TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION x
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Environment 6
United States 7
Canada 9
Mexico 10
Light Vehicle Supply & Demand Dynamics 12
United States 13
Canada 15
Mexico 16
Automotive Industry Trends 17
United States 18
Canada 20
Mexico 21
Legal & Regulatory Trends 22
Air Quality 26
Fuel Efficiency 29
Global Warming 31
Recycling Issues 32
Pricing Trends 33
Technology Trends 36
Foreign Trade & International Issues 39
III. MATERIALS 42
General 42
Advanced Metals 44
High Strength Steel 46
Aluminum 49
Stainless Steel 52
Powder Metals 54
Magnesium 56
Low Volume Metals 59
Platinum Group Metals (PGM) 60
Titanium 63
Advanced Plastics & Elastomers 66
Engineered Plastics 68
Nylon 70
Acrylonitrile-Butadiene-Styrene (ABS) 73
Thermoplastic Polyesters 74
Polycarbonate 76
Polyphenylene Oxide 78
Other Engineered Plastics 80
Thermoplastic Elastomers 83
Thermoplastic Polyolefins 86
Thermoplastic Vulcanizates 88
Styrenic Block Copolymer 89
Thermoplastic Polyurethanes 90
Copolyester Elastomer 91
Other Thermoplastic Elastomers 92
IV. APPLICATIONS 94
General 94
Engine & Mechanical Applications 97
Engine & Mechanical Metals 99
Aluminum 101
High Strength Steel 103
Stainless Steel 105
Powder Metals 107
Magnesium 109
Platinum Group Metals 110
Titanium 112
Engine & Mechanical Advanced Plastics 113
Engineered Plastics 115
Thermoplastic Elastomers 117
Structural & Exterior Advanced Materials Applications 118
Structural & Exterior Advanced Metals 120
High Strength Steel 121
Aluminum 123
Stainless Steel 124
Structural & Exterior Advanced Plastics 125
Engineered Plastics 126
Thermoplastic Elastomers 129
Interior Applications 130
Interior Advanced Metals 131
Aluminum 133
Magnesium 134
High Strength Steel 135
Stainless Steel 136
Interior Advanced Plastics 136
Engineered Plastics 137
Thermoplastic Elastomers 138
V. STRATEGIC CONSIDERATIONS 141
General 141
The Vehicle Weight Reduction Challenge 143
The Weight versus Fuel Efficiency Question 144
Traditional Business System Dynamics 146
Shifting Competitive Dynamics 148
Suppliers under Pressure 150
OEM Strategic Options 152
Materials Supplier Strategic Options 155
VI. INDUSTRY STRUCTURE 157
General 157
Industry Composition & Market Share 158
General Electric 161
Alcoa 162
Norsk Hydro 162
DuPont 163
AK Steel 163
Bayer 163
A. Schulman 164
National Steel 165
Johnson Matthey 165
Dow Chemical 165
Mergers, Acquisitions & Industry Restructuring 166
Research & Product Development 168
Manufacturing 169
Marketing 171
Distribution 173
Financial Issues & Requirements 174
Strategic Partnerships 176
Company Profiles 179
AK Steel Holding Corporation 181
Alcan Incorporated 184
Alcoa Incorporated 186
AZDEL Incorporated, see General Electric Company
Basell NV, see BASF AG
BASF AG 188
Bayer AG 191
BP plc 194
BV Chassis Systems LLC, see ThyssenKrupp AG
Combined Metals of Chicago, see AK Steel Holding
Delphi Corporation 196
Denso Corporation 197
DNN Galvanizing, see National Steel Corporation
Double Eagle Steel Coating Company, see United States
Steel Corporation
Dow Chemical Company 198
DSM NV 201
DuPont (EI) de Nemours 203
DuPont Dow Elastomers LLC 205
Dyneon LLC, see 3M Company
Engelhard Corporation 207
General Electric Company 208
GKN plc 211
Goodrich (BF) Performance Materials, see Noveon
GOR Applicazioni Speciali SpA, see Solvay SA
Hoeganaes Corporation, see GKN plc
Honeywell International Incorporated 213
Hydro Aluminium A/S, see Norsk Hydro ASA
Inergy Automotive Systems, see Solvay SA
INTERMET Corporation 215
Intier Automotive, see Magna International Incorporated
Johnson Matthey plc 217
Kaiser Aluminum Corporation 218
Ken-Mac Metals, see ThyssenKrupp AG
LNP Engineering Plastics, see General Electric Company
Magna International Incorporated 220
Material Sciences Corporation 222
Meridian Technologies, see Norsk Hydro ASA
Minnesota Mining and Manufacturing Company, see 3M
Company
National Steel Corporation 223
Norsk Hydro ASA 224
Noveon Incorporated 226
Olympic Laser Processing, see United States Steel
Phillips Plastics Corporation 227
Schulman (A.) Incorporated 228
Solutia Incorporated 230
Solvay SA 231
Spartech Corporation 234
Sunprene Company, see Schulman (A.) Incorporated
3M Company 236
ThyssenKrupp AG 238
Ti-Pro LLC, see Titanium Metals Corporation
TIMET, see Titanium Metals Corporation
Titanium Metals Corporation 241
United States Steel Corporation 242
VAW aluminium AG, see Norsk Hydro ASA
