3. Thanks to New F-150, a Run on Aluminum

Speed Read:

Ford’s new alu­minum-body F-150 has caused a fren­zy among com­pet­i­tive OEMs, who are ink­ing deals with alu­minum sup­pli­ers.

Since the eas­i­est way to improve fuel econ­o­my is by reduc­ing weight, alu­minum is like­ly to be in high demand. And, in the short term, there’s not enough alu­minum to go around.

Drill-Down Details:

  • Tough new CAFE stan­dards dri­ving OEMs to find light­weight mate­ri­als
  • Since alu­minum is light and strong, it’s a log­i­cal choice
  • Ford has much of the world’s auto­mo­tive-grade alu­minum locked up to build those F-150s
  • But Nov­el­is, Alcoa, and oth­er alu­minum man­u­fac­tur­ers are busy adding capac­i­ty
  • More alu­minum-bod­ied pick­ups in the works; same for SUVs
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