL




                                         Jaguar XJ
                  Audi A8




                                        AluminumInTransportation.org
Lighter vehicles
    are less          Aluminum Is Cost Effective
expensive for                   Secondary Weight Savings Adds Value
consumers to                   (Mass and Cost Savings by Component)
own and operate




                   Secondary




                                                                  Source: IBIS Associates
                                                         AluminumInTransportation.org
Aluminum Is Cost Effective
                 Downweighting: Cost Benefit of Fuel Saving Technologies
12.0%




10.0%
                                       Mass+Secondary



 8.0%

                                                                                                                                   Better
 6.0%

                                                                            Cylinder Deact on SOHC
                                                                                                             Mass Reduction
                                                    Aero Drag Dred.
                                                                                                                                                 Turbo
 4.0%
                                              VVT-ICP                                  Improved Auto Trans

                  Engine Friction Reduction
                    EGR Boost                    Combustion Restart            Cylinder Deact. On OHV
                      Electric Power Steering
                                        Belt Mounted BMISG       VVT - CCP on OHV
 2.0%
                 DVVL on DOHC
             Low Drag Brakes                   6/7/8 speed Auto Trans
                                     Electric Power Steering
                   Engine Friction Reduction


 0.0%
        $-                   $100.00                 $200.00               $300.00                $400.00               $500.00       $600.00      $700.00



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

                                          AluminumInTransportation.org

2012 may amm_scheps_pres

  • 1.
    Randall Scheps Chairman, TheAluminum Association’s Aluminum Transportation Group AluminumInTransportation.org
  • 2.
    40 Years ofUninterrupted Growth 600 2025: 550 lbs Pounds per Vehicle 500 2012: 343 lbs 400 300 200 100 0 1975 1985 1995 2005 2015 2025 The trend line continues to be supported by new aluminum applications Source: Ducker Worldwide 2011 AluminumInTransportation.org
  • 3.
    Powertrain & WheelsLed Past Growth Wheels 790 Transmissions 785 Cylinder Blocks 636 Cylinder Heads 588 Heat Transfer 516 Other Engine 371 Brake Parts 130 Closures 126 Steering Knuckles 115 Intake Manifolds 112 Control Arms & Links 89 Transfer Cases 88 Bumpers 70 Differential Carriers 69 Other Steering 60 Engine Mounts 49 Cradles & Crossmembers 24 IP Structure 23 Drive Shafts & Yokes 14 All Other Compnents 125 Millions of Pounds Source: Ducker Worldwide 2011 AluminumInTransportation.org
  • 4.
    Aluminum Hoods, Trunks,Doors and Bumpers are Next 25 20 Pounds per Vehicle 11 Pounds per Vehicle New Applications 8 15 (Primarily body, bumper & closure components) 4 10 12 1 11 12 10 10 5 6 8 5 3 2 3 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Ducker Worldwide 2011 AluminumInTransportation.org
  • 5.
    Europe on aSimilar Path Source: Ducker Worldwide 2012 AluminumInTransportation.org
  • 6.
    Aluminum Helps Automakers Aluminum is the one material that Audi relies on aluminum… to achieve benefits of down automotive industry professionals weighting as seen in the 2011 rated as most helpful in meeting A8, such as a 25% increase in the new CAFE fuel economy body stiffness, while reducing standards… weight by up to 20%. 2011 WardsAuto/DuPont Survey Audi/ATG joint press release of Auto Industry Challenges Based on our current understanding, we believe we’re approaching the practical Plans to use more aluminum limits of the application of high- to cut vehicle weight. strength steels [in vehicle bodies]… BMW, Reuters Frank Paluch, Senior Vice President, Honda R&D Americas AluminumInTransportation.org
  • 7.
    Aluminum Helps Consumers Concern over Rising U.S. Gas Prices AluminumInTransportation.org
  • 8.
    Aluminum Is FuelEfficient Matching smart design with powertrain advances and intensive use of aluminum Vehicles downweighted reduces weight to use less fuel with aluminum can save or battery power. fuel, thus saving consumers money at the pump 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
  • 9.
    Aluminum Is Sustainable Aluminumhas lower life cycle CO2 emissions than steel or high strength steel Source: Magnesium Front End Research and Development Project AluminumInTransportation.org
  • 10.
    Aluminum Is Safe& Durable Safety Increased with Weight Reduction ELU Scenarios 100 27% 28% 85.9 Downweighting is 80 necessary to meet 63.0 61.8 demands without 60 Other Car ELU sacrificing safety 40 Driver or functionality 20 0 Baseline Added Length Reduced Weight Baseline Weight Baseline Length Adding crush space without adding weight improves safety 27% Source: Dynamic Research, Inc. (DRI) AluminumInTransportation.org
  • 11.
    Aluminum Is Safe& Durable AluminumInTransportation.org
  • 12.
    Aluminum Is HighPerforming Cars made lighter with aluminum can accelerate faster and brake quicker than their heavier counterparts Acura NSX Mercedes Benz SL Jaguar XJ Audi A8 AluminumInTransportation.org
  • 13.
    Lighter vehicles are less Aluminum Is Cost Effective expensive for Secondary Weight Savings Adds Value consumers to (Mass and Cost Savings by Component) own and operate Secondary Source: IBIS Associates AluminumInTransportation.org
  • 14.
    Aluminum Is CostEffective Downweighting: Cost Benefit of Fuel Saving Technologies 12.0% 10.0% Mass+Secondary 8.0% Better 6.0% Cylinder Deact on SOHC Mass Reduction Aero Drag Dred. Turbo 4.0% VVT-ICP Improved Auto Trans Engine Friction Reduction EGR Boost Combustion Restart Cylinder Deact. On OHV Electric Power Steering Belt Mounted BMISG VVT - CCP on OHV 2.0% DVVL on DOHC Low Drag Brakes 6/7/8 speed Auto Trans Electric Power Steering Engine Friction Reduction 0.0% $- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 Source: EPA/NHTSA Joint Technical Support Document – Final Rulemaking; Mass + Secondary – Alum. Association/IBIS AluminumInTransportation.org
  • 15.
    Conclusions • Incredible growthfor 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! AluminumInTransportation.org