Worthington Specialty Processing, see United States Steel
Corporation
Other Companies Mentioned in Study 245
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I
Summary Table 3
SECTION II
1 North America Macroeconomic Environment 7
2 United States Macroeconomic Environment 8
3 Canada Macroeconomic Environment 10
4 Mexico Macroeconomic Environment 11
5 North America Light Vehicle Overview 13
6 United States Light Vehicle Overview 14
7 Canada Light Vehicle Overview 15
8 Mexico Light Vehicle Overview 17
9 Selected Materials Pricing Trends 35
SECTION III
1 Advanced Materials Demand: North America Light Vehicle
Market 44
2 Advanced Metals Demand: North America Light Vehicle Market 46
3 High Strength Steel Demand: North America Light Vehicle
Market 49
4 Aluminum Demand: North America Light Vehicle Market 52
5 Stainless Steel Demand: North America Light Vehicle Market 54
6 Powder Metals Demand: North America Light Vehicle Market 56
7 Magnesium Demand: North America Light Vehicle Market 59
8 Low Volume Metals Demand: North America Light Vehicle
Market 60
9 Platinum Group Metals Demand: North America Light Vehicle
Market 63
10 Titanium Metals Demand: North America Light Vehicle Market 66
11 Advanced Plastics Demand: North America Light Vehicle
Market 67
12 Engineered Plastics Demand: North America Light Vehicle
Market 70
13 Nylon Demand: North America Light Vehicle Market 72
14 Acrylonitrile-Butadiene-Styrene Demand: North America
Light Vehicle Market 74
15 Thermoplastic Polyester Demand: North America Light
Vehicle Market 76
16 Polycarbonate Demand: North America Light Vehicle Market 78
17 Polyphenylene Oxide Demand: North America Light Vehicle
Market 80
18 Other Engineered Plastics Demand: North America Light
Vehicle Market 83
19 Thermoplastic Elastomers Demand: North America Light
Vehicle Market 86
20 Thermoplastic Polyolefin Demand: North America Light
Vehicle Market 88
21 Thermoplastic Vulcanizate Demand: North America Light
Vehicle Market 89
22 Styrenic Block Copolymer Demand: North America Light
Vehicle Market 90
23 Thermoplastic Polyurethane Demand: North America Light
Vehicle Market 91
24 Copolyester Elastomer Demand: North America Light Vehicle
Market 92
25 Other Thermoplastic Elastomer Demand: North America Light
Vehicle Market 93
SECTION IV
1 Advanced Materials Demand by Application: North America
Light Vehicle Market 96
2 Engine & Mechanical Advanced Materials Demand:
North America Light Vehicle Market 99
3 Engine & Mechanical Metals Demand: North America Light
Vehicle Market 101
4 Engine & Mechanical Advanced Plastics Demand: North
America Light Vehicle Market 115
5 Structural & Exterior Advanced Materials Demand: North
America Light Vehicle Market 119
6 Structural & Exterior Advanced Metals Demand: North
America Light Vehicle Market 121
7 Structural & Exterior Advanced Plastics Demand: North
America Light Vehicle Market 126
8 Interior Advanced Materials Demand: North America
Light Vehicle Market 131
9 Interior Metals Demand: North America Light Vehicle Market 133
10 Interior Plastics Demand: North America Light Vehicle
Market 137
SECTION VI
1 Sales of Selected North American Light Vehicle Advanced
Materials Suppliers, 2001 160
2 Selected Acquisitions & Divestitures 167
3 Selected Cooperative Agreements 177
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II
1 Simplified Decision Tree for Improving Fuel Economy 5
2 US Light Vehicle Production by Company, 2001 20
3 Canada Light Vehicle Production by Company, 2001 21
4 Mexico Light Vehicle Production by Company, 2001 22
5 Selected Global Advanced Materials Supply, 2001 41
SECTION IV
1 Advanced Materials Demand by Application Area, 2001 97
2 Aluminum Penetration in Selected Applications, 1992-2001 103
3 Light Vehicle Stainless Steel Exhaust System Penetration,
1992-2001 107
4 Big Three North American Light Vehicle Powder Metal
Connecting Rod Penetration, 1992-2001 109
5 Light Vehicle Plastic Fuel Tank Penetration, 1992-2001 117
SECTION V
1 Light Vehicle Weight Dynamics, 1992-2001 144
2 Passenger Car Weight to MPG Comparison, 2001 145
3 Light Truck Weight to MPG Comparison, 2001 146
4 Traditional North American Automotive Business System 148
5 North American Business System, 2003 150
6 Implications for Suppliers of Business Model Shift 152
7 Automotive OEM Options Regarding Materials 153
SECTION VI
1 North American Automotive Advanced Materials Supplier
Market Share, 2001 161
