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Child cobalt miners: Automakers pledge ethical minerals sourcing for EVs

BERLIN - Leading carmakers including Volkswagen and Toyota pledged on Wednesday to uphold ethical and socially responsible standards in their purchases of minerals for an expected boom in electric vehicle production. Demand for minerals such as cobalt, graphite and lithium is forecast to soar in the coming years as governments crack down on vehicle pollution and carmakers step up their investments in electric models. To cover its plans for more than 80 new models by 2025, Volkswagen alone is looking for partners in China, Europe and North America to provide battery cells and related technology worth more than 50 billion euros ($59 billion). Talks with major cobalt producers, including Glencore, at VW's Wolfsburg headquarters last week ended without a deal. More than half of the world's cobalt comes from the Democratic Republic of Congo, a country racked by political instability and legal opacity, and where child labor is used in mines. On Wednesday, a group of 10 leading passenger-car and truck manufacturers announced an initiative to jointly identify and address ethical, environmental, human and labor rights issues in raw materials sourcing. The partnership dubbed "Drive Sustainability" consists of VW, Toyota Motor Europe, Ford, Daimler, BMW, Honda, Jaguar Land Rover, Volvo Cars and truckmakers Scania and Volvo. The alliance "will assess the risks posed by the top raw materials (such as mica, cobalt, rubber and leather) in the automotive sector," said Stefan Crets of the CSR Europe business network. "This will allow Drive Sustainability to identify the most impactful activities to pursue" to address issues within the supply chain.Reporting by Andreas Cremer.Related Video: Image Credit: Michael Robinson Chavez/The Washington Post via Getty Images Green BMW Ford Honda Jaguar Land Rover Mercedes-Benz Automakers Toyota Volkswagen Volvo Green Automakers Green Culture Electric Scania ethics mining

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

Subaru to stop building Camry for Toyota in the US

It was back in 2007 that Subaru of Indiana Automotive, under contract from Subaru minority shareholder Toyota, built the first Toyota Camry at its plant in Lafayette, Indiana. Rumblings of the end of that contract work have been around for a while, as Subaru talked of expanding capacity to build more units and add a line for the Impreza, and Toyota talked of moving Camry production to its Georgetown, KY plant. The news was official internally last November when SIA Executive Vice President Tom Easterday told the Louisville Courier-Journal that Camry production would end. Now, Automotive News reports that both automakers have admitted publicly that the end will come in 2016.
SIA currently has a 170,000-unit capacity devoted to the home-brand Legacy and Outback models, while a $400-million expansion increases that to 300,000 units to prepare the facility for Impreza production in two years. Freeing up the 100,000 units of production devoted to the Camry means a 400,000-unit capability, which is far more than Subaru needs at the moment, but the Toyota exit will allow it to expand any way it sees fit. Subaru has said it will absorb the workers on the Camry line and no jobs will be lost, the mayor of Lafayette saying the development could change the timetable for the expansion.