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Novelis: Shift to Aluminum Not as Fast as Expected
The auto industry is using more aluminum to reduce vehicle weight, but the shift isn’t occurring as quickly as expected, says Novelis Inc., the world’s largest supplier of rolled aluminum sheet.
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The auto industry is using more aluminum to reduce vehicle weight, but the shift isn’t occurring as quickly as expected, says Novelis Inc., the world’s largest supplier of rolled aluminum sheet.
CEO Steve Fisher tells investors Novelis is transitioning some of its sheet capacity from aluminum cans to automotive body. But ne notes other carmakers have not matched Ford Motor Co.’s major commitment to the metal for its F-150 pickup truck.
Fisher says the industry is in a “digestion” period where carmakers are assessing when, or if, they will embrace greater use of aluminum. Meanwhile, steelmakers are stepping up their competitiveness with super-strength steels that give manufacturers a simpler way to reduce vehicle weight.
The aluminum industry in North America remains optimistic. It predicts upcoming fuel economy standards will help coax carmakers into more aluminum-intensive designs. But in the immediate term, Fisher indicates that overcapacity in North American aluminum sheetmaking isn’t likely to melt away quickly.
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