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EuroWire – May 2012

24

Transatlantic cable

The increasing age of vehicles on American roads indicates that

the imagined limits of vehicular endurance may not be real limits

at all. (“As Cars Are Kept Longer, 200,000 Is the New 100,000,”

16

th

March).

The

Times

’s Mr Ford took note of the “common” phenomenon of

online classi ed ads o ering second hand Hondas, Toyotas and

Volvos with 150,000 or 200,000 miles – or more – on them, not

as parts donors but as vehicles with some useful life left. As he

sees it, several factors have aligned to make pushing a car farther

much more realistic.

†

For one, customer satisfaction surveys show cars having

fewer and fewer problems with each passing year. Much of

this improvement is a result of intense global competition.

A car maker simply cannot allow its products to leak oil,

break down, or wear out prematurely.

†

Another, less obvious, factor has been the government-

mandated push for lower emissions. “The California Air

Resources Board and the EPA have been very focused on

making sure that catalytic converters perform within 96 per

cent of their original capability at 100,000 miles,” Jagadish

Sorab, technical leader for engine design at Ford Motor, told

the

Times

. “We needed to reduce the amount of oil being

used by the engine to reduce the oil reaching the catalysts.”

This source also pointed out that, 15 years ago, piston rings,

responsible for sealing combustion in the cylinder, would

show perhaps 50 microns of wear over the useful life of a

vehicle. Today, that total is under 10 microns.

†

And materials are much improved. Ford Motor uses very

durable, diamond-like carbon nishes. It has tested its

newest breed of EcoBoost engines, in the F-150 pickup, for

250,000 miles. Mr Sorab declared, “When we tear the engines

down, we cannot see any evidence of wear.”

Dexter Ford observed that the trend toward better,

longer-lasting cars seems to have begun back in the ’60s,

when the rst imports from Asia started to encroach on

American and European car makers’ sales gures. Now, he

wrote: “Because of the improving overall quality of today’s

automobiles, many are discovering that it is entirely possible

for a driver to wear out long before his or her automobile.”

Metals

Federal aid for the auto industry entails an

incidental but substantial bene t:

restored funding for lightweight steel

On 22

nd

March, at Ohio State University, President Barack Obama

announced $14.2 million in new US Department of Energy

(DOE) grants to accelerate the development of high-strength,

lightweight carbon bre composites and advanced steels and

alloys. The purpose is to help vehicle manufacturers improve

the fuel economy of cars and trucks while maintaining and

improving safety and performance, as well as reducing American

dependence on foreign oil.

Ron Krupitzer, vice president of automotive applications for the

steel advocacy group Steel Market Development Institute, said

the announcement was encouraging for steel makers. Since the

year 2000, the federal government had funded steel research

by way of the US Automotive Materials Partnership – a group

consisting of the car makers General Motors, Ford Motor, and

Chrysler. But that funding ended last year.

“It is good news that advanced high strength steel is o cially

now part of a government programme to address fuel economy

standards,” Mr Krupitzer said. “There’s a growing realisation

within the car community and the government that there are

bene ts to gain from advanced high-strength steel.”

Dustin Walsh, writing in

Crain’s Detroit Business

(23

rd

March),

presented statistics pertinent to the federal requirement that

auto maker eets achieve 54.5 miles per gallon (mpg) fuel

e ciency by 2025. According to the American Iron and Steel

Institute, advanced high-strength steels are currently 25 per

cent lighter than traditional automotive steel. AISI said that, in

2010, steel made up 60 per cent of a car, with 17 per cent of that

supplied by high-strength steel of varying grades. According to

a Ducker Worldwide study, these grades are projected to grow

by more than 300 per cent by 2020. Currently, no US steel maker

produces high grades of advanced high-strength steel.

Mr Walsh recalled that funding for advanced high-strength steel

was a source of contention in January, after the DOE in July 2011

conditionally approved a $730 million loan to Michigan-based

Severstal Dearborn toward $1 billion in plant improvements

for making high-grade steels. But members of Congress from

other steel making states raised objections, and the DOE denied

the loan. Pittsburgh-based US Steel, in a joint venture with

Japan-based Kobe Steel Ltd, will begin operating a similar line

to Severstal’s proposed line at its Pro-Tec Coating Co plant in

Leipsic, Ohio, by the end of 2012.

†

Sergei Kuznetsov, CEO of Severstal Dearborn, said by email

to

Crain’s

that Mr Obama’s announcement, in Ohio, was

“yet another con rmation” of the importance of advanced

high-strength steels as materials critical to energy-e ciency

in automobiles. But he confessed to some perplexity, in

light of the DOE’s January decision against Severstal’s loan

application. He wrote: “Our Dearborn-based project is aimed

at the production of exactly the advanced and ultra-high

strength steels that the DOE is supporting.”

Elsewhere in steel . . .

†

Legislation pending in Ohio would allow local steel

maker AK Steel Corp to convert waste gas released by its

manufacturing processes into power for sale. As reported by

the

Middletown Journal

(26

th

February), Senate Bill 289 would

widen the legal de nition of a renewable energy resource

to permit the bracketing of waste gas with such sources

of energy as wind and solar power. If the bill is passed, AK

would earn credits for power generated at its plant that

would be negotiable in the state’s renewable energy market.

Ohio companies that generate renewable energy can sell

such credits to less environmentally-friendly companies or to

organisations that simply wish to support renewable energy.

According to Air Products and Chemicals Inc, aspirant

owner-operator of the conversion facility, roughly 1 million

MWh (megaWatt hours) of steam and electricity energy

generated by the $310 million waste gas-powered plant

would be used to power AK Middletown.

The Ohio Environmental Council, a “green” group, backs the

proposal but warned that passage of the bill could prompt

a ood of credits into the state’s renewable energy market.

The concern is that this has potential to unbalance the

market for producers of energy from other, more traditional,

renewable sources.

According to data from 2010, AK Steel’s environmental

capital investment in the three years 2007 through 2009 was

over $5.2 million. Its environmental compliance costs for the

period totalled almost $360 million.