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Asian automakers still reluctant to use more aluminum

There's a logical progression of technology in the auto industry. We've seen it with things like carbon-ceramic brakes, which use to be the sole domain of six-figure sports cars, where they often cost as much as an entry level Toyota Corolla. Now, you can get them on a BMW M3 (they're still pricey, at $8,150). Who knows, maybe in the next four a five years, they'll be available on something like a muscle car or hot hatchback. Aluminum has had a similar progression, although it's further along, moving from the realm of Audi and Jaguar luxury sedans to Ford's most important product, the F-150. With the stuff set to arrive in such a big way on the market, we should logically expect an all-aluminum Toyota Camry or Honda Accord soon, right? Um, wrong. Reuters has a great report on what's keeping Asian manufacturers away from aluminum, and it demonstrates yet another stark philosophical difference between automakers in the east and those in the west. Of course, there's a pricing argument at play. But it's more than just the cost of aluminum sheet (shown above) versus steel. Manufacturing an aluminum car requires extensive retooling of existing factories, not to mention new relationships with suppliers and other logistical and financial nightmares. Factor that in with what Reuters calls Asian automaker's preference towards "evolutionary upgrades," and the case for an all-aluminum Accord is a difficult one. Instead, manufacturers in the east are focusing on developing even stronger steel as a means of trimming fat, although analysts question how long that practice can continue. Jeff Wang, the automotive sales director for aluminum supplier Novelis, predicts that we'll see a bump in aluminum usage from Japanese and Korean brands in the next two to three years, and that it will be driven by an influx of aluminum-based vehicles from western automakers into China. Only time will tell if he's proven right. News Source: ReutersImage Credit: Sean Gallup / Getty Images Plants/Manufacturing Honda Hyundai Mazda Nissan Toyota Technology aluminum

Honda and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico