Aluminum Usage In Cars To Grow — Davenport & Co

U.S. automobile production has rebounded from the global recession and the combination of more cars being made and tighter fuel efficiency standards will mean greater use of aluminum, said an aluminum industry analyst.

Automobile production in the U.S. rose 38% in 2010 and is up another 11% year-to-date, said Lloyd O’Carroll, senior vice president and metals equity analyst for Davenport & Co.

The firm projects production to rebound 13% in 2011 and 10% in 2012. Along with more cars and light trucks being created, the weighted average of pounds of aluminum used per car is growing, with 332 pounds used in 2010. That figure is estimated to grow to 337 pounds in 2011 and 342 pounds in 2012, O’Carroll said. For comparison, in 2006, the aluminum weighted average was 316 pounds.

The rising use of aluminum in passenger cars and light trucks comes because of rising fuel-efficiency standards in the U.S., he said. Europe has its own regulations which will also mean a bigger push to use aluminum in vehicles to make them lighter weight.

Currently, the type of car that uses the most aluminum is the high-end and specialty car, such as the Audi A8 and some Jaguar vehicles, which have more customized parts. But that is beginning to change as a move to “mass customization” is beginning. O’Carroll said a car like the Audi A6 will have an all-aluminum body. “Aluminum is an ideal material as it has two properties going for it, high-strength and stiffness,” he said.