What Is General Motors’ Lightweighting Strategy?
Key Takeaways from General Motors’ Global Business Conference
Lightweighting strategy
Lightweighting has been a buzzword in the automotive industry for the last couple of years. US (VOO) (DIA) government standards mandate that by 2025, automakers must increase the CAFE rating (or corporate average fuel economy) to 54.5 miles per gallon for cars and light-duty trucks.
Lightweighting helps vehicle manufacturers reduce vehicle weight, which contributes to improved fuel economy. Alcoa (AA), North America’s leading aluminum company, made a clear statement on lightweighting: “OEMs need it and the consumers like it.”
Ford F-150
Ford (F) has taken the lead by converting its F-150 pickup, its best-selling model, into a full aluminum-body vehicle. The conversion, which took close to five years, has eliminated close to 700 pounds from the weight of the pickup. According to Ford, it has managed to increase the F-150’s fuel economy by more than 25%, mainly by using aluminum, which is much lighter than steel.
What is GM doing?
Although General Motors might have poked fun at Ford’s aluminum-body pickup in one of its advertisements, GM has also increased the aluminum content in its vehicles. During its global business conference, GM noted that it is using a wide array of materials such as high-strength steel, aluminum, and composites to reduce vehicle weight. GM also said that it may even consider using carbon fiber in future vehicles.
GM also stated that it invented a technology that enables it to weld steel to aluminum. This technology would be implemented in its Detroit–Hamtramck plant in the first half of 2016.
The automobile industry’s future could be much different from what we have seen during the last century. The industry could see new business models and comps evolve in the next decade. Investors should closely watch how things shape up in automobile space over the next few years. You can learn more on the recent developments in this industry by visiting Market Realist’s Autos page.
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