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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

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Mazda considering a 'hyper' Mazda3 with the 250-hp 2.5-liter turbo four

Mazda boss Akira Marumoto said last year there'd be no Mazdaspeed version of the new Mazda3 because the hot hatch segment wasn't a priority for the carmaker. Then Mazda engineer Dave Coleman told Road & Track that without "an engine on the shelf that would fit properly," an MPS variant made no sense. The first reader comment on our Coleman post read, "Engine — you have it; cue up the 2.5T." Mazda might have been listening. Program manager Kota Beppu told Autocar he'd like a "hyper" Mazda3, the outlet figuring the 2.5-liter four-cylinder turbo would make the most sense for power. Autocar wrote "the project had not been officially signed off, [but] insiders suggest that is a formality." When Car and Driver queried Mazda and its sources about the report, the magazine realized "the company is seriously considering a high-performance hot hatch." What's more, "Drew Cary, senior manager for brand communications, said, 'We encourage people to ask for it, though. Our planners and executives are watching and listening to fans.'" The turbocharged 2.5-liter SkyActiv-G four-cylinder — which doesn't sell in Europe — makes 250 hp on premium gasoline and 310 pound-feet of torque in the Mazda6, CX-5 and CX-9. A next-generation SkyActiv-G is predicted on the way next year, bringing more boost and power. Even as is, we're talking a chunky lump of power to send to the front wheels, and Beppu mentioned torque steer. The new Mazda3's all-wheel drive would alleviate that bugbear. Unlike the raw, fast-twitch reflexes of the last Mazdaspeed3 from 2013, Beppu says a new model "needs to be responsible and friendly ... more friendly than a Golf GTI." And, "It should be fast." The polished looks and interior address the necessary perceptions. CD's done the math on the current 2.5-liter and predicts a five-second sprint to 60 miles per hour, which is Volkswagen Golf R and Honda Civic Type R territory, so GTI comparisons could be a case of aiming low. Imagine a 300-hp engine with a touch more torque and a six-speed manual ... If Mazda follows through with such a product, it could take two years to get the green light. However, we're told that Mazda's Los Angeles research and development center has already built a proof-of-concept to encourage and anticipate that green light.