Lakshmi Mittal says automakers should stick with steel


ArcelorMittal ([[MT] -0.3%) is fighting back against aluminum's advances in the U.S. and European auto industries by investing in fast-growing car markets, such as China and Mexico, CEO Lakshmi Mittal says.

Mittal also challenges claims that aluminum is invariably lighter, saying the aluminum industry uses outdated data when comparing its metal to steel and that new forms of steel "can provide all the weight reduction that auto producers require to satisfy the new fuel-efficiency standards, for all types of vehicle."

A recent report from Ducker Worldwide said 18% of all vehicles will have all-aluminum bodies by 2025 vs. less than 1% now, and that Ford’s move to use an aluminum body for its 2015 F-150 pickup signals a shift by automakers toward lightweight materials for pickups and SUVs to meet tougher fuel-economy standards.

ETFs: SLX, JJU

From other sites
Comments (3)
  • Philip Marlowe
    , contributor
    Comments (1597) | Send Message
     
    Check out SHLO for a good small cap bet on the industry light-weighting trends (both in steel and aluminum).
    17 Jun 2014, 10:54 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    GMO
    17 Jun 2014, 10:56 AM Reply Like
  • sethmcs
    , contributor
    Comments (3573) | Send Message
     
    Well if my experience with aluminum wheels (they corrode and leak) is indicative the expected performance of aluminum cars. I'll pass.
    17 Jun 2014, 10:59 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs